3RD QUARTER 2019ANALYST PRESENTATION

21ST November 2019

Higher net earnings despite lower top line

TUNE PROTECT GROUP BERHAD

This presentation has been prepared by Tune Protect Group Berhad (“Company”) in connection with the InterimFinancial Statements (unaudited) for the financial period ended 30 September 2019 and announced by the Companyon the Main Market of Bursa Malaysia Securities Berhad on 21 November 2019.

Information contained in this presentation is intended solely for your reference and may not be reproduced or

redistributed to any other person, in whole or in part in any manner. Such information is subject to change withoutnotice, its accuracy is not guaranteed and it may not contain all material information concerning the Company.Neither we nor our advisers make any representation regarding, and assumes no responsibility or liability for, the fairness,accuracy or completeness of, or any errors or omissions in, any information contained therein. The presentation andinformation herein does not constitute or form part of any offer for sale or subscription of or solicitation or invitation ofany offer to buy or subscribe for any securities of the Company. Neither the Company nor its subsidiaries / associates areacting as your financial consultant or agent. The onus is on the respective individual to form his or her own independentassessment of the information contained therein and should not regard such content as advice relating to legal,accounting, and taxation or investment matters but should instead consult his or her own advisers.

In addition, the information may contain projections and forward-looking statements that reflect theCompany’s current views with respect to future events and financial performance. These views arebased on current assumptions which are subject to various risk factors and which may change overtime. No assurance can be given that future events will occur, that projections will be achieved, or thatthe Company’s assumptions are correct. Actual results may differ materially from those projected. TheCompany does not assume or undertake any obligation to update or revise any projections andforward-looking statements or departures from them, except as expressly required by applicable law.

3

8.8 9.6

3Q18 3Q19

Group PAT grew 48.6% YoY contributed by:

• lower management expenses (▼29.3% YoY)

• increase in investment income (▲15.9% YoY)

• higher realised gains on liquidation of investmentsand property disposal (▲>100.0% YoY)

10.115.0

3Q18 3Q19

Profit after Tax

▲48.6%

6.08.7

3Q18 3Q19

TPR(1)

▲8.1%

TPM(1)

▲45.9%

Gross Written Premium

122.2 106.1

3Q18 3Q19

▼13.1%

Group GWP lower 13.1% YoY due to:

• on-going motor mitigation strategy led to a 13.1%

YoY reduction in the motor portfolio

• non-motor portfolio remains challenged in the near

term registering a 18.6% decline YoY

Note (1): Sum of TPR & TPM’s PAT does not equal to the Group PAT due to consolidated adjustments / eliminations

3Q19 net profit increase led by operational efficiencies and investmentsR

M m

illio

n

RM

mill

ion

RM

mill

ion

RM

mill

ion

4

Revenue Optimisation

•Contributed

approximately 6% of

AirAsia’s 3Q19 GWP

Retakaful - Indonesia

• Travel Takaful now

available for AirAsia flights

departing from Indonesia

•Available via AirAsia

offline sales counter

VIETNAM - BaoViet digital

partnership

• Soft launch happened in

end October 2019

Harness new digital partnerships & improve sustainability of existing portfolios

Go

ASEAN

AirAsia

Ecosystem

Insurtech

Capabilities

National

Business

In-path A/B testing for Air

Asia Travel Protection

•Commenced in end

October 2019

•Customers will get a pop-

up reminder notification if

they did not select travel

protection

VIETNAM – MIC

• Treaty signed in end

September 2019

•Currently in integration

phase

MALAYSIA – Sports &

Lifestyle Protection

• Traction in paragliding

insurance coverage

•Commenced nano

insurance – Insuring

students using e-scooter

within university/ college

premise

Flight delay instant

notification

• Feature available to

BaoViet and Buana’s

customers

•Once customers receive

e-mail / SMS notification,

they are directed to a link

to key in bank details

•Claims reimbursed

instantly to customer’s

bank account/ e-wallet

upon info submission

Auto Buddy Promotion

• Rolled out in 3Q19 with

unlimited towing services to

cross sell with motor

insurance

• Improved take up rate as

compared to previous

motor PA product, to drive

further with sales campaign

in Nov/Dec 2019

Fire de-tariffed pricing

further enhanced in 3Q19

Development of new

products

•New PA and new

properties package

• To introduce in early 2020

Continuation of Motor

improvement plan with

right-pricing initiatives

5

Net profit growth led by key subsidiaries, partly offset by overseas ventures

PAT was up 48.6% YoY underpinned by operationalefficiencies, compensating the NEP shortfall

