leveraging on synergies

MNRB HOLDINGS BERHAD

2016ANNUAL REPORT

SYNERGIES

LEVERAGING ON

MNRB HOLDINGS BERHAD MALAYSIAN REINSURANCE BERHAD TAKAFUL IKHLAS BERHAD MNRB RETAKAFUL BERHAD MALAYSIAN RE (DUBAI) LTD. MMIP SERVICES SDN. BHD.

At MNRB we leverage on the synergies amongst the Group to increase effectiveness of

our business operations through the sharing of perceptions and experiences, insights

and knowledge. We also bring together the reinsurance, retakaful and takaful businesses

under one roof to realise synergies along the entire value chain. We adopt a prospective,

prudent and responsible approach to risk management and continuously create value over

the long term by assuming a wide variety of risks. The result of which ultimately benefits

shareholders, stakeholders and our people.

LEVERAGING ON SYNERGIES

Navigation icons in the reportFor more information

Please scan the QR code to redirect to the official website: www.mnrb.com.my.

Tells you where you can find more information online at www.mnrb.com.my.

Tells you where you can find more information in the Annual Report.


2016ANNUAL REPORT

SYNERGIES

LEVERAGING ON

MNRB HOLDINGS BERHAD MALAYSIAN REINSURANCE BERHAD TAKAFUL IKHLAS BERHAD MNRB RETAKAFUL BERHAD MALAYSIAN RE (DUBAI) LTD. MMIP SERVICES SDN. BHD.


Corporate Profile

Corporate Milestones

Notice of 43rd Annual General Meeting

Statement Accompanying Notice of Annual General Meeting

Corporate Information

Group Structure

Chairman’s Statement

Board of Directors

Directors’ Profile

Group Shariah Committee

Senior Management Team

Senior Management Team’s Profile

Event Highlights

Five-Year Financial Highlights

Financial Calendar 2016

MNRB’s Growth

Investors’ Information

Sustainability Report

Statement on Corporate Governance

Audit Committee Report

Statement on Risk Management and Internal Control

Statement of Directors’ Responsibility in Relation to the Financial Statements

Additional Compliance Information

Financial Statements

Analysis of Shareholdings

List of Properties

Proxy Form

2

3

4

10

13

14

15

16

22

24

28

31

32

34

38

40

41

42

43

49

61

63

66

67

88

213

216

•

MALAYSIAN REINSURANCE BERHAD

Corporate Profile


Corporate Activities and Services

Malaysian Re’s Portfolio of Business

68

69

70

72

74

TAKAFUL IKHLAS BERHAD

Corporate Profile


Takaful IKHLAS’ Portfolio of Business

75

76

77

79

MNRB RETAKAFUL BERHAD

Corporate Profile


MRT’s Portfolio of Business

80

81

82

83

MALAYSIAN RE (DUBAI) LTD.

Corporate Profile


84

85

86

MMIP SERVICES SDN. BHD.

Corporate Profile


87

87

87

Inside This Report

3

43

69

pg

pg

pg

Strong FoundationBy remaining resilient amidst industry challenges, MNRB has reinforced its reputation in the many markets we operate in. The strong foundations we have laid and long-term partnerships we have fostered continue to hold us in good stead. As we build upon these, we are extending our reach and opening up new avenues of opportunity.


3MNRB HOLDINGS BERHAD ANNUAL REPORT 2016


Corporate Profile

In 2005, as a result of a restructuring exercise within the MNRB Group, the Company’s reinsurance license, business and assets were transferred to its subsidiary company, Malaysian Reinsurance Berhad. Pursuant to the restructuring, Malaysian National Reinsurance Berhad became an investment holding company and changed its name to MNRB Holdings Berhad (MNRB). Today, MNRB is listed on the Malaysian Bourse (Bursa Malaysia). Its market capitalisation stood at RM524.15 million as at 1 July 2016.

The MNRB Group comprises leading wholesale providers of reinsurance and retakaful as well as a takaful operator. Its reinsurance subsidiary

Malaysian National

Reinsurance Berhad,

the country’s national

reinsurer was set up

in 1972 to limit the

outflow of reinsurance

premiums overseas.

The company

commenced operations

on 9 February 1973.

Authorised Capital of

RM500 milPaid-up Capital of

RM213 mil

stands tall among the top reinsurers in the region, writing lines of general businesses locally and abroad. In Malaysia, its takaful operator vies with the leaders in the provision of Islamic financial protection services based on the takaful system.

CAPITAL STRUCTURE

The Company has an Authorised Capital of RM500 million, divided into 500 million ordinary shares of RM1.00 each and a Paid-up Capital of RM213 million, divided into 213 million ordinary shares of RM1.00 each.

Corporate Profile

MNRB HOLDINGS BERHAD ANNUAL REPORT 2016 4




Malaysian National Reinsurance Berhad commenced operations on 19 February 1973.

Voluntary Cessions (VC) to Malaysian National Reinsurance Berhad commenced four (4) months later.

Began to offer Excess of Loss Treaties to local insurance companies.

19791981

until

19851987

until

1 2 3

Began to write Local Facultative business and non-reciprocal inwards overseas business.

4

Retrocede part of the VC cessions to the local insurance companies for their net account.

Sponsored the 1st Kuala Lumpur Insurance Seminar, attended by over four hundred (400) delegates.

1 2

Commenced writing ten percent (10%) Quota Share of the Miscellaneous Accidents and Motor businesses.

Increased level of retrocessions from twenty-five percent (25%) to thirty percent (30%) for Fire and Personal Accident businesses.

Increased paid-up capital from RM5,200,002 to RM6,240,003.

Commenced reciprocal exchange with overseas companies.

Paid-up capital increased to RM8,216,004.

Perbadanan Nasional Berhad’s (PERNAS) fifty percent (50%) share in Malaysian National Reinsurance Berhad was transferred to Permodalan Nasional Berhad (PNB).

Published the 1st edition of the Malaysian Insurance Directory.

Introduced Common Account Excess of Loss for retrocessionaires.

Formation of the following:-

Technical Services Department To conduct fire surveys including advisory services on risk management with the cost mostly borne by Malaysian National Reinsurance Berhad.

Inspection Department To ensure companies’ adherence to the various Inter-Company Agreements.

1

13

3

2 2

3 4

Rating Committee To determine special rate under the Fire Tariff for Fire and Industrial All Risks Insurances.

19821984

19731975

until

19761978

until

until




Increased level of retrocession from fifty percent (50%) to fifty-five percent (55%) to shareholding companies of Malaysian National Reinsurance Berhad.

Implementation of automatic cessions on Facultative and Treaty business.

Bank Negara Malaysia (BNM) appointed Malaysian National Reinsurance Berhad to manage the Scheme for Insurance of Large and Specialised Risks.

MIIL, now known as Labuan Re, ceased to be a wholly owned subsidiary of Malaysian National Reinsurance Berhad with the equity interest being diluted to twenty percent (20%).

Commencement of Overseas Facultative business.

Implementation of Stage I – new levels of VC, Retrocessions and other market reinsurance arrangements.

Appointed as the Administration Manager of MMIP.

Appointed as Manager for the Malaysian Energy Risks Consortium.

Appointed as Manager of the Malaysian Aviation Pool.

Launching of Malaysian National Reinsurance Berhad Homepage (http://www.malaysian-re.com.my).

Began to organise Annual Golf Tournaments and Outward Bound School for the insurance industry.

Malaysian-Re International Insurance (L) Ltd. (MIIL) was set up as a wholly owned subsidiary.

Launching of the Central Administration Bureau.

Malaysian National Reinsurance Berhad was listed on the Main Board of the Kuala Lumpur Stock Exchange (now known as Bursa Malaysia Securities Berhad).

Implementation of Stage II – new levels of VC, Retrocessions and other market reinsurance arrangements.

Implementation of Stage III – new levels of VC, Retrocessions and other market reinsurance arrangements.

Malaysian National Reinsurance Berhad and Malaysia National Insurance Berhad (MNI) jointly hosted and organised the 13th General Meeting of the Federation of Afro – Asian Insurers and Reinsurers (F.A.I.R.) attended by over three hundred fifty (350) international and local participants.

1

1

5 1

1 2

2

6543

7

2 3 4

2 3

19911993

until

19971999

until

1988

1994

1990

1996

until

until



20002001

until


2002

2003

2005

2006

2004

Implementation of new levels of VC, Retrocessions and other market reinsurance arrangements.

Awarded the MS ISO 9002:1994 certification.

Arrangement of terrorism insurance via the Malaysian Terrorism Facility.

Commenced the restructuring exercise of the Group.

The Group’s restructuring exercise was completed on 1 April 2005 and here on Malaysian National Reinsurance Berhad became MNRB. The new holding company is an investment holding company that focuses on business expansion to broaden the Group’s income base and further strengthen its financial position. The reinsurance business was then transferred to a newly incorporated one hundred percent (100%) subsidiary of MNRB, Malaysian Reinsurance Berhad (Malaysian Re). The takaful business continues to be undertaken by Takaful IKHLAS, a wholly owned subsidiary of MNRB. Labuan Re became an associate company of Malaysian Re.

BNM approved the registration of Takaful IKHLAS on 21 April 2003 and it commenced operations on 2 July 2003.

MSSB was formed to oversee the administration of Malaysian Motor Insurance Pool (MMIP), a pool established by the insurance industry to provide insurance coverage for vehicle owners who find difficulty in obtaining coverage.

Appointed as Account Manager for the Sihat Malaysia Scheme.

Received approval in principle from BNM to set up a takaful operation.

MNRB was granted the approval on certification to the new ISO Standard, MS ISO 9001:2000.

MNRB obtained BNM’s approval to establish a retakaful operation under the then Takaful Act, 1984 to conduct both General and Family Retakaful businesses. The wholly owned subsidiary company of MNRB is known as MRT.

Launching of MNRB Scholarship Fund of RM1 million.

Injected additional RM1 million to the MNRB Scholarship Fund.

Implementation of new levels of VC, Retrocession to the industry ceased with effect from 1 January 2003.

Malaysian National Reinsurance Berhad moved to its own building, Bangunan Malaysian Re.

3

2 3 1

1 2 3

2

1 1

1 2

4 5 1




MRDL, a wholly owned subsidiary of Malaysian Re was incorporated.

Malaysian Re won the prestigious Reinsurance Industry Contribution Award given by the Asia Insurance Review and the Review Magazine.

MRT was assigned an IFS rating of ‘BBB+’ with Stable outlook by Fitch Ratings.

MRT’s IFS rating of ‘BBB+’ with Stable outlook was reaffirmed by Fitch Ratings.

Takaful IKHLAS won The BrandLaureate – SMEs Chapter Award 2008, “Best Brands in Product Branding – Consumer Healthcare Insurance”.

Malaysian Re was assigned a Financial Strength Rating (FSR) of ‘A-’ (Excellent) and an Issuer Credit Rating (ICR) of ‘a-’ by A.M. Best.

MRT was awarded “The Most Outstanding Retakaful Operator 2008” at the KL Islamic Finance Forum 2008 (KLIFF 2008).

Malaysian Re’s FSR of ‘A-’ (Excellent) and ICR of ‘a-’ was reaffirmed by A.M. Best.

IKHLAS Medic Assist Takaful (IMAT) won the “Most Innovative Product Award” by KLIFF 2008.

Malaysian Re was assigned an ‘A-’ Insurer Financial Strength (IFS) rating with Stable outlook by Fitch Ratings.

2007

2008

2009

Malaysian Re’s FSR of ‘A-’ (Excellent) and ICR of ‘a-’ was reaffirmed by A.M. Best.

MRDL was officially launched on 18 March 2008.

Malaysian Re’s IFS rating of ‘A-’ with Stable outlook was reaffirmed by Fitch Ratings.

MRDL was wholly transferred from Malaysian Re to MNRB.

Malaysian Re’s MS ISO 9001:2000 Quality Management Systems certification which was issued in 2003, was reaffirmed.

Malaysian Re’s IFS rating of ‘A-’ with Stable outlook was reaffirmed by Fitch Ratings.

MRT commenced operations in August 2007 as the first retakaful operator in Malaysia.

MRT was officially launched on 11 August 2008.

Takaful IKHLAS was awarded “Best Takaful/Retakaful Provider 2008” by Islamic Finance News (IFN).

Following the certification audit conducted by SIRIM, Malaysian Re’s MS ISO 9001:2000 Quality Management Systems certification was reaffirmed.

