MNRB – bigger does not mean better

Bursa MNRB is a leading provider of reinsurance and retakaful as well as takaful. You would have thought that with a captive reinsurnance market and being a poineer in the takaful sector, it would be a roaring success.

While MNRB had been able to grow its revenue at 5.2% over the past decade, PAT only grew at about half the rate. When I compared MNRB's performance with those of the other Bursa insurance companies, I found that it is at best just below the panel average.

There was a run up in its share price a couple of months ago following a very good first quarter result. Unfortunately this was not sustained in the second quarter. So the company is still trading signficantly below its book value.

MNRB's problems are more about poor operating fundamentals – profitability, underwriting performance, and investment. If these could be improved we will have fantastic performance. So maybe the market waiting for this to happen before any re-rating.
https://www.i4value.asia/2024/02/is-mnrb-value-trap.html#more