Friday, November 25, 2011

MNRB retreats after warning negative impact from Thai floods

KUALA LUMPUR (Nov 25): MNRB HOLDINGS BHD [] shares retreated in early trade on Friday after the company said that it expected to face a challenging year in view of the impact of the Thailand flood loss.

At 9.15am, MNRB fell 14 sen to RM2.72 with 25,500 shares done.

The company on Thursday said it posted net loss RM5.94 million for the second quarter ended Sept 30, 2011, compared to net profit RM21.26 million a year earlier, due mainly ''higher claims incurred by its ''reinsurance subsidiary.

Its revenue rose 6.98% to RM362.85 million from RM338.97 million in 2010.

Loss per share for the quarter under review was 2.80 sen compared to earnings per share 10 sen a year earlier, while net assets per share was RM4.86.

For the six months ended Sept 30, MNRB's net profit fell to RM37.03 million from RM47.4 million in 2010, while its revenue rose to RM761.55 million from RM725.66 million.

Reviewing its performance, MNRB said the higher revenue was a result of the increase in the gross premium written by the reinsurance subsidiary and the increase in the wakalah fees earned by the takaful and retakaful operator.

MNRB said the results for the period under review also included provisions made by the its reinsurance subsidiary for its share of unprecedented losses incurred on the floods in Thailand, generally regarded as a "non-catastrophic territory".

It said the estimated net impact of the above event to its profit before zakat and taxation was RM55 million.

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