• TPR - Lower management expenses (▼41.6% YoY) andlower net commission expense (▼20.0% YoY)

• TPM – Lower management expenses (▼30.1% YoY) while

recording an increase in investment income and realisedgains from property disposal (▲>100.0% YoY)

3Q183Q19

10.115.0

0.8 2.7 2.6

1.2

3Q PAT YoY Movement

122.2 106.1

6.65.6

17.1

3Q18 TPR TPM Consol Adj. 3Q19

▼15.4% ▼16.3% ▼15.9%

73.3 61.6 61.6

4.4 7.3

3Q18 TPR TPM 3Q19

3Q GWP YoY Movement

3Q NEP YoY Movement

RM’mil TPR TPMOverseas

Ventures

Investment

HoldingPAT

3Q19 9.6 8.7 0.9 (4.2) 15.0

3Q18 8.8 6.0 2.1 (6.8) 10.1

RM

mill

ion

RM

mill

ion

RM

mill

ion

▼19.3% ▼16.4% ▼13.1%

p8.1% p45.9% q59.1% p39.4% p48.6%

6

32.0% 40.5% 54.0% 45.4%

2.6% 2.7%

7.2% 8.1%15.7% 16.2%101.7% 102.1%

▲0.4%

▲0.5%

▲0.9%

▲8.5% ▼8.6%▲0.1%

Combined Ratio

3Q18 3Q19

Net Commission Ratio

3Q18 3Q19

ROaE

3Q18 3Q19

ROaA

3Q18 3Q19

Management Expense Ratio

3Q18 3Q19

Net Claims Incurred Ratio

3Q18 3Q19

Combined ratio marginally up. ME ratio improved 8.6% YoY

7

Improved collections led to reversal of impairment & better underwriting profits

28.9 23.35.1

0.5

▼19.3%▼21.9% ▼7.8%

3Q18 3Q19AirAsia Others

28.5 24.13.9

0.5

▼15.4%▼17.5% ▼7.6%

3Q18 3Q19AirAsia Others

NEP Mix 3Q18 3Q19

AirAsia 79% 77%

Others 21% 23%

• Excluding the impact of retention rate change(1) inMalaysia, 3Q19 GWP on a normalised basis wasdown 6.3% YoY

• Overall GWP down due to changes in travelinsurance webpage layout

• Our 2nd largest market, Thailand witnessed premiumgrowth of 17.4% YoY consistent with Thai AirAsia’spassengers carried up 3% YoY and revenue

optimisation effort

• The Philippines, our 3rd largest market achieved a47.1% YoY premium growth coinciding with AirAsiaPhilippines expanding capacity on thecommencement of new international routes and

an increase in frequency on both domestic andinternational sectors

• Combined ratio improved from the reversal ofimpairment losses and lower commission paid

• Underwriting profit up 21.3% aided by the sustainedreversal of impairment losses

Note:-

(1) Normalised the impact of change in retention rate for Malaysiatravel market from 80% to 50%. See page 13 for more details