3

1

1

1 2 3 4

6 7 8 9

2 3 4 5

2 3

4 5 6




Takaful IKHLAS and MRT won the Best Islamic Takaful Provider and Best Re-Takaful Provider awards, respectively, at the Islamic Finance News (IFN) Service Providers Poll 2011 Awards.

Takaful IKHLAS was named the “Best Takaful Provider” at the Euromoney Islamic Finance Awards 2010 organised by financial magazine, Euromoney.

Malaysian Re’s FSR of ‘A-’ (Excellent) and ICR of ‘a-’ was reaffirmed by A.M. Best, with Stable outlook for both ratings.

Malaysian Re’s FSR of ‘A-’ (Excellent) and ICR of ‘a-’ was reaffirmed by A.M. Best, with Stable outlook for both ratings.

Takaful IKHLAS won the Best Islamic Takaful Provider at the Euromoney Islamic Finance Awards 2012.

Malaysian Re and Labuan Re jointly hosted and organised the 21st F.A.I.R. Conference, attended by over six hundred (600) delegates including leaders and experts in the insurance industry.

Takaful IKHLAS won “Best Takaful/Retakaful Provider” for the second time at the Islamic Finance News Polls Awards 2009.

IKHLAS Medical Assistance Takaful won “Best Takaful Product” by International Takaful Awards 2010.

Takaful IKHLAS was named Best Takaful/Retakaful Provider by Islamic Finance News Polls Awards 2010 (third consecutive year).

Malaysian Re’s IFS rating of ‘A’ was reaffirmed by Fitch Ratings, with Stable outlook.

2010

2012

2013

2011

Takaful IKHLAS won The BrandLaureate – SMEs Chapter Award 2009, “Best Brands in Product Branding”

Takaful IKHLAS moved to its new corporate office, IKHLAS Point, in Bangsar South, Kuala Lumpur.

Takaful IKHLAS was awarded for its excellence in Branding by “The BrandLaureate – SMEs Chapter Awards 2010” in the categories of The Best Brands in Corporate Branding – Islamic Financial Protection Services and The Best Brands in Product Branding – Health Insurance Services.

MRT’s IFS rating of ‘BBB+’ was reaffirmed by Fitch Ratings, with Stable outlook.

• Consumer Healthcare Insurance & The BrandLaureate – SMEs Chapter Award 2009, Corporate Branding – Best Brands in Services – Islamic Protection Services.

5

1

1

5 14

2 3

1 2

2 3

6 7

Fitch Ratings upgraded Malaysian Re’s IFS rating from ‘A-’ to ‘A’ with Stable outlook.

3



Malaysian Re’s Financial Strength Rating of ‘A-’ (Excellent) and Issuer Credit Rating of ‘a-’ was reaffirmed by A.M. Best, with Positive outlook for both ratings.

Malaysian Re’s IFS rating of ‘A’ was reaffirmed by Fitch Ratings, with Stable outlook.

MRT’s IFS rating of ‘BBB+’ was reaffirmed by Fitch Ratings, with Stable outlook.

Takaful IKHLAS won the Best Takaful Provider – Euromoney Islamic Finance Awards 2013.

Fitch Ratings reaffirmed Malaysian Re’s IFS rating of ‘A’ with Stable outlook.

Takaful IKHLAS was named Takaful Company of the Year (Malaysia) at the European Global Banking & Finance Awards 2016 by The European Magazine.

Malaysian Re received the licence granted by the Minister of Finance to carry on General retakaful business and Family retakaful business effective from 13 April 2016.

2014

2016

2015

A.M. Best revised Malaysian Re’s outlook to Positive from Stable and reaffirmed the FSR of ‘A-’ (Excellent) and ICR of ‘a-’.


2

2

1

43

3 4 1

MRT’s IFS rating of ‘BBB+’ was reaffirmed by Fitch Ratings,with Stable outlook.

3

Takaful IKHLAS was named “Best Takaful House” in the 2014 Islamic Finance Awards by Euromoney.

Takaful IKHLAS won Malaysian Best Takaful Operator 2013 – Global Banking & Finance Review.

4 5

Malaysian Re had been granted an approval from Bank Negara Malaysia to conduct General and Family retakaful business under Section 10 of the Islamic Financial Services Act 2013 (IFSA) via the establishment of a retakaful division.

3

Takaful IKHLAS was named Malaysian Best Takaful Operator 2015 at the Global Banking & Finance Review Awards.

4

Malaysian Re’s RM250 million Subordinated Medium-Term Note Programme (2015/2030) won the “Market Pioneer Award 2015” at the 13th Annual RAM League Awards for being the 1st Malaysian Reinsurer to issue RM-Sukuk.

5

Malaysian Re’s Insurer Financial Strength rating of ‘A’ was reaffirmed by Fitch Ratings, with Stable outlook.

2

Malaysian Re’s Insurer Financial Strength rating of ‘A’ was reaffirmed by Fitch Ratings, with Stable Outlook.

1

Takaful IKHLAS won Best Takaful Operator at the Global Islamic Finance Awards 2015.

5

Malaysian Re’s Financial Strength Rating of ‘A-‘ (Excellent) and Issuer Credit Rating of ‘a-‘ was reaffirmed by A.M. Best, with Positive outlook for both ratings.

2





NOTICE IS HEREBY given that the Forty-Third Annual General Meeting of the Company will be held at the Auditorium, 3rd Floor, Bangunan

Malaysian Re, No. 17, Lorong Dungun, Damansara Heights, 50490 Kuala Lumpur on Thursday, 25 August 2016 at 10.00 a.m. for the following

purposes:-

AS ORDINARY BUSINESS

1. To receive the Audited Financial Statements for the financial year ended 31 March 2016 together with the Reports of the Directors and Auditors thereon.

2. To re-elect the following Directors retiring pursuant to Article 86 of the Company’s Articles of Association:-

(i) Sharkawi Alis (ii) Mohd Din Merican

3. To re-elect Mustaffa Ahmad, retiring pursuant to Article 92 of the Company’s Articles of Association, as Director of the Company.

4. To approve Directors’ fees amounting to RM752,000 for the financial year ended 31 March 2016 (2015: RM804,000).

5. To re-appoint Messrs Ernst & Young as Auditors and to authorise the Directors to fix their remuneration.

6. Continuing in Office as Independent Non-Executive Director.

“THAT approval be and is hereby given to the following Directors who have served as Independent Non-Executive Directors of the Company for a cumulative term of more than nine (9) years, to continue to serve as Independent Non-Executive Directors of the Company, in accordance with the Malaysian Code on Corporate Governance 2012”.

(i) Yusoff Yaacob (ii) Megat Dziauddin Megat Mahmud

AS SPECIAL BUSINESS

To consider and if thought fit, to pass the following Ordinary Resolution:-

7. Re-appointment of a Director retiring in accordance with Section 129 of the Companies Act, 1965:-

“THAT Megat Dziauddin Megat Mahmud, retiring in accordance with Section 129 of the Companies Act, 1965 be and is hereby re-appointed as Director of the Company to hold office until the conclusion of the next Annual General Meeting”.

8. To transact any other business which may properly be transacted at the Annual General Meeting.

By Order of the Board

NORAZMAN HASHIM (MIA 5817)LENA ABD LATIF (LS 8766)Company SecretariesKuala Lumpur29 July 2016

Please refer toExplanatory Note (i)

(Ordinary Resolution 1)(Ordinary Resolution 2)

(Ordinary Resolution 3)



(Ordinary Resolution 6)(Ordinary Resolution 7)




NOTE:-

1. A member entitled to attend and vote at the Annual General Meeting is entitled to appoint a proxy to attend and vote on a poll on his behalf. A proxy need not be a member of the Company.

2. A member may appoint not more than two (2) proxies to attend the meeting. Where a member appoints two (2) proxies, the member shall specify in each proxy form the proportion of the member’s shareholdings to be represented by each proxy.

3. Where a member is an exempt authorized nominee, which holds ordinary shares in the Company for multiple beneficial owners in one securities account (“omnibus account”), there is no limit to the number of proxies which the exempt authorized nominee may appoint in respect of each omnibus account it holds.

4. An Instrument appointing a proxy (ies) shall be in writing, and in the case of an individual shall be signed by the appointer or by his attorney duly authorized in writing, and in the case of a Corporation shall be either given under its common seal or signed on its behalf by its attorney or an officer of the Corporation so authorised.

5. An Instrument appointing a proxy (ies) must be deposited at the office of the Share Registrar of the Company, Symphony Share Registrars Sdn. Bhd., Level 6, Symphony House, Pusat Dagangan Dana 1, Jalan PJU 1A/46, 47301 Petaling Jaya, Selangor, not less than forty-eight (48) hours before the time set for the Annual General Meeting or any adjournment thereof.

6. Only members registered in the Record of Depositors as at 19 August 2016 shall be eligible to attend the Annual General Meeting or appoint proxy (ies) to attend and vote on his/her behalf.

7. Explanatory Notes

(i) Item 1 of the Agenda

This item on the Agenda is meant for discussion only. The provision of Section 169(1) of the Companies Act, 1965 requires that the Audited Financial Statements be laid before the Company at its Annual General Meeting and do not require a formal approval of the shareholders. As such, this Agenda item is not a business which requires a resolution to be put to vote by shareholders.

(ii) Ordinary Resolutions 6 and 7 – Continuing in Office as Independent Non-Executive Director

The proposed Ordinary Resolutions 6 and 7 are to seek the shareholders’ approval to retain Yusoff Yaacob and Megat Dziauddin Megat Mahmud who have served on the Board for a cumulative term of more than nine (9) years, as Independent Non-Executive Directors of the Company. The Board has via the Nomination Committee, assessed the Independence of Yusoff Yaacob and Megat Dziauddin Megat Mahmud and recommended them to continue to serve as Independent Non-Executive Directors based on the following justifications:-

Ordinary Resolution 6: Yusoff Yaacob

(a) Yusoff Yaacob has been an Independent Non-Executive Director for more than ten (10) years.

(b) Notwithstanding the long tenure, Yusoff Yaacob is considered to still fulfill the criteria under the definition of “Independent Director” as stated in the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.

(c) Yusoff Yaacob has performed his duties diligently and in the best interest of the Company without being subject to influence of the management.





(d) Yusoff Yaacob has devoted sufficient time in attending Board meetings and has participated in Board discussions.

(e) Yusoff Yaacob who is the Chairman of the Risk Management Committee and the Nomination Committee, has the relevant industry background and experience which enables him to provide constructive advice, expertise and independent judgment.

(f ) This assessment is based on the Directors’ Evaluation exercise that was performed yearly amongst Board members.

Ordinary Resolution 7: Megat Dziauddin Megat Mahmud

(a) Megat Dziauddin Megat Mahmud has been an Independent Non-Executive Director for almost ten (10) years.

(b) Notwithstanding the long tenure, Megat Dziauddin Megat Mahmud is considered to still fulfill the criteria under the definition of “Independent Director” as stated in the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.

(c) Megat Dziauddin Megat Mahmud has performed his duties diligently and in the best interest of the Company without being subject to influence of the management.

(d) Megat Dziauddin Megat Mahmud has devoted sufficient time in attending Board meetings and has participated in Board discussions.

(e) Megat Dziauddin Megat Mahmud who is the Chairman of the Audit Committee and the Remuneration Committee, has the relevant industry background and experience which enables him to provide constructive advice, expertise and independent judgment.

(f ) This assessment is based on the Directors’ Evaluation exercise that was performed yearly amongst Board members.

(iii) Ordinary Resolution 8 – Re-appointment of Director pursuant to Section 129 of the Companies Act, 1965

Ordinary Resolution 8: Megat Dziauddin Megat Mahmud

Megat Dziauddin Megat Mahmud, who is over the age of seventy (70) years, shall retire pursuant to Section 129 of the Companies Act, 1965 at the conclusion of the forthcoming 43rd Annual General Meeting. The proposed re-appointment of Megat Dziauddin Megat Mahmud will require a resolution passed by a majority of not less than three-fourths (3/4) of members of the Company who are entitled to vote at the forthcoming Annual General Meeting. The proposed resolution will enable Megat Dziauddin Megat Mahmud, to hold office until the conclusion of the next Annual General Meeting of the Company.



