Tune Protect Group: A Remarkable Turnaround in 1Q25 – What Drove the 100% PAT Growth?
By Your Name/Blog Name – May 28, 2025
Tune Protect Group Berhad (TUNEPRO), a key player in Malaysia’s insurance landscape, has just unveiled its First Quarter 2025 (1Q25) financial results, and the headlines are certainly grabbing attention. The Group kicked off its new financial year with an impressive 100% Year-on-Year (YoY) growth in Profit After Tax (PAT), driven by a notable improvement in its net insurance service result. This turnaround from a loss in the previous year’s corresponding quarter signals a strong start and warrants a closer look into the factors underpinning this performance.
Unpacking the Core Financial Highlights
Tune Protect’s 1Q25 report showcases a robust financial resilience, with several key metrics pointing towards a positive trajectory. Let’s dive into the numbers that truly stand out:
Exponential PAT Growth
Perhaps the most striking figure is the Group’s PAT. From a Loss After Tax (LAT) in 1Q24, Tune Protect has swung into significant profitability this quarter.
1Q25 PAT
RM 7.4 million
1Q24 LAT
RM 3.9 million
This remarkable more than 100% growth is primarily attributed to the improvement in net insurance service result and better management of total other income and expenses.
Notable Net Insurance Service Result
The core of an insurer’s profitability lies in its insurance service result. Tune Protect delivered a significant positive shift here, reflecting better claims management and underwriting discipline.
1Q25 Net Insurance Service Result
RM 5.8 million
1Q24 Net Insurance Service Result
RM (9.3 million)
This more than 100% growth was supported by a 16.4% reduction in the combined ratio, a key measure of an insurer’s underwriting profitability.
Improved Combined Ratio
A lower combined ratio indicates better operational efficiency in underwriting and claims handling. Tune Protect’s figure for 1Q25 is a testament to its enhanced claims experience, particularly in the Motor and Fire segments.
1Q25 Combined Ratio
93.4%
1Q24 Combined Ratio
109.8%
This 16.4 percentage point improvement is a strong indicator of healthier underwriting practices.
Profit Before Tax (PBT) Trend
The positive momentum is also clearly visible in the Group’s Profit Before Tax, which has shown a consistent upward trend over the last three quarters.
1Q25 PBT
RM 10.6 million
1Q24 PBT
RM (4.1 million)
This positive bottom line was largely driven by favourable claims experience in Motor and Fire, alongside continuous efforts in the travel segments.
Overall Financial Snapshot
Here’s a comprehensive look at Tune Protect Group’s financial overview for 1Q25 compared to 1Q24:
| Tune Protect Group (RM’mil) | 1Q25 | 1Q24 | YoY |
|---|---|---|---|
| Insurance revenue | 88.5 | 94.6 | -6.5% |
| Net incurred claims and attributable expenses | (39.6) | (57.1) | -30.6% |
| Amortisation of insurance acquisition cash flow | (30.7) | (32.1) | -4.4% |
| Allocation of reinsurance premiums | (12.4) | (14.8) | -15.9% |
| Net insurance service result | 5.8 | (9.3) | >100% |
| Combined ratio | 93.4% | 109.8% | -16.4% |
| Total investment income | 8.1 | 9.4 | -14.2% |
| Total other income and expenses | (2.2) | (4.4) | -49.2% |
| Share of results | (1.0) | 0.3 | >-100% |
| Profit/(loss) before tax | 10.6 | (4.1) | >100% |
| Profit/(loss) after tax | 7.4 | (3.9) | >100% |
While insurance revenue saw a slight decline of 6.5% to RM88.5 million, this was partially offset by an increased weightage in the Group’s Travel portfolio. The higher acquisition costs in travel were compensated by improved claims and attributable expenses, highlighting strategic portfolio management.
Navigating Risks and Charting Future Prospects
No financial report is complete without an honest look at the challenges and the strategic responses. Tune Protect’s 1Q25 report provides insights into both.
