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Wednesday, 9 April 2014 00:00 - - {{hitsCtrl.values.hits}}
Taking into consideration the challenges faced in the operating environment by extraneous circumstances in early 2013, Amãna Takaful continued its track record of growth in both Life and General segments of the business.
Consolidated Gross Written Premium (GWP) of Rs. 1.9 b showed an increase of 19.7% over 2012. This growth is twice the industry pace, a feat the company has consistently achieved in the last three years. Individually, GWP of the General and Life segments of the business recorded Rs. 1.32 b and Rs. 543 m respectively.
The Life business growth was balanced with new subscriptions between the Regular Portfolio and Prosper, with the wealth management product growing collectively by almost 50% over 2012. The motor and non-motor classes improved by 9.8% and 13.3% respectively. Motor class achieved product-line profitability for the first time in a full year while all other classes continued their profit momentum.
Commenting on the achievements for 2013, Amãna Takaful CEO Fazal Ghaffoor stated: “While the Life segment contributed to our overall growth in volume, the modest increase in the General segment contributed largely to profits. This was possible mainly due to our ability to hold price, in addition to productivity gains and efficiency improvements, despite pressure on margins.”
Commenting further on the General segment’s performance, Ghaffoor continued: “The net claims experience was Rs. 595 m, which is 2.9% over 2012. Industry-wide, Amãna Takaful has a record of a relatively low claims ratio, attributable to astute claims management due to prudent underwriting and risk assessment. This is reflected in our claims ratio of 54.2% for the segment, which is the lowest amongst the insurance players who are listed in the Colombo Stock Exchange. The combined ratio of the segment is 97% and as a consequence the risk fund is in surplus for the second successive year, enabling the company to distribute a surplus to non-claimant participants this year too. This keeps in line with our momentum in 2012 where we distributed a surplus of 12.5% to all non-claimant participants.”
“The overall operational efficiency of the company is reflected in the underwriting margin of 28%, the highest amongst the listed insurers. The total underwriting result for the year is Rs. 531 m, 24% higher than 2012,”Ghaffoor concluded.
The industry’s double digit growth in the post conflict years was restricted to 9.8% in 2013, principally by the lower performance of the motor class which accounts for two-thirds and more of the market. Motor class growth halved from 16.5% in 2012 to 8.2% in 2013 due to lower registrations exacerbated by heightened price-cutting which took a toll on value performance.
In order to ensure growth and to better meet emerging opportunities, the company has expanded its geographic footprint to Akkaraipattu and Vavuniya, bringing the branch network to 24. Motor claims processing has been de-centralised to Galle and Kurunegala to speed-up service standards in the two regions. These actions were aimed at disbursing claims in 24 hours on the submission of duly completed documentation.
To complement and strengthen branch activity throughout the year, a dedicated mobile propaganda unit provided support to spread awareness through an out-reach program deploying interactive techniques and media.
Commenting on the results, Chairman Tyeab Akbarally opined: “I am pleased with the profit out-turn continuing from the turnaround in the previous year despite the challenging environment. 2014 could be even more daunting amidst the preparation for the segregation of the composite businesses envisaged by regulation. Shareholders and the insuring public, in particularly our customers, will be assured of a seamless transition, while the business imperatives for the ensuing year will be met.”
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 and Dr.Ifthikar Ismail and Non-Executive Independent Directors M.H.M. Rafiq, Dato’ FadzliYusof, A.S.M. Muzzamil, Ali Sabry and R. Gopinath.