Statement Accompanying Notice of Annual General Meeting

Directors standing for re-election and re-appointment at the Forty-Third Annual General Meeting

The following are Directors retiring pursuant to Article 86 of the Company’s Articles of Association:-

1. Sharkawi Alis 2. Mohd Din Merican

The following is the Director retiring pursuant to Article 92 of the Company’s Articles of Association – Retirement after appointment to fill casual vacancy:-

1. Mustaffa Ahmad

The following is the Director retiring pursuant to Section 129 of the Companies Act, 1965:-

1. Megat Dziauddin Megat Mahmud

The respective profile of the above Directors is set out in the Profile of Directors’ section of the Annual Report from pages 24 to 27.

Statement Accompanying Notice of Annual General Meeting Pursuant to Paragraph 8.27(2) of the Bursa Malaysia Main Market Listing Requirements



Board of Directors

Sharkawi Alis NON-INDEPENDENT NON-EXECUTIVE CHAIRMAN

Mohd Din Merican PRESIDENT & GROUP CHIEF EXECUTIVE OFFICER

NON-INDEPENDENT EXECUTIVE DIRECTOR

Megat Dziauddin Megat MahmudSENIOR INDEPENDENT NON-EXECUTIVE DIRECTOR

Yusoff Yaacob INDEPENDENT NON-EXECUTIVE DIRECTOR

Paisol Ahmad NON-INDEPENDENT NON-EXECUTIVE DIRECTOR

Hijah Arifakh Othman NON-INDEPENDENT NON-EXECUTIVE DIRECTOR

Mustaffa Ahmad INDEPENDENT NON-EXECUTIVE DIRECTOR



AuditorsERNST & YOUNG (AF: 0039)

Chartered AccountantsLevel 23A, Menara Millenium

Jalan DamanlelaPusat Bandar Damansara

Damansara Heights50490 Kuala Lumpur, Malaysia

Tel : +603-7495 8000Fax : +603-2095 5332

Company SecretariesNorazman Hashim (MIA 5817)

Lena Abd Latif (LS 8766)

Share RegistrarSYMPHONY SHARE

REGISTRARS SDN. BHD.Level 6, Symphony HousePusat Dagangan Dana 1

Jalan PJU 1A/4647301 Petaling Jaya

Selangor Darul Ehsan Tel : +603-7841 8000 Fax : +603-7841 8008

Principal BankersStandard Chartered Bank Malaysia Berhad

Malayan Banking BerhadCIMB Bank Berhad

Audit CommitteeMegat Dziauddin Megat Mahmud (Chairman)

Yusoff YaacobMustaffa Ahmad

Nomination CommitteeYusoff Yaacob (Chairman)

Sharkawi AlisMegat Dziauddin Megat Mahmud

Mustaffa AhmadPaisol Ahmad

Remuneration CommitteeMegat Dziauddin Megat Mahmud (Chairman)

Yusoff YaacobPaisol Ahmad

Risk Management CommitteeYusoff Yaacob (Chairman)

Hijah Arifakh OthmanMustaffa Ahmad

Investment CommitteeHijah Arifakh Othman (Chairman)Megat Dziauddin Megat Mahmud

Paisol AhmadMohd Din Merican

Registered Office12th Floor,

Bangunan Malaysian ReNo. 17, Lorong Dungun

Damansara Heights50490 Kuala Lumpur

Tel : +603-2096 8000 Fax : +603-2096 7000

E-mail: [email protected]: www.mnrb.com.my

Stock Exchange ListingBursa Malaysia

Securities Berhad– Main Market



Group Structure

Group Structure

(13487-A)

Takaful Ikhlas Berhad

MNRB Retakaful Berhad

Malaysian Re (Dubai) Ltd.

MMIP Services Sdn. Bhd.

* Motordata Research Consortium Sdn. Bhd.

* Labuan Reinsurance (L) Ltd.Malaysian Reinsurance Berhad

* Associate Company

100%

100%

100%

100%

100%

40%

20%



SHARKAWI ALISChairman

CHALLENGING MARKET ENVIRONMENT

The FY2016 was a testing year for the Group as our performance was largely impacted by a difficult operating landscape. The challenges we faced during this financial year came from a combination of several factors which ultimately affected the results of the Group.

The global economic growth in 2015 was recorded lower at 2.4% as compared to 2.6% in 2014. Not only was there lower growth, negative interest rates seem to become the “new normal” in the major economies. Subdued GDP growth was largely driven by a significant decline in oil prices, weakening emerging market currencies, economic slowdown in China and escalating geopolitical risks. Slowing global economy coupled with excess capacity sent the global non-life insurance premium growth lower to 2.5% (2014:2.8%) while life premium also recorded a slower growth rate of 3.3% (2014:4.7%).

The Malaysian economy expanded by 5.0% in 2015, lower than 6.0% growth registered in 2014 as rising living costs and tight financial conditions dented consumer confidence. Meanwhile, in reaction to the sharp decline in oil prices, the government had to recalibrate its budget for 2016, translating into lower allocation for expenditures but such a move was essential in maneuvering the economy during this tough period and also to sustain the national sovereign credit rating.


DEAR VALUED SHAREHOLDERS,

On behalf of the Board of Directors, it is my pleasure to present to you the Annual Report of the MNRB Group for the financial year ended 31 March 2016 (FY2016).




2.4

7.11

6.48

15'

15'

2.5

16'

16'

Group Revenue(RM billion)

Group Total Assets(RM billion)

5.8%

9.7%

Given the slower growth momentum in the economy, the general insurance and takaful Gross Written Premium (GWP) grew at a slower rate of 2.7% in 2015 to RM19.8 billion as compared to 6.6% in the year before and this was the industry’s slowest growth pace in more than a decade. The life and family industry also shared the same sentiment as premiums from new business grew at a slower rate of 2.5% to RM12.8 billion as compared to 6.1% growth registered in the previous year.

Weakening of the Ringgit against the US dollar coupled with lower oil prices sent the financial market volatility to unprecedented levels in 2015 with a net outflow being the case in the domestic equity market. This unfavourable financial market condition limits the opportunity for the Group to realize capital gains from its investments and had also resulted in higher impairment in the value of our investment in equities.

The introduction of China Risk Oriented Solvency System (C-ROSS) and regulatory changes in Indonesia requiring Indonesian insurers to optimise local retention as mentioned in my statement last year have been implemented. In addition, excess reinsurance capacity pushes reinsurance rates lower due to stiff competition. In this new era, competition for business would not just be among reinsurers alone but also with capital markets. Moreover, regulatory changes that are taking place also add more challenges to grow the business.

GROUP RESULTS

Amid this difficult operating environment, the Group’s revenue increased by 5.8% from RM2.4 billion in FY2015 to RM2.5 billion in FY2016. Meanwhile, the Group recorded net investment income of RM195.1 million, about 4.0% lower than RM203.2 million registered in the previous financial year. As of the end of FY2016, total assets amounted to RM7.11 billion, 9.7% higher than RM6.48 billion in the year before.

Guided by capital preservation in adopting our investment risk appetite, 95% of invested assets are in the form of bonds and deposits. Moreover, majority of corporate bond holdings are of high investment grade. The effect to Group’s results would have been more acute if not for our cautious investment approach and prudent capital management practices given the financial market volatility during the financial year.

On the reinsurance front, abnormally higher claims from the overseas business and the exceptionally higher number of large domestic claims had impacted our results. In addition, the results of the takaful business included one-off adjustments made during the period. Confronted with severe economic challenges and these profound difficulties, the Group registered a net loss of RM38.8 million for FY2016 as compared to a net profit of RM139.1 million in FY2015. This is the first time that the Group registered a net loss since the 1998 Asian Financial Crisis.

The Group has taken steps to better position itself in the current market landscape via prudently exploring

new business opportunities, including expansion into

other territories for our overseas reinsurance business.




MNRB Retakaful Berhad (MRT)

As highlighted last year, MRT had ceased writing any new business and therefore saw its gross contribution for FY2016 declining from RM63.9 million to RM23.0 million. The general retakaful business accounted for 47.4% of the total business while the remaining 52.6% was generated from the family retakaful business. MRT registered a net loss of RM0.5 million in FY2016 as compared to a net loss of RM17.7 million in FY2015. Moving forward, the retakaful business of the MNRB Group will be offered via the retakaful division at Malaysian Re. MRT would continue to manage its outstanding business portfolio until such time deemed appropriate for it to surrender its operating license to Bank Negara Malaysia (BNM).

Takaful Ikhlas Berhad (Takaful IKHLAS)

Takaful IKHLAS’s gross contributions grew by 9.6% to RM905.0 million with family takaful business making up 68.0% of total gross contribution. The family takaful increased by 11.0% to RM615.1 million while the general takaful grew by 6.8% to RM293.9 million in FY2016. This compared favourably to industry growth where the family takaful registered 3.9% growth and the general takaful grew 6.0% in 2015. The ongoing transformation of the business at Takaful IKHLAS led to higher growth in its family takaful business while slower motor vehicle sales was the main factor that lowered the growth in general takaful business.

On the operational front, the result of the Group’s takaful business was affected by one-off adjustments which were made during the period. These adjustments include the reclassification of direct expenses previously charged to takaful funds to the shareholder’s fund, the transfer of previous year’s hibah from the shareholder’s fund to the general takaful fund and the reallocation of gross contributions between the shareholder’s fund and family takaful funds.

Due to the one-off adjustments mentioned, the company recorded a net loss of RM34.8 million as compared to net profit of RM19.4 million in the preceding year.

Malaysian Re’s GWP increased by 4.5% to RM1.37 billion in FY2016 despite the competitive business landscape. The growth in premium was higher than 2.3% that the general insurance industry in Malaysia had achieved in 2015. Its overseas business now makes about 43.5% of total revenue compared to 41.1% in the previous year.

Several large claims and risk events that occurred in FY2016 had dampened Malaysian Re’s profitability in spite of the growth in revenue. The company suffered significantly high claims from explosions at Port of Tianjin in China which was the largest insured-loss event of the year as well as the biggest risk loss event in Asia’s insurance history with the industry’s loss estimated to be in the range of USD2.5-3.5 billion. Further to this, the company also suffered losses from the Taiwan Earthquake and South Indian floods. The South Indian floods witnessed rains which virtually broke a 100-year record with one day’s rainfall covering a whole month’s average. While insurance losses are not geographically correlated, FY 2016 was an exception as the number of large domestic claims was also significantly high, impacting Malaysian Re’s overall underwriting results.

In addition, the sharp decline in the ringgit during the financial year had inflated our overseas claims payments during the year. Furthermore, our overseas claims reserves had to be adjusted upwards to reflect the prevailing exchange rates.

Given all these challenges, the company recorded a net profit of RM2.5 million in FY2016 in comparison to a net profit of RM152.1 million registered a year earlier.

Malaysian Reinsurance Berhad (Malaysian Re)






MALAYSIAN RE RETAKAFUL DIVISION

Malaysian Re has been granted a license by the Ministry of Finance to underwrite general and family retakaful business with effect from 13 April 2016. This will enable the Group to utilize the higher Insurer Financial Strength Rating (IFS) ratings of ‘A’ (Fitch) and ‘A-’ (A.M. Best) from Malaysian Re to gain access to businesses which otherwise would not have been accessible due to the lower rating of ‘BBB+’ (Fitch) assigned to MRT in the past. This new retakaful division will be leveraging on the proven technical expertise and combined resources at Malaysian Re, thereby providing better economies of scale. Besides, the retakaful business will be able to reach into the Middle East and North African (MENA) region through our subsidiary, Malaysian Re (Dubai) Ltd. (MRDL).

FINANCIAL STRENGTH RATING

During the year, Malaysian Re had its ratings reaffirmed by two credit ratings agencies. Fitch Ratings reaffirmed Malaysian Re’s IFS of ‘A’ with a stable outlook while A.M. Best also reaffirmed Malaysian Re’s IFS rating of ‘A-’ (Excellent) with positive outlook.

GOVERNANCE AND RISK MANAGEMENT PRACTICES

The Board of Directors remains fully committed in upholding high standards of corporate governance throughout the Group. We shall strive to continuously improve the effective application of the principles and best practices as laid down by the regulators including BNM, Securities Commission Malaysia (SC) and Bursa Malaysia Securities Berhad (Bursa).

MNRB’s policy is to implement these principles and best practices as well as to uphold high standard of business integrity in all activities undertaken by the Group. This includes a

commitment to emulate good industry examples and to comply with the respective guidelines and recommendations in the conduct of business activities of the Group.