Gross Written Premium

Net Earned Premium

RM

mill

ion

RM

mill

ion

GWP Mix 3Q18 3Q19

AirAsia 81% 79%

Others 19% 21%

8.8 9.6

3Q18 3Q19

▲8.1%

75.1% 64.3%

▼10.8%

3Q18 3Q19

Combined Ratio

Profit after Tax

RM

mill

ion

8

6.0 8.7

3Q18 3Q19

▲45.9%

GWP Mix 3Q18 3Q19

Motor 41% 42%

Non-Motor 59% 58%

104.4

87.3

5.5

11.6

▼ 16.4%▼ 13.1% ▼ 18.6%

3Q18 3Q19MotorNon-

Motor

44.8 37.53.3 4.0

▼ 16.3%▼ 16.6% ▼ 16.0%

3Q18 3Q19MotorNon-

Motor

NEP Mix 3Q18 3Q19

Motor 45% 45%

Non-Motor 55% 55%

Gross Written Premium

Higher net earnings contributed by investments and gains from property disposal

Net Earned Premium

Combined Ratio

Profit after Tax

RM

mill

ion

RM

mill

ion

101.3% 108.1%

▲6.8%

3Q18 3Q19

RM

mill

ion

• Anticipated reduction in motor business due to theexit from franchise business

• Non-motor business was lower due to the slowdownin travel insurance, non-renewal of certain projectrisk and foreign worker workmen compensationbusiness replaced by SOCSO

• Reduced management expenses (▼30.1% YoY)

with overall reduction in debtors’ impairmentprovision, lower staff cost, advertising fee andprinting charges

• Combined ratio inched up primarily from higherclaims ratio in the absence of one-off prior yearrelease(1) as per 2018

• 3Q19 PAT up 45.9% YoY driven by:

• An improved ME

• Higher investment gain

• One-off RM2.0m gain on disposal of property

Note:-

(1) In 3Q18, TPM benefited from a RM2.8 million inward treaty reserverelease. See page 13 for more details

9

Tune Protect Thailand

Share of Associate

RM

’000

969 830

3Q18 3Q19

▼14.3%

• Lower net profit due to higher claims (3Q18 benefitted from reserve release)

• Higher share of results for 9M19 contributed by fair value gain on investment

• Travel business up 17.4% on the back of positive response to optimisation

Tune Protect EMEIA

Share of JV

1,168 45

3Q18 3Q19

▼96.1%

• Lower topline from AirArabiaobserved since ancillary products opt-in was introduced

• Impact was partially cushioned by higher B2B

RM

’000

Overseas Ventures

2,137 875

3Q18 3Q19

RM

’000

▼59.1%

AirArabia’s “opt-in” impact weighed on share of JV contribution

9M18 9M19 Var

1,747 2,468 ▲41.3%

9M18 9M19 Var

3,406 3,364 ▼1.2%

9M18 9M19 Var

1,659 896 ▼46.0%

10

01. Market outlook

Margin compression still

experienced by the general

insurance industry post the phased

detariffication. BNM’s decision to

delay full liberalisation to 2020

provides some respite.

Travel insurance to pick up in 2020,

as the Government has allocated

a budget for Visit Malaysia 2020.

Intends to achieve 30 million

visitors.

02. Digital

Launch of mobile app in 2Q20 will

• drive better customised

customer experience

• Improve the quality of data

collected / analytics

White Label will continue to improve

its technology stack to better

support the Tune Protect business.

03. Rationalisation of

Business Composition

Growing non-motor business will

be the key focus.

Realigning motor portfolio toward

higher composition in the

preferred segment.

Continue to roll out new products

to meet the changing needs.

Topline growth continues to pose a challenge

Appendix

Thank You

Financial Snapshot

Income Statement (in RM’000) 3Q19 3Q18 YoY 2Q19 QoQ 9M19 9M18 YoY

Gross written premiums 106,138 122,155 -13.1% 125,234 -15.2% 349,053 415,553 -16.0%

Operating revenue 123,843 141,487 -12.5% 124,461 -0.5% 374,969 425,704 -11.9%

Gross earned premiums 115,827 134,573 -13.9% 115,070 0.7% 352,223 404,989 -13.0%

Investment income 8,016 6,914 15.9% 9,391 -14.6% 22,746 20,715 9.8%

Investment income (excluding MMIP) 6,908 6,335 9.0% 8,312 -16.9% 19,916 20,236 -1.6%

