RAM Ratings affirms Tune Protect Group’s A2/Stable/P1 ratings

Published on 24 May 2024.

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RAM Ratings has affirmed Tune Protect Group Berhad (TPG or the Group)’s A2/Stable/P1 corporate credit ratings. 

The affirmation is premised on our expectation that TPG’s underwriting performance will be supported by further recovery in air travel and the Group’s expanding partnership network. Its robust liquidity and capital position and adequate reserve levels also back the ratings.

TPG’s insurance revenue declined to RM418 mil in 2023 from RM482 mil a year ago, mainly due to the Group’s withdrawal from large commercial risks and the lapsing of policies sold under the Perlindungan Tenang Voucher (PTV) programme, with minimal renewals. In contrast, the Group’s key segments of motor and travel insurance saw decent growth during the year on the back of higher car sales and travel recovery. This coupled with improved investment returns enabled TPG to record a pre-tax profit of RM3.2 mil in FY Dec 2023 (FY Dec 2022: RM33.7 mil loss).

Further upside to revenue is likely as visa exemptions for travel between China and some ASEAN countries could spur air passenger growth. Additionally, the Group is actively expanding its list of partners to tap into new markets and broaden its product offerings. However, the government’s upcoming planned rationalisation of subsidies and ongoing motor and fire tariff liberalisation could weigh on earnings.

TPG’s revenue was also hit by an impairment of RM43.6 mil relating to its inability to collect some PTV premiums due to technical issues. The impact to its pre-tax profit, however, was smaller at -RM29.5 mil as commissions tagged to the disputed accounts were forfeited. We view this as a one-off event as the PTV programme has ended. Additionally, the Group has tightened its standard operating procedure to avoid a recurrence. Pre-tax profit excluding the PTV impairment would have been higher at RM32.7 mil.

TPG’s liquidity profile is robust, with liquid assets amply covering 2.6 times its net insurance contract liabilities. The latest capital ratios of its subsidiaries were well above the required regulatory minimum, while at the holding company level, the Group has remained debt-free since its listing in 2013. 


Analytical contacts
Lee Yee Von
(603) 3385 2503

Sophia Lee
(603) 3385 2619

Media contact
Sakinah Arifin
(603) 3385 2500


The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for a particular investor, nor does it involve any audit by RAM Ratings. The credit rating also does not reflect the legality and enforceability of financial obligations.

RAM Ratings receives compensation for its rating services, normally paid by the issuers of such securities or the rated entity, and sometimes third parties participating in marketing the securities, insurers, guarantors, other obligors, underwriters, etc. The receipt of this compensation has no influence on RAM Ratings’ credit opinions or other analytical processes. In all instances, RAM Ratings is committed to preserving the objectivity, integrity and independence of its ratings. Rating fees are communicated to clients prior to the issuance of rating opinions. While RAM Ratings reserves the right to disseminate the ratings, it receives no payment for doing so, except for subscriptions to its publications.

Similarly, the disclaimers above also apply to RAM Ratings’ credit-related analyses and commentaries, where relevant.

Published by RAM Rating Services Berhad
© Copyright 2024 by RAM Rating Services Berhad

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Ratings on Tune Protect Group Berhad