KUALA LUMPUR (Oct 25): Syarikat Takaful Malaysia Keluarga Bhd has posted a 73% jump in net profit to RM83.96 million or 10.19 sen per share for its third quarter ended Sept 30, 2018, from RM48.57 million or 5.9 sen a share in the prior corresponding period, owing to higher net wakalah fee income.

Gross earned contributions were up 38.5% to RM613.96 million in 3QFY18, according to its filing with Bursa Malaysia today.

Revenue rose 36.26% to RM648.95 million, from RM476.24 million the year before (3QFY17), attributable to higher sales generated by the Family and General Takaful segments.

Gross earned contributions for the Family Takaful segment increased 44.14% to RM436.7 million, compared with RM303 million the year before, on higher sales from credit-related products. At the same time, the segment also recorded a 37% increase in net benefits and claims of RM204.7 million, owing to higher death and medical claims.

The General Takaful segment generated gross earned contributions of RM177.1 million  — an increase of 26% — compared with RM140.3 million in the previous year, driven by fire and motor classes. On the other hand, net benefits and claims rose by a tenth to RM48.8 million, owing to a rise in fire and motor claims.

For the cumulative nine-months (9MFY18), net profit increased 35.88% to RM204.35 million or 24.81 sen per share, from RM150.4 million or 18.29 sen per share. Revenue improved by nearly a fifth to RM1.94 billion, against RM1.62 billion previously.

Gross earned contributions rose by a fifth to RM1.63 billion, from RM1.36 billion in 9MFY17.

The takaful operator’s Indonesian operations recorded loss before zakat and tax of RM5.2 million for the nine month period versus a profit before zakat and tax of RM30,000 last year, due to higher expense reserves.

“The Indonesian operations continued to be impeded by the window concept of promoting Islamic products practiced by conventional domestic players. The takaful industry in Indonesia is anticipated to continue experiencing challenges due to financial market volatility, in addition to economic conditions,” the filing said.

Looking ahead, Takaful Malaysia will remain focused on sustaining its position as market leader in the Family Takaful business, whilst expanding its market share in the General Takaful business, to establish a strong foothold in the industry.

“The Company will continue to enhance its digital capability to increase its product and service accessibility to consumers, by intensifying its online marketing initiatives,” the takaful operator said. The company will also embark on multiple digital initiatives to further develop ‘customer centric’ value propositions to remain competitive in the industry, it added.

The company will also continue to emphasize on its four core areas which are customer reach, operational agility, cost competitiveness and stakeholder confidence, to firmly establish the company as the preferred choice for insurance amongst consumers.

Takaful Malaysia closed down two sen or 0.54% to RM3.70 today, valuing the company at RM3.05 billion.