Composite fully-fledged Takaful insurer Amãna Takaful PLC, recorded a net profit of Rs.56.5 million for the nine months ended September 30, 2014, up from Rs.44.5 million reported in the same period of the previous year, with an earnings per share of 6 cents up from 4 cents.The gross written premium (GWP) reported during the period under review rose 9 percent year-onyear (YoY) to Rs.1.84 billion.The group was able t o book Rs.180.2 million under investment income during the period, which was up 79 percent YoY.Total claims, benefits and expenses during the period rose 12 percent YoY to Rs.1.59 billion.The finance cost decreased 71 percent YoY to Rs.4 million.
The General insurance segment reported revenue of Rs.844.8 million during the nine months under review, against Rs.823.6 million i n the same period of the previous year. The segment’s pre-tax profit stood at Rs.37.9 million, up from Rs.34.2 million.The Life insurance segment reported healthy revenues of Rs.521.1 million, up from Rs.387.2 million. “The Life segment of the company outperformed the industry in terms of gross written premium…” the company said in a statement.
“This performance enabled Amãna Takaful t o i ncrease its market share in the Life industry, while securing its position in the overall industry,” it added.
Group subsidiary Amana Takaful Maldives PLC, which is listed in the Maldives Stock Exchange, posted revenue of Rs.247.7 million, up from Rs.259 million. But the pre-tax profit fell to Rs.66.5 million from Rs.72.5 million
Amãna Takaful CEO Fazal Ghaffoor stated, “The healthy trend i n t he General insurance industry, following the post-war years, has been stifled significantly in 2014 to just under 2 percent. With Motor insurance accounting for almost two-thirds of the industry portfolio, price cutting in this class continues unabated, adversely affecting GWP growth. Furthermore, claims servicing costs and repairs continue to escalate.I believe that some sanity and floor-prices need to be implemented in a timely manner to address this issue.”Commenting on the mandatory segregation of composite insurers, Amãna Takaful Chairman Tyeab Akbarally stated, “We are pleased to note that the company is well on course towards the segregation of the Life and General businesses and is ahead of the timelines specified by the regulator of the insurance industry.The rights issue has been announced and we are working closely with the guidance of the regulator to comply with the necessary requirements.This exercise is providing us with a new opportunity to reposition all the companies, especially the Life business, which is expected to grow exponentially. Amãna Takaful PLC has opted to spin off the Life segment as a fully-owned subsidiary of the present company, which will retain t he General business licence.”