Tune Protect Group Berhad (TUNEPRO, 5230) has begun its financial year on a strong note, recording a 100% year-on-year (YoY) growth in Profit After Tax (PAT) for the first quarter of 2025 (1Q25). This robust performance was underpinned by a notable turnaround in its net insurance service result and a sustained improvement in operational efficiency.
According to How Kim Lian, Chief Executive Officer of Tune Protect Group, the group posted a net insurance service result of RM5.8 million in 1Q25, a stark improvement from the RM9.3 million loss in the same period last year. This recovery was driven by a 30.6% reduction in net incurred claims and attributable expenses, primarily due to more favourable claims experience in the Motor and Fire segments. The Group’s combined ratio improved to 93.4%, down from 109.8% in 1Q24, reflecting better underwriting performance.
The Group’s PAT rose to RM7.4 million in 1Q25 from a loss after tax of RM3.9 million YoY. Although insurance revenue dipped slightly by 6.5% to RM88.5 million, the decline was partially offset by a stronger showing in the travel insurance portfolio. The increase in travel insurance revenue was attributed to higher take-up rates and expanded distribution channels, which mitigated the impact of higher acquisition costs.
Investment income saw a 14.2% decline to RM8.1 million, largely due to market volatility and uncertainty surrounding US tariff policies. Despite this, the Group maintained a conservative investment strategy, shifting its portfolio to low-risk unit trust funds focused on Malaysian Government Securities and government-backed corporate bonds. This repositioning allowed the Group to benefit from the fixed income rally in April 2025, with further gains anticipated from potential rate cuts.
Tune Protect’s travel segment continued to gain momentum with a 22% YoY increase in revenue. The Group activated six of the top ten key agents for its airline partner in Malaysia and expanded into new B2B markets including Zambia, Sri Lanka, Pakistan, and Kenya. Strategic digital partnerships, such as with AirPaz in Malaysia, Gettgo in Thailand, and TrueDtac in Thailand, supported this growth by improving accessibility to travel and personal accident insurance. In EMEIA, the Group launched Pet Health insurance through the Shory platform, demonstrating agility in addressing emerging consumer needs.
Efforts to optimise pricing and portfolio management contributed to improvements in the Motor segment’s performance. The Group reported a second consecutive quarter of reduced net claims incurred (NCI) ratio, thanks to better claims management practices. A 5-percentage point YoY reduction in the Motor loss ratio and a 6% YoY rise in average premiums for Private Car policies reflected stronger underwriting and pricing discipline. The motorcycle segment’s share grew to 18.4% in 1Q25 from 17.6% in 4Q24, while Private Car Comprehensive policies valued above RM50,000 increased to 25.5% from 25.1%.
Looking ahead, Tune Protect remains focused on three strategic pillars: expanding market reach, establishing a travel centre of excellence, and enhancing the travel experience through value-added services. The Group plans to introduce its insurance offerings in Pakistan and Uzbekistan, launch inbound travel products in the Philippines, and extend its partnership with AirPaz in Indonesia and Thailand. It is also set to roll out innovative products such as Baggage Shield for sports equipment and checked baggage, along with new services like Flight Watcher and Travel eSIM.
The Group’s Delay Lounge Pass – already launched in Vietnam and Indonesia – will soon be available in the Philippines, reinforcing its commitment to delivering comprehensive travel solutions across ASEAN. With over 500,000 policies sold as of March 2025 and a 50% increase in airline platform take-up rates driven by enhanced UI/UX, Tune Protect’s continued digital innovation and customer-centric approach are set to sustain its positive momentum throughout the year.
