Takaful Ikhlas Growth 2013

Islamic insurance provider Takaful Ikhlas Sdn Bhd expects to close its financial books for the year ending March 31 with a 20% year-on-year growth in assets.

“The takaful insurance industry is expected to grow due to good domestic demand. We still have time to close our books but for the financial year 2013-2014 (FY14), I think it should be about 20% growth,” Takaful Ikhlas president and CEO Ab Latiff Abu  Bakar told The Malaysian Reserve in Kuala Lumpur yesterday.

The takaful operator had reported a net earned contribution of RM653.8 million for FY13 and a profit of RM10.1 million, according to the company’s financial report.

Takaful Ikhlas is the underwriter for the scheme. “Takaful Ikhlas currently in third position in the sector and has a market share of 12%,” Ab Latiff said.

In the takaful insurance segment in Malaysia, apart from Takaful Ikhlas, there are other players like AIA AFG Takaful Bhd, AmFamily Takaful Bhd, Etiqa Takaful Bhd, Great Eastern Takaful Sdn Bhd and others. The insurance and takaful sector in the country has been growing and is expected to remain stable in 2014 amid domestic demand.

Both conventional and takaful operators are coming out with new products. According to a report from Ernst & Young, Malaysia is known to be the world’s largest family takaful market and is expected to continue to take the lead in the Asean takaful industry.