Takaful Malaysia posted a 40% increase in revenue of RM892.2 million for the first quarter ended 31 March 2024, a substantial increase of RM256.9 million compared to RM635.3 million registered in the same period of the previous year. The revenue growth was mainly driven by higher contribution recognised from the general takaful business and an increase in takaful coverage for the family takaful business.
Nor Azman Zainal, Group Chief Executive Officer of Takaful Malaysia, said, “We delivered resilient financial results and commendable performance in the first quarter of the year. We recorded a profit before zakat and tax of RM150.3 million for the first quarter ended 31 March 2024, higher by 16% compared to the same period of the previous year of RM129.6 million, mainly attributable to higher profit contributed by the general takaful business and higher recognition of profit from contractual service margin (“CSM”) during the period under review. In a strategic move to strengthen our leadership in the insurance and takaful industry, we continue to focus on leveraging our strong foothold in the bancatakaful, treasury, employee benefits and general takaful businesses, and diversifying our business portfolio into the retail market to sustain our growth trajectory.”
Takaful Malaysia’s profit after zakat and tax increased by 9% for the quarter under review to RM102.3 million from RM93.9 million in the same quarter last year.
“Our family takaful business generated takaful revenue of RM449.6 million for the quarter under review, which rose 57% compared to RM286.5 million in the same period last year, mainly attributable to higher takaful revenue earned for takaful services provided. Our general takaful arm, Takaful Malaysia Am, recorded takaful revenue of RM350.4 million for the first quarter of 2024, 20% higher compared to RM291.4 million registered in the same period last year. The higher takaful revenue was mainly due to higher contribution recognised for our general takaful business,” said Nor Azman Zainal.
Regarding net investment income, the Group registered RM158.7 million, which increased by RM36.8 million from RM121.9 million recorded in the same quarter of the previous year. This was mainly due to the increase in profit income from fixed income investments resulting from increased investment portfolio and higher fair value gains on investments.
At the Group’s 39th Annual General Meeting (“AGM”) held on 23 May 2024, Nor Azman Zainal highlighted that, in addition to maintaining the Group’s core businesses in bancatakaful, treasury, employee benefits and general takaful, Takaful Malaysia will also emphasize its key focus areas of investing further in technology and digital innovation and tactically expand the general takaful business beyond the Motor segment as part of its growth strategy. Furthermore, Nor Azman Zainal said that Takaful Malaysia will reinforce its sustainability agenda, striving for sustainable growth through its product offerings and services, while investing in employee development to attract, develop, and retain quality talent.
“We stayed on track in realising our business strategies and driving value creation within our core business portfolios to deliver value to our stakeholders and fortify our position in the industry. Our strategies to diversify our business portfolios and strengthen our presence in the retail market by introducing Kaotim, a digital platform and brand managed by Takaful Malaysia that offers more affordable and accessible protection plans, have been well received by the market and yielded positive results thus far,” said Nor Azman Zainal.
“As we seize the growth prospects of the insurance and takaful industry, we stay competitive by executing our retail market strategy. We are developing comprehensive and competitively priced protection plans, and importantly, we are positioning our core businesses as the key growth drivers. In addition, we are committed to our digital agenda, which involves integrating digitalisation and technologies, optimising our business operations, and enhancing the customer purchase journey experience, all of which are crucial for our future sustainable business,” said Nor Azman Zainal in conclusion.
