Takaful Malaysia reports stellar results for 2012 from robust sales
Posted on May 1, 2013, Wednesday
KUCHING: Syarikat Takaful Malaysia Bhd (Takaful Malaysia) announced that it had recorded stellar results for 2012, underpinned by higher sales generated by the family and takaful business.
According to a press statement, Takaful Malaysia’s profit after tax and zakat (PATZ) surged by 31 per cent to RM100.1 million from RM76.4 million in the previous financial year, while its operating revenue grew by 19 per cent to RM1.61 billion, and total asset size increased by nine per cent to RM6.4 billion.
“The improved profit and revenue were largely attributable to higher sales generated by the family takaful business, better underwriting and investment results and higher net Wakalah fee income arising from strong growth” said Datuk Mohamed Hassan Kamil, the group managing director of Takaful Malaysia at its recent 28th Annual General Meeting (AGM).
To note, Takaful Malaysia registered a 39 per cent increase in the family takaful business gross contribution to RM973 million from RM699.3 million in 2011.
Hassan highlighted, “This is a result of increased sales from our group family products. We are proud to have delivered an excellent set of results for 2012 reflecting our strong cash flow position and our commitment to reflect the value achieved for our shareholders.”
Additionally, the statement outlined that Takaful Malaysia had retained its title as leading takaful operator in the group family takaful business, capturing 40 per cent of the market sector, and 20 per cent of the combined family and general takaful business, as at fourth quarter 2012 (4Q12).
“Our record-breaking performance is underpinned by robust growth in the Bancatakaful and group Takaful businesses, growing acceptance of the Takaful Malaysia brand as well as continued outstanding performance of the investment activities.
“Takaful Malaysia has set a five-year track record for consecutive business growth since the start of our Transformation program in 2007,” Hassan Kamil added.
The press statement further reported Takaful Malaysia’s return on equity crossed the 20 per cent marked with an actual achievement of 21.3 per cent compared with 18.4 per cent for the previous year, driven by higher net profits.
In addition, Takaful Malaysia’s earnings per share (EPS) rose to 62.2 sen as compared with 47.2 sen in the previous year. Additionally, Takaful Malaysia declared total interim single tier dividends of 25 per cent, which translates to a dividend yield of 3.7 per cent based on the company’s share closing price of RM6.81 as at April, 12 2013.
Hassan Kamil added, “The total interim dividends declared represent a payout ratio of approximately 40 per cent of the net profits generated for the period ended December 31, 2012.”
Meanwhile, Takaful Malaysia said that it had resumed its efforts to produce more skilled and knowledgeable human resource functions in techinical areas.
It added that it was continuing its drive to recruit, reward and develop its employees and agency force to meet its operational requirements and to position the company as the preferred employer and business partner within the insurance industry.
To futher reach out to the public, Takaful Malaysia aimed to increase its agency force to 2,500 via the ‘Be myAgent’ recruitment drive, and improve and enhance its customer service by exploring customer relationship management (CRM) applications.
At the AGM, Hassan said the company would continue its aggressive branding and marketing campaigns while it launched the ‘We Should Talk’ campaign in the second quarter of 2012 to leverage its unique 15 per cent No Claim Rebate offered on general takaful products.
“This is major part of our initiatives to building the Takaful brand and we are proud to be known as the only operator to offer such a benefit in the market,” he added.
Hassan further remarked, “Last year, we paid out a record amount of RM 31 million as our 15 per cent No Claim Rebate. This year we are offering an additional five per cent No Claim Rebate for non-motor products and this is only relevant for certificates period ending in 2013.”
In response to the media, he said, “In essence, Takaful Malaysia in 2013 will continue to emphasise the four core areas of customer reach, operational agility, cost competitiveness and stakeholder confidence.
“Our ultimate goal is to outpace the market and firmly establish ourselves as the preferred choice for protection not just amongst takaful companies but across conventional insurance providers as well.”