Net earned premiums 61,614 73,296 -15.9% 63,163 -2.5% 189,837 220,229 -13.8%

Net fees & commission (9,985) (11,527) -13.4% (10,619) -6.0% (30,400) (30,680) -0.9%

Net claims (24,970) (23,441) 6.5% (25,169) -0.8% (69,391) (79,664) -12.9%

Management expenses (27,966) (39,552) -29.3% (32,804) -14.7% （85,078) (91,684) -7.2%

Underwriting profits/(loss) (1,307) (1,224) 6.8% (5,429) -75.9% 4,968 18,201 -72.7%

Share of results of an associate 830 969 -14.3% 1,077 -22.9% 2,468 1,747 41.3%

Share of results of a JV 45 1,168 -96.1% 405 -88.9% 896 1,659 -46.0%

Profit after tax 14,953 10,060 48.6% 11,588 29.0% 46,691 41,714 11.9%

Profit after tax & minority interest 10,989 9,134 20.3% 10,708 2.6% 40,039 38,518 3.9%

Basic EPS (sen) 1.46 1.22 20.3% 1.42 2.6% 5.33 5.12 3.9%

Ratios

Net commission ratio 16.2% 15.7% 0.5% 16.8% -0.6% 16.0% 13.9% 2.1%

Net claim incurred ratio 40.5% 32.0% 8.5% 39.8% 0.7% 36.6% 36.2% 0.4%

Management Expenses ratio 45.4% 54.0% -8.6% 51.9% -6.5% 44.8% 41.6% 3.2%

Combined ratio 102.1% 101.7% 0.4% 108.5% -6.4% 97.4% 91.7% 5.7%

ROaE (annualised) 8.1% 7.2% 0.9% 7.9% 0.2% 9.9% 10.1% -0.2%

ROaA (annualised) 2.7% 2.6% 0.1% 2.8% -0.1% 3.3% 3.8% -0.5%

Amounts presented may not foot due to rounding 12

Removing the one-offs

RM’mil 3Q19 3Q18 YoY 9M19 9M18 YoY

TPG

Reported PAT 15.0 10.1 ▲48.6% 46.7 41.7 ▲11.9%

Inward treaty reserve release (net of tax)(1) - (2.8) - (6.9)

Realised gain on disposal of property (net of real property gains tax) (2.0) - (2.0) -

Normalised PAT 13.0 7.3 ▲79.1% 44.7 34.8 ▲28.4%

TPR

Reported GWP 23.3 28.9 ▼19.3% 69.9 85.7 ▼18.4%

Impact of change in Travel insurance retention ratio for Malaysia(2) 3.7 - 11.8 -

Normalised GWP 27.0 28.9 ▼6.3% 81.7 85.7 ▼4.6%

TPM

Reported PAT 8.7 6.0 ▲45.9% 24.9 19.3 ▲29.3%

Inward treaty reserve release (net of tax) (1) - (2.8) - (6.9)

Realised gain on disposal of property (net of real property gains tax) (2.0) - (2.0) -

Normalised PAT 6.7 3.1 ▲>100% 22.9 12.4 ▲85.3%

Notes (1): One-off closure of time-barred claims on inward treaties relating to old property and marine portfolios reserve dating back to early 2000’s.

(2): Normalising impact of change in 2Q / 1H19 Travel insurance premium retention rate between TPR & TPM (2019 QS; TPR: 50%; TPM: 50% | 2018 QS;

TPR: 80%; TPM: 20%). Minimal impact at Group level.

