Tune Protect Group Berhad – Insurance Made Easy

Tune Protect Group

Overview

Tune Protect Group Berhad (“Tune Protect”), previously known as Tune Insurance Holdings Berhad is listed on the main market of Bursa Malaysia since its initial public offering in February 2013. The main business of Tune Protect is in insurance and reinsurance, primarily travel insurance and general insurance. Through its alliance with AirAsia and its affiliates, Tune Protect has been one of the major travel insurance players in Malaysia and the ASEAN region.

I purchased a total of 10,800 shares in Tune Protect (TUNEPRO 5230) back in February and July 2015 for an average price of RM1.7133.

Tune Protect Fundamentals – Annual Report 2016

The financial year 2016 has been a positive one for Tune Protect when compared to the dismal year of 2015. The company grew revenue by 7.6% to RM516.6 million. Profit after tax increased by 18.8% to RM86.6 million. Shareholders equity also grew 10.1% to RM496.6 million. Earnings per share of the company have grown to 10.64 sen from 9.17 sen a year ago.

Profitability metrics are more than suitable. Tune Protect has a return on equity of 16.1%. A good, solid number here.

For a more comprehensive view of the company’s financials, the 2016 Annual Report can be downloaded hERE.

Tune Protect, AirAsia and Tune Group

Tune Protect Ownership / Shareholders
Tune Protect Ownership

15.77% of Tune Protect is owned by Tune Group Sdn Bhd whose joint-shareholders are Tan Sri Tony Fernandes and Datuk Kamarudin Meranun. Another 13.65% is further owned by AirAsia Berhad. This strong correlation to AirAsia is the reason for the strong partnership between Tune Protect and the airline. I view this as a double-edged sword because Tune Protect is deriving most of its travel insurance income from AirAsia customers – a risk in my opinion.

That being said, this risk also creates a secure and all but guaranteed stream of income for Tune Protect. AirAsia and its owners Tan Sri Tony Fernandes and Datuk Kamarudin Meranun both have a significant interest in the company and I don’t foresee a break in the strategic alliance between the parties.

Tune Protect Insurance Structure
Tune Protect Corporate Structure – 2016 AR

Conclusion

All in all, I view Tune Protect as an insurance company with immense growth potential. I particularly like the direction the company is going in terms of digitalisation and ease of usage. The company’s partnership with AirAsia puts it in a strong position in the travel insurance industry.

In 2016, Tune Protect added RM540 to my annual dividend income, a 2.92% dividend yield for 2016. The stock is trading at RM1.58 today (22 May 2017), translating to a capital loss of 7.78% for me.

Have you taken a look at this stock? Like it? 

Tune Protect Group – AGM 2017

Tune Protect Group to face ‘Short-term Pains’ in 2017

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Tune Protect AGM Doorgift Tony Fernandes
Tony Fernandes and Kamarudin bin Meranun

The management stated in the AGM today that Tune Protect is quietly optimistic moving forward. They’re expecting to maintain single digit growth for the 2017 financial year.

Towards the end of 2016, the Malaysian Aviation Authority’s new requirement for airlines to provide an “Opt-in” facility for travelers purchasing travel insurance. This has huge negative implications for Tune Protect. However, management has several initiatives planned to offset this. The company is planning to collaborate with AirAsia, leveraging on the airline’s technology and digital platform.

AirAsia, Tune Protect ‘about to announce big tie up’

KUALA LUMPUR (May 22): AirAsia Bhd group chief executive Officer Tan Sri Tony Fernandes said the budget airline and Tune Protect Group Bhd will announce a major collaboration to further grow both companies’ income.

AirAsia is the largest shareholder in insurer Tune Protect with a 13.65% stake as at April 10, 2017. Tune Protect’s units include Tune Insurance Malaysia Bhd and Tune Insurance Labuan Ltd.

“Airasia and Tune Insurance about to announce big tie up. Both incomes will grow. PC (press conference) later.

“I believe Tune will create new markets through digital insurance,”
Fernandes said via Twitter.

