Amana Takaful successfully completes Rs. 750 m rights issue

Amana Takaful, Sri Lanka’s pioneer and leader in Takaful, announced the successful completion of its recent rights issue, having had full subscription to the issue.

The issue raised a capital of Rs. 750 million, thereby increasing the total capital of Amana Takaful to LKR 1.25 bn. The additional capital be directed to facilitating its expansion strategy in spearheading Takaful in Sri Lanka, as well as consolidating its position to meet changes in regulation pertaining to Risk Based capital and splitting of Life and General business.

 “The response received for the rights issue was overwhelming and we believe is a reflection of the confidence our shareholders have in the company and its future,” Amana Takaful Chairman Tyeab Akbarally said.

“The recent changes to the Regulation of the Insurance Industry Act (RII Act) will be a strong impetus to us in execution of our planned expansion and other strategies,” he added.

Amana Takaful, the pioneer of Takaful in Sri Lanka, announced the rights issue on 1:1 basis at Rs 1.50 a share.

 “We feel encouraged by the response received and are confident of the opportunities that are emerging,” Amana Takaful CEO and Director Ehsan Zaheed said.

 “The economic climate for investment is good in Sri Lanka given the rapid development plans in infrastructure projects and incentives for investment.

This will no doubt draw new ventures and investment opportunities, thereby creating many opportunities for insurance companies to capitalise on. As Sri Lanka’s only Takaful provider we are readying ourselves to meet this very challenge,” Zaheed added.

Amana Takaful Maldives also made news recently when it applied to be listed in the Maldivian Stock Exchange making it the first and only insurance company to do so in the country.  Amana Takaful Maldives, a subsidiary of Amana Takaful PLC, has served the people of Maldives since 2003 and is a leading insurer patronised by the people, the government and private institutions alike.  

Globally Takaful is growing rapidly and estimated to reach a staggering 7.4 billion by the year 2015 according to Moody’s Investors Service of the US, from 5.3 billion as at 2008 as mentioned in the Ernst & Young World Takaful Report of 2010.

 World over there are about 80 Takaful operators with an additional 200 Takaful windows. Furthermore, according to Bank Negara of Malaysia the global Takaful growth rate stands at 20 percent.