KUALA LUMPUR: Syarikat Takaful Malaysia Keluarga Bhd (STMKB) posted net profit of RM362.42mil in the financial year ended Dec 31,2020, a dip of 1% compared with RM364.84mil in FY19.
In a statement to Bursa Malaysia on Tuesday, it said its revenue slipped by 5% to RM2.95bil from RM3.12bil mainly due to lower sales generated from family Takaful business.
However, profit before zakat and tax was higher at RM426.82mil compared with RM417.74mil a year ago mainly due to savings from management expenses and release of expense reserve.
STMKB said its family Takaful business generated gross earned contributions of RM1.75bil for FY20 compared with RM2.04bil in FY19.
“This was due to lower sales from credit-related products and group medical products as the business activities have been impacted by the Covid-19 pandemic, ” it said.
The net benefits and claims for family Takaful business decreased by 6% to RM751.90mil from RM801.60mil due to lower medical claims.
However, investment income for the family Takaful business increased by 3% to RM286mil from RM277.90mil mainly due to higher profit income from fixed income investment.
STMKB said its family Takaful recorded fair value gains of RM17.20mil, down by RM13.10mil as compared to fair value gains of RM30.30mil a year ago mainly due to equity market performance.
Its general Takaful business generated gross earned contributions of RM756.50mil, up by 7% mainly due to the motor class.
“The net benefits and claims for general Takaful business decreased by 24% to RM153.2mil for FY20 from RM202.2mil in FY19 mainly due to lower claims relating to motor class, ” it said.
In the fourth quarter ended Dec 31,2020, its net profit rose by 37% to RM103.15mil from RM75.10mil a year ago mainly attributable to savings from management expenses and release of expense reserve.
However, its revenue dipped by 1% RM774.93mil compared with RM779.91mil a year ago. EPS were 12.42 sen compared with 9.08 sen.
STMKB said 4Q operating revenue was up by 3% to RM774.9mil from RM753.5mil in 3Q mainly due to higher sales generated from general Takaful business.
Profit before zakat and tax was RM117.2mil, higher by 20% from RM97.8mil in 3Q.
The increase profit was mainly attributable to savings from management expenses and release of expense reserve.
Did you find this article insightful?