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Wednesday, 12 September 2018 00:00 - - {{hitsCtrl.values.hits}}
Amana Takaful Groups’ growth and profit momentum continued into the second quarter, netting a pre-tax result of Rs. 170.8 million at the half year ending June. This is a commendable return compared with a profit of Rs. 93.9 Million in the same period last year.
With an above industry upside of 17% on gross written premium (GWP) of Rs. 2.27 billion for the six months, the re-structured group has been able to harness a return of Rs. 182 million on its investment assets in a relatively lacklustre environment. Amana Takaful PLC, Amana Takaful Life PLC, and Amana Takaful Maldives PLC have all positively contributed to this performance.
“Having had a turnaround year in 2017, stakeholders would be pleased to note that the growth momentum was not only sustained but increased through 2018. ATL Continued to diligently navigate a delicate balance of portfolio restructure, a discerning under-writing and judicious risk appetite, solid efficiency measures together with a robust claims management philosophy, culminating in the Group being better placed to not only meet but to exceed expectations,” said Group Chairman Tyeab Akbarally.
Amana Takaful generated a GWP of 1.87 billion, 14% ahead over the corresponding period in 2017. The profit before tax out-turn was doubled to Rs. 60 million compared with the out-turn of Rs. 30 million recorded mid last year.
All classes performed positively, whilst the performance of Motor (20%) and Medical (38%) were noteworthy. The combined ratio was further improved to 101% with the new product lines entering the fray.
Following a conscious decision to re-align its portfolio strategy, Amana Takaful Life, listed on the CSE in August 2016, maintained its position in the black by showing profits amounting to Rs. 4.2 million at the half-year point, from the previous period’s result of Rs. 24 million. On account of phasing out a product line, the total GWP in the nine months is 95% as that of the previous year. However, the long-term endowment life plans continue to grow in line with expectations, boosting the Life Fund by 11%.
The off-shore operation, Amana Takaful Maldives, the only listed entity among industry players in the Maldives Stock Exchange, achieved a 22% growth in GWP, with a praiseworthy 165% upside in profit before tax compared to the previous year, while defending its market share despite the advent of new competition. Hereto, new product lines have delivered promising performance. Productivity measures have mitigated the rise in re-Takaful expenditure and an upsurge in claims cost.
A consistent performer at industry awards, Amana Takaful (ATL) was awarded the prestigious Gold Award in the ‘Takaful Entity of the Year’ category, together with its novel insurance scheme ‘Kiri Govi Sathakara’ (a scheme especially for the dairy farmers), which was also awarded Gold in the ‘Product of the Year’ category at the Sri Lanka Islamic Banking and Finance Industry (SLIBFI) Awards held recently.
