Takaful Malaysia posts RM7.7m net loss in 3Q
May 20th, 2009 by 1takaful
Source: The Edge Daily, 20th May 2009
Syarikat Takaful Malaysia Bhd (Takaful Malaysia) posted a net loss of RM7.71 million in the third quarter ended March 31, 2009 (3QFY09), compared with a net profit of RM7.05 million in the corresponding period of FY2008.
The loss was mainly attributable to poor underwriting results and investment income as a result of the provision for diminution in value of investment, which had been impacted by the global financial crisis.
Revenue for the quarter was down 33.1% to RM187.67 million from RM280.68 million previously.
For the nine-month period, Takaful Malaysia’s loss stood at RM142,000, compared with a net profit of RM15.05 million recorded in the same period last year. Revenue fell 10.9% to RM679.44 million from RM761.99 million a year earlier.
In its statement to Bursa Malaysia, Takaful Malaysia said its family takaful business in 3Q09 saw a 62.4% drop in gross contribution to RM56.6 million, against RM150.5 million in 3Q08. However, general takaful’s contribution was higher at RM92.2 million, compared with RM81.9 million, it said.
For the nine-month period, family takaful generated gross contribution of RM299.8 million compared with RM434.7 million in the corresponding period of FY08, while general takaful recorded gross contribution of RM254.2 million compared with RM177.8 million earlier.
Takaful Malaysia also said its disposal of the 18-storey Darul Takaful at Jalan Sultan Ismail, Kuala Lumpur to Export-Import Bank of Malaysia Bhd was expected to be completed by September this year, and would result in a net gain on disposal of RM1.57 million.
“The takaful industry in the current financial year is geared towards slower growth. Amidst greater competition from new takaful operators and economic uncertainty, the company is positioning itself to continue to be at the forefront through the enhancement of IT systems to drive efficiency and optimise cost,” said Takaful Malaysia.