IslamicFinance.de

Syarikat Takaful Malaysia has announced a final single-tiered dividend of 40%, which its shareholders approved at its AGM on Tuesday. Takaful Malaysia posted record-breaking results for 2013 as profit after tax and zakat grew by 34% to RM134.4mil from RM100.1mil in the previous financial year, with return on equity at 25.9%. With the proposed final dividends, the total single tier dividends for 2013, including the two interims dividends paid during the year, will be 82%, and this translates into a dividend yield of 6.6% based on the company’s share closing price of RM12.40 as at April 21, 2014. Group managing director, Datuk Mohamed Hassan Kamil said the company’s ultimate goal was to outpace the market and to strengthen its image through various advertising channels and marketing activities.

Syarikat Takaful Malaysia is targeting double digit-growth in new business this year driven by its family and group segments. Group managing director Datuk Mohamed Hassan Kamil said the company aims to maintain its lead in the group family takaful business, capturing 40% of the market sector, and 20% of the combined family and general takaful business. He noted that Takaful Malaysia will carry on being cautious in accepting only profitable underwriting contracts while avoiding those prone to greater risks. Hassan also mentioned that developing new product offerings is definitely an area the company is looking into as it strongly believes this would likely be the key driver of sales. Takaful Malaysia's growth areas are still within the fire and engineering segments.

Takaful operators in Malaysia are aggressively strategising their operations to ensure profitable growth and taking advantage of the five-year time frame given to composite takaful players to fully comply with the new Islamic Financial Services Act (IFSA). Under the Financial Services Act (FSA) and IFSA, which came into force on July 1, composite insurers and takaful players would be, among others, required to split their life and general insurance businesses under separate licences. Takaful Malaysia group managing director Datuk Mohamed Hassan Kamil said his company will be devising and evaluating potential options to achieve more efficient solutions from the capital management and shareholder return perspectives. On whether the Act would take a hit on Takaful Malaysia’s bottomline in view of the split in operations of its family (life) and general businesses, Hassan said although there would be potentially higher cost initially due to start-up costs, in the long run.

Syarikat Takaful Malaysia has put all future investments on hold until it gets a clearer picture on the newly-enforced Islamic Financial Services Act (IFSA). The takaful player had planned to make its first foray into the overseas property market last year and was vying for high yielding properties in London, the UK. However, with news of sweeping regulatory changes expected to be introduced under the IFSA, Takaful Malaysia is temporarily suspending plans. The firm has to study on how to utilise the required financial holding company as a vehicle for us to purchase foreign properties, according to group managing director Datuk Mohamed Hassan Kamil. As such, Takaful Malaysia is holding back its property purchases for now because later when the company is split into two separate units, it would be difficult with the property investment in the mix. Takaful Malaysia will have about RM335 million for property investment overseas.

Syarikat Takaful Malaysia Bhd will offer an additional 15 per cent no claim rebate to all its participants in the general and selected family takaful products. Moreover, the company will increase its value added service delivery amidst tougher competition. It was reported that Takaful Malaysia is confident of disbursing about RM35 million in no claim rebate this year to its customers given the positive growth in its General Takaful portfolio. Group managing director Datuk Mohamed Hassan Kamil said last year, Takaful Malaysia paid out a record RM31 million in no claim rebate to its customers, adding it is optimistic on capturing a more than 50 per cent market share from the current 40 per cent.

The Financial Services Act (FSA) and Islamic Financial Services Act (IFSA) which are expected to come into force by the middle of this year, would require composite insurers and takaful players to split their life and general insurance businesses under separate licences. Takaful Malaysia group managing director Datuk Mohamed Hassan Kamil said the Act would have an impact not only on talent hiring but also on retaining the existing talent, and would lead to staff pinching, resulting in higher wages but little improvement in productivity and efficiency. According to analysts, the impact would be felt more by takaful operators due to the higher number of composite or dual licences issued to them compared with conventional insurers.

The newly-launched Takaful mySME plan is expected to bring an income of RM10 million over the next 12 months. Group Managing Director Datuk Mohamed Hassan Kamil announced that the targets in the beginning are small-and-medium enterprise (SME) sectors of light manufacturing, food and beverages, retail, offices and services.
Takaful Malaysia also singned a Memorandum of Understanding with SME Corp Malaysia that has the purpose to jointly educate and create awareness among SME entrepreneurs on the importance of solid risk management processes.