13

Amounts presented may not foot due to rounding

14

Malaysia 42%

(q4%)

Thailand 25%

(≈)

Philippines 9%

(p1%)

Indonesia 6%

(p1%)

Singapore 3%

(q1%)

China 4%

(q1%)

Others 11%

(p4%)

9M19

7.14m(q5%)

Malaysia 39%

(q7%)

Thailand 26%

(p1%)

Philippines 10%

(p2%)

Indonesia 6%

(p1%)

Singapore 3%

(≈)

China 3%

(q2%)

Others 13%

(p5%)

3Q19

2.33m(q4%)

Policies earned and issued

Malaysia 40%

(q6%)

Thailand 24%

(≈)

Philippines 9%

(p2%)

Indonesia 7%

(p1%)

Singapore 4%

(≈)

China 4%

(q1%)

Others 12%

(p4%)

3Q19

2.35m(q5%)

Malaysia 43%

(q2%)

Thailand 25%

(≈)

Philippines 9%

(p2%)

Indonesia 6%

(≈)

Singapore 3%

(q1%)

China 4%

(q1%)

Others 10%

(p2%)

9M19

7.10 m(q3%)

U.A.E 54%

(p7%)

India 3%

(q2%)

Morocco 20%

(p5%)

Egypt 3%

(p1%)

Others 20%

(q11%)

3Q19

156.6K(p17%)

U.A.E 51%

(q14%)

India 3%

(≈)

Morocco 20%

(p11%)

Egypt 2%

(≈)

Others 24%

(p3%)

3Q19

172.7K(p13%)

Sold via AirAsia & others

Policies Earned

Policies Issued

Sold via Air Arabia & B2B

U.A.E 54%

(q2%)

India 4%

(q1%)

Morocco 19%

(p7%)

Egypt 2%

(≈)

Others 21%

(q4%)

9M19

455.9K(p5%)

U.A.E 54%

(q2%)

India 4%

(q1%)

Morocco 19%

(p7%)

Egypt 2%

(≈)

Others 21%

(q4%)

9M19

459.6K(p8%)

15

in m

illio

n

2.53 2.56 2.47

2.802.62 2.59 2.55

2.39

1.89

1.44

2.49 2.58 2.522.74

2.58 2.562.81

2.432.31

1.43

3Q19 2Q19 1Q19 4Q18 3Q18 2Q18 1Q18 4Q17 3Q17 2Q17

Policies Earned Policies Issued

Aggregate of policies sold via AirAsia, AirArabia and B2B

16

Motor

9M19 : 38%

9M18 : 39%

Fire

9M19 : 16%

9M18 : 13%

Marine, Aviation

and Transit

9M19 : 21%

9M18 : 21%

TPA & PA

9M19 : 14%

9M18 : 15%

Medical

9M19 : 5%

9M18 : 5%

Others

9M19 : 6%

9M18 : 7%

9M19

GWP

RM294.9milMotor

3Q19 : 42%

3Q18 : 41%

Fire

3Q19 : 10%

3Q18 : 9%

Marine, Aviation

and Transit

3Q19 : 23%

3Q18 : 19%

TPA & PA

3Q19 : 13%

3Q18 : 17%

Medical

3Q19 : 5%

3Q18 : 5%

Others

3Q19 : 7%

3Q18 : 9%

3Q19

GWP

RM87.3mil

Growing the right Motor mix segment and Non-Motor business

17

YTD investments up 7.5% to RM742 million

Unit Trust Fund

3Q19 : 60.3%

3Q18 : 72.0%

Debt Securities

3Q19 : 35.2%

3Q18 : 24.3%

Deposits with

Financial Institutions

3Q19 : 4.1%

3Q18 : 3.3%

Equities & Loans

3Q19 : 0.4%

3Q18 : 0.4%

3Q19

Investments

RM741.9mil

Asset Allocation Mix Investment Income(1)

Investment Yield(2)

