Takaful Malaysia posts better net profit

Takaful Malaysia today announce the group financial results and growth strategy at their Takaful Malaysia Building in Kuala Lumpur on March 7, 2012.

PETALING JAYA: Syarikat Takaful Malaysia Bhd (STMB) posted an 8% jump in net profit to RM48.57mil in the third quarter ended Sept 30, from RM44.86mil a year ago, driven by its general takaful business.

In a filing with Bursa Malaysia, the insurance group said its revenue for the quarter rose 11.5% to RM476.24mil from RM426.97mil previously, generated from family takaful and general takaful business.

Cumulatively, for the first nine months of 2017, STMB’s net profit grew almost 10% to RM150.4mil from RM137.02mil a year ago.

Revenue for the period increased to RM1.62bil from RM1.52bil previously.

Earnings per share stood at 18.29 sen, while net asset per share at RM1.07.

Shares in STMB closed unchanged at RM3.83. On a year-to-date basis, STMB’s share price has declined more than 4.7%.

STMB said that for the remaining of the year, the company would continue to focus on increasing its market share through various advertising and marketing activities. 

“With our extensive range of products and services, the company is poised to sustain its position as the market leader in the family takaful business,” STMB said.

It added that the company would also undertake an enhanced approach to its distribution channel by accelerating digital initiatives to optimise its operations and marketing activities.

“The company will actively cultivate its digital presence through an online sales portal and integrated online marketing initiatives as part of its long term strategy to meet the growing needs of the consumers,” STMB said.

On STMB’s proposed reorganisation exercise, the company said it expected the conversion of composite licence to single licences for the its family takaful business and general takaful business to be completed by the second quarter of next year.

According to Kenanga Research, there is strong growth prospect for the takaful industry, given its low penetration rate of 54%. 

“With growing consumer awareness amid rising medical costs and living expenses, it expected tremendous potential in the takaful business which will continue to support STMB’s earnings,” it said in a report in September.

In addition, it said STMB was poised to benefit from the Government’s initiatives such as the Life Insurance and Family Takaful Framework and the phased liberalisation of general insurance to improve intake of insurance and takaful products and services with the aim to achieve 75% penetration rate by 2020 under the Economic Transformation Programme.