tune protect group berhad - chartnexus · 2018-04-30 · technology restructuring for tune protect...

Annual Report 2017

(Company No. 948454-K)

TUNE PROTECT GROUP BERHAD

TUNE PROTECT GROUP BERHAD (Company No. 948454-K)Annual Report 2017

Overview

2 Vision & Mission

3 About Us & Core Values

4 Corporate Structure

5 Corporate Information

2017 Highlights

8 2017 at a Glance

10 Financial Calendar

12 Investor Relations

16 Corporate Event Highlights

Leadership

52 Profiles of Board Directors

62 Profile of Group Chief Executive Officer

64 Profiles of Senior Management Team

Performance & Business Review

20 Financial Highlights

22 Management Discussion & Analysis

30 Our Strategic Pillars

32 Sustainability Statement

Corporate Governance

Other Information

70 Corporate Governance Overview Statement

78 Audit Committee Report

80 Risk Management Committee Report

82 Risk Management and Internal Control Statement

85 Additional Compliance Information

89 Analysis of Shareholdings

93 List of Branches and Overseas Ventures

95 Message to Our Shareholders

Stay In touch instantly in the digital age. Faster, Simpler, Affordable. Be In trend by taking charge. Just Click, Buy and Protect yourself when you need to, in ways you know best. Get In Tune with Insurance Made Easy by Tune Protect.

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Insurance Made Easy ANNUAL REPORT

2017

2

OvERviEw

5


2017

4

OvERviEw

Leading in innovation is at the heart of what we do. we innovate to stay ahead of the game, turning ideas into solutions and keeping ourselves relevant for our shareholders and stakeholders.

novation

sightfulness

fluence

tegrity

control

pain

Insurance Made Easy

1. The Best Travel Insurance Facilitator 2017 at the first Arabian Travel Awards in Dubai, UAE

2. Social Media Excellence Award for the Financial Services Category at the Malaysia Social Media week 2017

3. Gold in the Best Campaign – Brand Awareness Category at the Mob-Ex Awards 2018

2017 at a Glance

Digital Global TravelTune Protect Re and Tune Protect EMEIA

Tune Protect Group

Tune Protect Malaysia

E-Commerce

Tune Protect Thailand

General Insurance

Operating RevenueRM542.6 millionFY2016: RM516.6 million

Net Earned PremiumsRM321.3 millionFY2016: RM333.0 million

Shareholders' EquityRM503.0 millionFY2016: RM496.6 million

Return On Equity9.2%FY2016: 16.1%

Profit After TaxRM50.0 millionFY2016: RM86.6 million

Earnings Per Share6.2 senFY2016: 10.6 sen

4th airline partner Cambodia Angkor Air

Regional footprints in over 45 countries and 16 inbound markets (AirAsia and Air Arabia)

14 Business-to-Consumer markets

10 Business-to-Business markets

Underwriting ProfitRM0.7 millionFY2016: RM25.6 million


Profit After Tax (49%)RM1.0 millionFY2016: RM1.2 million

Total Policies Issued7.7 millionFY2016: 7.1 million

Total Policies Issued292.6 thousandFY2016: 281.3 thousand

Underwriting ProfitRM2.2 millionFY2016: RM3.3 million


Profit After Tax

RM3.5 millionFY2016: RM2.8 million

6 products available on Direct-to-Consumer website

More than 14,000 policies sold

tuneprotect.com

49% Share of Profit

321

Tune Protect Re Tune Protect EMEIA

Approximately 1,400 total agents

21 branches


2017

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2017 HIGHLIGHTS

Financial Calendar

22 MAy 2017

Unaudited consolidated results for the 1st quarter ended

31 March 2017

3 APRIL 2017 Notice of Book Closure for

Final Tax Exempt Dividend under Single Tier System of 5.20 sen

per Ordinary Share of RM0.10 each

18 AuGuST

2017 Unaudited consolidated

results for the 2nd quarter and half-year ended 30 June 2017

22 MAy 2017 Date of Entitlement for

Final Tax Exempt Dividend under Single Tier System of 5.20 sen

per Ordinary Share of RM0.10 each

21 NOvEMBER

2017 Unaudited consolidated results for the 3rd quarter and nine months ended

30 September 2017

15 JuNE 2017 Payment of Final Tax Exempt

Dividend under Single Tier System of 5.20 sen per Ordinary

Share of RM0.10 each

28 FEBRuARy

2018 Unaudited consolidated results for the 4th quarter and financial year ended

31 December 2017

Dividend

Quarterly Results


2017

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2017 HIGHLIGHTS


2017

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2017 HIGHLIGHTS

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2017

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2017 HIGHLIGHTS

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2017

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2017 HIGHLIGHTS

2017

DECEMBER

Tune Pro

tect Gro

up CEO’s

TV intervi

ew w

ith

veteran

Mark

et Talk

host Ibrah

im San

i was

aired

on ASTRO A

wani’s

Channel 5

01

OCTOBER

President o

f the O

lympic

Council of M

alays

ia Yan

g

Amat Mulia

Tunku

Tan Sri

Imran

and Tu

ne Protect

Group C

EO at th

e COBRA

50th A

nniversa

ry Gala

Dinner where Tu

ne Protect

was honoured as

a VIP

sponso

r for t

he under-16

rugby t

ournam

ents.

OCTOBER

Tune Pro

tect’s S

ports D

ay

@ Bukit

Kiar

a Equestr

ian

& Country

Reso

rt

JANuARy

Tune Pro

tect Mala

ysia

at Karn

ival

Kewan

gan @

Putra w

orld Tr

ade

Centre (P

wTC)

APRIL

AirAsia

Big Pap

er Plan

e

Carniva

l @ Para

digm

Mall, M

alays

ia

AuGuST

Safety

on Streets

(“SoS”)

Challenge

NOvEMBER

Tune Pro

tect Mala

ysia’

s

Back-t

o-Sch

ool Day

@

wism

a Tune

JuLy

Tune Pro

tect EMEIA

was

award

ed “The B

est Tra

vel

Insuran

ce Fac

ilitato

r” at

the

first A

rabian

Trav

el Award

s

held in D

ubai, U

AE

MAy

Tune Pro

tect Gro

up’s

6th A

nnual General

Meetin

g

Corporate Event Highlights

Our continuous efforts in bringing insights into the business and translating them into actionable plans is how we are able to drive and pursue long-term growth for the Company.

novation

sightfulness

fluence

tegrity

control

pain

Insurance Made Easy

Financial HighlightsTune Protect Group

General Insurance

Digital Global Travel

Tune Protect Malaysia

Tune Protect Thailand

* Including travel policies sold via AirAsia, Cebu Pacific Air, Air Arabia, B2B and others** Including travel policies sold via Air Arabia, B2B and others*** since acquisition in May 2014^ since April 2014

Tune Protect Re Tune Protect EMEIA

PERFORMANCE & BUSINESS REVIEw

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2017

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Razman Hafidz Abu ZarimGroup CEO,

Tune Protect Group

we will progressively work on strengthening the building blocks as part of our commitment towards continuous improvement for recovery and stronger financial performance in the coming years.

In the Digital Global Travel business, we secured our fourth airline partner, Cambodia Angkor Air – a full commercial airline that is a collaboration between the Cambodian government and Vietnam Airlines. This partnership excites us as it allows us to showcase our capabilities to a broader Indo-China audience. Cambodia Angkor Air is in addition to our other airline partners: AirAsia, Cebu Pacific Air and Air Arabia.

The bundling of our simplified travel product into the premium fares of our airline partner in Malaysia, as well as our dynamic pricing initiatives, that were launched in the year, produced encouraging results. These initiatives helped to arrest the declining take-up rate for our travel products in the Malaysian market.

On the General Insurance front, our new Chief Executive Officer for Tune Protect Malaysia, Khoo Ai Lin, led a re-organisation of the management structure to accelerate the growth of the organisation. The new structure allows the organisation to unlock innovation and new opportunities, while ensuring flawless execution for its existing businesses. In doing so, our team shall focus on providing seamless customer experience and growing the critical mass acquisition strategy on retail business via affinity business partnerships; in addition to our focus on growing sustainable commercial business.

we continue to display effective marketing in the social media arena with the launch of the “In”sured campaign which won the Social Media Excellence Award in conjunction with Malaysia Social Media week for the Financial Services category. The Tune Protect brand was also ranked No. 2 amongst the most mobile ready brands in Malaysia in a 2017 study by IPG Mediabrands. Additionally, our 'Skip the Drama' campaign won the Gold award at the Mob-Ex Awards 2018 in the Brand Awareness category.

It has been a year of strategic organisational and technology restructuring for Tune Protect Group as we took bold steps to fortify our sustainability and strengths in a changing business landscape. As such, improvements are ongoing towards fulfilling our promise of delivering value to all our stakeholders. The Group remains financially sound, with a growing and promising portfolio. we also take pride in the talent of our people, and with a strong bench of leaders and clear strategies in place, we are hopeful that our hard work will bear positive results in the mid to long term.

FINANCIAL REvIEw

The Group posted Gross written Premiums (“GwP”) of RM517.7 million with Operating Revenue of RM542.6 million and Profit After Tax (“PAT”) of RM50.0 million for 2017.

The increases in Operating Revenue by 5% and GwP of 3.3% compared to 2016 was attributed to the continuity of strategic initiatives that were launched last year in the Digital Global Travel and the General Insurance businesses.

Our Digital Global Travel business faced varying difficulties in its operating environments, especially in the Malaysian market, resulting in lower GwP and PAT at RM105.2 million and RM43.2 million respectively. Nevertheless, the initiatives started towards the end of 2016 showed good progress during the year, where the topline performance for the second half outperformed the first half.

In the Middle East, our business that is facilitated by Tune Protect EMEIA continued to expand the EMEIA markets in 2017. Its PAT declined to RM1.0 million due to higher investments in people and technology to support its expansion.

In Thailand, our General Insurance business achieved a full year growth of 24.8% in PAT, as a result of lower operating expenses and net claims, and higher investment gains.

Overall, the higher claims experience in our Fire, Motor and Personal Accident lines of business, together with increased marketing and promotional expenses, resulted in our Group PAT to decline by 42.2% and our combined ratio to rise to 94.0%.

Management Discussion & Analysis

Dear Shareholders,In 2017, Tune Protect Group had a busy year laying down the building blocks of recovery in our mainstay Digital Global Travel business; fortifying our General Insurance business; keeping on track of our digital journey and realising a string of operational achievements.

Insurance Made Easy


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Financial Position & Liquidity

Although total liabilities increased by RM42.7 million (5.9%) due to increases in insurance contract liabilities and claims experience, our total assets grew by RM50.4 million (4%) to RM1.3 billion year-on-year. This is primarily due to the increase in reinsurance assets following better management of our claim liabilities via reinsurers. Overall, our net asset position improved by RM7.7 million.

The Group’s cash and cash equivalents level was lower by RM6.8 million as more cash was placed in investments and the Group’s working capital was managed more efficiently.

The Group remains prudent in maintaining a sound financial position that enables the execution of our strategic objectives in creating value over the coming years.

Capital & Resources Management

The Group’s committed capital expenditure stood at RM21.8 million as at the end of 2017. The Group continues to be prudent in the management of our capital and resources in order to fund the capital expenditure and future growth without external financing. There were no requirements for additional capital resources during the year, and our capital structure remained the same at year-end.

The Group is able to comply with the capital adequacy and solvency requirements as prescribed by the Labuan Financial Services and Securities Act 2010 and the Financial Services Act 2013 for major subsidiaries.

OPERATIONS REvIEw

In 2017, Tune Protect Group continued to be guided by our three strategic pillars towards enhancing a digital future:

1) lead in product innovation and differentiation;

2) widen distribution channels and expand reach; and

3) deliver exceptional customer experience.

Digital Global Travel

we play a significant role in global travel insurance. Through our partnerships with various strategic partners and agents, we serve their customers’ travel insurance needs in over 45 countries. Our travel insurance policies are sold mainly via digital channels throughout these markets.

corporate or business travel, Travel Electronic Assurance and Travel Baggage Assurance. All the products were designed based on feedback received from travellers. A key highlight in 2017 was when we were accorded as the “Best Travel Insurance Facilitator” award at the first Arabian Travel awards held in Dubai.

In our journey to become a leading Digital Insurer, we will continue to explore opportunities to collaborate with or invest in InsurTech entities, including those espousing community-based insurance. we shall also form other strategic alliances with digital affiliates to mutually benefit from the InsurTech experience. This is in addition to strengthening our capabilities by introducing new e-Tools across distribution channels, with the underlying objective to deliver exceptional customer experience.

Our initiatives, Product Bundling into Premium fares and Dynamic Pricing, produced encouraging results in 2017. The dynamic pricing initiative was supported by enhancements made on our airline partner’s booking page. This involved tailoring product pricing to suit individual purchaser profiles, by utilising technology algorithms.

Both initiatives led to increased take-up rates for our global travel business towards the end of 2017. Nevertheless, we are intensifying efforts in enhancing our dynamic pricing technology, by engaging the expertise of a technology partner in 2018.

Further improvements in the algorithms with different attributes will be implemented this year to enhance the personalisation model that will encourage greater take-up rates. Product bundling is also expected to continue its positive topline progression.

The Group continues to actively focus on establishing tie-ups with new airlines and online travel insurance platform partners.

In 2017 we established exciting new partnerships with AirAsiaGo and Tourders online travel marketplaces as well as Cambodia Angkor Air, the largest airline and national carrier in Cambodia with a network of 20 destinations across 8 Asian countries. Securing this airline partner in the region is a huge milestone for us as it brings us closer to our vision of becoming a leading travel insurer in ASEAN with wide distribution channels and an expanding reach.

In the Middle East, over a period of two years, Tune Protect EMEIA (Europe, Middle East, India and Africa) has been steadily growing its presence in the EMEIA region as we continued to make a mark as an innovative and technologically-advanced brand in that regional travel insurance sector. In 2017, we launched Travel Safe to cover

we want the entire value chain of a customer’s digital interaction with us – from making a purchase online to making a claim – to be as seamless, fast and easy as possible.

Our initiatives, Product Bundling into Premium fares and Dynamic Pricing, produced encouraging results in 2017.


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2017

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we aim to stay agile and responsive in meeting industry trends for higher motor and medical claims pay out. To alleviate the higher costs of motor claims that continue to impact the Malaysian general insurance business, we are focusing on new initiatives to concentrate on make and models of vehicles which have relatively good experience. Concurrently, we have also revised the way we evaluate vehicles that have higher loss exposure, and are reviewing “beyond economic repair levels” to curb total loss exposure.

The Phased Liberalisation of the Motor Tariff premiums continued with the expansion of the tariff quotes to be within a plus and minus 10% band from 1 July 2017. Given our strong digital presence, we took the opportunity to launch our new Motor Easy product in the same month. This has widened the product range available on our digital platform from five (Travel Easy, Dental Easy, Guard Easy, PA Easy and Ride Easy) to six. Policies sold via the digital

platform have registered encouraging growth, expanding almost 90% year-on-year from 7,500 to more than 14,000 policies.

In meeting emerging consumers preference to purchase items frequently in small quantities, we continue to explore the possibility of offering “on-demand”, “usage-based” and “behavioural based” insurance products that are dynamically-priced.

General Insurance Business

Although the Malaysian general insurance industry recorded a marginal decrease in 2017, the Group’s general insurance arm, Tune Protect Malaysia, surpassed industry average to register a 5.4% growth in GwP. Tune Protect Malaysia also saw commendable growth of 37% in its foreign workers compensation sector, a profitable class of business with a relatively low claims ratio. However, despite the strong top line growth, net underwriting profit was lower than last year’s, due to large claims in the Property (particularly the floods in the Northern region in 2017) and Motor lines of business.

