Amana Takaful Group sustains growth momentum

Friday, 24 November 2017 00:19 - - {{hitsCtrl.values.hits}}

Amana Takaful Group said recently its growth and profit momentum continues into the third quarter netting in a pre-tax result of Rs. 128.5 million for the period ending September 2017. This compares with a loss of Rs. 96.5 million in the same period last year.

With a modest 7% upside on Gross Written Premium(GWP)of Rs. 2.8 billion for the nine months, the re-structured group has been able to harness a return of Rs. 285 million on its investment assets in a relatively lacklustre environment. Amana Takaful PLC, Amana Takaful Life PLC and Amana Takaful Maldives have all positively contributed to this performance.

“Steering a delicate balance of portfolio restructure, a selective under-writing and prudent risk appetite, tight productivity measures together with a robust claims management ethos, the Group is better positioned now to meet and exceed stakeholder expectations,” says Group Chairman Tyeab Akbarally. Amana Takaful PLC generated a GWP of 1.32 billion, 10% ahead over the corresponding period in 2016. The profit before tax out-turn of Rs. 46 million compares with a loss of Rs. 111 million in 2016. A better than expected performance of 32% on the non-motor classes, medical and Micro Takaful segments totally mitigated the downside in motor revenue. Claims on account of the recent flood were disbursed on time and in full. Motor loss ratios improved significantly to 58%vs 76% a year ago. Performance of the company’s new product lines has been exemplary. The combined ratio has improved markedly to 102% from 118% a year earlier.

Following a conscious decision to re-align its portfolio strategy, Amana Takaful Life PLC, listed on the CSE in August 2016, more than doubled its profit to Rs. 32 million in the nine months to September, from the previous period’s result of Rs. 14 million. On account of phasing out a product line, the total GWP in the nine months is 95% 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 PLC, the only listed entity among industry players in the Maldives Stock Exchange, chugged along steadily with 7% growth in GWP, 61% 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.

Both Amana Takaful PLC and Amana Takaful Maldives PLC emerged winners of the Gold Award for single entity Takaful operators at the recent Islamic Finance Forum for South Asia.