KUALA LUMPUR: Syarikat Takaful Malaysia Keluarga Bhd (Takaful Malaysia) posted a 40 per cent increase in revenue of RM892.2 million for the first quarter ended March 31, 2024 (1Q24).
This was a substantial increase of RM256.9 million compared to RM635.3 million registered in the same period of the previous year.
The group said the revenue growth was mainly driven by higher contribution recognised from the general takaful business and an increase in takaful coverage for the family takaful business.
Takaful Malaysia's profit after zakat and tax increased by nine per cent to RM102.3 million in 1Q24 from RM93.9 million in the same quarter last year.
Commenting on the results, group chief executive officer Nor Azman Zainal said Takaful Malaysia delivered resilient financial results and commendable performance in 1Q24.
"We recorded a profit before zakat and tax of RM150.3 million for 1Q24, higher by 16 per cent compared to the same period of the previous year of RM129.6 million.
"This was mainly attributable to higher profit contributed by the general takaful business and higher recognition of profit from contractual service margin (CSM) during the period under review.
"We continue to focus on leveraging our strong foothold in the bancatakaful, treasury, employee benefits and general takaful businesses, and diversifying our business portfolio into the retail market to sustain our growth trajectory," he said in a statement today.
The group's family takaful business generated takaful revenue of RM449.6 million for the quarter under review, which rose 57 per cent compared to RM286.5 million in the same period last year.
Meanwhile, its general takaful arm, Takaful Malaysia Am, recorded takaful revenue of RM350.4 million for 1Q24, 20 per cent higher compared to RM291.4 million registered in the same period last year.
Takaful Malaysia registered a net investment income of RM158.7 million, which increased by RM36.8 million from RM121.9 million recorded in the same quarter of the previous year.
This was mainly due to the increase in profit income from fixed income investments resulting from an increased investment portfolio and higher fair value gains on investments.
Looking ahead, Nor Azman said the group will emphasise its key focus areas of investing further in technology and digital innovation and tactically expand the general takaful business beyond the Motor segment as part of its growth strategy.
He added that Takaful Malaysia will reinforce its sustainability agenda, striving for sustainable growth through its product offerings and services, while investing in employee development to attract, develop, and retain quality talent.
"We stayed on track in realising our business strategies and driving value creation within our core business portfolios to deliver value to our stakeholders and fortify our position in the industry.
"Our strategies to diversify our business portfolios and strengthen our presence in the retail market by introducing Kaotim, a digital platform and brand managed by Takaful Malaysia that offers more affordable and accessible protection plans, have been well received by the market and yielded positive results thus far," he noted.
Nor Azman also said as the group seizes the growth prospects of the insurance and takaful industry, it stays competitive by executing its retail market strategy.
He noted that the group is developing comprehensive and competitively priced protection plans and positioning its core businesses as the key growth drivers.
"In addition, we are committed to our digital agenda, which involves integrating digitalisation and technologies, optimising our business operations, and enhancing the customer purchase journey experience, all of which are crucial for our future sustainable business," he said.