As a financial holding company licensed under the Financial Services Act, 2013 (FSA) and also a public listed entity, MNRB is responsible to oversee the implementation of the Group’s risk management and internal control systems and review its effectiveness, adequacy and integrity. It recognizes that risk management is a continuous process, designed to manage the risk of failure to achieve business objectives.

SHAREHOLDER VALUE

Enhancing shareholders’ values and capital preservation continue to be the core thrust of our operations. As I have explained at the beginning of this statement, 2015 was indeed a very challenging year for the global economy due to divergence in monetary policy, significant drop in oil prices and volatile foreign exchange market.

As for our Group, the unfavourable effect to operating performance was not limited to these factors alone. Unprecedented claims during FY2016 affected the results of our reinsurance subsidiary, an anomaly in the context of the Group’s historical performance. In addition, the one-off adjustments related to the operational matters at the takaful subsidiary as mentioned earlier also contributed in pushing the Group into a net loss position.

The MNRB Group believes in delivering shareholder value while exercising appropriate stewardship over its resources. With all these challenges which had adversely impacted the Group, the Board of Directors is not recommending the payment of a dividend in respect of the financial year ended 31 March 2016. Nevertheless, we look forward to your continuous and unwavering support to the Group as we strive to improve our financial position in the forthcoming year.




NAVIGATING DURING THE TOUGH TIMES

The business landscape would continue to be surrounded by external challenges brought about by financial market volatility, severity and frequency of claims as well as catastrophe events, economic impediments and other relevant risks. These factors could affect the Group’s operating performance as what we experienced in FY2016. However, they are not unique to the Group alone as this is the nature of our industry.

The Group has taken steps to better position itself in the current market landscape via prudently exploring new business opportunities overseas. However, forex risk management continues to be a challenge as we expand into other territories.

As for takaful business, the Agency Transformation Programme will continue as we seek to improve operating efficiency. In addition, strengthening of product offerings remains in our agenda to further enhance market competitiveness. In anticipation of market de-tariffication for fire and motor businesses, the Group is putting in place adequate resources and appropriate strategies to face the added challenge from this liberalisation.

We realise that our business requires strong technical skills and as such, we will continue to invest in people development to ensure a continuous supply of talent in the Group as well as the cultivation of a pool of dynamic insurance and takaful professionals.

THE OUTLOOK AHEAD

The global economy is not expected to rebound in 2016 with global GDP growth forecast at around 2.4%, replicating the growth in 2015. Among the developed economies, only the United States is looking relatively sturdy while the economies of the Eurozone and Japan are still struggling in spite of negative interest rate policy imposed. Major emerging economies are also facing a few setbacks with China continuing to experience tapering GDP growth while Russia and Brazil had fallen into recession. In addition, other economic challenges in the form of lower oil prices, volatile fund flows, geopolitical risks and monetary policy divergence are to be expected.

The insurance market has been beset with difficulties such as low interest rates which is affecting investment income while uncertain economic environment poses threats to

business growth. Furthermore, the global insurance market would continue to be faced with excess capacity while capital market’s interest in Insurance Linked Securities will continue to grow as yields offered by traditional debt capital market instruments remain low.

The Malaysian economy is expected to grow in the range of 4.0%-4.5% in 2016, lower than 5.0% recorded in 2015. The economy is facing the prospect of further slowdown in the banking sector while lower consumer confidence would limit the upside potentials in domestic demand. However, proactive measures taken by the government in navigating the economy during this tough period had ensured that fiscal metrics remain intact, a crucial move in sustaining our national sovereign credit rating.

On the domestic insurance industry, the operating environment is not expected to improve significantly as current uncertainties are likely to prevail given our moderate GDP outlook for this year. The general insurance/takaful industry will continue to be largely driven by major infrastructure projects and the automotive sector’s performance while on the life insurance/family takaful segment, consumers’ purchasing power will be the key driver. Pressure on purchasing power affects consumer behavior where adjustments to spending pattern would lower their allocation for life insurance/family takaful products.

Phased de-tariffication of both fire and motor classes is taking place this year and after a certain period, motor premiums will move away from standard tariff rates to risk-based premiums i.e. consumers will be charged different premium rates subject to their risk profile. As for the fire insurance, there will be a gradual adjustment to tariff rates for identified risk groups. The de-tariffication would also encourage more product innovation and price differentiation, giving customers more choice




offerings based on price and risk factors. Risk-based pricing model will also give opportunity for companies to manage their business portfolio more effectively as pricing will be reflective of underwritten risks.

The Islamic Financial Services Act 2013 (IFSA) requires a composite takaful operator to split its family and general businesses under separate licenses by July 2018. Takaful IKHLAS which holds a composite license is currently carrying out the necessary steps and is on track to comply with the requirement. With two separate entities carrying out general and family business, it is expected that there will be improved focus on the respective business segments which will result in better shareholder values.

Despite the challenging landscape, I am confident that with the measures and actions that are taking place, the Group’s performance will improve in the next financial year.

ACCOLADES

I am pleased to inform that Malaysian Re won the 2015 Market Pioneer Award in conjunction with the 13th RAM Ratings League Award for its RM250 million Subordinated Medium Term Notes Programme. This is the first RM-Sukuk issued by any Malaysian reinsurer. This financing programme signifies Malaysian Re’s role in enhancing the depth of Malaysian debt capital market.

In addition, Takaful IKHLAS received an international level recognition by winning the European Global Banking and Finance Awards 2016 Takaful Company of the Year (Malaysia) from the European Magazine and with this award it is the only Malaysian company being conferred with the accolade for the Takaful Category. This award marks the recognition of our takaful subsidiary by the international business community.

ACKNOWLEDGEMENTS

On behalf of the Board of Directors, I would like to express my heartfelt appreciation to the many parties who had given MNRB Group their utmost support. Our deepest gratitude is to our valued shareholders for their continued faith and confidence in us all these years. My sincere thanks also to our customers, business partners, ceding companies and intermediaries, as well as BNM and the insurance and takaful associations, for their steadfast support and cooperation.

As management strive to face a challenging marketplace and economic uncertainties, our Board continues to uphold strong governance and keeps a robust oversight at all times. The Group had appointed four new board members. They are Datuk Nik Moustpha Nik Hassan, Puan Rosinah Mohd Salleh, Datin Zaimah Zakaria and Encik Arul Sothy Mylvaganam. Both Datuk Nik Moustpha and Puan Rosinah were appointed to the Board of Takaful IKHLAS whilst Datin Zaimah Zakaria and Encik Arul Sothy Mylvaganam were appointed to the Board of Malaysian Re. Further to these new additions, Encik Mustaffa Ahmad and Encik Md Adnan Md Zain who currently are on the Board of Malaysian Re have been appointed to the Boards of MNRB and Takaful IKHLAS respectively. These new Directors added diversity and experience to our boards.

I would like to thank Encik P. Raveenderen who resigned from the Boards of MNRB and Malaysian Re on 1 July 2016. Encik P. Raveenderen has served the Group as a Director for more than 22 years with full commitment, and his departure will be deeply felt by us. My appreciation also goes to Dato’ Othman Hashim and Tuan Haji Halim Din, both of whom resigned from the Board of

Takaful IKHLAS on 15 February 2016 and to Encik Yahaya Besah and Dr. Syed Musa Syed Jaafar Alhabshi who resigned from the Board of Takaful IKHLAS on 19 August 2015. We sincerely thank them for their guidance, dedication and contribution to the Group. My heartfelt thanks also go to my other colleagues on the Board for their dedication and contributions.

Last but not least, my sincere gratitude goes to our loyal management team and employees for their unrelenting commitment and dedication to the Group.

We look to all our stakeholders to lend us their continuous support as we leverage on all opportunities and overcome all challenges to ensure a strong and sustainable future for all.

On behalf of the Board

Sharkawi AlisChairman5 July 2016




Board of Directors

Board of Directors

SHARKAWI ALIS

Non-Independent Non-Executive Chairman

MOHD DIN MERICAN

President & Group Chief Executive Officer/Non-Independent Executive Director

MEGAT DZIAUDDIN MEGAT MAHMUD

Senior Independent Non-Executive Director

The Board of MNRB

is responsible

for the proper

stewardship of the

Group’s resources,

the achievement

of the Group’s

objectives and

good corporate

citizenship.



Board of Directors

YUSOFF YAACOB HIJAH ARIFAKH OTHMAN

Independent Non-Executive Director

Non-Independent Non-Executive Director

MUSTAFFA AHMAD


PAISOL AHMAD






SHARKAWI ALIS, aged sixty-nine (69), male, Malaysian. Non-Independent Non-Executive Director since 7 January 2005 and was subsequently appointed as Non-Independent Non-Executive Chairman on 3 September 2007. Member of the Nomination Committee. He is a Barrister-at-Law from Middle Temple, London where he was called in 1971. He served in the Malaysian Judicial and Legal Service in various capacities for eleven (11) years before he was appointed as Group Legal Adviser of Malaysia Mining Corporation Berhad in August 1982. In January 1997, he joined the Securities Commission, Malaysia as Director of Market Supervision and subsequently as Director of Corporate Resources Division till March 2003. Also Chairman of Malaysian Re, Takaful IKHLAS, MRT, Labuan Re and MRDL, a Director of MIDF Property Berhad, Permodalan Satok Berhad and Motordata Research Consortium Sdn. Bhd. He is also a trustee for Yayasan Hartanah Bumiputera Sarawak. Not related to any Director and/or major shareholder of MNRB except by virtue of being a nominee Director of PNB. Does not have any conflict of interest with MNRB and has never been convicted for any offences, public sanction or penalty imposed by the relevant regulatory bodies within the past five (5) years. Attended all the nine (9) Board Meetings held in the financial year.

SHARKAWI ALIS

Non-Independent Non-Executive Chairman

Committees:

A B I N R

COMMITTEE MEMBER KEY

BOARD COMPOSITION

A Audit Committee

B Risk Management Committee

I Investment Committee

N Nomination Committee

R Remuneration Committee

Chairman of Committee

Member of Committee

Executive Director (also the GCEO)

1 out of 714.2%

Independent Non-Executive Directors

3 out of 742.9%

Non-Independent Non-Executive Directors (including the Chairman)

3 out of 742.9%




MEGAT DZIAUDDIN MEGAT MAHMUD, aged seventy (70), male, Malaysian. Independent Non-Executive Director since 24 August 2006 and re-designated as Senior Independent Non-Executive Director on 19 July 2011. Chairman of the Remuneration Committee as well as the Audit Committee. Member of the Investment Committee and the Nomination Committee. He obtained a Bachelor of Science (Econs.) (Hons.) degree from the Queen’s University of Belfast, Northern Ireland and is a Fellow of the Institute of Chartered Accountants in Ireland as well as a Chartered Accountant with the Malaysian Institute of Accountants. He had served Golden Hope Plantations Berhad as Group Director, Finance, Arab-Malaysian Merchant Bank, first as General Manager - Operations and later as General Manager - Investment, Bank Simpanan Nasional as Finance Manager and the Accountant-General’s Department as Treasury Accountant. Also the Chairman of Alliance Islamic Bank Berhad and a Director of Malaysian Re, MRT, Takaful IKHLAS and several other private limited companies. Not related to any Director and/or shareholder of MNRB. Does not have any conflict of interest with MNRB and has never been convicted for any offences, public sanction or penalty imposed by the relevant regulatory bodies within the past five (5) years. Attended all the nine (9) Board Meetings held in the financial year.

MEGAT DZIAUDDIN MEGAT MAHMUD

Committees:

A B I N R

Senior Independent Non-Executive Director

MOHD DIN MERICAN, aged fifty-four (54), male, Malaysian, Non-Independent Executive Director with effect from 9 January 2012 and President & Group Chief Executive Officer of the Company. Member of the Investment Committee. Obtained a Bachelor of Commerce (Honours) degree from Carleton University, Ottawa, Canada. He is an Associate of The Malaysian Insurance Institute (AMII) since 1991. He has thirty (30) years’ experience in the insurance industry and has held key management positions in various insurance, insurance broking and reinsurance firms including being the Principal Officer & General Manager of SCOR Switzerland Ltd (Converium Ltd), Labuan Branch. Prior to joining MNRB, he was the Chief Operating Officer of Mayban Ageas Holdings Berhad and the Chief Executive Officer of Etiqa Insurance Berhad. Formerly a member of Management Committee of Persatuan Insurans Am Malaysia, National Insurance Association of Malaysia and President of Life Insurance Association of Malaysia. Also a Director of Malaysian Re, MRT, Takaful IKHLAS, Labuan Re, MRDL and Motordata Research Consortium Sdn. Bhd. Not related to any Director and/or major shareholder of MNRB. Does not have any conflict of interest with MNRB and has never been convicted for any offences, public sanction or penalty imposed by the relevant regulatory bodies within the past five (5) years. Attended all the nine (9) Board Meetings held in the financial year.