External Headwinds and Investment Strategy
The Group’s investment income saw a dip, primarily due to global market volatility influenced by ongoing uncertainties like tariff policies. Despite this, Tune Protect maintains a largely conservative investment strategy. The Group has rebalanced its portfolio into low-risk unit trust funds predominantly invested in Malaysian Government Securities, Government Investment Issues, and Government Guaranteed Corporate Bonds, aiming for stability and potential upside from anticipated central bank rate cuts.
Strategic Expansion in Travel Segment
The travel insurance segment continues to be a growth engine for Tune Protect. It delivered a 22% YoY revenue increase, driven by revenue optimisation and take-up rate initiatives.
- Market Presence: Activated 6 of the top 10 key agents for its airline partner, bringing the total to 263 travel agents in Malaysia.
- Regional B2B Expansion: Extended into four new markets: Zambia, Sri Lanka, Pakistan, and Kenya.
- Digital Partnerships: Forged strategic alliances with AirPaz (Malaysia), Gettgo (Thailand), and TrueDtac’s e-SIM platform, enhancing accessibility to travel and personal accident insurance.
- Product Innovation: Launched Pet Health insurance in EMEIA via online aggregator Shory, showcasing agility in catering to evolving consumer needs.
- Take-Up Rates: Achieved a 50% surge in take-up rates on airline platforms, boosted by enhanced UI/UX. The Delay Lounge Pass within the AirAsia Value Pack Bundle has seen strong traction in Vietnam and Indonesia, with 500,000 policies sold as of March 2025.
Improving Motor Portfolio Performance
The Motor segment demonstrated a second consecutive quarter of improvement in its Net Claims Incurred (NCI) ratio, reflecting enhanced claims management practices. The Group achieved a 5-percentage point YoY reduction in its loss ratio in 1Q25, a clear sign of improved operational efficiency.
Underwriting profitability is being driven through price and portfolio optimisation. The average premium for Private Car policies increased by 6% YoY, aligning with Phase 2A repricing. Furthermore, the portfolio mix is evolving positively, with the motorcycle segment growing to 18.4% and higher-value Private Car Comprehensive policies increasing to 25.5%.
Future Growth Pillars and Innovative Offerings
Tune Protect is strategically focusing on three key pillars for its travel segment:
- Expanding Market Presence and Reach: Planning to extend product offerings into Pakistan and Uzbekistan, and broadening travel insurance reach through partnerships with online travel agents like AirPaz in Indonesia and Thailand. Inbound travel products will also roll out to the Philippines.
- Establishing a Travel Centre of Excellence: This involves continuous pricing reviews across primary markets to ensure competitiveness.
- Going Beyond Insurance for Travel Experience: Launching innovative travel-related offerings such as “Baggage Shield” (covering sports equipment and checked-in baggage), and diversifying ancillary services with “Flight Watcher” and “Travel eSIM” to unlock new revenue streams and enrich customer engagement. The Delay Lounge Pass will also expand to the Philippines.
Summary and
Tune Protect Group’s 1Q25 results paint a picture of a company executing a successful turnaround, driven by strong improvements in its core insurance service result and effective claims management. The impressive 100% PAT growth from a loss position is a significant achievement, highlighting the positive impact of strategic initiatives across its Motor and Travel segments. While global market volatility impacted investment income, the Group’s conservative investment strategy and strategic rebalancing aim to mitigate these risks.
The focus on expanding its digital travel insurance footprint across Asia and EMEIA, coupled with innovative product offerings and enhanced customer experience, positions Tune Protect for continued growth. The improvements in the Motor segment’s loss ratio and strategic portfolio optimisation further strengthen its overall financial health.
Key risk points to monitor include:
- Global market volatility and its impact on investment income.
- Negative share of results from associate companies, such as the impact from the Myanmar earthquake on its Thailand associate.
- The ability to sustain improved claims experience and combined ratio amidst evolving market conditions.
Overall, Tune Protect appears to be on a promising path, demonstrating resilience and a clear strategic vision for future expansion and profitability.
