Syarikat Takaful 3Q net profit rises 20% on higher net wakalah fee income

KUALA LUMPUR (Nov 1): Syarikat Takaful Malaysia Keluarga Bhd’s net profit for the third quarter ended Sept 30, 2022 (3QFY2022) rose 20.2% to RM87.27 million from RM72.6 million in the same period last year on higher net wakalah fee income.

Earnings per share grew to 10.43 sen from 8.69 sen, Malaysia's oldest Islamic insurance, or takaful, operator indicated in a Bursa Malaysia filing on Tuesday (Nov 1).

Quarterly revenue grew 35.09% to RM924.42 million from RM684.32 million in the same period a year earlier on higher sales generated from family takaful and general takaful businesses.

For the quarter under review, the family takaful business recorded gross earned contributions of RM594.6 million, higher by 43%, as compared to RM414.7 million in the same period last year, helped by higher sales from credit-related products.

Meanwhile, the general takaful business generated gross earned contributions of RM257.5 million, an 18% growth attributed to fire, motor and engineering classes.

For the cumulative nine months, net profit slipped 4.55% year-on-year to RM243.66 million from RM255.29 million despite a near 20% rise in revenue to RM2.75 billion from RM2.3 billion.

Syarikat Takaful said the group’s solid financial fundamentals and strong operational resilience have enabled it to continue to perform well during and after the pandemic.

“The group’s commendable business performance for the first three quarters of 2022 is growing at a great momentum post pandemic due to high sales from credit-related products, particularly from the personal financing segment and general takaful products such as fire and motor takaful.

“Thus, Takaful Malaysia is looking at further business growth from our multi-distribution strategy and strategic direction to strengthen our presence in the retail market, providing Malaysians with greater access to more affordable regular contribution protection products,” it said.

It said it would continue to strike the right balance between underwriting margins and business growth to penetrate the market further and gain a leading position among key industry players.

The group will continue to expand its online and agency motor customer base to drive growth of the motor takaful business.

The insurer anticipates greater diversification of the motor takaful portfolio for a better underwriting experience with the recent launch of online motor takaful for motorcycles.

“With great success in recent years, we will continue with our business expansion strategy to penetrate the market served by the conventional general insurance player.

“With both family and general takaful licences, the group will be able to create greater synergy and a competitive edge to provide comprehensive takaful solutions in marketing and securing business from our clients,” it said.

On Tuesday, Syarikat Takaful’s share price closed two sen or 0.61% higher at RM3.32, which translates to a market capitalisation of RM2.78 billion.