Takaful Malaysia posts 23% higher earnings in Q1

In a filing with Bursa Malaysia yesterday, Takaful Malaysia said the family takaful business generated gross earned contributions of RM1.61bil for FY18, a 27% increase against the RM1.26bil in the previous corresponding period.

KUALA LUMPUR: Syarikat Takaful Malaysia Bhd's first quarter earnings ended March 31, 2018, came in 23% higher year-on-year at RM69.98mil versus RM56.75mil previously on higher contributions from its general takaful division.

Operating revenue for the group for the quarter grew 13% or RM86.3mil to RM746.2mil due to higher sales generated by both the family takaful and general takaful businesses.

On a segmental basis, the family takaful business posted a slight dip in contributions to RM324mil from RM327.2mil a year earlier. 

Comparatively, the general takaful business saw a 27% jump in gross earned contributions to RM182.4mil with most of the growth seen in the fire and motor classes.

The disposal of the group's Indonesian subsidiary PT Ansuransi Takaful Umum contributed towards a 9% drop in operating revenue to RM33.7mil from RM36.8mil while gross contribution fell 16% to RM29.3mil previously. 

"The Indonesian operations continued to be impeded by the window concept of promoting Islamic products practiced by the conventional domestic players. 

"The takaful industry in Indonesia is anticipated to continue experiencing challenges due to the financial market volatility in addition to the economic conditions," it said.  

Looking ahead, Takaful Malaysia said it would continue to expand its market share in the general takaful business while enhancing its digital capabilities to better reach customers.