MOHD DIN MERICAN

Committees:

A B I N R

Non-Independent Executive Director




PAISOL AHMAD, aged sixty-two (62), male, Malaysian. Non-Independent Non-Executive Director since 11 April 2008. Member of the Investment Committee, the Nomination Committee and the Remuneration Committee. Obtained a Diploma in Accountancy from Universiti Teknologi MARA and thereafter became a Fellow of the Association of Chartered Certified Accountants, United Kingdom. Also a Chartered Accountant with the Malaysian Institute of Accountants, a Fellow of the Financial Services Institute of Australasia and a Certified Financial Planner with the Financial Planning Association of Malaysia. He was the Senior Accountant of Pernas Charter Management Sdn. Bhd. He then held various positions in Amanah Saham Nasional Berhad before being appointed as its Executive Director/Senior Vice President II. He was subsequently transferred to PNB and is currently the Senior Vice President, Internal Assurance Division. Also a Director of Takaful IKHLAS, KAF Investment Bank Berhad and two (2) other private limited companies. Not related to any Director and/or major shareholder of MNRB except by virtue of being a Nominee Director and employee of PNB. Does not have any conflict of interest with MNRB and has never been convicted for any offences, public sanction or penalty imposed by the relevant regulatory bodies within the past five (5) years. Attended all the nine (9) Board Meetings held in the financial year.

PAISOL AHMAD

Committees:

A B I N R


YUSOFF YAACOB, aged sixty-eight (68), male, Malaysian. Appointed as a Director on 10 November 2004 and re-designated as an Independent Non-Executive Director on 23 March 2006. Chairman of the Risk Management Committee and the Nomination Committee, member of the Audit Committee and Remuneration Committee. Obtained a Diploma in Insurance Studies & Insurance Management from the University of Nottingham, United Kingdom. A Chartered Insurance Practitioner and a Fellow of the Chartered Insurance Institute, United Kingdom. Started his career as an Insurance Trainee with Malaysia National Insurance Sdn. Bhd. in 1970 and held the position of Marine Manager until 1979. Joined Petroliam Nasional Berhad (PETRONAS) in 1979 and was the General Manager (Insurance Division) until his retirement in 2003. Also a Director of Malaysian Re. Not related to any Director and/or major shareholder of MNRB. Does not have any conflict of interest with MNRB and has never been convicted for any offences, public sanction or penalty imposed by the relevant regulatory bodies within the past five (5) years. Attended all the nine (9) Board Meetings held in the financial year.

YUSOFF YAACOB


Committees:

A B I N R




HIJAH ARIFAKH OTHMAN, aged fifty-six (56), female, Malaysian. Non-Independent Non-Executive Director since 1 June 2015. Chairman of the Investment Committee and member of the Risk Management Committee. She obtained a Degree in Mathematics and Computer Science from City University of London. She began her career in Bank Negara Malaysia (BNM) in 1984 where she served in various divisions including in senior positions as the Managers/Head of Fixed Income Portfolio Management of the External Reserves and Assistant General Manager/Head of Treasury of Danamodal from 1989 to 2000. She had also served as the Director/Head of Asian Fixed Income in Standard Chartered Bank Malaysia and subsequently as the Executive Vice President/Head of Group Treasury Business in Malayan Banking Berhad from 2006 to 2009. She was appointed as the Managing Director/Chief Executive Officer of Hong Leong Islamic Bank from 2009 to 2011. She had been a Director of KAF Investment Bank Berhad since 2012. Not related to any Director and/or major shareholder of MNRB except by virtue of being a Nominee Director of PNB. Does not have any conflict of interest with MNRB and has never been convicted for any offences, public sanction or penalty imposed by the relevant regulatory bodies within the past five (5) years. Attended eight (8) Board Meetings held in the financial year.

HIJAH ARIFAKH OTHMAN

Committees:

A B I N R


MUSTAFFA AHMAD, aged sixty (60), male, Malaysian. Independent Non-Executive Director since 1 April 2016. Member of Audit Committee, the Risk Management Committee and the Nomination Committee. He graduated with a Bachelor of Science (Honours) degree in Statistics from the Heriot-Watt University, Edinburgh, Scotland in 1978. He has worked for several insurance companies since 1978 and then joined Malaysian National Reinsurance Berhad as Senior Manager in 1989. He assumed various other roles whilst he was in Malaysian National Reinsurance Berhad. Following MNRB Group restructuring exercise in 2005, he was transferred to Malaysian Re and was appointed as the Chief Operating Officer until 2010. Also a Director of Malaysian Reinsurance Berhad, MIDF Amanah Investment Bank Berhad and Amanah International Finance Sdn Bhd. Not related to any Director and/or major shareholder of MNRB. Does not have any conflict of interest with MNRB and has never been convicted for any offences, public sanction or penalty imposed by the relevant regulatory bodies within the past five (5) years.

MUSTAFFA AHMAD

Committees:

A B I N R






PROF. DATO’ DR. AHMAD HIDAYAT BUANG, aged fifty-four (54). Appointed as the Group Shariah Committee Chairman on 2 November 2015. Shariah Committee member for Takaful IKHLAS since 2002 and was subsequently appointed as the Shariah Committee Chairman for Takaful IKHLAS since 2013 until its dissolution on 2 November 2015.

IR. DR. MUHAMAD FUAD ABDULLAH, aged sixty-three (63). Appointed as the Group Shariah Committee member on 2 November 2015. Shariah Committee member for MRT since 1 June 2011. Shariah Committee Chairman for MRT since his appointment on 28 October 2011 until its dissolution on 2 November 2015.

Obtained his Bachelor Degree in Electrical Engineering from Southampton University in 1977. In 1982, he obtained Masters Degree in Electrical Engineering from the same university and in 1994, he obtained his Bachelor Degree in Shariah from Jordan University. In 1996, he completed his Ph.D. in Muslim Civilisation from Aberdeen University in Scotland.

Professor of the Academy of Islamic Studies at University of Malaya. Previously, he was a Director for the Academy of Islamic Studies from October 2006 until February 2011. Holds a Bachelor in Shariah from the University of Malaya. Completed his Master in Law and Doctorate from University of London (specialising in Islamic Contracts). Former member of OCBC Al-Amin Bank Berhad and CIMB Islamic Bank Berhad’s Shariah Council. A Shariah Committee member of Bank Islam Malaysia Berhad since 2011.

He is the Chairman of the Shariah Committee of MIDF Group of Companies in addition to being a Shariah Advisory Committee member of BIMB Securities Sdn. Bhd. He is a registered Shariah Adviser with the Securities Commission (SC) which qualifies him to advice on Shariah-compliant products and services regulated by the SC. He is a registered Shariah lawyer with Majlis Agama Islam Perak since 2007 and was a member of the Board of Studies of the BA (Fiqh and Usul Fiqh) Programme of the International Islamic University of Malaysia (IIUM) in 2007-2010. He is a member of the Majlis Agama Islam Wilayah Persekutuan (MAIWP) and sits on the boards of Malaysian Industrial Development Finance (MIDF) Berhad, MIDF Property Berhad, Mesiniaga Berhad, Sime Darby Berhad, and Sime Darby Property Berhad. He also serves as a Board member of Institute of Islamic Understanding Malaysia (IKIM).

PROF. DATO’ DR. AHMAD HIDAYAT BUANG Group Shariah Committee Chairman

IR. DR. MUHAMAD FUAD ABDULLAH Group Shariah Committee Member




ASSOC. PROF. DR. SAID BOUHERAOUA, aged forty-nine (49). Appointed as the Group Shariah Committee member on 2 November 2015. Shariah Committee member for MRT since 1 April 2011 until its dissolution on 2 November 2015.

Holds a Bachelor Degree in Fiqh and Usul Al-Fiqh from University of Algiers in 1991. In 1998, he obtained his Masters Degree in Quran and Sunnah from the IIUM and in 2002, he completed his Ph.D from the Department of Fiqh and Usul al-Fiqh of the same university.

He started his career with University Sains Islam Malaysia (USIM) as a Lecturer in 2003. After two (2) years, he became an Assistant Professor Dr. & Associate Professor Dr. at the Ahmad Ibrahim Kulliyyah of Laws in IIUM, from year 2004 to 2009. He then resumed his career path as a Senior Researcher at the International Shariah Research Academy (ISRA) for Islamic Finance. He is also a member of the Shariah Committee of Affin Islamic Bank since March

2008. He is also a member of Shariah Committee of ISRA Consultancy institute, since April 2011 and a registered Shariah Adviser with Securities Commission Malaysia since March 2012.

Dr. Said is the editor-in-chief of ISRA International Journal of Islamic Finance. He has published four (4) books, six (6) chapters in books and several articles in refereed journals. He has also presented several papers in international conferences including the International Fiqh Academy of the OIC and Islamic Fiqh Academy of Muslim World League. He developed the curricula in Islamic law for four (4) courses at IIUM and conducted several training sessions in Islamic law Islamic banking and finance in Malaysia and abroad.

Prior to his achievements and contributions towards the industry, he had won the Lamya al-Faruqi Award for Academic Excellence in 1999, organised by International Institute of Islamic Thought and IIUM.

ASSOC. PROF. DR. SAID BOUHERAOUA Group Shariah Committee Member

DR. SYED MUSA SYED JAAFAR ALHABSHI, aged fifty-six (56). Appointed as the Group Shariah Committee member on 2 November 2015. Shariah Committee member for MRT since 1 June 2011 until its dissolution on 2 November 2015. Shariah Committee member for Takaful IKHLAS since September 2012 until August 2015.

He is also a Director of MRT. He currently sits on the Shariah Committee of Bank of Tokyo – Mitsubishi UFJ (Malaysia) Berhad.

Obtained his Diploma in Business Studies from Ngee Ann Polytechnic, Singapore in 1984, a Bachelor of Business Administration (Hons.). Degree from the IIUM in 1989 and a Doctorate in Business Administration majoring in Accounting and Finance from University of Strathclyde, Glaslow, United Kingdom in 1994.

He began his career with Coopers & Lybrand, Singapore as an Audit Assistant in 1984. From 1989 until 1994, he joined IIUM as an Assistant Lecturer and upon completion of his doctorate he became an Assistant Professor and held various academic administrative positions in IIUM till 2000. He joined Universiti Tun Abdul Razak in 2000 as an Associate Professor and became Head of Centre for Graduate Studies. He later served as Dean of Faculty of Business in 2004. In 2006, he joined Amanie Business Solutions Sdn Bhd as a Principal Consultant until 2009 and as a Fellow Consultant from 2010 to 2012. In 2009, he resumed his academic career as Associate Professor with Universiti Tun Abdul Razak and appointed Dean of Graduate School of Business in 2010. Since October 2012, he is the Associate Professor of Institute of Islamic Banking and Finance (IIiBF). Currently, he is Dean of IIiBF, IIUM.

DR. SYED MUSA SYED JAAFAR ALHABSHI Group Shariah Committee Member



DATUK NIK MOUSTPHA NIK HASSAN, aged sixty-three (63). Appointed as the Group Shariah Committee member on 2 November 2015. Shariah Committee member for Takaful IKHLAS since December 2002 and also Shariah Committee member for MRT since April 2012 until its dissolution on 2 November 2015.

He studied Business and Economics at Ohio University, United States of America.

DR. MUHAMMAD NAIM OMAR, aged forty-eight (48). Appointed as the Group Shariah Committee member on 2 November 2015. Shariah Committee member of Takaful IKHLAS since April 2009 until its dissolution on 2 November 2015.

He is an Assistant Professor of Islamic Law at Ahmad Ibrahim Kulliyyah of Laws, International Islamic University of Malaysia and also OCBC Al- Amin Bank Berhad Shariah Committee Member.

