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Tuesday, 19 November 2013 00:01 - - {{hitsCtrl.values.hits}}
Composite Insurer- Amana Takaful PLC, maintains volume and profit momentum through the 3rd quarter 2013, continuing from the turnaround in 2012, contributed largely by improved under-writing margins and above industry growth in the Life segment. A profit of Rs 27.7 Million is on record to September 2013, compared to Rs. 4.2 Million a year ago.
The Company’s performance in total Gross Written Premium (GWP) of Rs. 1,319.7 Million up to September 2013 compares with Rs. 1,151.5 Million a year ago, growing by 14.6%. The General segment of the business accounted for Rs. 972.4 Million, growing on par with the industry at 9% over the nine month period in 2012 while the Life segment’s Gross Written Premium of Rs. 347.2 Million to September 2013, reflects a growth of 33.3% in the same comparison, over-performing the industry average of 10%.
While ATPLCs Motor portfolio growth at 8.1% is below the Industry’s 12%, the Non-Motor portfolio grew at 11.8% versus the industry’s 5.7%. CEO Fazal Ghaffoor stated that “while the motor insurance market was on a year on year slide due to lower imports, rampant price-cutting by key competition exacerbated the situation, weighting down the industry growth in total. However, we yielded satisfactory results from prudent underwriting and remaining steadfast in our pricing which resulted in a net claims ratio of 49% compared to a 52% over the same period last year. It is noteworthy that the Company’s motor portfolio reversed the loss-making trend experienced in 2012, with month-on-month product line profitability in 2013”.
ATPLC’s Life GWP from Unitized products grew significantly in comparison to the previous year to reach Rs. 177.7 Million. This performance propelled the Life Fund to a healthy 22.2% expansion over 2012. At September 2013, the Life share of market improved to 1.2%.
Notwithstanding the volatility in bullion, judicious management of the diversified investment portfolio helped to yield a reasonable investment income mainly through other stable modes of investment options.
Amana Takaful Maldives revenue in the nine months of 2013 was impacted negatively by 17.3% compared to a year ago, due to a slow-down in business activity, stemming from the political instability in the archipelago. However, profit at LKR 72.5 Million was lower by 4.3% over the comparative period in 2012, notwithstanding the downside in volume.
Just recently, Amana Takaful was rated BBB- by Ram Ratings Lanka for its claims paying ability. The Company also won the Silver at the Sri Lanka Islamic Business and Finance Industry Awards Ceremony for the Best Islamic Entity in 2012. In addition to this accolade, Amãna Takaful recently received the Bronze Award in the ‘Turnaround Brand of the Year’ category at the SLIM Brand Excellence 2013 Awards and was declared the “Best Islamic Financial Service Provided in Sri Lanka” by the International Finance Magazine (IFM), UK.
The current Board of Amana Takaful PLC includes, Tyeab Akbarally (Chairman), Ehsan Zaheed (Executive Director), Non-Executive Directors- Osman Kassim, Dr.A.A.M. Haroon, Dr. T. Senthilverl, Dr.Ifthikar Ismail and Non-Executive Independent Directors M.H.M. Rafiq, Dato’ Fadzli Yusof, A.S.M. Muzzamil, Ali Sabry and, R. Gopinath.
