KUALA LUMPUR: Syarikat Takaful Malaysia Keluarga Bhd's (Takaful Malaysia) net profit increased by 20.2 per cent to RM87.27 million in the third quarter (Q3) ended September 30, 2022, from RM72.6 million recorded in the same quarter a year ago.
In a statement today, the takaful operator said the increase in net profit during the quarter was mainly contributed by higher net wakalah fee income.
The company achieved this despite the imposition of 'Cukai Makmur' for the assessment year 2022, amounting to RM11.1 million.
Revenue in Q3 jumped 35.1 per cent to RM924.42 million from RM684.32 million, mainly due to higher sales from the family takaful and general takaful businesses.
Group chief executive officer Nor Azman Zainal said Takaful Malaysia's quarterly business performance has grown on a positive trend underpinned by its multi-distribution strategy.
This continues to reinforce the company's business growth.
"We will strive to keep our positive momentum to meet stakeholders' expectations and achieve the targets set for 2022.
"Therefore, our strategic direction is strengthening our presence in the retail market by providing Malaysians with greater access to complete protection solutions, ranging from general to family takaful products," he said.
For the quarter, Takaful Malaysia's family takaful business recorded gross earned contributions of RM594.6 million, higher by 43 per cent, compared to RM414.7 million in the same period last year, mainly due to higher sales from credit-related products.
Additionally, investment income for the family takaful business for the current quarter rose to RM81.0 million, up 11 per cent compared to RM73.1 million in the same quarter last year, attributable to higher profit income from fixed-income investments.
In addition, the general takaful arm of Takaful Malaysia continues to gain momentum and record positive performance to support the company's growth.
Takaful Malaysia's general takaful business generated an 18 per cent increase in gross earned contributions to RM257.5 million from RM218.4 million in the same quarter last year, mainly due to the
fire, motor and engineering classes of business.
Investment income for the general takaful business also increased by 24 per cent to RM9.2 million from RM7.4 million recorded in the same quarter of the previous year, mainly due to higher profit from fixed-income investments.
For the nine months, Takaful Malaysia's net profit eased 4.6 per cent to RM243.66 million from RM255.29 million, while revenue grew 19.7 per cent to RM2.75 billion from RM2.3 billion.
Moving forward, Nor Azman said the company looks forward to a robust performance on the back of a low takaful penetration rate and continued drive for shariah-compliant products.
"We are committed to adopting sustainable practices as part of our business strategy to operate efficiently and further increase our growth curve.
"Takaful Malaysia is well-positioned to deliver commendable business performance and drive innovation in providing comprehensive and affordable takaful solutions to Malaysians," he added.