The five strategic focus areas for the General Insurance business are:

1. Critical Mass Acquisition on Retail Business through strategic tie-ups with affinity partners

2. Technology by developing platform, tools and service engines for affinity partners

3. Data Analytics and Propensity Modelling to acquire new customers, build loyalty via cross sell and upsell initiatives and conserve quality customers

4. Customer segmentation in differentiating priority, mass affluent and mass market segments

5. Product Innovation to speed to market the products for various customer segments

Policies sold via our digital platform have registered encouraging growth, expanding almost 90% year-on-year.

we continue to explore the possibility of offering “on-demand”, “usage-based” and “behavioural based” insurance products that are dynamically-priced.

Our customers’ feedback is important to us. To this end, we launched an Online Purchase Customer Satisfaction Survey in May 2017 for all policies sold via our e-commerce portal. within the period of survey, we received 1,315 responses up to December 2017 where more than 80% of the respondents were satisfied with their online purchasing experience.

The industry also launched the Fraud Intelligence System (“FIS”) in October 2017 to combat motor insurance fraud in Malaysia. Deploying the latest data analytics technology, FIS will provide fraud alerts to insurers when a suspected fraudulent claim is first submitted by a motorist. The system will help expose fraud syndicates at work and provide leads for detailed investigation by insurance companies eventually leading to their prosecution under the law.

In order to sustainably grow in this dynamic new era of digital possibilities, we undertook a strategic rationalisation during the year that includes the appointment of several new hires to strengthen the management team and help accelerate our digital journey. we will continue to invest in the right talents who will fast-track the journey of Tune Protect to become a leading digital insurer.

Under the rationalisation exercise, Tune Protect Malaysia has realigned all departments under a shared Head of Operations in order to maximise synergy; established a Strategic Development and Management department in order to redefine business objectives in line with our stated pillars; heightened focus on developing and training with the establishment of a dedicated training centre for agents; and harnessed technology to benefit both customers and agents in enhancing products transparency, interactivity and convenience.

we have begun to make significant investments into enhancing our digital infrastructure while also making our policies clearer, and ensuring the entire value chain of a customer’s digital interaction with us – from making a purchase online to making a claim – is as seamless, fast and easy as possible. we have been in discussions with insurance technology companies on telematics capabilities, ultimately to be able to offer the right product to the right person at the right price, online. Leveraging on our partners’ customer databases, Tune Protect Malaysia plans to increase cross-selling initiatives to roll out more products and expand contribution from the non-travel business through improved data analytic capabilities.

whilst the GwP of Tune Protect Thailand has decreased as a result of a slowdown of the travel industry in 2017, Tune Protect Thailand has managed to increase its trading profit on the back of prudent management of operating expenses, reinsurance arrangements optimisation that has improved its claims ratio, and higher investment gains. The strategic initiatives laid out and implemented by Tune Protect Thailand in 2017 include refining its core strength in terms of insurance products to increase competitive advantage, building customer awareness, redefining perception about our insurance products, identifying key up-sell and cross-sell opportunities, and expanding product range and distribution channels. For the various distribution channels such as Agents and Brokers, Osotspa Group, Direct Retail, Direct Corporate and Online businesses, our priority is to ensure that renewal is maintained and new businesses are secured via all these channels.


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Tune Protect Thailand is also accelerating its efforts on the online sales platform through its portal to offer on-demand insurance and Travel Easy packages in 2018. works are still ongoing to get the products up on the virtual platform to ensure that potential or returning customers are able to access our products easily. Aside to the online sales platform, other initiatives in the areas of IT have also been rolled out to support business processes efficiently.

Tune Protect Thailand also launched thematic marketing campaigns for Tune Protect – AirAsia travel insurance that were well received and yielded satisfactory results.

Outlook

The International Monetary Fund (IMF) expects the Malaysia economy to grow at a slower pace of between 5% and 5.5% in 2018 and inflation to rise at a slower pace. Momentum in activity is expected to remain strong in the first half of the year, supported by domestic demand and continued strength in global trade. For the insurance industry, strong support from regulators and favourable demographics, including a young population and growing middle class, remain supportive of a long-term structural growth for both general and life insurance.

In delivering our brand promise of Insurance Made Easy, greater product innovation and customer experience are made possible through us developing our digital business. we review our products consistently to make them more relevant and conveniently accessible online. These include segregating features and benefits of our motor and travel protection plans to offer more meaningful coverage. we are also entering strategic online partnerships with large online platforms targeting car dealers and foreign workers to expand our reach.

Using the online platform, we also hope to be able to offer simple and affordable protection to an expanded market. In contrast to internet banking subscribers that stands at 22.8 million or 70% of the population in Malaysia, online insurance distribution accounts for less than 0.1% of the business volume.

Our strong focus on travel insurance should also continue to anchor us in sustainable growth. with claims ratio for travel insurance consistently below 5% over the last five years, our travel business has contributed to a healthy underwriting surplus for the Group. we will continue to train our energy on the Asia Pacific market, which currently contributes to more than 85% of our Digital Global Travel business, as we believe there is still much potential for further growth in this region, along with fast-expanding middle classes and numbers of travellers.

The approval received from Labuan Financial Services Authority in April 2017 to allow for the set-up of a retakaful window within Tune Protect Re provides the Group with the opportunity to penetrate the ASEAN market for retakaful travel insurance business.

Focusing on retail retakaful business, the strategies upholding the retakaful window include penetrating the ASEAN travel retakaful sector, offering direct and digital retail retakaful solutions, and expanding retakaful reach via partnerships with underwriters worldwide. we are currently working with our partners in firming up and executing re-takaful arrangements with a target of seeing these initiatives coming to fruition in 2018.

The insurance industry continues to be driven by technology. Building on the emergence of InsurTech entities, blending insurance with the latest technology, for example artificial intelligence, makes it possible to leverage on new unique sets of data to deliver exceptional customer experiences across the insurance value chain.

In conclusion, this financial year will be an exciting period for the Group as we continue to build on our strength that will lead us closer to our overarching ambition of ensuring that everyone is protected throughout their life's journeys and adventures. we strive to make the Tune Protect Group as the place our colleagues are proud to work for and our customers are delighted to associate with. Thank you for standing with us.

This financial year will be an exciting period for the Group as we continue to build on our strength that will lead us closer to our overarching ambition of ensuring that everyone is protected throughout their life's journeys and adventures.

Insurance Made Easy


ANNUAL REPORT

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Our Strategic Pillars

Customisation• Usingdynamicpricingtools,offerroute/price/

customer profile centric product options

• Combining Telematics, algorithms and hard data, to introduce On-demand, Usage-based and Behavioural-based products to specific segments of customers

• Expandproductrangetooffermorechoices,including Syariah compliant products to cater to wider customer segments

• Collaboratewithfintechsanddigitalaffiliates

Product Bundling & Packaging• Offer product variations that are lifestyle

oriented and for customers on-the-go

• Embedinsurancewithflightseatstoreachamore diverse segment of travellers

• Introduceinsurancesolutionsthatencompassdifferent lines of business and types of coverages to build customer retention

Digital Channels• Continuous enhancement of Direct-to-

Consumer platforms making it easy, convenient, relevant and value-based with multiple choices of products and offers across countries

• Develop mobile applications that suit thelifestyles of our consumers and allow us to connect with a wider digital community

• Widen collaboration with existing and newairline partners, online travel partners and e-commerce players

• Investinrelevantdigitalsolutions

Traditional Channels• Deliverdigitaltechnology-driveninitiativesto

support agents & business partners to ensure they remain efficient and relevant

• Strengthencapabilitiesandintroducee-toolsacross distribution channels

Expand Network• Accelerate EMEIA joint venture growth

through new market entries, activation and growth in offline Business-to-Business distribution channels

• Actively look for acquisition or investmentopportunities to grow our ASEAN footprint

Digitise underwriting and claims processes• Invest in improving digital capability and

big data analytics to enhance underwriting models and platforms

• Digitise claims processes to shorten cycletime, allow tracking of claims online, automate renewal process and gravitate towards paperless operations

Increase service interactions via digital channels to deepen engagement• Collect survey responses online to gauge

customers’ purchase and claims experiences

• Develop digital-enabled live interaction withcustomers through video or visual aid to assist with their protection needs and queries

1 2 3

we pride ourselves in being uniquely Tune Protect – a specialist in travel & lifestyle, reinsurance and general insurance, with presence in over 45 countries across the globe. we are guided by 3 strategic pillars which firmly define our digital agenda and is aligned to our aspiration of being the Leading Digital Insurer.

Lead in Product Innovation & Differentiation

widen Distribution Channels & Expand Reach

Deliver Exceptional Customer Experience

Insurance Made Easy


ANNUAL REPORT

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Sustainability Statement

Among the processes and systems to manage sustainability across the Group are:

Category Policy and System (selected)

Economic • Anti-Fraud Policy• Group Clean Desk Policy• Group Confidentiality Policy• Group Corporate Governance

Policy• Group Marketing Policy• Group Procurement Policy• Group Sustainability Policy• whistleblowing Policy• Group Dividend Policy

Social • Board Diversity Policy & Procedures

• Code of Conduct• Group Employee Handbook• Group Fit & Proper Policy (for

the Directors)• Group Performance

Management Policy• Group Recruitment & Selection

Policy (for employees)• Group Sexual Harassment Policy

& Procedures

Through the establishment of SuCom, our existing Sustainability Policy was renewed with the following areas being improved:

i ) def ined susta inabi l i ty ro les and responsibilities of all divisions

ii) enhanced scope of the Sustainability Policy

iii) plans to achieving key sustainability commitments

Supporting the Global Sustainable Development Goals (“SDGs”)

The SDGs outline specific targets that can only be achieved through collaborations between governments, civil society and businesses around the world. A new set of goals is envisioned to end poverty, protect the planet and ensure prosperity for all by 2030. These ambitious goals must be delivered through multi-outcome collaborations across the entire sustainable development agenda.

As an insurer, we are able to contribute to these global goals and we will be working towards reviewing our footprint, match our key activities, and aligning our targets against the SDGs as part of our commitment towards global corporate citizenship.

Exposure to EES and Governance Risk

As an insurer, our exposure to EES and governance risks is mostly indirect through the risks we accept from our insurance clients. Prudent management of EES and governance issues represents a major opportunity for us to reduce risks in underwriting and reinsurance, both for our own business and for our customers.

Ethical Business

we adhere to the Financial Services Act 2013 and all related laws, Bank Negara Malaysia’s guidelines and Bursa Malaysia’s Main Market Listing Requirements. Continuing this internally, we have in place a formal CoC and various other policies pertaining to conflicts of interest, anti-harassment, equal opportunity and whistleblowing. Learn more about the CoC on the corporate website at tuneprotect.com.

The CoC and Group-wide policies lay the foundations for long-term trusting relationships with our colleagues, customers and partners, our approach to sustainability as well as to ensure that we are aligned and working within the same parameters. The CoC covers three aspects:

i) Respect in Our workplace that defines the best interaction manner in the workplace;

ii) Respect for Our Business Partners which guides us on how we engage with external parties; and

iii) Respect for Our Shareholders that summarises our commitment towards ensuring shareholder value.

The CoC demonstrates our belief in doing business the right and ethical way with a particular reference to our Core Values. we believe that ethical business practices are more than just complying with the current regulations. In every jurisdiction that we operate, we commit to observing to all applicable laws and regulations. we have zero tolerance for fraud, corruption and violation of laws and regulations. The tone for adherence on compliance and regulation matters are set right from the top.

Compliance and Risk Management

The management of compliance is governed and supported by the Compliance Management Framework which is a Board-approved framework that outlines the structure and key processes for identifying and ensuring compliance with applicable legislations, regulatory requirements, and internal policies and procedures.

Our Risk Management Framework institutionalises vigilance and awareness of the management of risk across the Group.

Tune Protect Group has in place a Risk Management Framework with the objective of institutionalising vigilance and awareness of the management of risk across the Group. This framework provides a concise and holistic documentary standard as a single point of reference which outlines the broad overarching framework in providing direction for the management of all risk elements that the Group is exposed to. This framework addresses structure, people, policies, processes and activities required for the Company to manage key risks. Mandatory training and assessments for employees in the areas of workplace integrity have been part of our risk management strategy.

In 2018, we will embark on several platforms to raise awareness and build competency in regulatory compliance. The Compliance function will direct and support the development of overarching compliance policies and procedures while facilitating the implementation of policies and procedures across the Company. Business units will be responsible for the implementation of the CoC as well as regulatory compliance policies and programmes. we will continue to nurture a culture of risk management to create awareness through employee training. Refer to our Risk Management and Internal Control statement on pages 82 to 84 of this Annual Report.

Cybersecurity

In recent years, new and more sophisticated cyber attacks have been occurring across the world, resulting in information security incidents. This situation has led to a growing interest in information security risk, and efforts made to strengthen defences and enhance data protection. Information leakage has various impacts in our organisation – financial, operational, legal and regulatory sanctions. Our business is proprietary to personal details of our customers. As such, it is important that all information is properly managed, controlled and protected.

Information obtained is received and stored with the strictest confidence and security. we take caution in disclosures of non-public information, except where required by regulators. Our efforts are supported by our Privacy Policy and in order to prevent unauthorised access to and disclosure of personal information, Tune Protect Group has implemented technical and administrative measures to keep our customers’ information secure. Strict safeguards have been put in place to protect the loss, misuse or alteration of any information provided to us. This includes limiting employees’ access to information and handling information of customers who have ended their customer relationship with Tune Protect Group.

There were no incidences of substantial complaints regarding breach of customer privacy or customer data loss in 2017.

Group Clean Desk Policy

The Clean Desk Policy is one of our top strategies in reducing the risk of security breaches in the workplace. we have increased awareness among our employees on protecting sensitive information in our possession, reducing the threat security incidences and data loss to malicious entities. The Clean Desk Policy also creates a tidy and clean environment as well as showcasing a positive image to external visiting stakeholders. It complies with the Personal Data Protection Act 2010.

No system is secured unless it is constantly monitored and evaluated. In the same sense, to ensure we are constantly in touch with our compliance policies, our Compliance Team constantly reviews and monitors on-the-ground compliance by performing regular walk-throughs, internal audits and collect feedback from employees.

This Policy is in line with our CoC on safeguarding information and Company assets.


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Financial Literacy

Financial literacy is beyond a brand building exercise. It is the essence of our capacity building of the market so that our customers are empowered to manage their finances well. To achieve our objectives, we supported and participated in events such as Karnival Kewangan 2017. It was a weekend event organised by Bank Negara Malaysia in collaboration with the Malaysian financial services industry.

Customer Experience Initiatives

In a fast-moving society that is constantly online, digitisation makes it easier for customers to process their needs fast and at their own convenience. we will continue to develop our digital business, channelling our efforts towards greater product innovation and customer experience to deliver our brand promise of Insurance Made Easy. Several process improvements were undertaken to enhance digital customer experience. Phase 1 involved the roll out of auto check on AirAsia delayed flights via a system integration with AirAsia. The integration has simplified the claims process.

Customer journey mapping was undertaken for travel and motor claims. we stepped into our customer’s shoes and see the business from their perspective. One of the outcomes is the simplified damaged baggage claim process. Our customers are no longer required to submit a Property Irregularity Report. Tune Protect Re will obtain the report directly from AirAsia for Tune Protect Travel – AirAsia (baggage).

Other efforts include:

• Through the simplified Electronic Customer Experience Portal, we shortened the number of steps and columns for customers to fill.

• Enhanced the content of our website to ensure all information is current.

• Personalisation of SMS content for claims status including notification on motor claims status and notification on claims pay-out status of travel products.

• Motor insurance enrolment pack with a new road tax design complete with QR code. The QR code links to our microsite with key checklists on what to do during emergencies, auto assist contact number as well as the claims process.

• Through CarFix Apps, we have enabled windscreen claims function.

we have targets to enhance our Customer Service team in 2018. One of the other core focuses will be on mobile apps development. we want to reach and connect to our customers in a more seamless and meaningful way. The right mobile apps will enable us to reach our customers and integrate into their lives seamlessly.

we are also focusing on systematically digitising our entire value chain. we fully understand that this is not just us providing digital products and services but extends to engaging our customers digitally and assisting our agents in meeting their objectives by improving efficiency. It is part of our main agenda to simplify insurance and provide exceptional customer experience. Already, policy documents are emailed to customers. Other services such as claims as well as checking the status of claims are partly available online.

