Takaful industry experiences strong growth
Aug 30th, 2008 by Takaful
Source: The Star, 30th August 2008
The takaful industry grew strongly in the first six months with combined takaful contribution income increasing 23.0% to RM1.4bil against the same period last year.
This accounted for 8.5% of total premiums of the insurance industry as at end-June.
In the family takaful sector, new business contributions recorded stronger growth of 98.1% to RM1bil, driven by the expansion in investment-linked products following new product launches early this year, and high growth in endowment products recorded by the new takaful operators.
New business contributions for investment-linked business grew more than two-fold to RM351.2mil (Jan-June 2007: RM152.1mil).
Market penetration, measured in terms of family takaful certificates in force to the total population, deepened to 8.2% as at end-June (end-2007: 7.7%).
In the general takaful sector, net contributions, however, decreased 6.7% from the first half of 2007 on account of a 34.2% fall in fire insurance to RM97.6mil and a 46% drop in marine, aviation and transport insurance to RM13.8mil.
Takaful assets expanded 25.1% to RM9.6bil as at end-June and accounted for 6.9% of the total assets of the insurance industry.