The Edge Malaysia

Tune Protect 2017 AGM Doorgift / Goody Bag

I had a mini heart-attack today as I arrived to register for the AGM. They told us they ran out of door gifts again but fortunately more were on the way. I headed in to attend the AGM first after being told there would be enough gifts for everyone after the AGM. The AGM was conducted in GSC’s cinema theater and it was a well-run meeting.

Tune Protect AGM Doorgift
A tote bag that can be worn as a backpack is how I’d describe this.
Tune Protect AGM Doorgift
What was inside: A nice, fluffy round pillow for your travels.
Tune Protect AGM Doorgift
RM10 Secret Recipe Cash Voucher x2

End.

Surprisingly, the AGM today wasn’t filled with dumb questions. The shareholders today were much more sophisticated and involved.

The investor relations team from Tune Protect did a good job handling some rowdy shareholders who weren’t happy because they had to wait a few minutes for their door gifts. Some were even complaining because they wanted bottled waters to bring home.

To the Tune Protect IR team, thank you for a good AGM. And if it is of any consolation, I apologize for the garbage and self-entitled attitudes from some of my fellow shareholders.

Wanted to get a picture with Tony Fernandes but I was rushing to get some errands done. Doubt I’ll be able to during AirAsia’s AGM this coming Thursday (25/5/2017) due to the crowd.

Let me know if you’re attending the AGM this Thursday, we’ve still got 1 more slot in our little carpool squad.

After the AGM ended at around 11.30 am, I headed to Secret Recipe to redeem my RM20 cash vouchers. Had a plate of Stewed Australian Beef and a cup of coffee. Paid an extra 11 bucks for those.

As at 4 pm today, Tune Protect’s share price rose 11% to RM1.57, for a market value of a little over RM1 billion.

Thank you for reading!

Cilantro Restaurant & Wine Bar @ Micasa Hotel KL

Cilantro Restaurant & Wine Bar

This is a long overdue post. I celebrated a birthday lunch at Cilantro Restaurant & Wine Bar on 7 April 2017. A Friday.

They only serve lunch on Fridays at RM200 nett per person. Their dinner set menu costs RM428 per person for a 3-course meal. A 4-course meal will set you back RM518 per person. My last splurge on a meal was at Vasco’s at Hilton KL back in February. So to minimize the damage, I naturally opted for the lunch set.

Cilantro Restaurant

Cilantro Restaurant
Cilantro Restaurant – The Setting

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Cilantro Restaurant – Menu by Chef Takashi Kimura

Cilantro Restaurant – The Food

The food was up to par for the price we paid. One thing that fell short was the Grilled Japanese Sea Bream Fillet. We had a choice of the fish or Wagyu beef. For future reference, when in doubt, please just go for the Wagyu.

Capellini and Provence Asparagus with Wild Garlic Leaves

Capellini and Provence Asparagus with Wild Garlic Leaves

Hokkaido Scallop with Soramame and Jus

Hokkaido Scallop with Soramame and Jus

Grilled Japanese Sea Bream Fillet with Hotaruika

Grilled Japanese Sea Bream Fillet with Hotaruika

Wagyu A La Plancha with Mushroom Bordelaise

Wagyu A La Plancha with Mushroom Bordelaise

Wagyu A La Plancha - 2

Wagyu A La Plancha with Mushroom Bordelaise 

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Pina Colada

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Some Fancy Named Tea

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End.

Please do give this place a try. It’ll be suitable to have luncheons and talk business here. They spice up and vary their menus often. The food was excellent (except for the fish). Service was excellent. The restaurant had a good overall vibe about it and we truly had a good time there.

Photography improving? Do let me know of your experience if you’ve been there for dinner! I’m really tempted, but the price… Anyway, back to refocusing on the Freedom Fund!

Cilantro Restaurant & Wine Bar,
MiCasa All Suite Hotel,
368-B, Jalan Tun Razak,
50400 Kuala Lumpur, Malaysia.

Lunch: Friday only (12 pm-2 pm)
Dinner: Monday-Saturday (6 pm-10.30 pm)
Closed on Sundays

Tel: 03-2179 8082