Our way of doing business is to do it ethically right, anchored on our Core values.

As part of our digital journey and efforts to improve our customer experience, we are reviewing our products to make them more relatable and conveniently accessible online. These include segregating features and benefits of our motor and travel protection plans to offer more specific coverage.

In reference to the score of our brand health, the ‘IN’ and ‘Skip the Drama’ campaigns have contributed to the increase in the latest total scores. Tune Protect brand also recorded highest growth in the category of motor insurance due to the campaigns which communicated the benefits of motor insurance to consumers. ‘Skip the drama’ campaign has also been awarded the ‘Best Campaign – Brand Awareness’ at the Mob-Ex Awards 2018. Our Brand Health Tracker (baseline in October 2016), recorded an increase from 31% to 45% for customers who were aware of our products in 2017, and from 25% to 29% for customers who considered our products. There were also increases in trial customers and repeat purchases from 15% to 20% and from 6% to 7% respectively. Meanwhile, customers loyalty grew from 3% to 5%.

while developing its online business, Tune Protect Malaysia will continue to strengthen and improve the quality of its traditional distribution channels, including its agency force. Tune Protect Malaysia has approximately 1,400 total agents and 21 branches across the country to serve non-digital based customers in our aim to bring simplified and tailor-made insurance to every layer of the community. we have in place ongoing efforts to train branch staff and agents on the completeness of documents for efficient claims submissions. Such efforts go back to our aim to ensure that customer satisfaction is at every level of the value chain.

Complaints Management

Tune Protect Group understands and values feedback by providing avenues for grievances and complaints. we view feedback as an opportunity to improve our products, services and processes so that we better serve our communities.

Tune Protect Travel – AirAsia

Customers can lodge their complaints by sending us an email, through our Business-to-Consumer website. Our customer experience team will acknowledge and attend to the complaints in a timely manner. The complaints will be escalated to the relevant units within Tune Protect for resolution within stipulated timelines, depending on the complexity of the complaints.

General Insurance Products

Tune Protect Malaysia has in place more than one channel for our customers to share their feedback with us. Customers may choose to write directly to the CEO, or the Ombudsman For FinancialServicesand/orBankNegaraMalaysia.

Customers may also choose to channel their complaints to our Customer Complaints Unit (“CCU”). The CCU will process the complaints received immediately by forwarding the complaints to the relevant departments. CCU will follow up on the complaints until the complaints are resolved. Resolution turnaround time varies, subject to the complexity of the case. In 2017, the average time taken to respond and resolve complaints was 9.1 days. we are striving to improve this average turnaround time.

DescriptionFy2016

DataFy2017

Data

Number of complaints received• Tune Protect Travel

– AirAsia• General Insurance

products

• 209

• 48

• 140

• 38

Number of complaints resolved • Tune Protect Travel

– AirAsia• General Insurance

products

• 209

• 48

• 140

• 38

#Key Focus Area 2DIGITAL SOLuTIONS, ACCESSIBILITy AND INNOvATION

we play an instrumental role to create awareness on the importance of insurance and to provide access to coverage. we benefited from branding and marketing strategies but in order to sustain, we need to be relevant and constantly meet the needs of customers. Our digital agenda is in tandem with the global shift towards the digital economy. In terms of products, we seek to be among the pioneers to offer “on-demand”, “usage-based” and “behavioral-based” insurance in the region.


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Digitised Solutions

In March 2017 we integrated our systems into AirAsia’s Asset Integrity Management System (“AIMS”) which allows our team to directly access, check and verify customers’ claims for Flight Delay Insurance and On-time Guarantee Insurance. After the AIMS integration, the number of reopened insurances cases has dropped from 45 to 17 cases. It has also shortened the average process time from 13.6 days to 1.2 days.

In our Digital Global Travel segment, we are looking into offering more differentiated products to meet customers’ specific needs, such as protecting their baggage or mobile phones and gadgets.

Big data is an avenue for us to mine interesting and accurate predictors of risks. To harvest this information, we have invested in improving our digital capability and big data analytics to enhance underwriting models and platforms. Digitising claims processes allows easy online claims tracking and automates the renewal process while gravitating the Company towards paperless process. These functions apply to our travel products and Direct-to-Consumer products.

Product Accessibility

Tune Protect Group aims to be able to serve every layer of the community. Our ultimate aim is to ensure that the community receives access to insurance that is easy to understand and suits their needs.

Our Direct-to-Customer website is designed in easy to understand terms and conditions and constantly carries new offerings, making the process of purchasing coverage, simple and easy.

Currently we have 6 products on our Direct-to-Consumer website (Travel Easy, Motor Easy, PA Easy, Dental Easy, Guard Easy and Ride Easy). Our Business-to-Consumer website for Tune Protect Travel – AirAsia is available in 14 markets, where customers are allowed to purchase their travel insurance up to 1 hour before their scheduled flight time (except for Japan where 48 hours is required). The policy wording of Tune Protect Travel Easy and Tune Protect Travel – AirAsia have been simplified for better understanding by the public. This includes replacing technical terminologies with simpler wordings, incorporating necessary clauses and adopting consistent terminologies among many others.

Since our products are available in many different countries, we make sure that they are made available in multiple languages including English, Mandarin, Thai, Japanese and other languages to cater to our diverse and multicultural customer base.

Process Improvements in underwriting and Claims

Underwriting and claims are essential aspects of our business. we have established Underwriting Guidelines to manage and adequately assess the risks being underwritten. Our Claims Guidelines on the other hand detail operational controls surrounding the claims handling and settlement processes. Departmental manuals on the same subjects are made available to assist and guide employees in handling underwriting and claims processes. These documents are continuously updated.

Product Innovation

Innovative products require continuous change in meeting the needs of time and market. we work towards offering innovative products to our customers and enhancing their experience with us continuously as part of our brand promise of Insurance Made Easy. This includes customisation of products using dynamic pricing tools and customer profile centric based products that meet a wider scope of customers’ needs. Our products are also bundled together to meet our customers varying needs, especially the ones on the go. These products that provide complete insurance solutions and cover different lines of businesses and types of coverage, help us retain our customers. we are committed to providing more on-demand insurance to our customers and these products are in the planning stage. we will also consider the pricing and affordability of these products.

Tune Protect Dental Easy

Tune Protect Dental Easy is the first Premium Dental Health Insurance scheme in collaboration with Universal MediDent Sdn Bhd. This innovative insurance scheme is made affordable and offers cashless transaction for treatment in selected panel clinics. It provides a comprehensive dental treatment coverage within Malaysia for the most common dental treatments. This is among many other insurance coverage packages innovated by Tune Protect Group to meet the various growing needs of our customer base.

Motor Products

Effective July 2017, the liberalisation of Motor Tariff premiums allowed for insurers and takaful operators to determine premium pricing by taking into account broader risk factors which would drive fairer pricing, Tune Protect Group sees great advantage and opportunities in this move by Bank Negara Malaysia. we had launched Motor Easy through our online channel in 2017. we are now working with partners on improving telematics capabilities to ultimately be able to offer better and differentiated motor related products. However, as with any new regulatory change, we will closely monitor the market’s response to these changes and address any opposing reactions accordingly.

#Key Focus Area 3ENvIRONMENTAL INTEGRITy

we are aware of the impact of our business activities on the environment and have put in more efforts to manage our direct environmental impact in 2017.

In 2017, we set out to track and monitor environmental impacts in our office premise. During internal stakeholder engagement sessions, paper consumption management, energy management and waste management were identified as key focus areas as we move towards the concept of Green Office working towards reducing consumption, be it material or energy.

Paper Consumption Management

we recognise the impact of paper consumption on the environment and addressing this has encouraged us to move numerous products onto the digital platform rather than printing them on paper. we are even moving this habit to our value chain where policyholders are given the option to receive digital copies of their policies. Claims submissions for selected general insurance products can also be made entirely online.

Policies Issued(Digital e-commerce product) 2016 2017

Global travel 7.1 million 7.7 million

e-Commerce More than 7,500

More than 14,000

Internally, we are undertaking an exercise to quantify the volume and cost of paper usage. Our initial steps are the identifications of hot spots of high usage areas. Corrective action to minimise usage is then put in place via various efforts including campaigns to change habits, re-engineering of processes as well as digitising manual processes. In 2017, we consumed 2,808,720 sheets of paper for printing. In terms of non-printing paper usage in the office, 3,348 and 3,726 reams of paper were consumed in 2016 and 2017 respectively.

Energy Management

we know small steps take us a long way and in that sense in our pursuit to reduce energy consumption, employees are encouraged to turn off lights and switches when not in use. where possible, employees are encouraged to utilise video conferencing tools instead of travelling for meetings. we will raise awareness among employees to reduce energy consumption in the future.

we have quantified our electricity consumption to cover our headquarters and 20 branches.

Electricity Consumption

2016 (kwh)

2017 (kwh)

Total 700,574 695,737

Tune Protect Group

21,814 21,992

Tune Protect Re 14,543 14,661

Tune Protect Malaysia – HQ

176,857 180,935

Tune Protect Malaysia – Branches [20 branches]

487,360 478,149


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performance & business review

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Insurance Made Easy annuaL reporT

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Employee Engagement

An engaged workplace is a thriving one. Employee engagement is a crucial aspect to organisational performance and one of the ways that we formally listen to our people is through our performance review. A key aspect to employee engagement in 2017 has been through culture building.

Culture is crucial to develop a sense of purpose to drive both individual capability and team spirit. Part of culture building also includes enhancing ethical decision-making to ensure values-based decision making. Ultimately, when there is clarity in terms of company culture, we are able to nurture individuals and teams that are resilient and will enable the business to navigate challenges.

To further promote a healthy and happy work environment where employees feel safe and secure, all grievances and incidences that are reported are subject to due process.

Grievance channels:

• workplace – reports to Group People & Culture

• Business partners – reports to Group Compliance

• Shareholders – reports to Group Compliance

• Our whistleblowing Policy enables grievances to be channelled anonymously.

Culture workshop

The Culture workshop is introduced through our induction programme to bring new hires through Company structure, business and values. we aimed to have almost 80% of new hires in 2017 undertake the Culture workshop and managed to achieve this target.

we also have personalised 1 to 1 onboarding for senior roles, and introduced a Buddy programme for new joiners for a duration of 6 months.

Change Energy Givers

Change Energy Givers (“CEG”) is part of our culture change movement in 2017. CEG is a group of employees empowered to propose and execute engagement activities that

promote the culture of the Company. The rationale is that culture is best brought to life by employees and for employees. while there is clear direction in terms of the scope of the workplace culture, we do not want it to be reduced to a mere document or brochure. Some of the activities undertaken in the past year include “Back-to-School” and events during festive celebrations such as Deepavali and Christmas party.

Refer to Our Stakeholders on page 34 for a list of more formal employee engagement channels.

#Key Focus Area 5LEARNING AND DEvELOPMENT

we provide our employees with many learning opportunities through project-based assignments, specific trainings, and the opportunity for cross-organisational moves. Employees are expected to shape their progress and development as we support them through various structured process and tools.

Supporting our employees to reach their potential and aspirations will help us to constantly innovate for the better. For this purpose, learning and development must be targeted and effective. we have in place the Performance Management Process ("PMP"). Through the PMP, we are able to ensure that the Company’s objectives are correctly prioritised while resources are allocated effectively. The PMP also ensures employees are

aware of their goals and targets and how they continue to enhance the overall success of the Company. This way, employees can continue to stay focused and motivated knowing exactly what is expected from them. The PMP provides a sound system and process that helps managers address non-performances effectively while reinforcing behaviours and competencies.

Total spend on employee training and learning

RM706,598FY2016 : RM744,369

Percentage of employees receiving performance review

100%FY2016 : 100%

As part of our digitisation journey, we continuously empower our agents to shift their service orientation from offline one-to-one type of service to a more dynamic online-based insurance offering. One of our efforts is the participation in the Agents’ Professionalism and Excellence ("APEX") Roadmap introduced by PIAM. The objective of the programme is to upgrade professionalism and promote excellence in knowledge and service. The programme can be used by both new and existing agents.

In the same manner, we are also embarking on leadership development programmes to ensure that we attain the right ‘tone at the top’ with a focus on aligning our Senior Management with

the Company’s vision and values. In 2017, Senior Management benefitted from a workshop on self-awareness and effective communication styles. They were provided with insights on our digital vision, values and people management.

#Key Focus Area 6HEALTH AND wELL-BEING

A healthy and happy working environment most often produces a vibrant and thriving workforce, an aspect that is also reflected in our Core Values. To ensure our employees enjoy competitive benefits that reflect the current market and their expectations, in 2016, we revised the current employee benefits into one that is simpler and more flexible.

All our employees enjoy insurance coverage, maternity leave and paternity leave as outlined in our Employee Handbook. Flexible working hours are offered to certain employees depending on the situation. In addition to annual leave, our employees also enjoy special days or occasions such as birthday and marriage leaves as well.

#Key Focus Area 6wORKPLACE DIGITISATION

Aligning our workforce with our digital ambition, the Company has put in place various structures, systems and processes to digitise the workplace. Our e-Leave System was launched in 2015 and is accessible to Tune Protect Group and Tune Protect Re employees. Through the system, employees can apply and cancel or replace their leaves, along with access to list of Human Resources related documents. we plan to extend e-services to the rest of the HR services in future.

#Key Focus Area 6COMMuNITy ENGAGEMENT

Our community initiatives support national and regional development goals. we are focused on three areas: road safety, personal well-being and education. we work with different project partners to implement our programmes and activities. Our objective is to create a positive change in the community, especially through our long-term programmes.

Road Safety

In 2017, we partnered with the Malaysian Global Innovation & Creativity Centre (“MaGIC”), Malaysian Digital Economy Corporation (“MDEC”) and Malaysian Road Safety Department (“JKJR”) to run the Safety on Streets (“SoS”) Challenge. The objectives of the campaign were to raise awareness on road safety in Malaysia, engage with youth and tap their creativity for innovative solutions and provide training and mentorship.

At heart, we want to empower customers by ensuring easy, accessible, transparent products and services.

Employees in Tune Protect Malaysia were dressed in full school uniforms during a ‘Back-to-School’ event


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As part of this programme, we conducted the INSPIRE workshop that was attended by some 70 university students who were keen on taking part in the SOS Challenge to learn about lean start-up culture and methodology. After the workshop, we continued to receive entries online and nine teams were shortlisted to attend the IDEATE Bootcamp held at MaGIC Cyberjaya. At the bootcamp students were challenged to come up with their own viable ideas. Employees from Tune Protect as well as industry mentors from MaGIC were on hand to provide feedback and guide participants to the final day of Pitching, where the students had the opportunity to pitch to a panel of judges comprising MaGIC, MDEC, JKJR, Tune Protect Group and Tune Labs.

heart. we dedicated the month of September as our Tune Protect Heart Health Month. Our first move was to promote healthy eating and towards this end, we worked with a food delivery system, dahmakan in Klang Valley that prepares and distributes healthy food.

The Company also organised Blood Donation Drive in September 2017 held at the lobby of wisma Tune. 64 eligible donors took part in this drive. Our final activity was the Healthy Heart Talk in the same month. During the session, participants were given essential tips on how to "exercise" and care for their heart and a free health screening at the talk. we aim to run Tune Protect Heart Health Month annually.

GoodKids

At Tune Protect Group, we believe that every child must be given the opportunity to excel, especially those who are labelled as troubled youth. we support GoodKids, an organisation that helps at-risk youths build self-confidence and rediscover themselves through performing art. we sponsored 100 tickets for participants’ parents, orang Asli community and children from shelter home to join the GoodKids League, an arts performance featuring recycled percussion, stomping and acting. we took a step further by providing insurance coverage for the youth who took part in the performance.

