Amăna Takaful posts Rs 49.7 mn profit for 2012
Composite Insurer Amăna Takaful PLC reported a profit of Rs. 49.7
million as per the unaudited accounts for 2012 with an impressive growth
of 22.4% in Gross Written Premium, well above the industry’s 10.6%.
Fazal Ghaffoor |
The company’s performance in terms of total Gross Written Premium (GWP)
of Rs. 1,553.8 million for 2012 compares with Rs.1, 269.1 million of
2011. In this performance, the General Insurance business accounted for
Rs. 1,193.9 million, growing significantly at 23.7% over 2011.
The Life segment’s Gross Written Premium of Rs. 359.9 million,
reflects a growth of 18.5% in the same comparison. These results reflect
a substantial upside against the industry performance of 14.6% and 5.5%
on General and Life businesses respectively. (Source IASL)
ATPLCs General business performance was well supported by a
refreshing growth of 31.7% in the Non-Motor portfolio, while the premier
Motor portfolio grew by a modest 20.8%. Its Medical portfolio’s GWP
growth of 42.4% has come through with enlistment of new corporates and
the flexibility to tailor-make offers. As a consequence, the Motor -
Non-Motor mix improved to 72:28 in line with our strategy for a balanced
portfolio. From an industry standpoint, the company’s market share
improved from 2% to 2,3%, while retaining its market position, despite
fierce price competition and the entry of new players.
In the Life segment, ATPLC’s protection products showed good promise
since re-launch in June, while Prosper - the Unit Link offer is
attracting increasing subscription, despite the equity market
volatility, with a growth of 45.2% compared to a year ago. These
performances drove the Life Fund during the year by a substantial 30.7%.
Moreover, ATPLC’s average weighted premium in Life policies remains
steadfast at the number two slot among Life players in the industry.
(Source IASL).
ATPLC’s underwriting result improved from the 3rd Quarter,
principally on account of better production, prudent management of the
Motor portfolio, through the re-fashioning of its motor product and
streamlining the under-writing and claims process.
Notwithstanding the slide in the equity market conditions, the
judicious management of the diversified investment portfolio yielded an
upside, principally in bullion, boosting significant returns over the
previous year. The aforementioned performance improvements and
investment returns helped to mitigate the over-run on motor claims and
return to profits after 5 years. The profit out-turn of Rs 49.7 Million
compares with a loss of Rs 109 Million reported in 2011.
At Group level, a consolidated profit of Rs. 135.7 Million is
reported prior to minority interest, in which the Maldives Takaful
operation contributed substantially among the other subsidiaries. Amăna
Takaful Maldives (ATM), now in its first year of operation as a PLC,
recorded a GWP of MRF 71.5Million (LKR 607.4 Million) for the year
posting a commendable growth of 66% over 2011. The profit arising from
this business performance is MRF 9.4 Million (LKR 80.3 Million), of
which 45% is attributed to minority shareholders.
“Responding to market dynamics, the re-launch of our Life products in
June, followed by the re-fashioning of our motor flagship brand -Total
Drive in July, the company’s portfolio is now in much better shape to
take advantage of the immense potential in these segments,” said Fazal
Ghaffoor, CEO, Amăna Takaful PLC commenting on the performance on the
company.
“Productivity gains through prudent cost management and process
improvement are giving the much needed impetus to improve business
results and service delivery,” added Ghaffoor. Amăna Takaful’s
geographic foot-print has expanded to Trincomalee, Batticaloa, Jaffna
and Hambantota with the opening of new branches which re-emphasizes that
Takaful is available to all Sri Lankans. Four other branches have been
re-located and refurbished with state of the art connectivity to cater
to customer touch points.
“I am pleased to say that in spite of the challenging market forces
at play, Amăna Takaful has been focussed on delivering stakeholder
expectations and returning to profit. I am confident that this growth
momentum will be sustained in the coming year” said Tyeab Akberally,
Chairman, Amăna Takaful PLC, in his review of the Company’s performance. |