Malaysia-based Tune Protect Group Berhad has reported more than double the profit after tax in the first nine months of 2025 (9M25), reaching RM24.5 million, as the general insurer pursued expansion into travel insurance markets across Asia and developed income sources independent of traditional underwriting.
A 10.9 percentage point improvement in combined ratio to 91.9% bolstered Tune Protect’s net insurance service result for the nine-month period, which exceeded prior-year figures by more than 100%. Claims management enhancements and efficiency gains contributed to a 7.2% year-over-year reduction in net incurred claims ratio through September.
Third-quarter results showed divergent trends within the portfolio. Insurance premium revenue contracted 12.7% year-over-year to RM87.5 million, reflecting the company’s deliberate exit from less-profitable business classes. However, profit after tax increased to RM7.5 million despite premium declines and a 3.8% reduction in investment income to RM7.7 million, indicating margin expansion through higher-quality underwriting.
How Kim Lian (pictured), group chief executive officer, acknowledged the near-term revenue trade-off while projecting longer-term recovery. “Although insurance revenue for 3Q25 declined 12.7% YoY in line with the group’s earlier decision to shift towards higher-quality and more profitable business segments, we are still confident that we will regain revenue growth in the long-term in tandem with the uptrend in the travel segment and diversification of our revenue streams,” How said.
The company’s investment holdings reached RM731.7 million by quarter-end, predominantly held in unit trust instruments at 91% alongside 9% in bank deposits. Among unit trusts, fixed income allocations represented 95% of holdings, with the remainder in money market positions.
To strengthen portfolio returns amid the quarterly investment income decline, management implemented a tactical asset allocation adjustment, redeploying unit trust capital from defensive asset funds into corporate bond vehicles. This repositioning positions holdings to capitalise on credit spread expansion and anticipated rate reductions, providing a buffer against insurance underwriting volatility.
Travel insurance emerged as a principal growth avenue, with distribution expansion and product launches throughout the Asian region. By September, ancillary revenue – encompassing technology fees and travel-adjacent services – surged to approximately RM13.18 million from year-start levels, representing a fourfold increase since the first quarter. How attributed the expansion to strategic portfolio diversification. “Our business was further strengthened by the substantial growth in ancillary income and technology fee contribution. This reinforces our strategy to diversify revenue streams beyond insurance,” he said.
Throughout the nine-month period, Tune Protect expanded its travel agent network by 380 representatives in Malaysia and rolled out its Universal Travel Insurance Inbound Plan across 20 Asian territories. The insurer introduced flight disruption coverage for AirAsia customers and unveiled complementary travel services, including electronic SIM cards, ground transportation, and airport lounge privileges. Its partnership with Shopee through PolicyStreet delivered over 100% topline growth in the domestic market segment.
