Kuala Lumpur, 14 August 2022 – Syarikat Takaful Malaysia Keluarga Berhad (“the Group” or “Takaful Malaysia Keluarga”), the FIRST takaful operator in Malaysia, recorded operating revenue of RM831.9 million for the second quarter ended 30 June 2022, increased by 19% as compared to RM701.2 million in the corresponding quarter of the previous year, mainly attributable to higher sales generated from Family Takaful and General Takaful businesses.
The Group also registered a profit before zakat and tax of RM107.2 million, higher by 12% compared to RM95.7 million in the same period last year, mainly attributable to higher net wakalah fee income. However, the Group’s net profit has been lowered by 15% from RM81.8 million to RM69.7 million, mainly attributable to Cukai Makmur and the change in tax act on adjusted income in relation to the Family Takaful business.
Nor Azman Zainal, Group Chief Executive Officer of Syarikat Takaful Malaysia Keluarga Berhad, said, “Our solid financial fundamentals and strong operational resilience have enabled us to continue with good business performance in 2022. The Group will leverage its market-leading position in single contribution products whilst focusing on retail regular contribution products to diversify our business portfolio further. This is part of a key strategy to grow our business in the untapped retail market as the Family Takaful market has lower penetration stands at 18.6%.”
For the quarter ended 30 June 2022, Family Takaful business recorded gross earned contributions of RM506.1 million, higher by 14%, compared to RM444.1 million in the same period last year. The increase is mainly attributable to higher sales from credit-related products. Family Takaful business investment income for the quarter under review also increased to RM75.4 million, higher by 6% from RM71.1 million in the same quarter last year, mainly due to higher profit income from fixed income investments.
The General Takaful business continues to support the business growth and profit of the Group. For the quarter under review, General Takaful business generated gross earned contributions of RM232.6 million, which increased by 18% compared to RM197.2 million in the preceding year’s corresponding quarter. The growth was mainly attributable to fire and motor class of business. In addition, the General Takaful business investment income increased by 12% to RM8.2 million from RM7.3 million in the preceding year’s corresponding quarter due to higher profit from fixed income investments.
Nor Azman added, “The Group will continue striking the right balance between underwriting margins and business growth to penetrate the market further and gain a leading position among key industry players. With great success in recent years, we will continue with our business expansion strategy into the market served by the conventional general insurance players. With both family and general takaful licenses, the Group will be able to create greater synergy and competitive edge to provide comprehensive takaful solutions in marketing and securing business from our clients.”
The Group’s Indonesian operations recorded a gross earned contribution of RM62.5 million, higher by 21% compared to RM51.5 million in the same period of the previous year.
“We are optimistic about further penetrating the market and leveraging business opportunities given the strong demand in the takaful industry and the vibrant market environment. We will continue to adopt a digital strategy, introduce regular contribution takaful solutions, and expand our distribution capabilities to stay competitive in the market. We want to be a technology-driven company in every corner of our business. We will also partner with leading Islamic banks, conduct investor relations programs and implement brand awareness initiatives to meet customer expectations and deliver superior shareholder value,” said Nor Azman in conclusion.
