What's Up MNRB?

Published on Business Times.

• MNRB mulls RM30m provision for equity investment losses
  By Rupinder SinghPublished: 2009/03/31
  
  REINSURANCE firm MNRB Holdings Bhd (6459) said it may have to set aside up to RM30 million in provisions in the current fiscal year, which ends March 31 2009, to cover losses in equity investments.
  
  President and group chief executive officer Anuar Mohd Hassan said MNRB was forced to make the additional provisions for diminution in the value of investments as it took a hit from the dismal performance of the equity market over the last one year.
  
  In the last 12 months, the Kuala Lumpur Composite Index (KLCI) has fallen by 29.6 per cent.
  
  He estimates that losses on its equity investments to be between RM20 million and RM30 million. The group holds less than 10 per cent in equities.

The following is MNRB's last reported earnings on Feb 2009. Quarterly rpt on consolidated results for the financial period ended 31/12/2008

Here is the snap shot from the earnings notes.

The very smallish quoted securities purchased at cost was some 979k. Current market value is only 625k. Ouch!

From the balance sheet.

The article continues....

• "We expect the figure to come down," Anuar told Business Times in an interview.
  
  Anuar said the company is in the process of making the provisions for the current fiscal year.
  
  "The exercise is still ongoing. We are now restructuring our existing investment portfolio," he said.
  
  Currently, almost half of the group's investment is in cash, some 24 per cent in Malaysian Government Securities (MGS) and the balance in private debt securities.... (do read rest of article here )

Half of the group's investment is in cash, some 24% in MGS and balance in private debt securities.

And MNRB is mulling a 30 Million loss provision!!!!!!!!!!!?????

Don't you think that MNRB should be more transparent and explain where and how these losses came about?