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At group level, the profit of Rs. 76.66 million is a significant upsurge of 65% over compared to the same period last year. In releasing their interim results for the 1H 2013, the company posted consolidated revenue of Rs. 892.16 million which reflects a growth of 16% over 1H 2012, with Profit Before Tax of Rs. 25.92 million, an increase of 182% from the reported loss of Rs. 31.61 million a year ago.
The group, including its overseas out-fit Amãna Takaful Maldives, also recorded a growth of 16% in terms of its top-line.
While the life segment of the industry grew by 9% during the 1H -2013, Amãna Takaful out-performed industry growth expectations with a growth of 38% over the same period. ‘Prosper’, the company’s unit-linked brand, grew by 70% while its regular life products grew by 28%. From a year ago, the company’s overall life fund grew by 34% to stand in excess of Rs. 800 million as of 30 June.
Amidst challenges of an apparent slow-down in industry growth, its non-life business recorded a 9.6% upside in its Gross Written Premium at Rs. 661.53 million, slightly ahead of the industry’s 8.6%. Non-motor classes including the medical segment expanded by 14%. Notably motor and medical products contributed significant product line profitability through our prudent under-writing measures. The speedy management of motor claims and its supply chain continues to impact positively among all stakeholders. Consequently the claims ratio of the general segment including medical has improved substantially to 54% from 63% a year ago.
“The group’s half yearly results demonstrate sustained momentum in all aspects of business performance. Despite a slow-down in the economic and financial spheres, our results on volume, profit and productivity are encouraging. While remaining optimistic for the rest of the year in particular, the regulatory industry agenda on bifurcation of composite entities by January 2015 will entail added costs and management time,” stated Amãna Takaful PLC Chairman Tyeab Akbarally.
“It is no surprise that the non-life segment of the Industry growth has been stifled to 8.6%, half that of the corresponding achievement a year ago, primarily due to rampant price-cutting, more so in the motor class which growth has shrunk from 21.9% to 8.4%, in the same comparison,” said Amãna Takaful PLC Chief Executive Officer Fazal Ghaffoor.
The wisdom of such tactics by certain competitors in an environment of inflationary trends in up-scaled values in motor and servicing of claims is incomprehensible. Amãna Takaful remains steadfast to ethical practices, prudent under-writing and delivering on customer expectations. To this end, it is gratifying that our mid-term results are a reflection of that commitment to all our stakeholders he concluded.
Total investment income of Rs. 44.6 million, improved by 7% over the same period last year. Volatility in the bullion market was a constraint to the total output. Containment of the total operational expenses within budget that had a positive impact on the combined ratio reflects on the prudent productivity measures that are being vigorously pursued company-wide.
Meanwhile, given the shift in population demographics to an ageing population and consequently the demand for medical cover among senior citizens, the company took a bold initiative to develop and launch a new product “Krutha Guna” to cater the unmet hospitalisation needs of that segment. This stand-alone unique policy accommodates enrolment from the age of 55 to 73 years, and renewable thereafter for life.
Amãna Takaful was also recently awarded Best Islamic Financial Services Provider in Sri Lanka 2013 by International Finance Magazine based in London. The current board of Amãna Takaful PLC includes Tyeab Akbarally (Chairman), Ehsan Zaheed (Executive Director), Non-Executive Directors Osman Kassim, Dr. A.A.M. Haroon, Dr. T. Senthilverl, and Non-Executive Independent Directors M.H.M. Rafiq, Dato’ Fadzli Yusof, A.S.M. Muzzamil, Ali Sabry, Dr. Ifthikar Ismail and R. Gopinath.
