Takaful Malaysia looking for acquisition
Source: Middle East Insurance Review | Jun 2015
Syarikat Takaful Malaysia is hoping to acquire a local takaful company over the next two years to strengthen its operations, said Group Managing Director Dato’ Mohamed Hassan Kamil.
Speaking at a press briefing after the company’s annual general meeting, Dato’ Mohamed Hassan said that the Islamic Financial Services Act (IFSA) of 2013 would create opportunities for M&As in the takaful business. Under the IFSA, Malaysia’s composite and takaful players are required to split their life and non-life businesses into separate entities.
Dato’ Mohamed Hassan added that the company expects contributions in 2015 to grow faster than the industry average of 11%. Sales to new customers have increased from last year, especially in the employee benefit business.
The company is targetting a growth of about 20% in contributions for employee benefits from the MYR300 million (US$83.8 million) registered last year, and aims to secure 200,000 more policy holders this year.
For the year ended 31 December 2014, profit after tax grew 3% to MYR138.7 million from MYR134.4 million in the previous year. Family takaful contributions declined 9% to MYR958.1 million due to lower new business sales from credit-related products, while general takaful contributions increased by 5% to MYR451.3 million.
Takaful Malaysia has a 23% market share of the group family takaful business and a 21% share of the overall family takaful business with a 21% share. It is also the second-largest general takaful operator with a 19% share of the pie.
MYR1 = US$0.28