KUALA LUMPUR (Aug 25): Tune Protect Group Bhd posted a net loss of RM19.8 million for the second quarter ended June 30, 2022 (2QFY22), compared with a net profit of RM14.25 million a year earlier.

This was despite a 29% boost in its revenue for the quarter to RM142.82 million from RM110.69 million last year, according to the insurer's filing on Thursday (Aug 25).

The insurer said its earnings were dragged by a RM17.7 million drop in underwriting profits, RM19.7 million fall in investment income as well as an increase of RM5.7 million in an associate's share of losses.

"The decrease of RM17.7 million in underwriting profits was mainly attributable to the increase in unearned premiums of RM34.8 million whereas total fee and commission expenses (RM35.73 million) were recognised immediately during the quarter," it added.

For the cumulative six months ended June 30, 2022, Tune Protect's net loss widened to RM22.78 million from RM1.2 million a year ago, mainly attributed to an RM18.4 million decrease in underwriting profits and an RM8 million increase in an associate's share of losses.

It explained that the decrease of RM18.4 million in underwriting profits was mainly because of higher unearned premiums of RM51 million whereas total fee and commission expenses (RM53.92 million) were recognised immediately in the quarter under review.

In terms of its prospects, Tune Protect said that it expects its "three main pillars" — namely lifestyle, health and small and medium enterprise — to experience healthy growth as the economy recovers, contributed especially by its partnerships and agency channels.

"The new collaborations with strategic partners and our continued innovation of B2B (business-to-business) platforms and B2C (business-to-consumer) apps in widening the distribution of products are expected to contribute positively to the overall business of the group, notwithstanding corresponding fees and commissions.

"Additionally, the group is also expected to benefit from the unearned premium reserve over the year arising from the high net written premium growth in the current quarter (2QFY22)," it added.

However, the group said it expects its investment return to remain volatile in the coming quarters given uncertainties in the global market outlook, exacerbated by global inflation and risks of a global recession.

At noon break on Thursday, shares in Tune Protect settled down one sen or 2.86% to 34 sen, giving it a market capitalisation of RM270.63 million.