COBRA 10s Mini Rugby Tournaments

Tune Protect Group sponsored two COBRA 10s Mini Rugby Tournaments in 2017. These tournaments were arranged exclusively for Malaysian primary schools. Although rugby has a history that goes back to the 1800’s, it is relatively

Team Green Light from HELP University emerged as the SOS Challenge Champion with their proposed application called “walk Tune”. This simple yet effective navigation service was aimed at guiding pedestrians from point A to point B through the safest routes on foot. They won the grand prize of RM5,000 cash. In addition, each team member received a 1-year Tune Protect PA Easy personal accident insurance and a 3-month internship with Tune Protect.

Personal well-being

Heart Health Month and Other Campaigns

we worked towards creating awareness for our employees on the importance of having a healthy

a new sport in Malaysian primary schools. This fact propelled Tune Protect Group to support the introduction and development of rugby to benefit budding young players and Malaysian schools. Collaborating with COBRA, Malaysia’s oldest rugby club, provided Tune Protect with the opportunity to help establish the platform to learn and compete the game properly and safely. Tune Protect sponsored a total of RM50,000.

Sponsor A Kid Back To School

The Tune Protect Group ‘Sponsor A Kid Back To School’ project had the objective of providing ‘at-risk’ children from the Chow Kit area with a good start to the 2018 schooling year. Collaborating with Yayasan Chow Kit ("YCK") and Outpost Uniform, Tune Protect Group sponsored a total of 114 complete sets of school uniforms costing RM8,700 for the primary school children at YCK’s Pusat Aktiviti Kanak-

Participants and winners of Safety on Streets' Challenge

Member of Yayasan Chow Kit’s Board of Governors Yang Amat Mulia Tunku Dato’ Seri Zain Al-‘Abidin Ibni Tuanku Muhriz witnessed Tune Protect Group’s CEO Razman Hafidz Abu Zarim handing the mock cheque to Yayasan Chow Kit’s COO Ananti Rajasingam at Pusat Aktiviti Kanak-Kanak

Tune Protect Malaysia’s CEO Khoo Ai Lin presented medals to the

winning teams of the 2017 COBRA 10s Mini Rugby Tournaments

Tune Protect’s Emergency Flood Relief & Donation Drive

Tune Protect provided RM50,000 for emergency flood relief for communities severely affected by the floods in North-west states of Malaysia. Collaborating with Malaysia International Search & Rescue ("MISAR"), dry food, bottled water, pillows, blankets, buckets, toiletries, diapers and sanitary napkins were swiftly distributed. we also helped our staff affected by the floods back on their feet with a Donation Drive.

Education

we see employee volunteerism as a key strategy for our employees to engage and understand the community. In the process, our employees benefit from the interactions and the community become a beneficiary of our projects. The results are immediate and impactful. we aim to partner with a non-governmental organisation to develop a structured employee volunteerism programme.

Kanak ("PAKK"). In addition, Tune Protect Group also sponsored urgent major roof leakage repairs costing RM18,500 to facilitate teaching and learning that was hampered by the miserable wet conditions.


2017

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49

we believe in leadership by influence. People who are influenced by our aspiration and believe in the same dreams will be able to move mountains.

novation

sightfulness

fluence

tegrity

control

pain

Insurance Made Easy

Profiles of Board Directors

Ng Soon Lai @ Ng Siek Chuan(“Ng Siek Chuan”)

Malaysian, Male, Aged 64Chairman, Senior Independent Non-Executive Director

Ng Soon Lai @ Ng Siek Chuan joined the Board as Independent Non-Executive Director on 5 October 2012 and is currently Senior Independent Director of the Company. He was appointed as Chairman of the Company on 22 May 2017. During his capacity as a member of the Board, he was the Chairman of Audit and Risk Committee and Nomination & Remuneration Committee until 16 March 2017. He remains as a member of Audit, Risk Management and Nomination & Remuneration Committees.

with close to four decades of experience in the financial services industry, he started his career in audit and accounting with Coopers & Lybrand in London and Kuala Lumpur. He then made a pivotal switch to the financial sector in 1980, where he made his career with a leading local merchant bank and a finance institution. He joined Alliance Bank

Malaysia Berhad in 1991 as General Manager of Credit and was later appointed Chief Executive Director in 1994. He became a Board member of Alliance Merchant Bank Berhad in 2002. He resigned as Chief Executive Director of Alliance Bank Malaysia Berhad in 2005.

Ng Siek Chuan is a fellow of the Institute of Chartered Accountants in England and wales.

He currently holds independent directorships with Hiap Teck Venture Berhad, ELK-Desa Resources Berhad, China Construction Bank (Malaysia) Berhad and wCT Holdings Berhad.

Ng Siek Chuan attended all five (5) Tune Protect Group’s board meetings held throughout 2017.


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LEADERSHIP

53

Datuk Kamarudin was appointed Deputy Group Chief Executive

Officer and President of Group Finance, Treasury Corporate Finance and Legal of AirAsia Berhad until 2012, when he was re-designated as a Non-Independent Non-Executive Director and appointed as Deputy Group Chief Executive Officer of AirAsia ASEAN Inc. On 6 November 2013, Datuk Kamarudin was appointed Executive Chairman of AirAsia Berhad, where he takes the lead in engaging with the government, aviation regulators and airport authorities in Malaysia.

He is a shareholder of the Company and also the co-founder and director of Tune Group Sdn Bhd. He is currently the Executive Chairman of AirAsia Berhad and AirAsia Group Berhad and a Non-Independent Executive Director and Group Chief Executive Officer of AirAsia X Berhad. He is also a Director of Yayasan Pendidikan Titiwangsa.

Datuk Kamarudin graduated with a Diploma in Actuarial Science from Universiti Teknologi MARA (UiTM) and was named the “Best Actuarial Student” by the Life Insurance Institute of Malaysia in 1983. He further received a Bachelor of Science (BSc) with Distinction (Magna Cum Laude) majoring in Finance in 1986, and a Master of Business Administration (MBA) in 1987 from Central Michigan University.

Datuk Kamarudin attended all five (5) Tune Protect Group’s board meetings held throughout 2017.

Datuk Kamarudin was appointed Non-Independent Non-Executive Director of Tune Protect Group on 11 March 2013. He is also the Chairman of the Company’s Employees’ Share Option Scheme (“ESOS”).

with close to 30 years’ experience under his belt, Datuk Kamarudin is a prominent, national business tycoon known for co-founding AirAsia with Tan Sri (Dr.) Tony Fernandes. He started his career in 1988 as a Portfolio Manager with Arab-Malaysian

Merchant Bank before leaving in 1994, to join Innosabah Capital

Management Sdn Bhd where he remains as Executive

Director to date.


Datuk Kamarudin Meranun (“Datuk Kamarudin”)

Malaysian, Male, Aged 56Non-Independent Non-Executive Director


2017

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LEADERSHIP


Siegtraund Teh Siew Foong(“Siegtraund Teh”)

Malaysian, Female, Aged 42Non-Independent Non-Executive Director

She is currently the Group Chief Commercial Officer of AirAsia Berhad, responsible for revenue management, group marketing, sales, distribution, ancillary income, digital, network planning, content and partnership market. Siegtraund Teh was influential in decentralising AirAsia’s commercial functions to strengthen its central marketing expertise with localised market knowledge. Prior to AirAsia, she spent six years in the fast moving consumer goods industry in organisations such as EAC Holdings, DKSH Marketing and RedBull. She is also a member on the Board of AirAsia Berhad's subsidiaries.

She attended two (2) Tune Protect Group's board meetings since her appointment in 2017.

Siegtraund Teh was appointed as a Non-Independent Non-Executive Director of the Company on 1 July 2017. She is also a member of the Nomination Committee and currently sits as a Board member of subsidiary, Tune Protect Re.

She holds a Bachelor’s Degree in Business Administration from Ottawa University, USA and a Postgraduate Diploma from the University of Leicester, UK.

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LEADERSHIP


Tan Ming-Li is a graduate of the University of Melbourne, Australia with a double degree in Law (Hons) and Science.

She is currently an Independent Non-Executive Director of BP Plastics Holding Bhd and Ikhmas Jaya Group Berhad.

She attended all five (5) Tune Protect Group’s board meetings held throughout 2017.

Tan Ming-LiMalaysian, Female, Aged 49Independent Non-Executive Director

Ta n M i n g - L i wa s a p p o i n te d Independent Non-Executive Director of Tune Protect Group on 1 April 2014. On 1 June 2017, she became the Chairman of Nomination and Remunerat ion Committees , as well as member of Audit and Risk Management Committees.

She is also a member on the Board of subsidiaries, Tune Protect Malaysia and Tune Protect Re. She is a partner in the legal firm, Cheang & Ariff and has been in legal practice since 1994. She specialises in corporate and securities law where she is principally involved in advising on capital market transactions, mergers and acquisitions, corporate restructuring as well as corporate finance related work.


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LEADERSHIP


Mohamed Rashdi Mohamed Ghazalli (“Mohamed Rashdi”)

Malaysian, Male, Aged 61Independent Non-Executive Director

Notes:

Family RelationshipsNone of the Directors has any family relationshipwithanyotherDirectorand/ormajor shareholder of Tune Protect Group.

Conflicts of InterestNone of the Directors has any conflict of interest with Tune Protect Group.

Conviction for OffencesNone of the Directors has been convicted for any public sanction during the financial year ended 31 December 2017 or penalty imposed by the relevant regulatory bodies and offences within the past 5 years other than traffic offences, if any.

Mohamed Rashdi was appointed Independent Non-Executive Director of Tune Protect Group Berhad on 1 June 2017. He is also Chairman of the Audit Committee and Risk Management Committee, as well as member of the Nomination and Remuneration Committees.

Mohamed Rashdi had a successful career in IT and Management Consulting with Coopers & Lybrand , IBM Consu l t i ng and PricewaterhouseCoopers over a span of 20 years. During his career, Mohamed Rashdi worked with Telecoms Australia as well as Coopers & Lybrand in the United Kingdom. He was a Partner of PwC Consulting (East Asia) as well as IBM Consulting and was also IT and Consulting Advisor with PwC Malaysia focusing on capacity building, business development and quality assurance.

As a management and technology consultant, Mohamed Rashdi has personally led assignments in strategy and economics, business process improvement, information systems planning and IT project management. He has provided consultancy expertise across a range of industries such as government, telecommunications, oil & gas, transport and utilities with some involvement in manufacturing and financial services.

Mohamed Rashdi graduated with a Bachelor of Science (Honours) degree in Computation from the University of Manchester Institute of Science and Technology, United Kingdom.

He is also a Director on the Boards of Sapura Energy Bhd, Danajamin Nasional Berhad and Malaysia Venture Capital Management Berhad.

He attended two (2) Tune Protect Group's board meetings since his appointment in 2017.


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LEADERSHIP

Profile of Chief Executive Officer

Razman Hafidz Abu Zarim(“Razman Hafidz”)

Malaysian, Male, Aged 63Group Chief Executive Officer

Razman Hafidz joined Tune Protect Group as Chairman of the Board in 2012 and was appointed the Group Chief Executive Officer of Tune Protect Group on 15 July 2016. He leads the Company in creating a long-term strategy with a view to create shareholder value and is a personification of the Group’s culture and values.

He is a member of the Investment Committee of the Company and holds directorships in subsidiaries Tune Protect Malaysia, Tune Protect Re and Tune Direct Ltd; associate company – Tune Protect Thailand; and joint venture company – Tune Protect EMEIA.

Razman Hafidz has an elaborate background, with four decades of experience, in the fields of finance and management. His early career started in London, England where he joined notable Chartered Accountant firms, fast tracking his role from Audit Junior (1977) to Audit Partner in 1987. In 1989, he returned to Malaysia and joined Price waterhouse. He left the firm as Partner-in-Charge of Price waterhouse’s Management C o n s u l t i n g P ra c t i c e i n 1 9 9 3 .

He then led Malaysian Assurance Alliance (“MAA”) as the company’s CEO, to become the No. 1 Life insurance company in Malaysia, in terms of new business underwritten. During his term, MAA was also named Life Insurer of the Year by a Hong Kong-based industry magazine in 2001.

He is currently an Independent Director of Hartalega Holdings Berhad, a company listed on Bursa Malaysia Securities Berhad.

He graduated with a joint-honours degree in Economics and Accounting from University College, Cardiff, wales, in 1977. He is a fellow member of the Institute of Chartered Accountants in England & wales and a member of the Malaysian Institute of Accountants (MIA).

Razman Haf idz has no fami ly relationship with any other director and/ormajorshareholderandhasnoconflict of interest with the Group. He has not been convicted for any offences within the past 5 years, other than traffic offences, if any.

For information on Razman Hafidz’s shareholdings in Tune Protect Group, please refer to page 90 of the Annual Report.

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LEADERSHIP

Senior Management Team

Khoo Ai Lin

Chief Executive Officer of Tune Protect Malaysia

Malaysian, Female, Aged 49

Shirley Chen Ooi waiChief Financial Officer


Khor Kee EngChief Actuary

Malaysian, Male, Aged 36

Ai Lin joined Tune Protect Malaysia as Chief

Executive Officer on 2 August 2017.

She has more than 20 years of experience under

her belt, serving various roles in Partnerships,

Distribution, Bancassurance, Business

Development as well as Affinity Business within

the life, general and composite insurance.

A well-established thought leader and partner

in the Malaysian insurance industry, Ai Lin was

the Chief Marketing Officer at a multinational

insurance company prior to joining Tune Protect

Malaysia. She is also a Director of Tune Protect

Re Ltd.

She is a graduate of La Trobe University, Australia

and holds a Bachelor of Economics degree

majoring in Banking and Finance.

Shirley joined the Group as Chief Financial Officer on 1 September 2016 with the primary responsibility of enabling financial strategies within the Group, for value creation through sound capital and financial management. She has been recently appointed as a Director in Tune Direct Ltd. and Tune Direct (M) Sdn Bhd.

with more than 20 years’ experience in the insurance industry, Shirley has served in instrumental management roles in both local and multinational insurers such as Pacific Insurance, Tokio Marine and AXA. She brings with her a wealth of experience from auditing, financial reporting, investment, compliance, risk management and merger integration.

Graduated from The University of Iowa, USA with a degree in Business Administration majoring in Accounting, she is a member of the Malaysian Institute of Accountants (MIA) and Malaysian Institute of Certified Public Accountants (MICPA).

Kee Eng joined the Group as Chief Actuary on 1 August 2017 and is tasked to build an agile actuarial team that develops and champions best-in-class actuarial techniques and methodologies throughout the Group.

He has a solid track record and 12 years of all-rounded experience in the Actuarial and Finance functions. Prior to Tune Protect Group, Kee Eng held roles including Chief Financial Officer and Chief Actuary in Hong Kong, leading end-to-end finance and actuarial services. He started his career with Ernst & Young and PricewaterhouseCoopers abroad.

Graduated from the London School of Economics with a first-class honours degree in Actuarial Science, he is a fellow of the Institute of Actuaries.


2017

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LEADERSHIP

65

Senior Management Team

Notes:Other DirectorshipNone of the Senior Management has any other directorships in public companies and listed issuers.

Family RelationshipNone of the Senior Management has any family relationship with any other Director and/or major shareholder of Tune Protect Group.

Conflict of InterestNone of the Senior Management has any conflict of interest with Tune Protect Group.

Conviction for OffencesNone of the Senior Management has been convicted for any public sanction during the financial year ended 31 December 2017 or penalty imposed by the relevant regulatory bodies and offences within the past 5 years other than traffic offences, if any.

vilasini GovendanHead of Legal and Company SecretaryMalaysian, Female, Aged 42

Koot Chiew LingHead of Corporate Development and Strategy


yap Hsu yiHead of People and Culture


Raymond MichaelHead of Risk Management and Compliance

Malaysian, Male, Aged 40

Vilasini joined the Group as Head of Legal on 23 January 2013 and subsequently appointed as Company Secretary in 2017. She is tasked to provide proactive and pragmatic advice to the business on all legal and regulatory matters pertaining to the company while also keeping abreast with the legislative changes and developments that may potentially impact the company.She has more than 17 years’ combined experience in legal practice and in-house legal advisory for life, general and composite insurance companies serving as the Head of Legal in both local and multinational insurance organisations, prior to Tune Protect Group.

