Kuala Lumpur 24 January 2019 – Takaful Malaysia is pleased to announce record growth in net profit for the year ended 31 December 2018. The Group reported an increase of 43% in its profits after tax and zakat (PATZ) to close the year 2018 with RM292.6 million from RM205.1 million in the previous financial year. The total gross contribution recorded an increase of 26% to RM2.32 billion, compared to RM1.83 billion in 2017. The Group’s full year operating revenue augmented by 23% to RM2.64 billion from RM2.14 billion recorded in the last financial year end.
“Our sterling performance marks another record breaking year for the Group as our net profit exceeded the benchmark of RM250 million. We are proud to have delivered an excellent set of results for 2018 and this tremendous increase in profitability is mainly attributable to higher sales generated by both the Family and General Takaful businesses, better underwriting results and higher net Wakalah fee income arising from our strong overall business growth of 32% for both the Family and General Takaful businesses,” said Dato’ Sri Mohamed Hassan Kamil, Group Chief Executive Officer of Syarikat Takaful Malaysia Keluarga Berhad (formerly known as Syarikat Takaful Malaysia Berhad).
Dato’ Sri Hassan Kamil further explained, “The Group’s Return on Equity crossed the 30% mark with an actual achievement of 32.7% compared to 26.7% for last year, in tandem with the record net profit achieved. The Earnings per Share (EPS) rose to 35.79 sen as compared to 25.13 sen last year. Our total assets size has risen by 9% to RM8.93 billion from RM8.19 billion during the previous financial year.”
Takaful Malaysia declared a single tier interim dividend of 15.0 sen per ordinary share amounting to RM123.6 million on 11 December 2018. This translated into a dividend yield of 4% based on the Company’s share closing price of RM3.80 as at 31 December 2018.
The total interim dividends declared represent a payout ratio of approximately 42% of the net profits generated for the period ended 31 December 2018.
“We sustained our market leading position in the Family Takaful business to register RM1.6 billion in gross contributions, particularly due to the increase in the credit-related portfolio on the back of the sturdy growth of the local Islamic banking industry that resulted in higher adoption for takaful products.
Our General Takaful arm is witnessing a quantum leap of 20%, outpacing the industry peers as well as our conventional insurance counterparts with total gross contributions of RM709 million, mainly derived from the growing acceptance of our Fire and Motor product lines, apart from our ongoing digital strategy and Click for Cover online sales portal that continue to provide support for customer acquisition,” said Dato’ Sri Hassan Kamil in conclusion.