Tune Protect Reports Strong Q1 2025 Profit Growth and Lower Claims
Tune Protect Group Berhad has started its new financial year on a positive note, reporting significant growth in its first quarter results for 2025. The Group’s performance was marked by a strong rebound in profitability and an improvement in key financial indicators, signalling renewed momentum after challenges in the previous year.
For the first quarter of 2025, Tune Protect recorded a profit after tax (PAT) of RM7.4 million, a notable turnaround from a loss after tax (LAT) of RM3.9 million in the corresponding period last year. This represents more than 100% year-on-year growth in PAT, underpinned by a marked increase in the Group’s net insurance service result, which rose to RM5.8 million from a loss of RM9.3 million in 1Q24. The improvement was mainly attributed to lower net incurred claims, particularly within the Motor and Fire segments, as well as better expense management.
The Group’s combined ratio, a measure of underwriting profitability, also improved to 93.4% from 109.8% a year earlier. This was largely driven by a reduction in net incurred claims and attributable expenses, reflecting enhanced operational efficiency and more favourable claims experience. Specifically, net incurred claims and attributable expenses fell by 30.6% to RM39.6 million in 1Q25, compared to RM57.1 million in 1Q24.
Despite a slight decline in overall insurance revenue by 6.5% to RM88.5 million in the quarter, Tune Protect managed to mitigate the impact through an increased focus on its travel insurance portfolio. The Group’s travel segment delivered a 22% year-on-year increase in revenue, supported by initiatives to optimise revenue and improve take-up rates, particularly in Australia and Japan. Strategic efforts included a premium revision exercise for inbound travel products and a 50% surge in take-up rates on airline platforms, bolstered by enhanced user experience.
Tune Protect has also continued to expand its presence in the travel insurance market across Asia and the EMEIA (Europe, Middle East, India, Africa) regions. The Group has activated key agents for its airline partners, bringing the total number of travel agents in Malaysia to 263 as of April 2025, and has expanded into new markets such as Zambia, Sri Lanka, Pakistan, and Kenya. Distribution channels were further broadened through digital partnerships with companies such as AirPaz in Malaysia, Gettgo in Thailand, and TrueDtac’s e-SIM platform. In EMEIA, the launch of pet health insurance via online aggregator Shory demonstrates Tune Protect’s efforts to address evolving consumer needs.
A major highlight of the quarter was the strong performance of Tune Protect’s Delay Lounge Pass product, now available in Vietnam and Indonesia as part of the AirAsia Value Pack Bundle. This product achieved strong traction, with 500,000 policies sold as at March 2025.
On the investment front, the Group reported a decrease in investment income to RM8.1 million, down 14.2% from RM9.4 million in 1Q24. This decline was attributed to global market volatility and ongoing uncertainty from tariff policies under the current United States administration. In response, Tune Protect completed a rebalancing of its investment portfolio, allocating more resources to low-risk unit trust funds focused on Malaysian Government Securities and government-backed bonds. The Group noted a strong fixed income rally in April 2025, which may offer future upside potential.
Operationally, Tune Protect achieved further improvement in its Motor segment, with a second consecutive quarter of reduced net claims incurred (NCI) ratio. The Group’s loss ratio for Motor improved by 5 percentage points year-on-year, reflecting the impact of enhanced claims management practices. The average premium for Private Car policies, including comprehensive and third-party coverage, increased by 6% year-on-year, consistent with the rollout of new pricing measures. The portfolio mix also shifted, with the motorcycle segment growing to 18.4% and the share of Private Car Comprehensive policies above RM50,000 rising to 25.5%.
Looking ahead, Tune Protect is focused on three main pillars to drive growth: expanding its market reach, establishing a travel centre of excellence, and delivering innovative offerings beyond traditional insurance products. Plans are underway to extend product offerings into new markets such as Pakistan and Uzbekistan and to broaden travel insurance distribution through online partners like AirPaz in Indonesia and Thailand. The Group also aims to roll out inbound travel products to the Philippines and expand ticket refund and sports personal accident insurance through Ticket2U to more markets.
To support these objectives, Tune Protect is preparing to launch new insurance solutions such as Baggage Shield, which will provide protection for sports equipment and checked-in baggage. Other upcoming enhancements include pricing reviews to maintain competitiveness, the expansion of Delay Lounge Pass to the Philippines, and the introduction of new services like Flight Watcher and Travel eSIM. These efforts are designed to diversify revenue streams and strengthen customer engagement across the Group’s travel ecosystem.
