Buletin Takaful

Source: The Edge Daily, 16th June 2009

BIMB Holdings Bhd says talks to dispose of a strategic stake in its takaful operations to Abu Dhabi-Kuwait-Malaysia Strategic Investment Corp are still ongoing but there could be some amendments.

BIMB group managing director Johan Abdullah said negotiations between Syarikat Takaful Malaysia Berhad (Takaful Malaysia) and the consortium was ongoing.

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Source: The Edge Daily, 25th May 2009

Bank Negara Malaysia (BNM) expects Malaysian insurance and takaful sector to be affected by potential lower demand for protection and related products in a highly competitive industry.

The expected decline in vehicle sales would impact the motor insurance and takaful business which accounted for 45% of gross insurance premiums last year, it said in its Financial Stability and Payment Systems Report 2008.

“Premiums are also likely to be affected to an increase in surrender rates and lower sums insured,” it said, adding policyholders would want to reduce costs.

It cautioned claims were expected to intensify due to higher incidences of theft and fraud and less regular maintenance.

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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.

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