Amana Takaful makes losses

Sri Lanka’s Amana Takaful PLC has recorded a Rs. 109.3 million loss during the financial year 2011, owing to the impact caused by increased claims and volatility in investments.

“Increased claims, volatility in investments, especially equities and gold in the latter half of the year, took its toll on profitability, resulting in negative bottom-line”, Chairman of the Amana Takaful PLC Tyeab Akbarally stated in the company’s annual report.

However, the revenues from the company’s local business operations have grown from Rs. 917 million in 2010 to Rs. 1,269 million in 2011, recording a growth of 38.4%.

The firm’s local general business has grown up to Rs. 965.3 million during the reference year, from Rs. 676.9 million recorded in 2010, which is a growth of 42.6%. “Similarly Life business grew by 26.5 percent which amounts to Rs. 64.0 million, by recording a gross written premium of Rs. 304.0 million compared Rs. 240.0 million in 2010”, added the Chairman in his review.

Amana Takaful says its subsidiaries, Amana Global, Amana Takaful Maldives and IGL have contributed positively to the Group.

According to Akbarally, lack of investment options for the firm still persists.

“Equity and bullion being volatile investments where fortunes can swing ways, the Islamic finance system and especially Takaful requires more avenues of investments in the form of Islamic Bonds and relaxation of rules to invest in Islamic finance windows in banks, where there is low volatility” said Akbarally.

(360.lk)