He was the Director General of IKIM from August 2009 until August 2015. Prior to joining IKIM, he was the Dean of Kulliyyah Economics at the International Islamic University of Malaysia. In 1989, he used to serve as visiting Scholar at Oxford Centre for Islamic Studies, United Kingdom for one (1) academic year.

He is also a Director of Takaful IKHLAS.

DR. MOHAMED FAIROOZ ABDUL KHIR, aged forty (40). Appointed as the Group Shariah Committee member on 2 November 2015. Shariah Committee member for MRT since April 2013 and also Shariah Committee member of Takaful IKHLAS since April 2014 until its dissolution on 2 November 2015.

Holds a B.A in Islamic Revealed Knowledge and Human Sciences (Fiqh & Usul Fiqh) from IIUM in 2000. Obtained his M.A in Shariah from University of Malaya, Kuala Lumpur, Malaysia in 2005 and completed his Ph.D in Islamic Finance from the same university in 2011.

He started his career with IIUM Centre for Foundation Studies since 2002 as a lecturer in the department of Islamic Revealed Knowledge and Human Sciences. After eight (8) years in services, he resumed his career path as a Researcher at the International Shariah Research Academy for Islamic Finance (ISRA). He is a member of the Shariah Committee for Maybank Islamic Berhad since July 2013. He is also a member of the Shariah Committee for AGRO Bank since August 2012. Actively involved in research works, writing books, and presentation of research papers at various local and international conferences and forums. He had been conferred an Excellence Award by University of Malaya for early completion of his Ph.D study.

Graduated with a degree in Shariah Law from Al-Azhar University in 1992. In 1999, he received his Masters Degree from Cairo University in Shariah Law and later received Ph.D from the University of Wales, Lampeter, in 2006.

DR. MOHAMED FAIROOZ ABDUL KHIR

DATUK NIK MOUSTPHA NIK HASSAN Group Shariah Committee Member

Group Shariah Committee Member

DR. MUHAMMAD NAIM OMAR Group Shariah Committee Member






1

Norazman HashimMohd Din Merican

2

Ahkter Abdul Manan

3

Azlan A. Azizee

4

Ahmad Ruhaizad Hashim

6

Sharmini Perampalam

10

Nazzahatol Azura Aziz

5

Raja Zalman Tuah Raja Izzaham

7

Lena Abd Latif

8

Iszatul Mashani Ishak

9

Tung Chee Lim

The President & Group Chief Executive Officer



International Merchant Bankers Berhad (MIMB) in 1987 as an Investment Analyst. In 1991, he was promoted to Manager, Head of IVS and in 1995 to Assistant General Manager. He was subsequently promoted to General Manager of IVS in 1997. He was then seconded to MIDF Aberdeen Asset Management Sdn. Bhd. (MIDF Aberdeen), which he set up in 1998. In January 2001, he was appointed the Chief Executive Officer and Executive Director of MIDF Aberdeen. He joined Asia Unit Trust Berhad (AUTB) in September 2004 as Chief Executive Officer following the transfer of the business of MIDF Aberdeen to Amanah SSCM Asset Management Berhad. He left AUTB in July 2007 to join MNRB on 17 July 2007. In total, he brings to the Company more than twenty-nine (29) years of experience in the Asset Management industry. Not a Director in any public companies or listed issuer. Not related to any Director and/or major shareholders of MNRB. Does not have any conflict of interest with MNRB and has never been convicted for any offences within the past five (5) years.

Name: Norazman Hashim Age: Fifty-four (54)Gender: MaleNationality: MalaysianPosition: Executive Vice President & Group Chief Financial Officer/Company Secretary Qualification: Masters degree in Business Administration from the Cranfield School of Management, United Kingdom; Fellow member of the Association of Chartered Certified Accountants (ACCA), United Kingdom and a member of the Malaysian Institute of Accountants (MIA).Skills and experience: Norazman Hashim joined the then Malaysian National Reinsurance Berhad in 1985 and was appointed as its Financial Controller and Company Secretary in 1994. He was subsequently transferred to Malaysian Re in April 2005 and promoted to General Manager of the Corporate Services Division in June 2005 where he oversaw the Administration, Legal & Secretarial, Corporate Communications, Human Capital Management and Finance Departments. On 1 April 2008, he was transferred to MNRB where he assumed his current position. Norazman Hashim is also a Director of MSSB and the Company Secretary of Malaysian Re, MRT, MRDL and Takaful IKHLAS. Not a Director in any public companies or listed issuer. Not related to any Director and/or major shareholders of MNRB. Does not have any conflict of interest with MNRB and has never been convicted for any offences within the past five (5) years.

1

Name: Ahkter Abdul Manan Age: Fifty-three (53)Gender: MaleNationality: MalaysianPosition: Senior Vice President & Group Chief Investment Officer Qualification: Bachelor of Social Science (Honours) degree majoring in Management with a minor in Economics, University of Science, Malaysia.Skills and experience: Ahkter Abdul Manan is responsible for the overall investment, property and administrative functions of the MNRB Group. He started his career in the Investment and Securities Department (IVS) of Malaysian

2

Name: Azlan A. Azizee Age: Fifty-five (55)Gender: MaleNationality: MalaysianPosition: Senior Vice President & Group Chief Information Officer Qualification: Bachelor of Science in Computer Science from the University of Wisconsin, Green Bay, USA; Masters of Science in Information Systems Technology from The George Washington University, Washington D.C., USA.Skills and experience: Azlan A. Azizee joined the then Malaysian National Reinsurance Berhad as an IT Executive in 1987. He held positions of increasing responsibility in the ensuing years at the Company and was involved in the implementation of IT initiatives for the insurance industry. Having assumed his current position on 1 April 2005, he is today responsible for directing the Company’s information technology strategy, management and operations. Not a Director in any public companies or listed issuer. Not related to any Director and/or major shareholders of MNRB. Does not have any conflict of interest with MNRB and has never been convicted for any offences within the past five (5) years.

3

Name: Ahmad Ruhaizad Hashim Age: Forty-eight (48)Gender: MaleNationality: MalaysianPosition: Senior Vice President & Group Chief Strategy Officer Qualification: Bachelor of Economics and Accounting from the University of Leeds, England; Member of the Malaysian Institute of Certified Public Accountants (MICPA) since 1995 as well as a member of the MIA.Skills and experience: Ahmad Ruhaizad Hashim began his career in 1991 when he joined Arthur Andersen as an auditor. He served Arthur Andersen for more than five (5) years until 1996 when he left to join KUB Malaysia Berhad. He then re-joined Arthur Andersen in 1999 to head its Kuala Terengganu branch operation. In 2002, he joined Putrajaya Holdings Sdn. Bhd. as the Head of the Corporate Planning Department. After six (6) years with the property development company,he then joined MNRB on 2 January 2008. In addition to his current role, he is also the President & CEO of MRT, a wholly owned subsidiary of MNRB. Not a Director in any public companies or listed issuer. Not related to any Director and/or major shareholders of MNRB. Does not have any conflict of interest with MNRB and has never been convicted for any offences within the past five (5) years.

4

Name: Raja Zalman Tuah Raja Izzaham Age: Forty-three (43)Gender: MaleNationality: MalaysianPosition: Senior Vice President & Group Chief Internal Auditor Qualification: Fellow member of the ACCA, United Kingdom and a member of the MIA.Skills and experience: Raja Zalman Tuah Raja Izzaham joined MNRB in 2006 as an Executive in the Internal Audit Department. He held positions of increasing responsibility in the ensuing years at the Company before being promoted as the Deputy Group Chief Internal Auditor in 2011. He was then transferred to the Risk Management & Compliance Division in 2014 to take up the role as the Group Chief Risk Management and Compliance Officer. He assumed his present position in June 2016

5





Name: Iszatul Mashani Ishak Age: Forty-two (42) Gender: FemaleNationality: MalaysianPosition: Senior Vice President & Head of Human Capital Management Qualification: Degree in Information Technology from the University of Queensland, Australia.Skills and experience: Iszatul Mashani Ishak began her career as an Analyst Programmer with Mayban Life Assurance Berhad (now known as Etiqa Insurance Berhad). In 2006, she decided on a career change and embarked on her Human Resource journey as a Recruitment Specialist with Scicom (MSC) Berhad. As a self-learner, she obtained more experience as a Human Resource Generalist and a manager over the next few years with Accenture and Labuan Financial Services Authority. Prior to joining MNRB, she was the Section Head, Talent Management & Staff Engagement with RHB Banking Group specialising predominantly in Performance Management, Talent Development, Succession Planning and Employee Engagement. She joined MNRB on 2 September 2014 as Vice President, Learning & Development and was promoted to her current position on 1 January 2015. Not a Director in any public companies or listed issuer. Not related to any Director and/or major shareholders of MNRB. Does not have any conflict of interest with MNRB and has never been convicted for any offences within the past five (5) years.

8

Name: Sharmini Perampalam Age: Forty-eight (48)Gender: FemaleNationality: MalaysianPosition: Senior Vice President & Head of Finance Qualification: Honours degree in Accountancy from Universiti Putra Malaysia and is a member of the MIA.Skills and experience: Sharmini Perampalam joined the then Malaysian National Reinsurance Berhad in 1995 as an Internal Audit Executive and moved up the ranks to Manager before being transferred to the Finance Department. She was promoted to her current position as Senior Vice President & Head of Finance in 2011. Having been with the MNRB Group for more than twenty-one (21) years, she brings to the table a wealth of experience from financial and audit procedures to corporate and operations management. Not a Director in any public companies or listed issuer. Not related to any Director and/or major shareholders of MNRB. Does not have any conflict of interest with MNRB and has never been convicted for any offences within the past five (5) years.

6

Name: Lena Abd Latif Age: Forty-nine (49)Gender: FemaleNationality: MalaysianPosition: Senior Vice President, Head of Legal & Secretarial and the Company Secretary Qualification: Bachelor of Laws (Honours) degree from the International Islamic University, Malaysia and has been called to the Malaysian Bar.Skills and experience: Lena Abd Latif has over twenty-two (22) years of working experience in both legal practice and corporate firms. She was employed by Utusan Melayu (Malaysia) Berhad as its legal advisor in 1991 and thereafter, as the General Manager, Corporate Affairs/Group Company Secretary at Land & General Berhad between 1993 and 2000. She joined the then Malaysian National Reinsurance Berhad in 2003 as Manager, Legal & Secretarial

7

Name: Tung Chee Lim Age: Thirty-three (33)Gender: MaleNationality: MalaysianPosition: Senior Vice President & Head of Group Actuarial Services Qualification: Bachelor of Science with Honours (Actuarial Science) from the National University of Malaysia; Fellowship qualification from the Casualty Actuarial Society of the United States; Fellow of the Actuarial Society of Malaysia. Skills and experience: Tung Chee Lim commenced his career as an actuarial analyst at CIMB Aviva Assurance Berhad, and subsequently advanced his career in the takaful industry. He was the Signing Actuary/Appointed Actuary for HSBC Amanah Takaful (Malaysia) Berhad General takaful business. He joined MNRB in 2015. Not a Director in any public companies or listed issuer. Not related to any Director and/or major shareholders of MNRB. Does not have any conflict of interest with MNRB and has never been convicted for any offences within the past five (5) years.

9

Name: Nazzahatol Azura Aziz Age: Forty-four (44)Gender: FemaleNationality: MalaysianPosition: Vice President & Group Chief Risk Officer Qualification: Bachelor of Science in Management (minor in Statistics) from the Case Western Reserve University, Cleveland, Ohio, USA.Skills and experience: Nazzahatol Azura Aziz began her career as an auditor with Arthur Andersen in 1995, where she served in the Services Group of Audit Division. She joined the then Malaysian National Reinsurance Berhad in 2000 as an Executive in the Compliance Department. During her sixteen (16) years at the Company, she held various roles of increasing responsibility, including Assistant Vice President at Finance Department, Head of Corporate Finance and Vice President at Corporate Services Division. In 2013, she was appointed as the Head of Business Process Improvement prior to assuming her current position on 15 June 2016. Not a Director in any public companies or listed issuer. Not related to any Director and/or major shareholders of MNRB. Does not have any conflict of interest with MNRB and has never been convicted for any offences within the past five (5) years.

