KUALA LUMPUR, 29 August 2026 (The Capital Post) – Tune Protect Group Berhad recorded a 66.5 per cent quarter-on-quarter (QoQ) increase in profit after tax (PAT) to RM6.4 million in the second quarter of 2026 (2Q26), supported by stronger Non-Travel performance, disciplined underwriting and improved investment income.
On a year-on-year (YoY) basis, however, the Group’s PAT declined 33.2 per cent due to lower investment income and softer Travel performance in 2Q26, partially offset by continued growth in its Non-Travel segment.
The Group’s net insurance service result improved 45.2 per cent QoQ to RM7.5 million, supported by lower acquisition costs and reinsurance premiums arising from Non-Travel growth.
Its combined ratio also improved by 3.1 percentage points YoY to 90.9 per cent, reflecting better acquisition cost amortisation and improved allocation of reinsurance premiums.
Investment income rose 21.5 per cent QoQ to RM5.2 million as the US-Iran ceasefire announced in April eased market uncertainty and reduced market volatility.
“The Group’s 2Q26 performance shows our continued recovery on a quarterly basis led by the resilient Non-Travel segment, disciplined underwriting and a more encouraging investment environment,” said How Kim Lian, Group Chief Executive Officer of Tune Protect.
The Non-Travel segment, comprising in-country general insurance, remained a key contributor to the Group’s performance, with Gross Written Premium (GWP) growing 10.1 per cent YoY.
Growth was supported by continued expansion in the Motor segment and broader affinity partnerships, as well as key areas including foreign worker protection, fire insurance and solar panel insurance.
Despite weaker travel demand and subdued airline passenger volumes, the Group said continued growth through its Business-to-Business (B2B) and Online Travel Agency (OTA) channels helped diversify its regional Travel portfolio and partially mitigate weaker airline-related volumes.
However, Travel GWP declined 23.2 per cent YoY, with the segment affected by geopolitical tensions in the Middle East, evolving travel patterns and the removal of the pre-selected travel insurance option in Thailand.
The Group said price optimisation initiatives across its Travel products helped narrow average premium gaps while maintaining competitiveness, contributing to an 8.0 percentage point YoY increase in its take-up rate.
“We recognise that the Travel sector remains challenging, with evolving market conditions requiring businesses to stay agile and responsive,” said How.
“Despite these challenges, we are well-positioned to drive growth by scaling our B2B channels with online travel agencies and top-tier travel partners. Coupled with optimised pricing strategies, VAS and targeted campaigns, these efforts are designed to enhance conversion and attachment rates while delivering greater value and protection to travellers across markets,” she added.
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In the Non-Travel segment, the Group said its Motor portfolio maintained healthy quality with a focus on profitability, while its claims ratio improved by 4.0 percentage points following continued optimisation of the portfolio mix.
Growth was led by the Private Car and Motorcycle segments through the Agency channel and affinity partnerships. Foreign Worker medical insurance was also expanded through a government-approved platform.
The Group also continued expanding its Vertical Expertise segment beyond its traditional insurance business to develop scalable, capital-light income streams.
Although ancillary and technology fee income declined 0.4 per cent YoY, the segment recorded a 4.0 percentage point improvement in gross margin.
Its ancillary offering now covers 30 merchants across eight categories, including connectivity, airport lounge, ground transfer and mobility, telehealth, motor care and lifestyle services.
During the quarter, Tune Protect also introduced its Claimless Services offering on the AirAsia channel, with expansion to additional channels planned.
The Group said it is also set to launch airport lounge access for Business Class customers and a standalone lounge pass sold in-path, with a targeted rollout in the fourth quarter of 2026.
Looking ahead, Tune Protect expects operating conditions to remain challenging in the second half of 2026 amid continued geopolitical uncertainties that could affect international travel demand, market sentiment and investment market performance.
Nevertheless, the general insurance market is expected to remain resilient, supported by stable domestic economic activity, while demand for value-added insurance solutions and digital services is expected to provide further growth opportunities.
“We will continue to strengthen our core insurance business by focusing on disciplined underwriting, prudent claims management and cost optimisation, while accelerating growth in our Non-Travel portfolio,” How said.
“Building on the portfolio rebalancing initiatives undertaken over the past year, we will continue enhancing the quality of our business mix, expand distribution capabilities and deepen collaborations with strategic partners to support sustainable underwriting performance,” she concluded.
According to a statement issued by Tune Protect Group Berhad, the Group’s 2Q26 performance was supported by Non-Travel growth, improved underwriting performance and stronger investment income. – The Capital Post
