MNRB Holdings Bhd revenue rose 14.6 per cent to RM1.345 billion for the financial year ended March 31, 2010 from RM1.174 billion last year.

Executive vice-president and group chief financial officer, Norazman Hashim, said the higher revenue was the result of an increase in the gross reinsurance premium written by its wholly-owned subsidiary, Malaysia Reinsurance Bhd (Malaysian RE), and the increase in wakalah fees earned by Takaful Ikhlas Sdn Bhd and MNRB Retakaful Bhd (MRT).

"Malaysian Re and Takaful contributed 85 per cent (RM1.143 billion) and 14 per cent (RM190.2 million) respectively to the group's revenue, followed by one per cent by MRT," he told reporters after announcing the group's unaudited financial results.

Malaysian Re and MRT posted a higher net profit of RM88.596 million and RM4.508 million respectively for the year while Takaful posted a lower net profit of RM6.789 million.

Norazman said the gross insurance premium written by Malaysian RE for the year amounted to RM1.091 billion, an increase of 16 per cent due to higher gross premium from the overseas treaty business as well as increase in the gross premium from the local motor and fire business.

"Takaful recorded an improvement in its wakalah fees to RM181.6 million from RM157.3 million recorded in the financial year ended 2009," he explained.

The group's net profit increased by 73 per cent to RM45.5 million from RM26.3 million previously due to the effect of release in unearned premium reserves of Malaysian Re as a result of the change in the estimation during the year.

"The higher net profit was also contributed by the higher share of profit of the reinsurance associate, higher investment income and higher wakalah fees," he elaborated.

However, the increase in net profit was partly offset by the provision for impairment loss of RM44.5 million made on MNRB's investment in Principle Insurance Holdings Ltd (PIHL).

On April 28, PIHL announced the conditional sale of its subsidiaries Principle Insurance Company Ltd and Principle Marketing Services Ltd to Al Salam Group Holding Company K.S.C.C - a member company of the Kuwait-based Al Madina Group, for an undisclosed sum.

Given the uncertainty surrounding PIHL, the group has made a full provision amounting RM44.5 million in the current period for the impairment of its investment in PIHL.

"PIHL has agreed to accept this offer from the Kuwait based company. Their intention is to recommence the trading and they have indicated an injection of 25 million pounds for recapitalising.

"MRNB hopes to see recommencing of business by third or fourth quarter this year," he said.

On expansion, he said MNRB has plans to expand its underwriting business in overseas besides focusing on the family business category of MRT.

"We are looking at expansion in various countries for MRT. MRT has two categories- the general and family business."

Bernama