10

and has over sixteen (16) years of working experience. Not a Director in any public companies or listed issuer. Not related to any Director and/or major shareholders of MNRB. Does not have any conflict of interest with MNRB and has never been convicted for any offences within the past five (5) years.


and was appointed as its Company Secretary in February 2004. She was promoted to her current position as Senior Vice President & Head of Legal & Secretarial in 2011. She is also the Company Secretary of Malaysian Re, MRT, Takaful IKHLAS and MSSB. Not a Director in any public companies or listed issuer. Not related to any Director and/or major shareholders of MNRB. Does not have any conflict of interest with MNRB and has never been convicted for any offences within the past five (5) years.



Event Highlights

Event Highlights

5MNRB SCHOLARSHIP PRESENTATION CEREMONY

15 JUNE 2015

Forty-three (43) deserving Malaysians were awarded scholarships from the MNRB Scholarship Fund to pursue their studies in various insurance related courses.

1MINGGU SAHAM AMANAH MALAYSIA, SIBU, SARAWAK

19 - 27 APRIL 2015

MNRB and Takaful IKHLAS participated in the Permodalan Nasional Berhad’s (PNB) 16th Minggu Saham Amanah (MSAM) exhibition held in Sibu, Sarawak. MNRB was once again a ‘Rakan Utama’ for the exhibition, while Takaful IKHLAS was the ‘Rakan Program Kemasyarakatan’.

2TAKAFUL IKHLAS LAUNCHES TAKAFUL PORTAL FOR THE STAFF OF PERMODALAN NASIONAL BERHAD GROUP OF COMPANIES

20 APRIL 2015

Takaful IKHLAS launched a General Takaful portal for the staff of PNB group of companies in conjunction with MSAM 2015. Takaful IKHLAS offered staff of PNB group a maximum rebate for their products such as Motor Takaful, Houseowner Takaful, Householder Takaful, Personal Accident Takaful, IKHLAS Kembara Personal Accident Takaful and IKHLAS Personal Accident Permata Takaful and many more.

3PROFESSIONAL GOLF OF MALAYSIA (PGM) MNRB SARAWAK CHAMPIONSHIP @ KELAB GOLF SARAWAK

13 - 16 MAY 2015

The 13th leg on the 2015 PGM schedule, the PGM MNRB Sarawak Championship was held at Kelab Golf Sarawak (KGS) and offered World Ranking Points to the Top-6 contenders and ties as it is co-sanctioned with the Asian Development Tour.

4TAKAFUL IKHLAS RECEIVES PRESTIGIOUS AWARD FROM GLOBAL BANKING & FINANCE REVIEW FOR THE SECOND TIME

25 MAY 2015

Takaful IKHLAS achieved another accolade recently by winning the recognition as the Best Takaful Operator Malaysia 2015 from Global Banking & Finance Review for the second time.

7MNRB ANALYSTS’ BRIEFING

31 JULY 2015

MNRB held an analysts’ briefing to brief analysts on MNRB’s Audited Financial Results as at 31 March 2015.

6MAJLIS RUMAH TERBUKA HARI RAYA AIDILFITRI KUMPULAN MNRB

29 JULY 2015

MNRB hosted a Hari Raya Open House for all its staff and business partners. This occasion provided the opportunity to get-together and at the same time allowed MNRB to show its appreciation to business partners for their constant support.

8TAKAFUL IKHLAS ORGANIZES IKHLAS-YOUNG ENTREPRENEUR PROGRAMME TO EDUCATE SCHOOL CHILDREN ON FINANCIAL LITERACY HABITS

16 AUGUST 2015

Takaful IKHLAS together with MoneyTree Malaysia, organized IKHLAS–YOUNG ENTREPRENEUR financial literacy programme which aims to increase the level of financial literacy among students in Malaysia. The programme was participated by primary school children from ten (10) selected schools around Kuala Lumpur and Selangor.

9MNRB’s 42nd ANNUAL GENERAL MEETING

30 SEPTEMBER 2015

At the 42nd Annual General Meeting, shareholders were informed on MNRB’s financial performance for the Financial Year Ended 31 March 2015 (FYE2015).



Event Highlights

2

4

3 5

1

6

7

8 9



Event Highlights

10 11

14

17

15

16



Event Highlights

10TAKAFUL IKHLAS ACCLAIMED AS THE BEST TAKAFUL OPERATOR DURING GIFA 2015

2 OCTOBER 2015

Takaful IKHLAS received an international recognition by winning the Best Takaful Operator Award in conjunction with the 2015 Global Islamic Finance Awards (GIFA) which took place in Manama, Bahrain.

11PERODUA DETARIFFICATION & RENEWAL RETENTION WORKSHOP

14 - 16 NOVEMBER 2015

Takaful IKHLAS conducted the Detariffication & Renewal Workshop for PERODUA to provide briefing about the future of vehicle takaful (motor takaful) business when detariffication is imposed by the central bank.

12A.M. BEST AFFIRMS MALAYSIAN RE’S POSITIVE OUTLOOK

10 DECEMBER 2015

A.M. Best affirmed Malaysian Re’s Financial Strength Rating of ‘A-’ (Excellent) and the Issuer Credit Rating of ‘a-’. A.M. Best also confirmed that the outlooks for both ratings are positive.

13FITCH RATINGS AFFIRMS ‘A’ RATINGS OF MALAYSIAN REINSURANCE BERHAD

8 JANUARY 2016

Fitch Ratings affirmed Malaysian Re’s Insurer Financial Strength rating (IFS) at ‘A’. Fitch Ratings also confirmed the Outlook is Stable.

14MALAYSIAN RE’S 26TH ANNUAL GOLF TOURNAMENT

27 JANUARY 2016

Malaysian Re organized its 26th Annual Golf Tournament for clients and business partners at Glenmarie Golf & Country Resort. A total of ninety-one (91) golfers participated in this tournament.

15LAUNCHING OF “PROGRAM LESTARI CEMERLANG MNRB” (ADOPT A SCHOOL PROGRAMME)

27 FEBRUARY 2016

MNRB launched the third series of “Program Lestari Cemerlang MNRB”, MNRB’s adopt-a-school programme which aims to improve the academic achievement of schools in rural areas at SK Kuala Krau, Temerloh, Pahang. A ‘gotong-royong’ activity was also carried out at the school involving thirty-five (35) volunteers from the MNRB Group to spruce up the look and ambience of the school.

16TAKAFUL IKHLAS WINS THE EUROPEAN GLOBAL BANKING AND FINANCE AWARDS 2016 - TAKAFUL COMPANY OF THE YEAR (MALAYSIA) FROM THE EUROPEAN MAGAZINE

9 MARCH 2016

Takaful IKHLAS received another international recognition as it was named Takaful Company of the Year (Malaysia) from the European Global Banking & Finance Awards 2016.

17MNRB GROUP HEALTH WEEK

22 - 30 MARCH 2016

MNRB held its annual MNRB Group Health Week which comprises of various activities to encourage staff of MNRB Group to improve their overall health and to adapt to a healthier lifestyle. Among the activities under MNRB Group Health Week include Health Screening by Heart Foundation of Malaysia (YJM) and MNRB Healthy Heart Run 2016.





2016 2015 2014 2013 2012

RM’000 RM’000 RM’000 RM’000 RM’000

Revenue 2,522,951 2,383,957 2,381,378 2,293,382 1,870,326

(Loss)/profit before zakat and tax (31,048) 190,705 214,728 159,332 188,212

(Loss)/profit after zakat and tax (38,829) 139,148 155,986 112,665 89,369

Technical reserves 4,350,338 3,784,625 3,612,476 3,204,985 2,793,864

Total assets 7,107,720 6,477,236 6,136,512 5,642,265 5,048,449

Shareholders’ fund 1,330,180 1,349,474 1,223,469 1,131,944 1,058,488

Paid-up capital 213,070 213,070 213,070 213,070 213,070

(Loss)/earnings per share (sen) (18.2) 65.3 73.2 52.9 41.9

Net assets per share (RM) 6.24 6.33 5.74 5.31 4.97

(Loss)/profit before zakat and tax to Shareholders’ fund (%) -2.3 14.1 17.6 14.1 18.4

(Loss)/profit after zakat and tax to Shareholders’ fund (%) -2.9 10.3 12.8 10.0 13.8

Gross dividends per share (sen) - - - (1) 32.0 17.0

Net dividends per share (sen) - - 16.5 (1) 24.0 13.0

Note:(1) Single-tier dividend




Revenue(RM’000)

(Loss)/Profit Before Zakat and Tax(RM’000)

Total Assets(RM’000)

Shareholders’ Fund(RM’000)

(Loss)/Earnings Per Share(Sen)

Net Assets Per Share(RM)

01 04

02 05

03 06

2016 / 2,522,951 2016 / (31,048)

2016 / 7,107,720 2016 / 1,330,180

2016 / (18.2) 2016 / 6.24

2015 / 2,383,957 2015 / 190,705

2015 / 6,477,236 2015 / 1,349,474

2015 / 65.3 2015 / 6.33

2014 / 2,381,378 2014 / 214,728

2014 / 6,136,512 2014 / 1,223,469

2014 / 73.2 2014 / 5.74

2013 / 2,293,382 2013 / 159,332

2013 / 5,642,265 2013 / 1,131,944

2013 / 52.9 2013 / 5.31

2012 / 1,870,326 2012 / 188,212

2012 / 5,048,449 2012 / 1,058,488

2012 / 41.9 2012 / 4.97





20162015 2017

MAY JUN JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC

1st Quarter ResultsReported as at 30 June 2015

1st Quarter ResultsAnnouncement date 26 August 2015

2nd Quarter ResultsReported as at 30 September 2015

2nd Quarter ResultsAnnouncement date 26 November 2015

3rd Quarter ResultsReported as at31 December 2015

3rd Quarter ResultsAnnouncement date 25 February 2016

4th Quarter ResultsReported as at 31 March 2016

4th Quarter ResultsAnnouncement date 31 May 2016

43rd Annual General MeetingDate of Notice of AGM 29 July 2016

43rd Annual General MeetingAnnual General Meeting date 25 August 2016

Q1

Q2

Q3

Q4



MNRB’s Growth

MNRB’s Growth

2002

500

0

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

7,000

7,500

8,000

20032004

20052006

20072008

20092010

20112012

20132014

20152016

Year Shareholders’ Fund(RM’000)

Total Assets (RM’000)

2002 506,313 1,329,716

2003 564,609 1,427,390

2004 617,010 1,476,021

2005 677,039 1,607,197

2006 747,803 1,772,311

2007 808,477 1,963,036

2008 893,919 2,576,247

2009 835,646 3,378,919

2010 892,513 3,845,983

2011 998,715 4,467,967

2012 1,058,488 5,048,449

2013 1,131,944 5,642,265

2014 1,223,469 6,136,512

2015 1,349,474 6,477,236

2016 1,330,180 7,107,720

Total Assets Shareholders’ Fund

RM Million





1/4/15-31/3/16 1/4/14-31/3/15 1/4/13-31/3/14 1/4/12-31/3/13 1/4/11-31/3/12

Closing Price (RM) 2.86 3.58 3.72 2.94 2.62

Highest Price (RM) 4.18 4.90 4.24 3.39 3.42

Lowest Price (RM) 2.82 3.53 2.81 2.81 2.33

Total Volume Traded (’000) 20,247 31,178 63,856 59,886 57,903

Gross Dividend Yield (%) 0.00 0.00 4.44 10.88 6.49

Price Earning Ratio (x) - 5.93 5.08 5.56 6.25

Source: Bloomberg @ 18/04/2016

Share Prices and Volume Traded (January 2014 - March 2016)

Performance of Shares (January 2014 - March 2016)

MNRB HOLDINGS BERHAD Performance of Share

5.00

5.00

12,500.00

1,900.00

4.50

4.50

10,500.00

1,850.00

9,500.00

7,500.00

5,500.00

3,500.00

1,500.00

11,500.00

4.00

4.00

8,500.00

1,800.00

3.50

3.50

6,500.00

1,750.00

3.00

3.00

4,500.00

1,700.00

2.50

2.50

2,500.00

1,650.00

2.00

2.00

500.00

1,600.00

Jan-14

Jan-15

Feb-14

Feb-15

Mar-14

Mar-15

Apr-14

Apr-15

May-14

May-15

Jun-14

Jun-15

Jul-1

4Ju

l-15

Aug-14

Aug-15

Sep-14

Sep-15

Oct-14

Oct-15

Nov-14

Nov-15

Dec-14

Dec-15

Jan-16

Feb-16

Mar-16

Jan-14

Jan-15

Feb-14

Feb-15

Mar-14

Mar-15

Apr-14

Apr-15

May-14

May-15

Jun-14

Jun-15

Jul-1

4Ju

l-15

Aug-14

Aug-15

Sep-14

Sep-15

Oct-14

Oct-15

Nov-14

Nov-15

Dec-14

Dec-15

Jan-16

Feb-16

Mar-16

Closing Price (RM)

Closing Price (RM) Volume Traded (’000)

Closing Price (RM)

Volume Traded (’000)

Kuala Lumpur Composite Index

Closing Price (RM) Kuala Lumpur Composite Index





Being a conscientious corporate citizen and a key player in the reinsurance, takaful and retakaful sectors, MNRB is committed in embedding responsible and sustainable practices into our total business operations within the areas of Workplace, Marketplace, Community and Environment. While it is our main focus to set strong growth for our business, we also make it a priority to go beyond mere profit and invest in various sustainable activities with specific emphasis on education, knowledge building and human capital development. This is aimed at building a sustainable pool of talent in the Group, the industry as well as the cultivation of dynamic insurance and takaful professionals.

