KUALA LUMPUR (Nov 23): Syarikat Takaful Malaysia Keluarga Bhd (Takaful Malaysia) posted a 24.9% increase in net profit for the third quarter ended Sept 30, 2023 (3QFY2023) to RM91.1 million or 10.88 sen per share from RM72.95 million or 8.72 sen per share a year ago.

This was mainly driven by a RM140.6 million increase in investment income that is mostly attributable to higher profit from fixed income investment assets and lower fair value losses, said the takaful operator in a bourse filing on Thursday.

However, earnings were partially offset by a RM18.7 million decline in takaful service results and a RM55.9 million increase in takaful finance expenses from takaful contracts issued.

Quarterly revenue expanded by 25.2% to RM767.65 million in 3QFY2023 from RM613.28 million in the previous year corresponding quarter.

For the nine-month period ended Sept 30, 2023 (9MFY2023), the group’s net profit grew 28.2% to RM276.6 million from RM215.74 million as revenue widened by 20.8% to RM2.33 billion from RM1.93 billion.

In the near term, Takaful Malaysia said the group will continue to prudently manage costs, whilst seeking opportunities for business growth, with its strong capital and liquidity positions providing support for these strategies.

"We continue to grow our established core businesses in Bancatakaful, Treasury, Employee Benefits and General Takaful, and the group has built [a] strong foothold in these key markets and thus sustaining our leadership in the takaful industry," it said.

As part of its strategic focus to diversify its business portfolio into retail markets, Takaful Malaysia said it has planned to build a multi-distribution platform, from which it would provide Malaysians with greater access to more affordable regular contribution protection products.

"We have produced good initial results in the retail segment with encouraging new business growth in regular contribution products through our branches and existing bank partners, in addition to [our] digital online platform," it added.

On Thursday, Takaful Malaysia’s share price finished down one sen or 0.27% at RM3.64, which gave the group a market capitalisation of RM3.05 billion.