Kuala Lumpur, 25 February 2020 – Syarikat Takaful Malaysia Keluarga Berhad (“the Group” or “Takaful Malaysia”) posted a record net profit of RM366.3 million for the year ended 31 December 2019. The Group reported an increase of 25% in its profit after tax and zakat (“PATZ”) during the year under review from RM292.6 million registered in the previous financial year.
Takaful Malaysia’s total gross contributions rose by 19% to RM2.76 billion from RM2.32 billion recorded in the last financial year end whilst the Group’s operating revenue continued its growth by 18% to RM3.12 billion as compared to RM2.64 billion in 2018.
Dato’ Sri Mohamed Hassan Kamil, Group Chief Executive Officer of Syarikat Takaful Malaysia Keluarga Berhad said, “We are once again breaking new grounds with our stellar performance as our net profit surpassed the benchmark of RM300 million. Our exceptional set of results clearly reflects the underlying strength and resilience of the Group, mainly attributable to higher sales generated by the Family Takaful and General Takaful businesses in addition to higher net Wakalah fee income arising from our overall robust business growth.”
The Group’s Return on Equity continued to exceed the 30% level with an actual achievement of 33.1% from 32.7% in the previous financial year. Takaful Malaysia’s Earnings per Share (“EPS”) rose to 44.16 sen as compared to 35.79 sen in 2018. The total assets also augmented by 16% to RM10.3 billion from RM8.9 billion in the last financial year.
Takaful Malaysia declared an interim single-tier dividend of 20.0 sen per ordinary share amounting to RM165 million on 3 December 2019. This translated into a dividend yield of 3.5% based on the Group’s share closing market price of RM5.70 as of 31 December 2019. The declared interim dividend represented a payout ratio of approximately 45% of the net profit generated for the period ended 31 December 2019.
Dato’ Sri Hassan Kamil added, “In tandem with our sterling financial results during the year under review, we maintained in leading the Family Takaful business and recorded RM2.0 billion in gross contributions, an increase by 27% as compared to RM1.6 billion in 2018. This was mainly driven by our bancatakaful initiatives attributing to higher sales from credit-related products and intensified by strategic partnerships with premier Islamic banks.
On the General Takaful business front, we remained as the top two leading General Takaful operators in the industry. We improved our General Takaful portfolio and registered total gross contributions of RM724 million in 2019, deriving from an increase in the customer acquisition via our Fire and Personal Accident classes which resulted in higher production in both product lines. We also achieved a double digit growth of 40% for our online Motor Takaful business offered via our innovative Click for Cover Online Sales Portal.”
Dato’ Sri Hassan Kamil in conclusion said, “Takaful Malaysia will continue to adopt innovative strategies via the implementation of our digital strategy, introduction of online takaful solutions, expansion of the Group’s distribution capabilities, strategic alliances with leading Islamic banks, adoption of the investor relations program and brand awareness initiatives in meeting the expectations of our customers whilst delivering superior shareholder value.”
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