TAKAFUL MALAYSIA NET PROFIT UP BY 37%
Source: The Malaysian Reserve, 13 August 2012
Higher sales from family takaful and higher investment income saw Syarikat Takaful Malaysia Bhd’s net profit increase by 36.8% to RM22.58 million, or 13.9 sen per share, in the second-quarter ended 30 July 2012, from the RM16.51 million recorded in the same period a year ago.
The insurance company said its family takaful portion recorded a gross earned contribution of RM280.8 million against RM167.6 million recorded last year. General takaful generated a gross earned contribution of RM118.3 million compared to RM97.3 million in the corresponding quarter of the preceding year.
For the six months, the company’s net profit was up 37.6% to RM53.54 million from the RM38.89 million recorded in 2011. Its revenue in the same period surged 37.6% to R875.17 million from the RM636.21 million recorded in the preceding year’s corresponding period.
The company has given RM350,990 to Lembaga Tabung Haji (LTH) as part of its “no claim rebate” policy. It claims to be the only takaful operator offering this benefit to its clients where 15% of premiums paid on all general takaful products are refunded if no claims are incurred during the coverage period.
LTH has been Takaful Malaysia’s client since 1987. The RM350,990 payment is the total rebate for the three products which LTH participated in fire and allied perils, group term family and private car fleet segments.
Takaful Malaysia has been paying out an average of 15% no claim rebate since the late 1980s. Following favourable response, for policies expiring in 2012, the company will pay an additional 5%. Additionally, on average, RM20 million in rebates are paid each year.