KUALA LUMPUR, Aug 28 (Bernama) -- MNRB Bhd, which posted a 20 per cent revenue growth in its financial year ended March 31, 2009, expects lower growth in the current financial year due to the softer reinsurance market.
In financial year 2009, the group's revenue surged to RM1.2 billion from RM978.6 million in the preceding year.
Its pre-tax profit, however, declined to RM40.5 million from RM194 million a year ago.
MNRB chairman Sharkawi Alis said for the current financial year, the group expects to achieve an 8.5 per cent increase in revenue this year with lower premium growth from its subsidiaries.
Lower growth was also expected as the group planned to be more selective in underwriting all classes of insurance, he said.
"We anticipate growth this year to be lower because of softening premium and we will also be practising selective underwriting. This mean we are selective about the businesses that we underwrite," Sharkawi said.
"We want to pick and choose. So, that's why we anticipate growth to be not at same level as the previous financial year," he told reporters after the group's annual general meeting here today.
Despite expectation of lower growth, Sharkawi said that MNRB was still positive of achieving the RM1 billion premium target it had set earlier.
He said that subsidiary Malaysia Reinsurance Bhd (Malaysian RE) will continue to be the major contributor, with its premium expected to see 10 to 15 per cent growth this year.
Malaysian RE registered a 20 per cent increase in premium to RM941 million in financial year 2009 compared to RM784.3 million in the previous year.
MNRB's takaful arm, Takaful Ikhlas Sdn Bhd, is expected to contribute RM700 million in the current financial year after its contribution rose to RM580.5 million in financial year 2009 from RM428.1 million previously.
Malaysian RE's president and chief executive officer Hashim Harun said to achieve 10 to 15 per cent growth, the company would focus on expanding its overseas market, especially in the Middle East.
The company is currently operating in 10 countries, including Kuwait, Indonesia, Sri Lanka and Saudi Arabia.
Hashim said that focus would be given to Saudi Arabia due to its bigger market potential.
"Kuwait is our largest market. Now are are focusing on Saudi Arabia as it offers tremendous opportunities," he said.
Takaful Ikhlas' president and chief executive officer Datuk Syed Moheeb Syed Kamarulzaman said the company was currently in the consolidating phase but expects a premium growth of about 25 per cent.
"If we look at the past few years, we managed to record a very substantial growth of about 30 to 40 percent," he said.
Syed Moheeb said for the current financial year, focus was being given to the non-motor segment under general takaful.
Currently, the company's portfolio is divided 76:24 between family takaful and general takaful, he said.
In financial year 2009, the group's revenue surged to RM1.2 billion from RM978.6 million in the preceding year.
Its pre-tax profit, however, declined to RM40.5 million from RM194 million a year ago.
MNRB chairman Sharkawi Alis said for the current financial year, the group expects to achieve an 8.5 per cent increase in revenue this year with lower premium growth from its subsidiaries.
Lower growth was also expected as the group planned to be more selective in underwriting all classes of insurance, he said.
"We anticipate growth this year to be lower because of softening premium and we will also be practising selective underwriting. This mean we are selective about the businesses that we underwrite," Sharkawi said.
"We want to pick and choose. So, that's why we anticipate growth to be not at same level as the previous financial year," he told reporters after the group's annual general meeting here today.
Despite expectation of lower growth, Sharkawi said that MNRB was still positive of achieving the RM1 billion premium target it had set earlier.
He said that subsidiary Malaysia Reinsurance Bhd (Malaysian RE) will continue to be the major contributor, with its premium expected to see 10 to 15 per cent growth this year.
Malaysian RE registered a 20 per cent increase in premium to RM941 million in financial year 2009 compared to RM784.3 million in the previous year.
MNRB's takaful arm, Takaful Ikhlas Sdn Bhd, is expected to contribute RM700 million in the current financial year after its contribution rose to RM580.5 million in financial year 2009 from RM428.1 million previously.
Malaysian RE's president and chief executive officer Hashim Harun said to achieve 10 to 15 per cent growth, the company would focus on expanding its overseas market, especially in the Middle East.
The company is currently operating in 10 countries, including Kuwait, Indonesia, Sri Lanka and Saudi Arabia.
Hashim said that focus would be given to Saudi Arabia due to its bigger market potential.
"Kuwait is our largest market. Now are are focusing on Saudi Arabia as it offers tremendous opportunities," he said.
Takaful Ikhlas' president and chief executive officer Datuk Syed Moheeb Syed Kamarulzaman said the company was currently in the consolidating phase but expects a premium growth of about 25 per cent.
"If we look at the past few years, we managed to record a very substantial growth of about 30 to 40 percent," he said.
Syed Moheeb said for the current financial year, focus was being given to the non-motor segment under general takaful.
Currently, the company's portfolio is divided 76:24 between family takaful and general takaful, he said.