Tune Protect Records 66.5% QoQ PAT Growth, Driven by Strong Non-Travel and Investment Income

How Kim Lian, Tune Protect Group Chief Executive Officer.

KUALA LUMPUR, 27 August 2026 – Tune Protect Group Berhad (“Tune Protect” or the “Group”) continued its positive quarterly momentum in the second quarter of 2026 (2Q26), with profit after tax (PAT) rising 66.5% quarter-on-quarter (QoQ) to RM6.4 million from RM3.9 million in 1Q26. The stronger performance was driven by improved underwriting results, resilient growth in the Non-Travel segment and higher investment income, helping to offset challenges affecting the Travel segment amid geopolitical uncertainties.

On a year-on-year (YoY) basis, however, the Group’s PAT declined 33.2% from RM9.6 million in 2Q25, mainly due to lower investment income and weaker Travel performance. This was partially cushioned by continued growth in the Non-Travel segment, which helped diversify the Group’s earnings base. The net insurance service result improved 45.2% YoY to RM7.5 million from RM5.2 million, supported by lower acquisition costs and reinsurance premiums.

Tune Protect also recorded an improvement in underwriting efficiency, with its combined ratio strengthening by 3.1 percentage points YoY to 90.9% in 2Q26 from 94.0% previously. The improvement reflected better amortisation of insurance acquisition costs and more efficient allocation of reinsurance premiums. On a QoQ basis, the combined ratio also improved significantly from 98.5% in 1Q26, highlighting stronger operational performance.

Group Performance	QoQ	1Q26	2Q26	2Q25	YoY	1H25	1H26	YoY
Insurance revenue (RM mil)	1.4%	80.9	82.0	86.5	-5.2%	175.0	162.9	-6.9%
Net incurred claims & attributable expenses (RM mil)	-7.2%	(39.3)	(36.5)	(36.9)	-1.3%	(75.9)	(75.8)	-0.2%
Amortisation of insurance acquisition cash flow (RM mil)	-0.8%	(27.7)	(27.5)	(32.6)	-15.6%	(63.3)	(55.3)	-12.7%
Allocation of reinsurance premiums (RM mil)	-16.4%	(12.6)	(10.5)	(11.8)	-10.7%	(24.2)	(23.1)	-4.6%
Net insurance service result (RM mil)	>100%	1.3	7.5	5.2	45.2%	11.6	8.7	-25.0%
Combined ratio	-7.6%	98.5%	90.9%	94.0%	-3.1%	93.3%	94.6%	1.3%
Total investment income (RM mil)	21.5%	4.3	5.2	11.5	-54.8%	19.5	9.5	-51.5%
Total other income & expenses (RM mil)	10.2%	(3.9)	(4.3)	(5.8)	-26.6%	(8.7)	(8.2)	-6.5%
Share of results (RM mil)	>-100%	0.05	(0.4)	0.8	>-100%	(0.2)	(0.3)	89.2%
Profit before tax (RM mil)	>100%	1.7	8.0	11.7	-31.4%	22.3	9.7	-56.5%
Profit after tax (PAT) (RM mil)	66.5%	3.9	6.4	9.6	-33.2%	17.0	10.3	-39.4%

The Non-Travel segment remained an important contributor to Tune Protect’s improved quarterly performance, with gross written premium (GWP) increasing 10.1% YoY. Growth was supported by continued expansion in the Motor segment and broader affinity partnerships. Key growth areas included foreign worker protection, motor insurance, fire insurance and solar panel insurance, further strengthening the Group’s diversification strategy.

Meanwhile, the Travel segment continued to face softer demand amid geopolitical tensions, evolving travel patterns and lower airline passenger volumes. Travel GWP declined 23.2% YoY, although Tune Protect’s pricing optimisation initiatives helped narrow average premium gaps while maintaining competitiveness. These efforts contributed to an 8.0 percentage point YoY increase in the take-up rate, strengthening the value proposition of its Travel insurance products.

The Group also expanded its distribution network through business-to-business (B2B) partnerships across Thailand, Vietnam and Malaysia. Its AirAsia WANO relationship continues to support higher conversion rates and broader customer reach, while the integration of value-added services (VAS) is helping improve customer engagement and product differentiation.

For the first half of 2026 (1H26), Tune Protect recorded insurance revenue of RM162.9 million, down 6.9% from RM175.0 million in 1H25. PAT declined 39.4% YoY to RM10.3 million from RM17.0 million, while profit before tax fell 56.5% to RM9.7 million. Despite the softer overall results, the Group’s improved quarterly momentum and continued expansion of its Non-Travel portfolio provide positive indicators for the remainder of the year.

Investment income also showed sequential improvement, rising 21.5% QoQ to RM5.2 million in 2Q26 from RM4.3 million in 1Q26. The improvement came as reduced market volatility following the US-Iran ceasefire in April helped support investment performance, although inflationary and geopolitical risks remain. Tune Protect plans to increase its exposure to longer-duration corporate bond funds in the second half of 2026 to capture potentially more attractive yields.

Beyond its core insurance operations, the Group continues to expand its Vertical Expertise segment by developing scalable and capital-light income streams. Its ancillary offering now covers 30 merchants across eight categories, including connectivity, airport lounges, ground transfers, telehealth, motor care and lifestyle services. Tune Protect also introduced its Claimless Services offering through the AirAsia channel, with further expansion to other channels planned.

Looking ahead, Tune Protect expects the operating environment to remain challenging in the second half of 2026 due to geopolitical uncertainties that could affect international travel demand, market sentiment and investment performance. Nevertheless, the domestic general insurance market is expected to remain resilient, supported by stable economic activity and continued demand for value-added insurance and digital services.

The Group will continue to strengthen its core insurance business through disciplined underwriting, prudent claims management and cost optimisation while accelerating growth in its Non-Travel portfolio. By improving its business mix, expanding distribution capabilities and deepening strategic partnerships, Tune Protect aims to build sustainable underwriting performance and create long-term value.