KUALA LUMPUR: Tune Protect Group Bhd today flagged a RM30.8 million financial impact in its results for the fourth quarter ended Dec 31, 2023 (4Q) due to the non-redemption of Perlindungan Tenang Vouchers (PTV) by its subsidiary.
PTV was introduced between 2021 and 2022 by the government to allow eligible underserved and unserved Malaysians to purchase annual insurance policies via the redemption of government subsidy vouchers.
Tune Insurance Malaysia Bhd (TIMB), a subsidiary of Tune Protect participated in this initiative up to July 2022.
In a filing with Bursa Malaysia Securities Bhd today, Tune Protect said TIMB was notified by the regulator, that some of the policies underwritten by the company in 2022 under the PTV initiative is not be eligible for redemption.
This was because customer consents secured by TIMB were deemed unacceptable by the regulator, it said in a filing with Bursa Malaysia.
TIMB is currently considering an appeal on the matter.
"The adverse impact to Tune Protect's earnings from the non-redemption of PTV is estimated at RM30.8 million. "The financial impact from the non-redemption will be incorporated in the fourth quarter 2023 Interim Financial Statement of Tune Protect," it added.
For the nine month period ended Sep 30, 2023, the company made a net profit of RM15.2 million, compared with a net loss of RM36.4 million for the same period in 2022.
This was on an almost six per cent drop in revenue to RM331.1 milion.
The company's share price was 3.75 per cent higher, to 41.5 sen a share today. -ends-