Profit will certainly decline, and by a large margin. The management has provided guidance last year. Whether share price is up or down depends on whether the coming "bad result" is better or worse than expected.
Takaful, by default enjoy "monopoly" using syariah and compelling others to subscribe to Takaful. So, why need ads when majority support syariah? Imprudent expenditure.
STMKB may wish to become a monopoly. Except that it only has just over 20% market shares in both Family and General Takaful! Maybank Etiqa is probably bigger. Your dissatisfaction is probably to do with promotion of takaful industry at the expense conventional insurance? STMKB is just one of the many players in the Takaful space.
I'm not sure about other takaful players. But the 40% PNB owned GLC Maybank is the largest player, and is certainly competitive and nowhere near bankrupt.
Our of its 9 billion takaful & insurance revenue in 2022, takaful contributed 40% and conventional another 60%. If takaful player like Maybank is uncompetitive and only depends on government's handout, how could it grab its 60% conventional insurance business?
As for efficiency, which metric do you look at? One of the most important metric should be capital return efficiency. Based on latest quarter, Syarikat Takaful annualized ROE is 25.6%, beating every other insurance companies that I track.
I don't disagree that the takaful industry get a lift due to government's promotion of Islamic finance, and that Syarikat Takaful share price performance is miserable. But claiming that they cannot survive without government aid should be at least backed up by some data.
i could said syariah insurance is the trend to suite the market need. you may no need or no interest on syariah type insurance but forget the market is there for those interest on syariah compliance insurance.
if u like a Pure exposure to takaful insurance, Syarikat Takaful is the only listed major takaful player. the rest are unlisted or part of bank/insurance companies.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
jackjason
156 posts
Posted by jackjason > 2023-05-12 19:57 | Report Abuse
the Syariah compliance insurance package still have the big market to explore and grow.