Tune Protect Group Berhad (Tune Protect) announced a strong start to the new financial year, reporting a first-quarter (Q1 2025) profit after tax (PAT) of RM7.4 million, a reversal from a loss of RM3.9 million in the same period last year.
The rebound was underpinned by improved claims performance in its motor and fire insurance lines and continued expansion of its travel insurance operations.
The group reported a net insurance service result of RM5.8 million for Q1 2025, up from a loss of RM9.3 million in the prior-year quarter.
The improvement was attributed to a 30.6% reduction in net incurred claims and attributable expenses, contributing to a more favourable combined ratio of 93.4%.
“The improved combined ratio of 93.4% was due to more favourable claims experience for the motor and fire segments. On the other hand, the negative share of results recorded by our associate company in Thailand was due to claims on impact of the earthquake in Myanmar, causing aftershocks in Thailand in 1Q25,” said Tune Protect CEO How Kim Lian (pictured).
Although total insurance revenue declined by 6.5% year-over-year to RM88.5 million, the group saw a 22% increase in travel segment revenue. Expansion in key regional markets and increased uptake on airline booking platforms helped cushion the overall topline decline.
The group has extended its travel insurance presence to Zambia, Sri Lanka, Pakistan, and Kenya, and has added digital distribution partners including AirPaz (Malaysia), Gettgo (Thailand), and TrueDtac’s e-SIM platform. In Vietnam and Indonesia, Tune Protect launched a Delay Lounge Pass that recorded 500,000 policy sales by March 2025.
In the motor insurance segment, Tune Protect reported a second consecutive quarter of improved performance.
The loss ratio fell by five percentage points year-over-year, attributed to stronger claims management.
Average premiums for private car policies increased by 6%, and the mix of higher-value policies also improved slightly.
The company noted continued growth in the motorcycle segment, which accounted for 18.4% of the portfolio in Q1, up from 17.6% in Q4 2024.
Investment income fell 14.2% to RM8.1 million in Q1, a decline the group attributed to volatility in global markets amid ongoing trade policy uncertainty in the US.
However, the company completed a portfolio rebalancing during the quarter, favouring low-risk unit trusts and government-backed securities.
“In 1Q25, we completed the rebalancing of our portfolio into investment in low-risk unit trust funds which are predominantly invested in Malaysian Government Securities, Government Investment Issues, and Government Guaranteed Corporate Bonds. Our unit trust funds have benefited from the strong fixed income rally in April 2025, with potential upside from the anticipated central bank’s rate cut,” How said.
Tune Protect is prioritising three core strategies in its travel business:
Planned initiatives include launching Baggage Shield (covering sports and checked baggage), expanding into Pakistan and Uzbekistan, and introducing Sports PA and refund insurance via Ticket2U across additional markets.
In the Philippines, the group will introduce its Delay Lounge Pass and plans to roll out new features such as Flight Watcher and Travel eSIM as part of its product innovation roadmap.
For FY2024, the group posted RM2.7 million in PAT, up from a loss the previous year. Q4 alone contributed RM9.5 million in PAT.
Despite modest annual insurance revenue growth of 4%, cost efficiencies and exits from less profitable segments contributed to margin recovery.
