Takaful Malaysia 3Q net profit rises 20% to RM87.3mil

Syarikat Takaful Malaysia Keluarga Bhd group CEO Nor Azman Zainal

KUALA LUMPUR: Syarikat Takaful Malaysia Keluarga Bhd (Takaful Malaysia) is strengthening its presence in the retail market by providing Malaysians with greater access to complete protection solutions.

“Our business performance for the first three quarters of the year has grown on a positive trend underpinned by our multi-distribution strategy that continues to reinforce the group’s business growth,” group chief executive officer Nor Azman Zainal said in a statement.

“We will strive to keep our positive momentum to meet the expectations of stakeholders and achieve the targets set for 2022.

“Therefore, our strategic direction is strengthening our presence in the retail market by providing Malaysians with greater access to complete protection solutions, ranging from general to family takaful products,” he added.

In the third quarter ended Sept 30 (3Q), Takaful Malaysia’s net profit jumped 20.2% to RM87.3mil against RM72.6mil in the same period a year ago, mainly contributed by higher net wakalah fee income.

Its earnings per share for the quarter rose to 10.43 sen from 8.69 sen previously while revenue surged 35.1% to RM924.4mil versus RM684.3mil last year.

For the quarter under review, Takaful Malaysia’s family takaful business recorded gross earned contributions of RM594.6mil, up 43%, compared to RM414.7mil in the same period last year, mainly due to higher sales from credit-related products.

Additionally, investment income for the family takaful business for the current quarter rose to RM81mil, up 11% compared to RM73.1mil in the same quarter last year, attributable to higher profit income from fixed-income investments.

Takaful Malaysia’s general takaful business generated an 18% increase in gross earned contributions to RM257.5mil from RM218.4mil in the same quarter last year.

Investment income for the general takaful business also increased by 24% to RM9.2mil from RM7.4mil recorded in the same quarter of the previous year, mainly due to higher profit from fixed-income investments.

The group’s Indonesian operations recorded gross earned contributions of RM92.9mil, higher by 18% compared to RM78.4mil in the same period of the previous year.

In the first nine months, Takaful Malaysia posted a net profit of RM243.7mil or earnings per share of 29.14 sen on revenue of RM2.75bil.

“Our 3Q results demonstrate strong revenue growth and business performance across our key growth drivers. We focus on establishing a fair balance between underwriting margins and business growth to increase our market share, achieve strong brand loyalty, retain existing customers, and attract new ones.

“We will continue to leverage our leading market position in single contribution credit-related products, strong general takaful business, and focus on retail market expansion to diversify our business portfolio and ensure future sustainable business to complement our existing core businesses. We will continue to explore the untapped market in the insurance and takaful business,” Nor Azman said.

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