KUCHING: Tune Ins Holdings Bhd’s (Tune Ins) expansion of its travel insurance (TI) business in the Asian region, with the new markets in the Middle East and North Africa (Mena), and non-life insurance unit in Thailand is viewed as catalysts to its growth prospects.
The research arm of CIMB Investment Bank Bhd (CIMB Research) said this, following its meeting with Tune Ins’ new chief executive officer (CEO), Junior N. Cho, the management envisages bright prospects for 2015, partly due to the maiden full-year contributions from its ventures in Thailand and Mena.
Other highlights from the meeting include good growth prospects in Thailand, for overall non-life insurance business, the claims for the Indonesia AirAsia flight QZ8501 crash to be fully borne by its reinsurer, targeting new tie-ups with one to two airlines this year, and its plan to conclude the mergers and acquisition (M&A) in Indonesia by the first half of 2015 (1H15).
CIMB Research noted that these plans are in line with its positive stance on the group’s growth prospects, primarily for its TI business.
“In 2015, it will see maiden full-year contributions from its venture into the Mena region and Thailand. It is working on new collaborations in Mena, which would enhance earnings in the longer term if they materialise.
“Other potential earnings catalysts are tie-ups with other airlines and M&As in Indonesia,” it said.
Aside from that, CIMB Research noted that its key initiatives for Malaysia are increasing the contributions from more profitable businesses like the coverage for personal accident, launching more innovative products and exploiting digital networks to distribute more products.
However, it pointed out that the operating environment for Tune Ins’ non-life insurance business in Malaysia could remain challenging.
All in, the research arm said the company is is unique proposition from its focus on the fast-growing and high-margin travel insurance business.