Amãna Takaful continues to grow
Amana Takaful PLC, a composite insurer, records an impressive growth of 32% for the first half of 2012, well above the industry.
The first half figures released by t he company reflects a total gross written premium (GWP) of Rs.770.8 million, up from Rs.584.7 million in the comparative period of 2011. Individually, the first half General and Life businesses’ GWP of Rs.603.3 million and 167.5 million respectively, grew by 32% each in the same comparison. This compares with the overall industry growth of 11% in which General and Life segments moved up by 17% and 3% respectively as per industry sources. This performance propelled ATPLC’s overall market position.
The General business performance was well supported by the motor portfolio growth as well as the non-motor classes which moved up by 29%, in which medical was at the forefront. With the launch of ‘Prosper’, an investment-linked Life product in the second half of 2011, ATPLC realized a significant contribution in the overall growth.
At an underwriting level, though the result was positive in comparison with the corresponding period last year, the significant increase in the motor claims stifled the planned performance goal.
Notwithstanding the slide in the equity market conditions, the judicious management of our diversified investment portfolio yielded an upside in investment returns of 263% over the same period last year.
Despite the afore mentioned, ATPLC ended the half year with a loss of Rs.34 million primarily driven by an over-run in motor claims, as stated earlier. However, at group level, a consolidated profit of Rs.43.6 million is reported to which the Maldives Takaful operation contributed substantially among the other subsidiaries.
Amana Takaful Maldives (ATM), now in its first year of operation as a PLC, recorded a GWP of MRF 29.7 million (Rs.252.3 million) posting a growth of 31% over 2011. The profit attributed to this business performance is MRF 7.4 million (Rs.62.8 million), an impressive growth of 95%.
CEO Fazal Ghaffoor stated, “The first-half performance in terms of business growth is a good opportunity to review our portfolio and our service credo while we re-set our sails to chart the emerging trends, particularly in the challenging business environment.
As a first step, guided always by the Takaful concept, the company revamped and relaunched its Life product portfolio making it more attractive to all Sri Lankans. Similarly, our unique motor insurance product ‘ Total Drive’ has been restructured on the basis of market needs giving our customers a tiered choice of plans.
In delivering these solutions to the market we are ramping-up our sales and distribution capability with a branch expansion and mod- ernization plan to better serve our customer base, associates and business partners. The diversity, skill and the commitment of our people which are core strengths in the evolution of Amana Takaful over the years, will be harnessed for sustainable growth and Shareholder returns in the upcoming period.”
Chairman Tyeab Akberally stated ,“The recent appointments of Dr. Ifthikar Ismail, an erudite corporate personality counting years of multi-national exposure and R. Gopinath, a Life insurance specialist with vast international exposure as Directors, augurs well in further strengthening the board in the company’s forward march.”
The current board of Amana Takaful PLC includes, Tyeab Akbarally-Chairman, Ehsan Zaheed-Executive Director, Non-Executive DirectorsOsman Kassim, Dr. A.A.M. Haroon, Dr. T. Senthilverl, Dr. Ifthikar Ismail and NonExecutive Independent Directors M.H.M. Rafiq, Dato’ Fadzli Yusof, A.S.M. Muzzamil, Ali Sabry and R. Gopinath.