Malaysia: Syarikat Takaful's 1Q net profit up 23% to $17.6m
Source: Middle East Insurance Review | Jun 2018
Syarikat Takaful Malaysia’s (STM) 1Q net profit was above forecasts, accounting for 32% of CIMB Equities Research’s full-year forecast and Bloomberg consensus estimate, reported The Star. The variance to its forecasts mainly came from lower-than-expected management expenses and tax rates – 18% in 1Q18 as compared to its previous forecast of 24% for FY18.
STM’s 1Q18 net profit surged 22.5% to MYR69.98m ($17.6m) on-year as the growth in the net contributions of 6.6% on-year was higher than the 2% on-year increase in management expenses.
STM’s 1Q18 gross earned contributions (GEC) registered a growth of 7.6% on-year. This mainly came from the explosive 27.2% on-year surge in the general takaful GEC.
The strong growth in the motor takaful contributions generated from digital channels and expansion of its sales force were the catalysts for growth in this segment. Following the swift expansion, general takaful GEC accounted for 36% of the company’s total GEC in 1Q18, up from 30.5% in 1Q17, said CIMB Research.
In contrast, despite the research house’s high expectations for the growth of STM’s family takaful business, its GEC contracted by 1% on-year in 1Q18. M
MYR1 = $0.25