Graduated from the University of Malaya with a degree in Law and Masters in Law, she is an Advocate and Solicitor admitted to the High Court of Malaya.

Chiew Ling joined the Group as Head of Corporate Development & Strategy on 10 February 2014 to oversee three core areas – Corporate Development, Investor Relations and Programme Management Office. She is primarily responsible for leading the Group’s strategic initiatives and key projects as well as engaging analysts and investors alike. She is also a Director of Tune Direct (M) Sdn Bhd.

with more than 20 years’ experience in the areas of business development, product development and corporate planning she had served in local and regional capacities in major financial services institutions such as AIG, Etiqa and CIMB. while in CIMB, she was part of the pioneer team instrumental in the setup of the bancassurance partnership in Indonesia.

She graduated from Curtin University of Technology, Australia with a degree in Commerce.

Hsu Yi joined the Group as Head of People and Culture on 4 May 2016 where she is responsible for defining and leading the people strategy of the Group to create a distinctive culture that separates the Group from industry peers.

She has more than 15 years’ experience working across various industries, including companies such as Arthur Andersen, PwC, Mercer Consulting, Telenor and PepsiCo, prior to joining Tune Protect Group.

Graduated from Monash University, Australia with a degree in Commerce majoring in Accounting and Finance, she is a recipient of many internal and external awards for outstanding achievements in human resources.

Raymond joined the Group as Head of Risk Management and Compliance on 2 January 2018 with the responsibility to formulate and implement the Risk Strategy, Risk Appetite and Risk Management Framework for the Group. In addition to leading, implementing and monitoring effective risk management in the Group, he is also tasked to build a strong governance and promote the awareness on risk culture that separates the Group from industry peers.

with more than 14 years’ experience working across financial institutions and insurance industries, he served companies such as Maybank, HSBC, Citibank, Great Eastern and ING (now known as AIA Group) prior to joining Tune Protect Group.

He graduated from Stamford Business School and Informatics with Business Admin Management and Higher Diploma in Computer Engineering.


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67

what is success and greatness without integrity. we do things right, speak the truth and earn success fair and square.

novation

sightfulness

fluence

tegrity

control

pain

Insurance Made Easy

Corporate Governance Overview Statement

The Board of Directors (“the Board”) of Tune Protect Group is committed to continuously improve the effective implementation of the principles and best practices of Corporate Governance (“CG”), as provided in the Malaysian Code on Corporate Governance (“MCCG 2017”), the Main Market Listing Requirements (“MMLR”) of Bursa Malaysia Securities Berhad (“Bursa Malaysia”) and Bank Negara Malaysia (“BNM”).

The Company, including its subsidiaries, associate and joint venture company (collectively referred to as “the Group”) applies high standards of ethics, integrity, and corporate governance in all its dealings. The Board considers that it has complied throughout the financial year ended 31 December 2017 with all the Principles and Best Practices as set out in the MCCG 2017, Bursa Malaysia Corporate Governance Guide and BNM’s Corporate Governance policy.

The Board presents this statement to provide an overview of the CG practices of the Company under the leadership of the Board during the financial year ended 31 December 2017. This statement is prepared in compliance with the MMLR of Bursa Malaysia and takes guidance from the key CG principles as set out in the MCCG 2017, as well as BNM's Corporate Governance Policy. It is to be read together with the CG Report 2017 (“CG Report”) of the Company which is available on the Company’s corporate website at tuneprotect.com.

Section A of the CG Report provides the details on how the Company has applied each Practice during the financial year ended 31 December 2017 as set out in the MCCG 2017 and Section B provides details on the adoption of CG practices as guided by BNM’s Corporate Governance policy.

PRINCIPLE A: BOARD LEADERSHIP AND EFFECTIvENESS

I. BOARD RESPONSIBILITIES

Roles and Responsibilities

The Board is accountable to shareholders for achieving the Group’s strategic objectives, for the delivery of strong and sustainable performance, and for ensuring that the business operates within its risk limits. The Board retains full and effective control over the Group’s affairs and is the principal decision-making forum in providing stewardship and entrepreneurial leadership through its Board Committees.

The Board had delegated limited authority to the Group Chief Executive Officer (“CEO”) and Management team for day-to-day management and operations of the business.

The Board has a formal schedule of reserved matters, reviewed annually, which includes:

• The Group’s long-term strategy, corporate objectives and plans;

• The Group’s capital structure;

• Operating and capital budgets;

• Any significant changes to accounting policies and practices;

• Results and financial reporting;

• Dividend policy and proposals for dividend payments;

• New ventures;

• Major acquisitions, disposals, and other transactions outside delegated limits;

• The Group’s overall risk appetite;

• Review of the Group’s overall corporate governance arrangements;

• Maintenance and review of the systems of risk management and internal control;

• Changes to the structure, size and composition of the Board, including new appointments;

• Succession plans for the Board and senior management; and

• Annual review of its own performance and that of its Board Committees.

The Chairman and Group CEO positions are held by different individuals. Further details of the Chairman and members’ roles and responsibilities can be found in the Board Charter.

The Board Charter was last reviewed on 21 November 2017 and is available on the corporate website at tuneprotect.com.

Company Secretary

Vilasini Devi Govendan Kutty was appointed as Company Secretary on 1 December 2017 and is licensed by the Companies Commission of Malaysia (“CCM”) under section 20G of the CCM (Amendment) Act 2015. She is also the Secretary for all Board Committees.

She advises and updates the Board on their duties and obligations under current relevant legislation, regulatory requirements, and corporate governance matters, whilst ensuring that the Board procedures are adhered to. She also advises the Directors on their obligations and duties to disclose their interest in the Company’s securities, the disclosure of any conflicts of interest in transactions involving the Company, prohibition on dealing with the Company’s securities, and restrictions on disclosure of price-sensitive information. The appointment and removal of the Company Secretary requires Board approval.

II. BOARD COMPOSITION

Board Balance and Independence

The Company’s diverse Board includes and makes use of differences in skills, industry experience, background, gender, and other attributes. Board members have a wide range of relevant experience in banking, accounting, law, economics, investment, and international business operations, to bear on the governance, strategies, resources, and performance of the Group.

All Board members are Non-Executive Directors, three (3) of whom are Independent Directors, and the Chairman of the Board is a Senior Independent Non-Executive Director.

Board members at year-end were:

Name Designation Directorship

Ng Soon Lai @ Ng Siek Chuan

Chairman (1) Senior Independent Non-Executive Director

Datuk Kamarudin Meranun

Member Non-Independent Non-Executive Director

Siegtraund Teh Siew Foong

Member (2) Non-Independent Non-Executive Director

Tan Ming-Li Member Independent Non-Executive Director

Mohamed Rashdi Mohamed Ghazalli

Member (3) Independent Non-Executive Director

Notes:

(1) Ng Soon Lai @ Ng Siek Chuan was appointed as Chairman on 22 May 2017.

(2) Siegtraund Teh Siew Foong was appointed as Non-Independent Non-Executive Director on 1 July 2017 to replace Tan Sri (Dr.) Anthony Francis Fernandes after the expiration of his term as Non-Independent Non-Executive Director of the Company on 30 June 2017.

(3) Mohamed Rashdi Mohamed Ghazalli was appointed as Independent Non-Executive Director on 1 June 2017.

None of the Independent Directors have served on the Board for more than nine (9) years.

Profiles of the current Directors are provided on pages 52 to 61 of this Annual Report.

Meetings

Attendance of the members at meetings held during the year are as follows:

DirectorsNo of Meetings

Attended

Ng Soon Lai @ Ng Siek Chuan 5/5

Tan Sri (Dr.) Anthony Francis Fernandes (1) 2/3

Datuk Kamarudin Meranun 5/5

Siegtraund Teh Siew Foong (1) 2/2

Tan Ming-Li 5/5

Mohamed Rashdi Mohamed Ghazalli (2) 2/2

Notes:



71


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70

CORPORATE GOVERNANCE

Agendas and papers are circulated to the Board with sufficient time for members to prepare for Board and Committee meetings. All Board and Committee meetings held during the year were conducted in an open atmosphere which allowed constructive challenge and debate, and all Directors were able to exert their independent judgement to bear on issues discussed. Directors and Management continue to be in frequent contact between meetings.

The Board has unrestricted access to independent and expert advice at the Company’s expense in performing its duties.

Professional Development

The Group recognises that continuous education is essential for the Directors to discharge their duties and responsibilities. There is an allowance for training fees provided to the Board to encourage their participation in training programmes.

The programmes and seminars attended by the Directors during the year can be found in Section B of the CG Report.

Conflicts of Interest

Board members have declared their directorships in companies other than in the Group, and such directorships are well within the limit of five directorships in public listed companies. Directors have declared their respective shareholdings in the Group, and their interests in any contract with the Group. Directors abstain from any discussions and decision-making related to other companies they hold directorships in.

Board Committees

The Board had delegated its authority to the Audit Committee, Risk Management Committee, Nomination Committee, Remuneration Committee, Employees’ Share Option Scheme (“ESOS”) Committee, and Investment Committee. Save for the ESOS and Investment Committees, the Board Committees are chaired by Independent Directors and comprise a majority of Independent Directors.

On 16 March 2017, the Board has approved the split of the Audit and Risk Committee into two (2) separate committees, namely the Audit Committee and the Risk Management Committee.

The Nomination Committee and the Remuneration Committee were set up on 7 December 2012, and merged into the Nomination and Remuneration Committee on 11 July 2014. Subsequently, on 1 June 2017, the Board approved the split of the Nomination and Remuneration Committee into two (2) separate committees.

The Nomination Committee may invite other Board members and the Group CEO to attend meetings when it deems appropriate.

(a) Nomination Committee

The Board through its Nomination Committee conducts an annual review of its size and composition, to determine if the Board has the right size and sufficient diversity with independence elements that fit the Company’s objectives and strategic goals. The Board also has in place a Board Diversity Policy & Procedures, which sets out the Board’s aim to achieve its target of at least 30% of women directors on the Board. The Board now comprised of 40% women directors since the appointment of Siegtraund Teh Siew Foong in 2017. This policy can be found on the Company’s corporate website at tuneprotect.com.

The Nomination Committee was comprised entirely of Non-Executive Directors, three (3) of whom are Independent Directors during the financial year ended 31 December 2017 as follows:


Tan Ming-Li Chairman (1) Independent Non-Executive Director


Member Senior Independent Non-Executive Director


Member Independent Non-Executive Director (Appointed on 1 June 2017)

Siegtraund Teh Siew Foong

Member Non-Independent Non-Executive Director (Appointed on 1 July 2017)

Note:

(1) Upon the splitting of the Nomination and Remuneration Committees on 1 June 2017, Tan Ming-Li remained as Chairman of Nomination Committee.

Key matters deliberated during the two (2) Nomination Committee meetings held in the financial year ended 31 December 2017 were:

• Performance evaluation of the Board of Directors and Board Committees; and

• Composition of the Board and Board Committees, with appropriate recommendations to the Board.

Based on the review of the Board composition in 2017, the Board agreed to the proposed composition of the Board and the Board Committees as recommended by the Nomination and Remuneration Committee due to the several boardroom changes in the Company. During the financial year ended 31 December 2017, there were two (2) new appointments to the Board. Mohamed Rashdi Mohamed Ghazalli was recommended by the Group CEO for his vast experience as a Board member for various other companies. Siegtraund Teh Siew Foong was recommended by the Board members for her experience in the travel industry to replace Tan Sri (Dr.) Anthony Francis Fernandes after the expiration of his term as Non-Independent Non-Executive Director of the Company on 30 June 2017. In addition, the Nomination and Remuneration Committee recommended and the Board affirmed the appointment of Ng Soon Lai @ Ng Siek Chuan as the Independent Non-Executive Chairman of the Company with effect from 22 May 2017.

The Nomination Committee assesses annually, in a formal and transparent manner, the independence of Independent Directors, the effectiveness of the Board as a whole, and the effectiveness of its various Committees and Directors in the discharge of their duties and responsibilities. The Board Assessment and Individual (Self & Peer) Assessment are done using:

• Audit Committee Evaluation Questionnaire

• Audit Committee Members’ Self and Peer Evaluation Form

• Independent Directors’ Self-Assessment Checklist

• Directors’/KeyOfficers’EvaluationForm

• Board & Board Committee Evaluation Form

Upon completion of the evaluations, the Nomination Committee Chairman and the evaluator (e.g. the Company Secretary) convey the findings to the Board in the interest of improving its effectiveness. The Chairman ensures that the Board’s decisions are reached by consensus (and failing this, that the decisions reflect the will of the majority), and any concern or dissenting view expressed by any Director on any matter deliberated at meetings of the Board, or any of its Committees, as well as the meetings’ decisions, will accordingly be addressed and duly recorded in the minutes of the meeting.

In 2017, the annual assessment was conducted in a formal and transparent manner. The results of the annual assessment indicated that the performance of the Board, the Board Committees and the individual Directors during the review period were commendable. They had been effective in their overall discharge of functions and duties in accordance with their terms of reference and there were no major issues identified.

The terms of reference of the Nomination Committee is available on the corporate website at tuneprotect.com.


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(b) Remuneration Committee

The Remuneration Committee was comprised entirely of Non-Executive Directors, three (3) of whom are Independent Directors during the financial year ended 31 December 2017 as follows:


Tan Ming-Li Chairman (1) Independent Non-Executive Director




Member Independent Non-Executive Director (Appointed on 1 June 2017)

Note:

(1) Upon the splitting of the Nomination and Remuneration Committees on 1 June 2017, Tan Ming-Li remained as Chairman of Nomination Committee.

Key matters deliberated during the two (2) Remuneration Committee meetings held in the financial year ended 31 December 2017 were:

• Remuneration packages for the Directors, CEO and Senior Management Team, with appropriate recommendations to the Board.

The terms of reference of the Remuneration Committee is available on the corporate website at tuneprotect.com.

(c) Investment Committee

The Investment Committee was established to assist the Board in discharging its duties and responsibilities in the management of investments, including drawing up policies and procedures for monitoring, assets allocation, dealing, recording, and reporting.

The members during the financial year ended 31 December 2017 comprise the following:

Name Designation


Chairman Non-Independent Non-Executive Director



Razman Hafidz Abu Zarim

Member Group Chief Executive Officer

(d) Employees’ Share Option Scheme Committee

The Employees’ Share Option Scheme (“ESOS”) Committee was established to administer the ESOS of the Group in accordance with the objectives and regulations thereof, and to determine the participation eligibility, option offers, share allocations, and any other related matter as required. The members during the financial year ended 31 December 2017 were:

Name Designation


Chairman Non-Independent Non-Executive Director

Razman Hafidz Abu Zarim

Member Group Chief Executive Officer

Shirley Chen Ooi wai

Member Chief Financial Officer

Yap Hsu Yi Member Head of People and Culture

III. REMuNERATION

Remuneration Policy

The Company’s remuneration principles are as follows:

• Offer competitive and fair rates of pay and benefits to attract and retain talent that are critical to achieving the Group’s vision;

• Policies and practices that aim to drive behaviour which supports the Group’s business strategy and objectives;

• Pay for performance approach that ensures talent are remunerated.

In general, the Company’s remuneration packages comprise fixed pay, variable performance-based pay and benefits. Unionised employees are remunerated in accordance with their respective Collective Agreements.

In 2016, the Company introduced a refined Performance Management Framework that aims to create a link between performance (realistic, sustainable results) and rewards. Goals are cascaded top-down

and throughout the organisation with the intention of creating shared ownership and alignment of key priorities. All Non-Executive Directors are paid a fixed annual fees as members of the Board and Board Committees. The level of remuneration reflects the experience and level of responsibilities undertaken by the Non-Executive Directors concerned. The remuneration package for Non-Executive Directors comprises fees and meeting allowances.