With this being implemented, we are not only helping develop the local insurance and takaful industries but most importantly, we are also contributing towards our nation’s growth.

OUR COMMITMENT TO SUSTAINABLE PRACTICES

MNRB is committed in embedding responsible and sustainable practices into our total business operations within the areas of the Workplace, Marketplace, Community and Environment.

Our workforce is our greatest strategic asset and we endeavour to ensure that our employees grow and succeed under our core.

We understand the highly competitive and changing demands of the marketplace.

Our sustainable efforts extend to undertaking initiatives that seek to educate various target audiences about environmental conservation.

We believe in creating value and empowering the communities around us to elevate lives and ensure a better future for all.

Page 48 Page 47

Page 44

Long-term sustainable

value

Work

place

Community

Marketplace

Environment




STRENGTHENING OUR WORKPLACE

Our workforce is our greatest strategic asset and we endeavour to ensure that our employees grow and succeed under our core. For this purpose, we continue to implement sustainable workplace initiatives to further strengthen the knowledge and the development of our employees and the overall performance of the Company as well as to ensure we keep our competitive edge.

In our bid to strengthen our employees, we direct our energy towards developing, prioritizing and implementing human capital initiatives that are complementary to the business strategies. These initiatives revolve around talent recruitment, talent management, development, performance review, reward and other touch-points of the employee life-cycle. Training and Development Opportunities

To enhance the capabilities of our employees, ensure that they keep abreast of industry trends and perform to the best of their abilities, we provide them with a variety of training opportunities.

Through various development initiatives, we introduce our employees to the fundamentals of the Company’s business, the insurance and takaful industries, the legal and regulatory environment, as well as technical and soft skills training.

Our employees participate in workshops, seminars and conferences, both locally and overseas. All these initiatives help them to be the best they can be, as well as bolstering their career pathways and lending to their personal growth.

In continuation of our customized in-house leadership programmes, conducted since 2014, namely LEAP (Leadership Enhancement & Alignment Programme), HIGH (High Impact Group Leadership) and FLY (Future Leader in You), our leaders continue to be developed and exposed to a large variety of leadership development programmes conducted by top executive-education providers. These leadership development programmes address our leadership competencies and will expose the leaders to the latest industry developments as well as best practices. Participating in recognized programmes will also provide them the networking opportunities by accessing other regional leaders.

As part of our reinforcement phase, we have this year, organized the iLEAP (intergrated Leadership Enhancement & Alignment Programme) Talk Series, which is aimed at integrating leadership development by learning from others. We have so far been fortunate to have a few prominent corporate figures to share their experience and leadership journeys.

< WORKPLACE

An important element of our development framework, the Education Assistance Programme (EAP) which was introduced in 2014 forms a large portion of our overall development investment. This programme is a testament to the Company’s commitment to strengthen and upskill our employees and continues to be a popular programme amongst our employees. A number of our employees are currently undergoing the Diploma of the Malaysian Insurance Institute (MII) (DMII) and Associateship of the MII (AMII) certifications as part of their professional development.



In addition to the above mentioned, MNRB, in its efforts to gain the strength of its diverse workforce, has also undertaken the following initiatives:-

• Provides fair and equitable employment terms regardless of gender, ethnicity or age;

• Gives equal opportunities for career advancement based on merit. This is supported by a well-developed performance appraisal system which is linked to rewards; and

• Representation of women in management and senior management positions.

For Takaful IKHLAS’ agents, a variety of training programmes continue to be rolled out to ensure that our agents are of a high calibre, continue to conduct themselves in a professional manner, and have the necessary knowledge to serve our customers effectively.

Employee Health Initiatives

Employees’ health matters continue to be an important agenda in the Company. We continue to implement initiatives throughout the organisation to encourage a healthy and balanced lifestyle.

The one-week long MNRB Group Health Week campaign emphasises on the importance of preserving a work-life balance and educates employees on all aspects of health especially pertaining to the heart disease. MNRB Group Health Week comprises of free health screening packages, eye check-up, breast examination, Health Talk and food demonstration and nutrition counselling.


< MARKETPLACE

ELEVATING THE MARKETPLACE

As one of the players in the reinsurance, takaful and retakaful industries, we understand the highly competitive and changing demands of the marketplace. With this in mind, we are committed to instil a higher degree of professionalism in the marketplace by helping develop more industry professionals to support the rapidly evolving industry landscape.

We are also focused in enriching the knowledge of the underwriters by according them with a flood risk analysis tool to mitigate exposure of their portfolios.

The Malaysian Flood Model (Re.Banjir)

Flooding is one of the most significant natural perils in Malaysia in terms of frequency and severity, extent and insured and economic damage. Knowing this, Malaysian Re has developed a Malaysian flood risk analysis tool, named Re.Banjir, for use by members of Persatuan Insurans Am Malaysia (PIAM) and the Malaysian Takaful Association (MTA).

MNRB also held its first ever MNRB Healthy Heart Run to further encourage employees to adapt to a healthy lifestyle. The event took place at Perdana Botanical Garden, Kuala Lumpur and had attracted more than three-hundred (300) employees and family members of MNRB.

attracted more than

300 employees and family members of MNRB



Re.Banjir is based on a software developed using the most detailed data and methodology available. It includes rainfall and river gauge data spanning many years. This data had been processed and developed using state-of-the-art hydrological solutions and programming tools. Re.Banjir is able to simulate a range of potential insurance losses from mild local flooding to floods in excess of the 1-in-250-years return period.

Re.Banjir would allow Malaysian insurance and takaful companies to estimate flood exposure of their own portfolios. In addition, it would also allow them to better understand the effects of flooding on their portfolios, derive the Probable Maximum Loss (PML) to their portfolios for different return periods, quantify the financial implications and enable them to make informed decisions in relation to their reinsurance programming.

Stage 1 of the Flood Model, which covers the Klang Valley, was launched on 23 September 2013. Stage 2 of the Flood Model which covers the whole of Peninsular Malaysia was later launched on 14 September 2015. The necessary work for Stage 3 of the Flood Model which will cover East Malaysia is expected to commence soon.

In September 2015, the 21st Programme for Insurance Executive Development (PIED) was organised for our domestic and international clients in Kuala Lumpur. The 2015 PIED covered four (4) classes of insurance, namely Fire, Marine Hull & Cargo, Engineering and Liability. PIED is designed for executives with at least two (2) years’ working experience in the insurance industry and who are well versed with theoretical knowledge of insurance in these four classes of insurance. The programme adopts a highly interactive approach, including illustrated case studies, to enable the participants to appreciate the practical application of what they have learnt.


Stage 1

Flood Model

Stage 2 Stage 3 October 2015 saw the successful kick-off to a pilot programme especially designed for young aspiring managers within our industry – The Young Emergent Leadership Showcase (YouLead!). This 5-day leadership showcase, focuses on effective leadership fundamentals, deciphering key industry issues and regulatory updates in the insurance industry. It also aims to provide a networking platform amongst peers to support their individual career growth within the insurance/takaful industry. Market Training Programmes

Over the years, MNRB had implemented various training programmes on insurance/reinsurance and takaful/retakaful for staff of insurance/takaful companies to enhance their professionalism within the industry. These programmes serve as platforms for participants to exchange ideas and update themselves with the latest industry developments.

We annually conduct the Technical Courses in Fire Risk Assessment and Special/Self Rating for underwriting and marketing staff of insurance companies. At the end of the training, these staff would be expected to know how to conduct risk surveys and determine fire premium rates for certain types of risks.

covers theKlang Valley

covers thewhole of Peninsular

Malaysia

coversEast Malaysia




ENRICHING COMMUNITIES

We believe in creating value and empowering the communities around us to elevate lives and ensure a better future for all. In doing so, we lay a solid foundation for the younger generation to attain greater heights and to inspire them to become leaders of tomorrow through various community efforts which include scholarship programmes, seminars, workshops, study camps and sponsorships.

MNRB Scholarship Programme

The MNRB Scholarship Programme aims to encourage and promote education in the fields of insurance/takaful, Actuarial Science and Risk Management. By promoting these fields of study, MNRB is able to contribute to the increase of qualified and well-trained professionals in the Malaysian insurance and takaful industries in the long run.

The MNRB Scholarship Fund (the Fund) was established in 1998 with an initial start-up fund of RM1 million. Since its establishment, more than RM10 million has been contributed to the Fund and a total of 438 Malaysians have benefitted from the scholarship awards to further their undergraduate studies in both public and private institutions of higher learning.

As part of our efforts and commitment to develop young talent within the insurance/takaful industry, the Fund collaborated with the MII in 2007 to extend its scholarship programme to working adults within the insurance and takaful industries.

< COMMUNITY

These scholarships are offered to staff of insurance and takaful companies who are keen to pursue professional insurance qualifications, namely the AMII and DMII, on a part-time basis.

Since the onset of our partnership with MII, the Fund has offered a total of 217 scholarships to young working adults. The knowledge that our scholarships are helping to produce more competent and qualified professionals in the Malaysian insurance and takaful industries shows our emphasis on education and human capital development. It reflects our unwavering commitment towards the continuous growth of not only our people, but also all those within the industry.



< ENVIRONMENTProgram Lestari Cemerlang MNRB

The Company’s adopt-a-school programme, Program Lestari Cemerlang MNRB was created in 2011 to show support to our local education system. This programme is a two-year partnership with selected schools aimed at improving the students’ academic achievement through extra educational activities and learning facilities. The selected schools are typically secondary schools located in rural areas with the majority of students coming from lower-income families.

CONSERVING OUR ENVIRONMENT

Our sustainable efforts extend to undertaking initiatives that seek to educate various target audiences about environmental conservation as well as mitigating the impact of our business activities on the environment.

MNRB Ringgit Savvy Programme

A supplement to the MSAM exhibition, the MNRB Ringgit Savvy Programme, which was commenced in 2012, educates primary and secondary school students on money management and encourages them to be creative when undertaking money management activities. A new activity was introduced under MNRB Ringgit Savvy Programme called Eco Challenge. Through this activity, students were taught to create musical instruments out of waste products as a way of saving money. Students then competed to recreate the musical instruments using their own set of waste products and recycled materials.

MOVING FORWARD

As MNRB continues to set its sights on growing profitably in a responsible manner, we will strive to identify a more impactful and tangible sustainable activities that looks into Economics, Environment and Social aspects.

Only then can we hope to truly create sustainable value for MNRB in a holistic manner, reinforce our ties with all stakeholders and stand out as a model for responsible corporate behaviour.

Minggu Saham Amanah Malaysia (MSAM)

MSAM is an integrated investment education programme organised annually by Permodalan Nasional Berhad (PNB) since year 2000 to educate Malaysians on investment and financial planning.

MNRB has been a firm supporter of MSAM activities and PNB’s initiative in educating the Malaysian public on making smart investments. MNRB is also proud to be involved in MSAM activities and will continue to support PNB’s noble cause.

In addition to this, MSAM is also an avenue for MNRB to share with the investors and public, on its subsidiaries, businesses and products. This helps to promote and enhance MNRB’s image and presence as a public listed company.


A total of RM60,000 is allocated every two (2) years to cover various activities that benefit the students such as tuition classes, motivational talks, study camps, upgrade of school library and contribution of computers.

leveraging on synergies

Documents