Family takaful to drive Takaful Ikhlas' profits

Takaful Ikhlas Sdn Bhd is looking to boost its family takaful business, regarded as a long term saving mechanism, to drive the company's growth and profitability further. According to its president and CEO Ab Latiff Abu Bakar, the company's family takaful business should grow by another 10% to contribute 70% of its gross contributions in the next three to four years. For the financial year ended March 31, 2012 (FY12), family takaful made up just over 60% of the operators contributions at RM501 million. One opportunity for growth is the expansion into corporate or group business which remains under-penetrated but a good way to reach the masses at a faster and cheaper rate. Takaful Ikhlas will also look to introduce new products packaged with Islamic services to further grow its family takaful segment.