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RAM Ratings affirms Tune Protect Group’s A2/Stable/P1 ratings
Published on 03 Aug 2026.
RAM Ratings has affirmed Tune Protect Group Berhad (TPG or the Group)’s A2/Stable/P1 corporate credit ratings.
The affirmation reflects our expectation that TPG will maintain sound credit fundamentals despite increased external risks, including potential disruption to international travel stemming from the US-Iran conflict. In our view, the Group’s core travel insurance business should continue to benefit from domestic and regional travel, partly mitigating pressure from slower long-haul travel activity. Management’s efforts to expand affordable domestic travel insurance offerings, grow non-travel insurance lines and enhance value-added services should support gradual business diversification and underwriting performance. The ratings also factor in TPG’s robust liquidity and capital position and adequate reserves, although moderated by its modest profitability and scale and still-developing non-travel franchise.
Insurance revenue declined to RM357.5 mil in FY Dec 2025 (FY Dec 2024: RM389.2 mil), mainly due to selective underwriting, particularly in motor insurance. Pre-tax profit nevertheless surged to RM42.9 mil from RM2.2 mil, driven by robust travel insurance performance, lower motor and fire claims, higher investment income and the absence of prior-year one-off impairments. As a result, return on assets rose to 4.4% from 0.2%, while the combined ratio improved to 86.9% (FY Dec 2024: 97.1%), indicating recovery in underwriting profitability.
However, earnings softened in 1Q fiscal 2026, with pre-tax profit falling to RM1.7 mil from RM10.7 mil a year earlier. Profitability was affected by weaker travel demand and lower investment returns, while the combined ratio increased to 95.7% as TPG continued to expand beyond its traditional travel insurance business. We expect earnings to remain subdued this year, given sluggish international travel demand and the Group’s strategic shift into non-travel insurance segments with longer earnings cycles.
TPG’s liquidity position remains strong, with liquid assets covering net insurance contract liabilities by 3.0 times as at end-March 2026. Its subsidiaries remain capitalised above regulatory requirements and internal target capital levels, providing a buffer against earnings volatility and business expansion risks. The holding company has stayed debt-free since its 2013 listing, supporting financial flexibility at the group level.
Analytical contacts
Jeremy Noel Paul
(603) 2708 8230
jeremynp@ram.com.my
Lee Yee Von
(603) 2708 8217
yeevon@ram.com.my
Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my
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 2026 by RAM Rating Services Berhad