Notes:-

(1) Excluding share of MMIP investment income

(2) Investment yield = Investment income (including rental income &

excluding share of MMIP investment income) / total investment

6.3 6.9

20.2 19.9

3Q18 3Q19 9M18 9M19

▲9.0%

▼1.6%

0.9% 0.9%

3.0% 2.7%

3Q18 3Q19 9M18 9M19

≈

▼0.3%

18

220.2 189.8 12.5 17.9

9M18 TPR TPM 9M19

Net profit up 11.9% YoY with TPM being the main contributor

▼18.4% ▼19.2% ▼16.0% ▼15.0% ▼13.1% ▼13.8%

415.5 349.1 19.4

15.870.0

9M18 TPR TPM Consol Adj. 9M19

41.7 46.7

5.6 1.1

1.7 0.0

q5.3% p29.3% q1.2% p8.1% p11.9%

9M199M18

9M PAT YoY Movement

9M GWP YoY Movement 9M NEP YoY Movement

RM

mill

ion

RM’mil TPR TPMOverseas

Ventures

Investment

HoldingPAT

9M19 31.3 24.9 3.3 (12.8) 46.7

9M18 33.0 19.3 3.3 (13.9) 41.7

RM

mill

ion

RM

mill

ion

19

85.7 69.9

15.7 0.1

9M18 9M19AirAsia Others

▼18.4%▼22.2%

Excluding the net retention rate change impact, YTD GWP down 4.6% YoY

64.4% 60.7%

▼3.7%

9M18 9M19

GWP Mix 9M18 9M19

AirAsia 83% 79%

Others 17% 21%

NEP Mix 9M18 9M19

AirAsia 83% 80%

Others 17% 20%

83.6 71.1 12.4 0.1

9M18 9M19AirAsia Others

▼15.0%▼18.1% ▼0.5%

33.0 31.3

▼5.3%

9M18 9M19

▼0.2%

9M GWP YoY Movement 9M NEP YoY Movement

Combined Ratio Profit After Tax

RM

mill

ion

RM

mill

ion

RM

mill

ion

20

YTD PAT up contributed by lower management expenses, higher investment income and a property disposal realised gain

96.7% 105.2%

▲8.5%

9M18 9M19

GWP Mix 9M18 9M19

Motor 39% 38%

Non-Motor 61% 62%

364.9 294.9

31.338.7

9M18 9M19Motor Non-Motor

▼19.2%▼21.9% ▼17.4%

NEP Mix 9M18 9M19

Motor 49% 42%

Non-Motor 51% 58%

136.7 118.8 16.2 1.7

9M18 9M19Motor Non-Motor

▼13.1%▼24.3%

19.3 24.9

9M18 9M19

▼2.4%

▲29.3%

9M GWP YoY Movement 9M NEP YoY Movement

Combined Ratio Profit After Tax

RM

mill

ion

RM

mill

ion

RM

mill

ion

21

ROaA Return On Average Assets

ROaE Return On Average Equity

SMS Short Message Service

SOCSO Social Security Organisation

TPA Travel Personal Accident

TPG/Group Tune Protect Group

TPM Tune Protect Malaysia

TPR Tune Protect Re Ltd

TPT Tune Protect Thailand

U.A.E United Arab Emirates

YoY Year-on-Year

YTD Year to date

B2B Business-to-Business

EMEIA Europe, Middle East, India and Africa

EPS Earnings Per Share

GWP Gross Written Premium

JV Joint Venture

ME Management Expenses

MMIP The Malaysian Motor Insurance Pool

NEP Net Earned Premium

PA Personal Accident

PAT Profit After Tax

QoQ Quarter-On-Quarter

QS Quota Share

Abbreviations

Disclaimer on rounding differences:

Amounts presented may not foot due to rounding

About Tune Protect Group Berhad

Tune Protect Group Berhad (Tune Protect or the Group) is a financial holding company listed on the main market of Bursa Malaysia. As a leading digital

insurer in the region and with the tagline ‘Protection Made Easy’, Tune Protect offers affordable, yet comprehensive protection plans to suit individual and

corporate needs. Tune Protect has established a strong foothold in the travel, retail and digital insurance space globally with presence across more than

45 countries through its own general insurance and reinsurance arms, as well as via strategic partnerships with local underwriters in these markets. The

Group also has a strong focus to move beyond insurance by embracing insurtech and introducing differentiated product solutions such as on-demand

products as part of its diversified portfolio.

For further information on Tune Protect Group, please visit http://www.tuneprotect.com/ or email us at IR@tuneprotect.com

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