The Remuneration Committee also consider and recommend the CEO’s remuneration package to the Board for approval. Components of the CEO’s remuneration are structured to link rewards to corporate and individual performance. Performance is measured against profits and other targets set in accordance with the Company’s annual budget and plans.

Total Remuneration for 2017

The total Directors' remuneration received from the Company and the Group during the financial year ended 31 December 2017 are as follows:


Remuneration received from The Company

Remuneration received from The Group

Directors' Fee

Meeting Allowance

Total Directors' Fee

Meeting Allowance

Total

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Executive Director

NIL NIL NIL NIL NIL NIL NIL

Non-Executive Directors

Ng Soon Lai @ Ng Siek Chuan (1) 205 50 255 205 50 255

Tan Sri (Dr.) Anthony Francis Fernandes (2) 39 8 47 39 8 47

Datuk Kamarudin Meranun 149 40 189 149 40 189

Siegtraund Teh Siew Foong (2) 44 5 49 86 15 101

Tan Ming-Li 147 40 187 337 104 441

Mohamed Rashdi Mohamed Ghazalli (3) 89 15 104 89 15 104

Total 673 158 831 905 232 1,137

Notes:

(1) Ng Soon Lai @ Ng Siek Chuan was appointed as Chairman on 22 May 2017.



75


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74



The total remuneration of CEO during the financial year ended 31 December 2017 can be found in the Financial Statements Notes 27(c) and Section B of the CG Report.

The total remuneration of Senior Management during the financial year ended 31 December 2017 can be found in Section B of the CG Report.

PRINCIPLE B: EFFECTIvE AuDIT AND RISK MANAGEMENT

On 16 March 2017, the Board has approved the split of the Audit and Risk Committee into two (2) separate committees, namely the Audit Committee and the Risk Management Committee. More details on the Audit Committee and Risk Management Committee including a summary of work performed during the financial year ended 31 December 2017 is available in the Audit Committee Report on pages 78 to 79 and Risk Management Committee Report on pages 80 to 81.

I. AuDIT COMMITTEE

The Audit Committee was comprised entirely of Independent Directors during the financial year ended 31 December 2017. The Audit Committee was chaired by an Independent Non-Executive Director, Mohamed Rashdi Mohamed Ghazalli. The Board through its Audit Committee evaluates and continuously improves the effectiveness of the Internal Audit, financial and operational control, and governance processes of the Group.

II. RISK MANAGEMENT AND INTERNAL CONTROL FRAMEwORK

The Board fulfils its responsibility in the risk governance and oversight functions through its Risk Management Committee to review the effectiveness of the Group’s systems of risk management and internal control in managing risks identified, and provide reasonable assurance that risks linked to business goals, strategies, and objectives, are managed within the risk appetite and risk limits approved by the Board.

PRINCIPLE C: INTEGRITy IN CORPORATE REPORTING AND MEANINGFuL RELATIONSHIP wITH STAKEHOLDERS

I. COMMuNICATION wITH STAKEHOLDERS

Communication with stakeholders is important and the Company has in place an Investor Relations Policy, available on the corporate website at tuneprotect.com. The CEO and Investor Relations team have the day-to-day responsibility in communicating with analysts and institutional shareholders on the Group’s strategy and its plans for achieving its objectives. Regular dialogues ensure that the Group’s strategy is understood, updates on the status in meeting its objectives is provided, and any issues arising are addressed in a constructive manner.

External analysts’ reports are circulated to the Directors and Management team. Shareholders can direct questions on their shareholdings to the Share Registrar or the Company Secretary.

Details on Investor Relations activities throughout the year can be found on pages 12 to 15 of this Annual Report.

Annual Report

The Company’s Annual Report is an instrumental means of communicating the Group’s activities, operations, and performance to shareholders.

Tune Protect Corporate website

The Group’s corporate website (tuneprotect.com) publishes necessary information about the Group, including all the announcements made to Bursa Malaysia, relevant press releases, and official release of material information to the market within a reasonable timeframe after such information is released to Bursa Malaysia.

The approach to the stakeholders’ engagement can be found on page 34 of this Annual Report.

II. CONDuCT OF GENERAL MEETINGS

The annual general meeting (“AGM”) and other general meetings of the Company are the primary forum for dialogue with its shareholders. All notices of general meetings and accompanying explanatory materials are published on the corporate website (tuneprotect.com), advertised in a leading mainstream local newspaper, and the necessary announcement made to Bursa Malaysia. In addition, the notice of AGM, which forms part of the Annual Report, and the CD-ROM, is circulated to its shareholders. The form and content of the notices of general meeting complies with the Companies Act, 2016 and any other applicable regulatory under Bursa Malaysia and the Securities Commission Malaysia. Shareholders may deposit their proxy forms for AGMs and general meetings of the Company to the Company Secretary at its registered address.

The Management of the Company makes themselves available for meetings with key analysts and shareholders at least once per quarter, either face-to-face, or via conference call.

The voting at the Sixth AGM was conducted via electronic voting system. The Company continues to explore the leveraging of technology to enhance the quality of engagement with its shareholders and facilitate further participation by shareholders at AGMs of the Company.

ACCOuNTABILITy AND AuDIT

Directors’ Responsibilities in Financial Reporting

The Board is responsible for ensuring that proper accounting records are kept which discloses, with reasonable accuracy at any time, the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2016. The Board is satisfied that in preparing the Company’s financial statements for the financial year ended 31 December 2017, the Company has used appropriate accounting policies and applied them consistently and prudently, as well as made judgments and estimations which are prudent and reasonable. The Board is of the opinion that the financial statements have been prepared in accordance with all relevant approved accounting standards.

Relationship with the External Auditors

The Board, through the Audit Committee, has maintained an appropriate, formal and transparent relationship with the external auditors. As indicated in the Independent Auditors’ Report, Messrs. Ernst & Young confirmed that they are, and have been, independent throughout the conduct of the audit engagement in accordance with relevant professional and regulatory requirements and in accordance with their internal policy. Messrs. Ernst & Young also confirmed that they have reviewed the non-audit services provided to the Group during the year. The Audit Committee conducts the independence assessment of the external auditors before recommending them, via the Board, for re-appointment to the shareholders.

The Audit Committee meets with Messrs. Ernst & Young without the presence of the Management, whenever necessary, and at least twice a year. Meetings are held to further discuss the Group’s audit plans, audit findings, financial statements as well as to seek their professional advice on related matters. From time to time, the external auditors inform and update the Audit Committee on matters that may require their attention.

The Company has engaged and re-appointed Messrs. Ernst & Young annually since 2011. In line with the requirement in the External Auditor policy document issued by BNM and Messrs. Ernst & Young’s internal policies, a different engagement partner will be assigned to the Company every five years. A new engagement partner was assigned for financial year ended 31 December 2016 and the same partner was designated for financial year ended 31 December 2017.

Going Concern

The Board has reviewed the Group’s financial projections for the next twelve months, including regulatory capital surpluses. Based on this review, the Directors are satisfied that the preparation of the financial statements on a going concern basis is appropriate.

This CG Overview Statement was approved by the Board on 20 March 2018.


2017

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77


SuMMARy OF wORK PERFORMED DuRING THE FINANCIAL yEAR

The following is a summary of the activities carried out by the Audit Committee during the financial year ended 31 December 2017:

1. Financial Reporting

a. Reviewed and deliberated with Management the unaudited quarterly financial performance and results prior to recommending to the Board for approval.

b. Reviewed and discussed with Management the management accounts and reports of operating subsidiaries and associate company.

c. Reviewed and deliberated with the external auditors the audited financial statements for the financial year prior to submission to the Board for their consideration and approval, with particular attention to any changes of accounting policies, significant and unusual events and compliance with applicable accounting standards approved by Malaysian Accounting Standards Board (“MASB”) and other legal requirements.

2. Annual Report

a. Reviewed the Corporate Governance Statement, Audit and Risk Committee Report, Risk Management and Internal Control Statement and Additional Compliance Information for recommendation to the Board for approval and inclusion in the 2016 Annual Report.

3. External Auditors

a. The Audit Committee went through the process of discussing and reviewing with the external auditors, Messrs. Ernst & Young, to assess their level of independence. The external auditors are required to report to the Audit Committee as necessary on all matters that might affect their independence.

b. Reviewed the suitability, expertise and performance of the external auditors and made recommendations to the Board on their re-appointment and remuneration.

c. Discussed with the external auditors on the nature, process and scope of the audit before the audit commences.

d. Reviewed and approved the non-audit services rendered by external auditors to assess their independence.

e. Conducted private sessions with the external auditors without the presence of Management members to discuss and address any issues of concern.

4. Internal Audit

a. Reviewed and approved the Group’s annual Internal Audit Strategy and Plan for 2017 and updates to the plan as appropriate.

b. Monitored the Internal audit activities in addition to reviewing internal audit reports covering the following areas:

i. Recurring Related Party Transactions (RRPT) and Related Party Transactions (RPT);

ii. Information, Communications, and Technology (ICT) Controls and Security;

iii. Business Continuity and Disaster Recovery;

iv. People and Culture Hire to Retire Process;

v. Anti-Money Laundering and Counter Financing of Terrorism;

vi. Reinsurance Receivables; and

vii. Internal Audit Quality Assurance Review.

c. Reviewed and approved new policies as well as updates to the existing policies and internal control procedures to strengthen the Group's internal control environment.

d. Monitored implementation of audit recommendations to ensure that all key risks and controls have been timely addressed.

e. Reviewed the performance of the Internal Audit function.

5. Others

a. Reviewed related party transactions entered by the Group to ensure:

i. Compliance with approved limits set out in the Recurring Related Party Transactions mandate approved by shareholders;

ii. Adequacy of the control procedures in capturing new related party transactions; and

iii. Proper reporting and approval, where applicable.

b. Noted the relevant technical pronouncements and accounting standards issued by the MASB, Bursa Malaysia’s MMLR, and other related regulations.

c. Reviewed the circular in relation to proposed renewal of existing and new mandate for Recurring Related Party Transactions.

Audit Committee Report

MEMBERSHIP AND AuTHORITy

The Audit Committee was established on 16 March 2017 to assist the Board of Directors (“the Board”) in overseeing the Internal Audit and Corporate Governance functions of the Group, independent from Management. Prior to 16 March 2017, both Audit and Risk functions shared the same committee.

The Audit Committee comprises two (2) Independent Non-Executive Directors and one (1) Senior Independent Non-Executive Director during the financial year ended 31 December 2017 as follows:



Chairman (1) Independent Non-Executive Director(Appointed on 1 June 2017)



Tan Ming-Li Member (2) Independent Non-Executive Director

Notes:

(1) Mohamed Rashdi Mohamed Ghazalli was appointed as Chairman of the Audit Committee on 1 June 2017.

(2) Tan Ming-Li was re-designated from Chairman to member of the Audit Committee on 1 June 2017.

The Chairman of the Audit Committee is an Independent Director, appointed by the Board on the recommendation of the Nomination and Remuneration Committee. Mohamed Rashdi Mohamed Ghazalli graduated with a Bachelor of Science (Honours) degree in Computation from the University of Manchester Institute of Science and Technology, United Kingdom. The Audit Committee consists of members with a broad spectrum of skills, professional experience, and backgrounds with high integrity. Alternate directors cannot be appointed as a member of the Audit Committee.

In addition to financial matters, the Audit Committee provides active oversight on the Internal Audit and Corporate Governance functions and activities, to ensure appropriate independence, scope of work, and resource requirements. The functions collaborate with Management to support

Tune Protect Group towards achieving its objectives by embedding a systematic, disciplined approach to evaluating and continuously improving the effectiveness of the Internal Audit, financial and operational control, and governance processes. In this regard, the Internal Audit function reports directly to the Audit Committee to facilitate its oversight responsibilities for the Group.

The Audit Committee’s meeting calendar and agenda are linked to events in Tune Protect Group’s financial calendar. The Audit Committee is kept up-to-date with relevant developments, changes in legislation and regulations, and information on external seminars and conferences by the Company Secretary, the Management, Group Chief Executive Officer, Chief Financial Officer, and Group Internal Audit. The external auditors are regularly invited to attend the relevant parts of the Audit Committee meetings to participate in the deliberation on matters and provide advice as appropriate.

The terms of reference of the Audit Committee is available on the corporate website at tuneprotect.com.

MEETINGS

Attendance of the members at Audit Committee meetings held during the year were as follows:

DirectorsNo. of Meetings

Attended



Tan Ming-Li (2) 5/5

Datuk Kamarudin Meranun (3) 3/3

Notes:

(1) Mohamed Rashdi Mohamed Ghazalli was appointed as Chairman of the Audit Committee on 1 June 2017.

(2) Tan Ming-Li was re-designated from Chairman to member of the Audit Committee on 1 June 2017.

(3) Datuk Kamarudin Meranun resigned as member of the Audit Committee on 1 June 2017.

79


2017

78


MEMBERSHIP AND AuTHORITy

The Risk Management Committee was established on 16 March 2017 to assist the Board of Directors (“the Board”) in overseeing the risk management and compliance functions of the Group, independent from Management. Prior to 16 March 2017, both Audit and Risk functions shared the same committee.

The Risk Management Committee comprises two (2) Independent Non-Executive Directors and one (1) Senior Independent Non-Executive Director during the financial year ended 31 December 2017 as follows:



Chairman (1) Independent Non-Executive Director(Appointed on 1 June 2017)



Tan Ming-Li Member (2) Independent Non-Executive Director

Notes:

(1) Mohamed Rashdi Mohamed Ghazalli was appointed as Chairman of Risk Management Committee on 1 June 2017.

(2) Tan Ming-Li was re-designated from Chairman to member of Risk Management Committee on 1 June 2017.

The Chairman of the Risk Management Committee is an Independent Director, appointed by the Board on the recommendation of the Nomination and Remuneration Committee. Mohamed Rashdi Mohamed Ghazalli graduated with a Bachelor of Science (Honours) degree in Computation from the University of Manchester Institute of Science and Technology, United Kingdom. The Risk Management Committee consists of members with a broad spectrum of skills, professional experience, and backgrounds with high integrity. Alternate directors cannot be appointed as a member of the Risk Management Committee.

The Risk Management Committee provides an active oversight on the initiatives conducted by the Risk Management and Compliance function. Below are the roles and responsibilities of the Risk Management Committee to ensure there is an effective oversight of the Risk Management and Compliance function within the Group:

• Reviewing and recommending risk frameworks and policies; risk management strategies, risk exposures, risk tolerance limits and thresholds for the Board’s approval;

• Reviewing risk appetite statement;

• Reviewing and assessing the adequacy of risk management policies and frameworks for identifying, measuring, monitoring and controlling risks;

• Ensuring that risk management frameworks and processes are functioning effectively, as intended;

• Ensuring that infrastructure, resources and systems are in place for managing risks;

• Ensuring that the staff responsible for implementing risk management systems perform their duties independently of the Group’s risk-taking activities; and

• Reviewing management reports on risk exposures, compositions/concentrations and trends.

The Risk Management Committee’s meeting calendar and agenda are linked to events in Tune Protect Group’s financial calendar. The Risk Management Committee is kept up-to-date with relevant developments, changes in legislation and regulations, and information on external seminars and conferences by the Company Secretary and the Management. The Group Chief Executive Officer, Chief Financial Officer and Group Risk Management and Compliance Manager are regularly invited to attend all or part of any meeting as and when appropriate.

The terms of reference of the Risk Management Committee is available on the corporate website at tuneprotect.com.

MEETINGS

Attendance of the members at Risk Management Committee meetings held during the year were as follows:

DirectorsNo. of Meetings

Attended



Tan Ming-Li (2) 5/5

Datuk Kamarudin Meranun (3) 3/3

Notes:

(1) Mohamed Rashdi Mohamed Ghazalli was appointed as Chairman of Risk Management Committee on 1 June 2017.

(2) Tan Ming-Li was re-designated from Chairman to member of the Risk Management Committee on 1 June 2017.

