Amãna Takaful’s 9 months after tax profit up 36%

Friday, 21 November 2014 01:36 - - {{hitsCtrl.values.hits}}

Composite insurer Amãna Takaful PLC recorded a profit of Rs. 24.8 million for the period of nine months for the financial year ending 30 September 2014. The company recorded a 36% increase in profit after tax and 15% growth of total revenue over the same period of the previous year. At group level, the consolidated profits grew by 13% while the profits of Rs. 56.9 million were attributable to the equity holders of the parent company, growing by 27% in comparison to the previous year. The Life segment of the company outperformed the industry in terms of Gross Written Premium and grew by 26% over the period under comparison, supporting the company’s growth, despite revenue of the General segment remaining flat. This performance enabled Amãna Takaful to increase its market share in the Life industry, while securing its position in the overall industry. Amãna Takaful CEO Fazal Ghaffoor stated: “The healthy trend in the General Insurance industry, following the post war years, has been stifled significantly in 2014 to just under 2%. With Motor insurance accounting for almost two-thirds of the industry portfolio, price cutting in this class continues unabated, adversely affecting GWP growth. Furthermore, claims servicing costs and repairs continue to escalate. I believe that some sanity and floor-prices need to be implemented in a timely manner to address this issue.” The company, with prudent treasury management strategies generated an investment income of Rs. 182 million, which was 87% over the same period last year. This increase supported the profitability of the company and the group. Amãna Takaful PLC, the only fully-fledged Takaful operator in Sri Lanka, recently opened its 27th branch in Muttur, in the Eastern Province. Having further identified the increased health needs of people, Amãna Takaful recently launched ‘Suwasiri,’ a medical insurance product with hospitalisation benefits of up to Rs. 100,000 per person. This new insurance cover was launched in September 2014 to meet the growing needs of the mass market. Commenting on the mandatory segregation of composite insurers, Amãna Takaful Chairman Tyeab Akbarally stated: “We are pleased to note that the company is well on course towards the segregation of the Life and General businesses and is ahead of the timelines specified by the regulator of the insurance industry. The Rights Issue has been announced and we are working closely with the guidance of the regulator to comply with the necessary requirements. This exercise is providing us with a new opportunity to reposition all the companies, especially the Life business which is expected to grow exponentially. Amãna Takaful PLC has opted to spin off the Life segment as a fully owned subsidiary of the present company, which will retain the General business license.” Amãna Takaful Maldives PLC (ATM), a group company, grew by 12% in terms of top-line while recording improved underwriting performances. ATM is strategically investing in branding and innovation to sustain its growth momentum in the archipelago. The current Board of Directors of Amãna Takaful PLC includes Tyeab Akbarally (Chairman), Ehsan Zaheed (Executive Director), Non-Executive Directors Osman Kassim, Dr. A.A.M. Haroon, Dr. Ifthikar Ismail and Non-Executive Independent Directors M.H.M. Rafiq, Dato’ Fadzli Yusof, A.S.M. Muzzamil and R. Gopinath.