ATL continues exemplary performance
Amana Takaful Groups’ growth and profit momentum continued into the second Quarter netting in a pre-tax result of Rs.170.8 million at the half year ending June 2018.
This is a commendable return compared with a profit of Rs.93.9 million in the same period last year.
With an above industry upside of 17 period on Gross Written Premium (GWP) of Rs.2.27 billion for the six months, the re-structured group has been able to harness a return of Rs.182 million on its investment assets in a relatively lacklustre environment Amana Takaful PLC, Amana Takaful Life PLC and Amana Takaful Maldives have all positively contributed to this performance.
“Having had a turnaround year in 2017, stakeholders would be pleased to note that the growth momentum was not only sustained but increased through 2018, ATL Continued to diligently navigate a delicate balance of portfolio restructure, a discerning Underwriting and judicious risk appetite, solid efficiency measures together with a robust claims management philosophy. Culminating in the group being better placed to not only meet, but exceed expectations,” says Group Chairman Tyeab Akbarally.
Amana Takaful PLC generated a GWP of 1.87 billion, 14 percent ahead over the corresponding period in 2017. The profit before tax out-turn was doubled to Rs.60 million compared with the out-turn of Rs.30 million recorded mid last year.
All classes performed positively, whilst the performance of motor (By 20 percent) and medical (by 38 percent) were noteworthy. The combined ratio was further improved to 101 percent; with the new product lines entering the fray.
Following a conscious decision to re-align its portfolio strategy, Amana Takaful Life PLC, listed on the CSE in August 2016, maintained its position in the black by showing profits amounting to Rs.4.2 million at the half year point, from the previous period’s result of Rs.24 million. On account of phasing out a product line, the total GWP in the nine months is 95 percent of the previous year. However, the long term endowment life plans continue to grow in line with expectations, boosting the Life Fund by 11 percent.
The off-shore operation Amana Takaful Maldives PLC, the only listed entity among industry players in the Maldives Stock Exchange, a 22 percent growth in GWP, with a praiseworthy 165 percent upside in profit before tax compared to the previous year, while defending its market share despite the advent of new competition. Hereto, new product lines have delivered promising performance. Productivity measures have mitigated the rise in re-takaful expenditure and an upsurge in claims cost.