(3) Datuk Kamarudin Meranun resigned as member of the Risk Management Committee on 1 June 2017.

SuMMARy OF wORK PERFORMED DuRING THE FINANCIAL yEAR

The following is a summary of the activities carried out by the Risk Management Committee during the financial year ended 31 December 2017:

1. Financials

a. The Capital Adequacy ratio was presented to the board together with the Group Capital Sufficiency indicator. These numbers were benchmarked against the requirements of Bank Negara Malaysia.

b. Reviewed net claims ratio, net commissions and management expenses ratio.

2. Annual Report

a. Reviewed the Corporate Governance Statement, Audit and Risk Committee Report, Risk Management and Internal Control Statement and Additional Compliance Information for recommendation to the Board for approval and inclusion in the 2016 Annual Report.

3. Risk and Compliance

a. Established a Risk Register with the creation of Key Risk Indicators, segregated into Strategic, Insurance, Market, Financial, Compliance and Operational types.

b. Reviewed and approved the Outsourcing Management Framework in February 2017.

c. Approved appropriate risk management procedures and methodologies.

d. Noted developments in laws and regulations.

e. Reviewed the performance of the Risk Management and Compliance function.

f. Reviewed the risk appetite statement.

4. Others

a. Reviewed Operational Risk Integrated Online Network reporting for the subsidiary.

b. Reviewed the IT Security Report.

c. Reviewed the Disaster Recovery Plan Test report that was conducted in November 2017.

Risk Management Committee Report

81


2017

80


RESPONSIBILITIES

The Board

The Board acknowledges its overall responsibility in establishing a sound risk management and internal control system as well as reviewing its adequacy and effectiveness. Due to the inherent limitations arising from human error, or external events, the Board recognises that the intention of such systems is not to eliminate all risks but to ensure the balance between growth, return goals, and risks.

In view of the above, the Board, through its Audit and Risk Management Committees, continues to review the established governance structure for ensuring adequate and effective oversight of risk and controls within the Group during a formal and regular schedule of meetings prefixed on an annual basis. The Board receives reports on regulatory developments, risk management, compliance, and internal audit activities, and monitors Management’s efforts to correct deficiencies identified.

Management

The Management is responsible for recommending and implementing Board-approved internal controls established in written policies and procedures. New initiatives, strategies, financial performances, goal achievements, risks, and other operational issues are discussed at formal meetings such as Group Management meetings. where deficiencies are identified, the Management directs effort into identifying root causes, and correcting situations that give rise to such deficiencies.

Day-to-day risk management functions and responsibilities lie with the business and functional support units as the first line of defence. The Risk Management function serves as the second line of defence, a central support infrastructure that deals with more pervasive, entity-wide risks, while the Internal Audit Function, the third line of defence, provides independent assurance on the effectiveness of the risk management approach. This structure aims to place accountability and ownership as close as possible to where the risks arise while facilitating an appropriate level of independence and segregation of duties between the business, the Risk Management

and Compliance functions, and Internal Audit. The Risk Management and Compliance functions report directly to the Risk Management Committee whilst the Internal Audit function reports directly to the Audit Committee.

RISK MANAGEMENT

The Group’s risk management framework is designed to ensure that risks which could undermine the Group’s strategies, business goals, objectives, reputation and long-term viability are identified timely, assessed and monitored within the risk appetite and risk tolerance limits approved by the Board. This is supported by a Group-wide risk management organisation structure that delineates the function of risk taking, risk oversight and policy making. The risk reporting lines, authorities, roles and responsibilities are clearly specified in the Risk Management Framework.

Risk Management Framework

Risk management has evolved into an important driver for strategic decisions in support of business strategies while balancing the appropriate level of risk taken to the desired level of rewards. The Group’s Board approved the Risk Management Framework details and the policies and processes for managing uncertainties in terms of risks and opportunities, building value for the Group’s stakeholders. The approved framework is carved out from the Bank Negara Malaysia Risk Governance policy document on what should be the building blocks of a Risk Management Framework. The policy document can be found at www.bnm.gov.my.

The policy document on Risk Governance sets out a framework of principles on risk governance to guide the Board and Management in performing their risk oversight function. Risks are identified using business mapping, and the likelihood rating table found in the risk management framework and the impact of those risks assessed based on a predefined Likelihood Rating table. Controls are then put in place and their effectiveness measured using a Control Effectiveness Rating table and any residual risks managed with the implementation of risk mitigation strategies. The Risk Dashboard, which contains the main risks and Risk Registers are consolidated and monitored on a quarterly basis. The results of the assessment are presented to the Risk Management Committee for their review and notation.

Compliance Management Framework

This Board-approved framework outlines the structure, and key processes, for identifying and ensuring compliance with applicable laws and regulations, and internal policies and procedures. It serves to promote the importance of regulatory and operations compliance, and connection to corporate values, as well as to ensure compliance obligations are met by establishing monitoring and reporting mechanisms for instances of non-compliance and tracking remedial actions. Compliance obligations registers are consolidated for review and monitoring by the Risk Management Committee.

INTERNAL AuDIT

The Group's internal audit function is governed by International Professional Practices Framework (“IPPF”) that organises authoritative guidance promulgated by The Institute of Internal Auditors (“IIA”), a global, guidance setting body. The IIA provides internal audit professionals worldwide with authoritative guidance organised in the IPPF.

The Group’s in-house Internal Audit function provides independent assurance on the adequacy and effectiveness of the systems of risk management and internal control. High impact risk areas identified are periodically assessed and form the basis of the risk-based internal audit plan and strategy. Internal Audit activities are approved by and monitored quarterly by the Board, through the Audit Committee. Remedial actions by Management arising from internal audit findings are tracked by the Audit Committee until resolution. A summary of key activities performed by the Internal Audit function as well as Audit Committee oversight is available in the Audit Committee Report on pages 78 to 79.

The Group has two (2) in-house Internal Audit departments; one in Tune Protect Group and the other in its subsidiary, Tune Protect Malaysia. There are five (5) full time employees in the internal audit function. The table below shows the key personnel responsible for internal audit and their qualifications:

Resources Qualification

Lau Soon Hock • Bachelor of Arts (with Honours) in Accounting and Financial Management

• Chartered Internal Auditor awarded by IIA Global

• Certified Internal Audit Professional awarded by IIA Global

Hawariah Mohd Ariffin Bachelor of Accountancy (with Honours)

The Board confirmed that the internal audit personnels are free from any relationships or conflicts of interest and the Internal Audit function is carried out in accordance with a recognised framework.

The total cost incurred by the Group Internal Audit function performed in-house for the year ended 31 December 2017 was RM1,460,000.

INTERNAL CONTROL

An effective internal control system provides reasonable assurance that the Group continues to pursue its goals in a manner that is effective and efficient, producing accurate and reliable reporting, and is always in compliance with applicable laws and regulations. Elements of the Group’s internal control system are:

Organisation Structure

The Board has established clear reporting lines, authorities, roles, and responsibilities, to support the internal control system. The Group Management Committee assists the Board in their oversight on the day-to-day operations of the business.

Annual Budgeting Process

The annual budgeting and target setting is tabled to the Board for approval and the Group’s performance against the budget is monitored by the Board quarterly.

Code of Conduct

The Code of Conduct governs how we interact with our stakeholders – with integrity and with respect for our business partners, shareholders, and employees. The Code can be found on the corporate website at tuneprotect.com.

Employee Handbook

This handbook is a compilation of the policies, procedures, working conditions, and behavioural expectations that guide our employees’ actions in the workplace. Established disciplinary procedures and steps for raising grievances are described within.

Risk Management and Internal Control Statement

83


2017

82


Anti-Fraud, Bribery and Corruption Policy

The policy reinforces the Group’s zero tolerance and commitment against fraud, bribery and corruption by promoting a culture of integrity within the Group. It sets out the responsibilities for development and operations of internal control; and provides assurance that all irregularities or suspected irregularities involving employees, shareholders, consultants, vendors, external agencies, and any other parties in a business relationship with the Group will be fully investigated.

whistleblowing Policy

The whistleblowing Policy is applicable to all directors, and employees of the Group, whether permanent, temporary, or on contract basis. All reports under the whistleblowing Policy are securely logged and confidentially channelled to the Chairman of the Audit Committee and Head of Internal Audit. This channel of reporting provides assurance that all disclosures will be appropriately investigated objectively and confidentially. This policy can be found on the corporate website at tuneprotect.com.

Sustainability Policy

The Company has a Sustainability Policy as part of its commitment to create a lasting value for its shareholders and stakeholders. This Policy applies to Directors and employees of the Group and covers the actions and activities that may impact the Economic, Environment and Social aspects. This policy can be found on the corporate website at tuneprotect.com.

underwriting and Claims

Underwriting Guidelines are established to manage and adequately assess risks being underwritten. Claim Guidelines details the written operational controls surrounding claims handling and settlement processes.

Operating Policies and Procedures

The Company has established a Group Policy and Procedure Framework for management of Policies and Procedures at the Company, its subsidiaries and associates. The framework is applicable to staff who are responsible for the development and management of policies and procedure documents.

Departmental manuals and written operational controls such as financial authority limits, procurement policy, communication policy, payment procedures, are established and continuously updated to guide employees in their day-to-day execution of tasks.

ASSuRANCE FROM MANAGEMENT

The Board has received reasonable assurance from the Group Chief Executive Officer and Chief Financial Officer that the Group’s systems of risk management and internal control are operating adequately and effectively, in all material aspects, during the year under review. Based on the reports and the risk registers that were presented to the Board in 2017, the Board is satisfied that there is an effective and adequate risk management and internal control system in place, and there were no significant issues reported for the year ended 31 December 2017.

REvIEw OF THIS STATEMENT By EXTERNAL AuDITORS

As required by paragraph 15.23 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the external auditors have reviewed this Risk Management and Internal Control Statement. Their review was performed in accordance with Audit and Assurance Practice Guide (“AAPG”) 3 issued by the Malaysian Institute of Accountants. Based on their review, the external auditors have reported to the Board that nothing has come to their attention that causes them to believe that this Statement, intended to be included in the annual report, is not prepared, in all material respects, in accordance with the disclosures required by paragraphs 41 and 42 of the Risk Management and Internal Control Statement: Guidelines for Directors of Listed Issuer, nor is the Statement factually inaccurate. The external auditors are not required by AAPG 3 to consider, whether this Statement covers all risks and controls, or to form an opinion on the effectiveness of the Group’s risk management and control procedures.

This Risk Management and Internal Control Statement was approved by the Board on 20 March 2018.

The information set out below is disclosed in compliance with the Bursa Malaysia’s MMLR:

1.0 Employees’ Share Option Scheme (“ESOS”)

The ESOS is the only share scheme of the Company approved by the shareholders on 2 January 2013 and only came into effect on the date of Listing, 20 February 2013. ESOS was offered to employees of the Company on 18 March 2014 and the details of the ESOS offered are as follows:

As of Financial year ended

31 December 2017

Total number of options or shares offered 8,314,000

Total number of options exercised or shares vested

–

Total number of options or shares outstanding 8,314,000

Granted to Group CEO

As of Financial year ended

31 December 2017

Total number of options or shares offered 1,000,000

Total numbers of options exercised or shares vested

–

Total number of options or shares outstanding 1,000,000

Granted to Tune Insurance Malaysia Berhad’s CEO

During the Financial year ended

31 December 2017

Total number of options or shares offered 500,000

Total numbers of options exercised or shares vested

–

Total number of options or shares outstanding 500,000

There were no options granted to both Non-Executive and Executive Directors pursuant to the ESOS since 18 March 2014.

2.0 Non-Audit Fees paid to External Auditors

The amount of non-audit fees incurred for services rendered to the Company and the Group by Messrs. Ernst and Young, external auditors, during the financial year ended 31 December 2017 was RM334,000 and RM431,000 respectively.

In addition to the recurring services provided, there were two (2) reviews performed by Messrs. Ernst and Young on “Customer journey mapping for motor insurance” and “Core insurance system” which cost RM100,000 and RM130,000 respectively.

3.0 Material Contracts involving Directors, Chief Executive who is not a director and Major Shareholders

There were no material contracts entered into by the Company and its subsidiaries involving directors, chief executive who is not a director and major shareholders for the year ended 31 December 2017.

4.0 utilisation of proceeds

There was no corporate proposal to raise proceeds during the financial year ended 31 December 2017. The proceeds raised from the corporate proposal in 2013 had been fully utilised for repayment of bank borrowings, working capital, strategic investments and listing expenses.

5.0 Recurrent Related Party Transactions of a Revenue or Trading Nature

At the AGM held on 22 May 2017, the Company had obtained a shareholders’mandatetoallowtheCompanyand/oritssubsidiariestoenter into recurrent related party transactions (“RRPTs”) of a revenue or trading nature.

Risk Management and Internal Control Statement

Additional Compliance Information

85


2017

84


The breakdown of the aggregate value of the RRPTs entered into by the Group from 1 January 2017 to 31 December 2017 is as follows:

No Transacting Parties Nature of RRPTsClass and relationship of the Related Parties

Actual value (RM’000)

1 AirAsia Berhad (Company No 284669-w)

Provision of the right to our Company to access to AirAsia Berhad’s customer database to conduct telesales marketingonourCompanyand/orthirdpartyinsuranceproducts and the provision of management services by our Company to AirAsia Berhad’s travel insurance business.

Provision of travel insurance by Tune Insurance Malaysia Berhad to AirAsia Berhad’s customers for journeys originated from Malaysia resulting in underwriting commission received by AirAsia Berhad.

Interested DirectorTan Sri (Dr.) Anthony Francis

Fernandes(1)


10,952

2 AirAsia X Berhad (Company No 734161-K)

Provision of agency services to Tune Insurance Malaysia Berhad in relation to the Travel Protection Plan originating in Malaysia to the passengers of AirAsia X Berhad pursuant to the Agency Agreement entered into between AirAsia X Berhad and Tune Insurance Malaysia Berhad.


Fernandes(1)


Interested Major ShareholderAirAsia Berhad

3,014

3 PT Indonesia AirAsia (Company No 09.03.1.62.29927)

Provision of the right to our Company to market insurance products to the customers of PT Indonesia AirAsia via direct marketing initiatives pursuant to the Distribution Agreement entered into between PT Indonesia AirAsia and our Company.

Provision of marketing services to Tune Insurance Malaysia Berhad in relation to the Travel Protection Plan originating in Malaysia to the passengers of PT Indonesia AirAsia pursuant to the Business Collaboration Agreement entered into between Tune Insurance Malaysia Berhad and PT Indonesia AirAsia.


Fernandes(1)



435


No Transacting Parties Nature of RRPTsClass and relationship of the Related Parties

Actual value (RM’000)

4 Thai AirAsia Co. Ltd (Company No 0105546113684)

Provision of the right to our Company to market insurance products to the customers of Thai AirAsia Co. Ltd via direct marketing initiatives pursuant to the Distribution Agreement entered into between Thai AirAsia Co. Ltd and our Company.

Provision of marketing and administration services to Tune Insurance Malaysia Berhad in relation to the Travel Protection Plan originating in Malaysia to the passengers of Thai AirAsia Co. Ltd pursuant to the Business Collaboration Agreement entered into between Tune Insurance Malaysia Berhad and Thai AirAsia Co. Ltd.


Fernandes(1)



432

5 Tune Group.com Limited (Company No 59919) or its assignee Tune Group Sdn Bhd (Company No 798868-P)

Provision of the license and right to our Group to use the ‘Tune Insurance’ trademark by Tune Group.com Limited or its assignee Tune Group Sdn Bhd.

Rental and utilities charges.


Fernandes(1)


10,201

6 SP&G Insurance Brokers (Company No 020041-H)

Provision of insurance broking and consultancy services by SP&G Insurance Brokers to Tune Insurance Malaysia Berhad pursuant to the broking arrangement between SP&G Insurance Brokers and Tune Insurance Malaysia Berhad.

