KUALA LUMPUR: Takaful Malaysia Keluarga Bhd posted a profit after zakat and tax of RM93.99 million for the first quarter (Q1) ended March 31, 2023, an increase of 22 per cent from RM77.0 million a year ago.
The insurance firm said this is the first time the company has published its financial results based on Malaysian Financial Reporting Standard 17 (MFRS 17).
Group chief executive officer Nor Azman Zainal said the company also posted a profit before zakat and tax of RM129.6 million for Q1 FY23, which is higher by 19 per cent compared to RM109.1 previously.
Nor Azman said the rise in profit before zakat and tax is attributable to higher profit from fixed-income investment assets and a lower fair value loss on investment assets.
"Our family takaful business generated takaful revenue of RM232 million for the quarter, higher by 17 per cent compared to RM199 million in the same period last year, mainly attributable to the higher amount charged for takaful coverage.
"Our general takaful arm, Takaful Malaysia Am, recorded takaful revenue of RM291.4 million for Q1 of FY23, 25 per cent higher compared to RM232.6 million registered in the same period last year," he added.
He said the higher takaful revenue is primarily due to higher contribution income from the fire and motor takaful classes of business.
On net investment income, Takaful Malaysia Keluarga registered RM83.9 million for Q1 FY23, which increased by RM45.1 million from RM38.8 million recorded in the same quarter of the previous year.
The takaful operator said this is due to higher profit income from fixed-income investments and lower net value losses on financial assets.
Takaful Malaysia Am's net investment income for Q1 FY23 increased by RM5.4 million from RM7.8 million recorded in the same period of the preceding year to RM13.2 million, attributable to higher profit income from fixed-income investments.
Nor Azman also said the company aims to maintain market leadership in its traditionally credit-related solid products, employee benefits, and treasury segments, which he said will continue to perform and generate business growth.
" We simultaneously leverage healthy growth with our bank partners to sustain our market leadership in the bancatakaful business portfolio, focusing on developing the advisory family takaful business and further penetrating the retail consumer market.
"Our general takaful arm will continue to be an imperative growth area, reinforced by our multi-distribution strategy and a robustly growing demand for online motor takaful products. In addition, we strengthen our corporate agency force by retaining and recruiting high-potential corporates," he said.