Provision of insurance broking and consultancy services by SP&G Insurance Brokers to Tune Protect Re Ltd pursuant to the Personal Accident and Sickness Travel Facultative Reinsurance arrangement between SP&G Insurance Brokers and Tune Protect Re Ltd.

Interested DirectorDatuk Kamarudin Meranun

1,206

Note:

(1) Tan Sri (Dr.) Anthony Francis Fernandes resigned as Director of the Company on 30 June 2017.

87


2017

86


The shareholdings of the interested Directors and Major Shareholders in our Company as at 10 April 2018 are as follows:

Direct Indirect

No. of Shares % No. of Shares %

Interested Directors

Datuk Kamarudin Meranun 81,900 0.01 221,172,150 (1) 29.42

Interested Major Shareholders

Tune Group Sdn Bhd 118 ,563,1 5 0 15.77 - -

AirAsia Berhad 102,609,000 13.65 - -

Tan Sri (Dr.) Anthony Francis Fernandes 100,000 0.01 221,172,150 (1) 29.42

Datuk Kamarudin Meranun 81,900 0.01 221,172,150 (1) 29.42

Note:(1) Deemed interested by virtue of his interest in Tune Group Sdn. Bhd. and AirAsia Berhad pursuant to Section 8 of the Act

Please refer to Section 6 and Section 2.4 of the Circular to Shareholders dated 28 April 2017 and 30 April 2018 respectively on the directorships and shareholdings of the interested directors and interested major shareholder in the transacting parties as stated above.


Analysis of Shareholdingsas at 10 April 2018

DISTRIBuTION OF SHAREHOLDINGS

Class of shares : Ordinary shares

Voting rights : One vote per ordinary share

No. of % of % of IssuedShareholdings Shareholders Shareholders No. of Shares Share Capital

Less than 100 69 0.74 981 0.00100 – 1,000 1,034 11.1 4 807,095 0. 1 11,001 – 10,000 5,150 55.50 27,970,770 3.7 210,001 – 100,000 2,655 28.6 1 86,175 ,493 11.46100,001 to less than 5% of issued shares 368 3.97 360,340,1 1 8 47.935% and above of issued shares 4 0.04 276,465,523 36.7 8

9,280 100.00 751,759,980 100.00

SuBSTANTIAL SHAREHOLDERS

The direct and indirect shareholdings of the shareholders holding more than 5% in Tune Protect Group based on the Register of Substantial Shareholders are as follows: Direct Indirect No. of % of No. of % ofName Shares Held Issued Shares Shares Held Issued Shares

AirAsia Berhad (“AAB”) 102,609,000 13.65 – –Tan Sri (Dr.) Anthony Francis Fernandes 100,000 0.01 221,172,150 (1) 29.42Datuk Kamarudin Meranun 81,900 0.01 221,172,150 (1) 29.42CIMB SI II Sdn. Bhd. 70,679,123 9.40 – –Tune Group Sdn. Bhd. (‘‘Tune Group’’) 118,563,150 15.77 – –Kumpulan wang Persaraan (Diperbadankan) 59,177,400 7.87 4,896,300 (2) 0.65CIMB Group Sdn. Bhd. – – 70,679,123 (3) 9.40CIMB Group Holdings Berhad – – 70,679,123 (3) 9.40River and Mercantile Asset Management LLP 40,521,000 5.39 – –

Notes: (1) Deemed interested through their shareholding in Tune Group and AAB.(2) Held through its Fund Manager.(3) Deemed interested through its shareholding in CIMB SI II Sdn. Bhd.

OTHER INFORMATION

89


2017

88


THIRTy (30) LARGEST SHAREHOLDERS

No. of % of IssuedName of Shareholders Shares Held Share Capital

1. AirAsia Berhad 102,609,000 13.65

2. CIMB SI II Sdn. Bhd. 70,679,1 2 3 9.40

3. Kumpulan wang Persaraan (Diperbadankan) 59,1 77,400 7.87

4. CIMB Group Nominees (Tempatan) Sdn. Bhd. 44,000,000 5.85 – Pledged Securities Account for Tune Group Sdn. Bhd. (GCM CBM-SKY X)

5. Kenanga Nominees (Tempatan) Sdn. Bhd. 37,532,934 4.99 – ECM Libra Partners Sdn. Bhd. – Pledged Securities Account for Tune Group Sdn. Bhd.

6. Kenanga Nominees (Tempatan) Sdn. Bhd. 30,076,000 4.00 – Pledged Securities Account for Tune Group Sdn. Bhd. (3rd Party EDSP)

7. Citigroup Nominees (Tempatan) Sdn. Bhd. 19,478,605 2.59 – Employees Provident Fund Board

8. HSBC Nominees (Asing) Sdn. Bhd. 13,978,500 1.86 – Exempt An for Credit Suisse Securities (Europe) Limited (CLTAC N-TREATY)

9. HSBC Nominees (Asing) Sdn. Bhd. 13,657,100 1.82 – TNTC for Towers Watson Common Contractual Fund

10. Citigroup Nominees (Asing) Sdn. Bhd. 13,205,300 1.76 – Exempt An for Citibank New York (Norges Bank 14)

11. Tokio Marine Life Insurance Malaysia Bhd. 9,940,900 1.32 – As Beneficial Owner (PF)

12. DB (Malaysia) Nominee (Asing) Sdn. Bhd. 9,731 ,100 1.29 – BNYM SA/NV for Ramam World Recovery Fund

13. DB (Malaysia) Nominee (Asing) Sdn. Bhd. 9,502,100 1.26 – Exempt An for Nomura PB Nominees Ltd

14. CIMB Group Nominees (Tempatan) Sdn. Bhd. 8,650,700 1.15 – Yayasan Hasnah (AUR-VCAM)

15. HSBC Nominees (Asing) Sdn. Bhd 8,163 ,700 1.09 – JPMCB NA for The National Farmers Union Mutual Insurance Society Ltd

16. Amanahraya Trustees Berhad 7,179,200 0.95 – Public Strategic Smallcap Fund

17. Malacca Equity Nominees (Tempatan) Sdn. Bhd. 6,253,700 0.83 – Exempt An for Phillip Capital Management Sdn. Bhd. (EPF)

DIRECTORS’ AND CEO’S SHAREHOLDINGS

The interests of the Directors and CEO of Tune Protect Group in the Shares and options over shares in the Company and its related corporations based on the Company’s Register of Directors’ Shareholdings are as follows:

Direct Indirect No. of % of No. of % ofName Shares held Issued Shares Shares held Issued Shares

Directors

Datuk Kamarudin Meranun 81,900 0.01 221,172,150 (1) 29.42Ng Soon Lai @ Ng Siek Chuan 100,000 0.01 – –Tan Ming-Li – – – –Mohamed Rashdi Mohamed Ghazalli – – – –Siegtraund Teh Siew Foong – – – –

Chief Executive Officer

Razman Hafidz Abu Zarim – – – –

Notes: (1) Deemed interested through their shareholding in Tune Group and AAB.

The Tune Protect Group Employees’ Share Option Scheme (‘‘ESOS’’) of the Company has been offered on 18 March 2014 and the details of the ESOS is disclosed in the Additional Compliance Information on page 85 of this Annual Report.

OTHER INFORMATION

91


2017

90

List of Branches and Overseas ventures

OvERSEAS vENTuRES

Europe, Middle East, India and AfricaTune Protect EMEIA (Tune Protect Commercial Brokerage LLC)

Level 8, No. 807, Blue BayTowerBusiness Bay, Dubai, UAEP.O Box : 124177Phone : +971 4 360 6872Fax : +971 4 420 3920Website:www.tuneprotect.com/emeia

ThailandTune Protect Thailand (Tune Insurance Public Company Limited)

75 white Group Building 1, 6th Floor, Soi Rubia Sukhumvit 42 Road, Prakanong, Klongtoey Bangkok 10110, ThailandPhone : +662 769 9888Fax : +662 769 9801 : +662 769 9802Email : [email protected] : www.tuneinsurance.co.th

2. Shah AlamNo. 57, Ground Floor & 1st FloorJalanSnuker13/28,Seksyen1340100 Shah AlamSelangor Darul EhsanPhone +60355103667/+60355103730Fax +603 5513 5801 Mobile +6016 220 9448

3. PuchongNo.12,JalanPuteri2/6Bandar Puteri, 47000 PuchongSelangor Darul EhsanPhone +60380635416/+60380635277Fax +603 8063 5419 Mobile +6017 985 2836

4. PenangNo. 10, Jalan Burmah10050 PenangPhone +6042632288/+6042641388Fax +604 263 7388Mobile +6012 475 1295

5. Bukit MertajamUnits 2-11 & 2-12, Level 2Kompleks Perniagaan Pauh Jaya @ Frontage, Jalan Baru 13700 Seberang Perai, Pulau PinangPhone +6043866368/+6043866828Fax +604 386 6578Mobile +6019 416 8088

6. Alor SetarNo. 2174-T Taman Tunku Habsah05100 Alor Setar, Kedah Darul AmanPhone +604 730 7988 +604 732 7987Fax +604 732 7989Mobile +6012 488 4281

TuNE PROTECT MALAySIA’S BRANCHES1. Kuala Lumpur, Malaysia

(Head Office)Level 9, wisma Tune19, Lorong DungunDamansara Heights50490, Kuala LumpurToll-Free No 1 800 885 753Phone +603 2087 9000Fax +603 2094 1366Email [email protected] website www.tuneprotect.com/my


THIRTy (30) LARGEST SHAREHOLDERS (CONT'D)

No. of % of IssuedName of Shareholders Shares Held Share Capital

18. Citigroup Nominees (Asing) Sdn. Bhd. 5,058,800 0.67 – CBNY for Emerging Market Core Equity Portfolio DFA Investment Dimensions Group Inc

19. HSBC Nominees (Tempatan) Sdn. Bhd 5,000,000 0.67 – JPMCB NA for Lim Kian Onn

20. Malacca Equity Nominees (Tempatan) Sdn. Bhd. 4,960,200 0.66 – Exempt An for Phillip Capital Management Sdn. Bhd.

21. DB (Malaysia) Nominee (Asing) Sdn Bhd 4,405,700 0.59 – BNYM SA/NV for NFU Mutual Global Developing Markets Fund

22. DB (Malaysia) Nominee (Asing) Sdn Bhd 3,937,000 0.52 – State Street Luxembourg Fund AD69 for Allianz Global Investors Fund – Allianz Oriental Income

23. HSBC Nominees (Asing) Sdn. Bhd. 3,750,000 0.50 – Exempt An for Bank Julius Baer & Co. Ltd. (Singapore Bch)

24. HSBC Nominees (Asing) Sdn. Bhd. 3,715,400 0.49 – JPMCB NA for Westpac Wholesale Unhedged International Trust

25. DB (Malaysia) Nominee (Asing) Sdn. Bhd. 3,554,900 0.47 – SSBT Fund WTAU for Wisdomtree Emerging Markets SmallCap Dividend Fund

26. Citigroup Nominees (Tempatan) Sdn. Bhd. 3,529,200 0.47 – Employees Provident Fund Board (F Templeton)

27. Citigroup Nominees (Tempatan) Sdn. Bhd. 3,488,900 0.46 – CBNY for DFA Emerging Markets Small Cap Series

28. CIMSEC Nominees (Tempatan) Sdn. Bhd. 3,480,000 0.46 – Pledged Securities Account for Tune Group Sdn. Bhd.

29. Kenanga Nominees (Tempatan) Sdn. Bhd. 3,400,000 0.45 – Tune Group Sdn. Bhd. (ECM Libra Partn)

30. HSBC Nominees (Asing) Sdn. Bhd 3,399,500 0.45 – NTGS LUX for Univest

OTHER INFORMATION

93


2017

92

List of Branches and Overseas ventures

17. MiriLot 788, 1st FloorJalan Bintang Jaya 4Bintang Jaya Commercial Centre98000 Miri, SarawakPhone +6085424243/+6085422344Fax +6085 438 904 Mobile +6013 564 4500

18. SibuNo. 17C, 1st Floor, Jalan Pedada96000 Sibu, SarawakPhone +6084353033/+6084353055Fax +6084 353 022 Mobile +6019 819 5383

19. Kota KinabaluGround & 1st Floor, No. 15, Jalan Pantai88000 Kota Kinabalu, SabahPhone +6088221116/+6088221117 +6088221257/+6088218292Fax +6088 218 272 Mobile +6016 830 3213

20. Tawau1st Floor, Lot 7, Pusat Komersil BDC (1Arena)Jalan Chong Thien Vun91000 Tawau, SabahPhone +6089763177/+6089763178Fax +6089 763 179 Mobile +6016 821 4110

21. SandakanGround Floor, Lot 3, Block 7Bandar Indah, Mile 4, Jalan Utara90000 Sandakan, SabahPhone +6089224770/+6089224780Fax +6089 224 790 Mobile +6013 888 8820

12. KluangNo. 53, 1st & 2nd Floor, Jalan Rambutan 86000 Kluang, Johor Darul TakzimPhone +607 776 5468 Fax +607 776 5473 Mobile +6016 772 0019

13. KuantanA109, Ground FloorSri Dagangan, Jalan Tun Ismail25000 Kuantan, Pahang Darul MakmurPhone +6095131914/+6095145259Fax +609 514 8970 Mobile +6016 950 3333

14. Kota BahruLot 702 & 703, PT 52, Ground FloorSeksyen 9, Jalan Tok Hakim15000 Kota Bharu, KelantanPhone +6097483986/+6097484895Fax +609 744 5414 Mobile +6019 941 1049

15. Kuala TerengganuNo. 888C, Lot 3886, Tingkat 1Jalan Sultan Sulaiman20000 Kuala TerengganuPhone +6096229828/+6096224828 +6096229337/+6096245828Fax +609 622 3151Mobile +6014 520 5489

16. KuchingLot 579, Section 10Kuching Town Land DistrictJalan Tun Ahmad Zaidi Adruse93400 Kuching, SarawakPhone +6082241266/+6082417343Fax +6082 256 045 Mobile +6016 860 3296

7. IpohGround & 1st FloorNo. 52, Jalan Medan IstanaBandar Ipoh Raya, 30000 Ipoh Perak Darul RidzuanPhone +6052543305/+6052541239Fax +605 254 6789 Mobile +6012 521 1197

8. SerembanNo. 12, Ground FloorJalan Dato Lee Fong Yee70000 Seremban Negeri Sembilan Darul KhususPhone +6067611694/+6067676260Fax +606 763 3109 Mobile +6012 222 1235

9. MelakaNo. 529 & 530, Ground FloorTaman Melaka Raya, 75000 MelakaPhone +6062842828/+6062833109 +606 281 2753Fax +606 283 5110 Mobile +6012 623 9176

10. Johor BahruUnit 22-02 Level 22, Menara ZurichNo. 15 Jalan Dato’ Abdullah Tahir80300, Johor Bahru, Johor Darul TakzimPhone +6073331518/+6073305603Fax +607 336 5539 Mobile +6016 702 0268

11. Batu Pahat1st Floor, No. 55-1, Jalan CengalTaman Batu Pahat83000 Batu Pahat, Johor Darul TakzimPhone +6074313591/+6074313752Fax +607 431 4779 Mobile +6012 775 9600

DEAR SHAREHOLDERS,

The Notice of Annual General Meeting and Proxy Form will be sent separately to you in due course. Kindly contact any of the following should you require further clarifications.

1. Registered Office

Tune Protect Group Berhad (Company No. 948454-K)

Level 9, wisma Tune19, Lorong DungunDamansara Heights50490 wilayah PersekutuanKuala Lumpur, MalaysiaTel +603 2056 6226 or 603 2056 6200Fax +603 2092 1029

2. Share Registrar

Symphony Share Registrars Sdn BhdLevel 6, Symphony HousePusat Dagangan Dana 1JalanPJU1A/4647301 Petaling JayaSelangor Darul Ehsan, MalaysiaTel +603 7849 0777Fax +60378418151/8152

we apologise for any inconvenience caused. Thank you.

Message to Our Shareholders


2017

94

95

OTHER INFORMATION

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