Group Insurance and Takaful’s profit before tax (PBT) fell 19% to RM825 million in the financial year ended Dec 31, 2018 (FY18), after posting a record PBT of RM1.1 billion for FY17.
The lower profit was attributed to weakness in stock markets, accounting differences and the absence of disposal gains in the year prior.
“2018 proved to be a challenging year for Etiqa against a backdrop of global economic uncertainty, which impacted investment revenue across the insurance industry,” Etiqa Insurance and Takaful CEO Kamaludin Ahmad said in a statement.
The drop in PBT was also a result of adverse equity market performance and designation of equities as fair value through profit and loss that resulted in equities realised and unrealised losses compared to a large equity gain recorded, as well as gain from disposal of investment property recorded in FY17.
However, the insurance and takaful arm of Malayan Banking Bhd saw its gross premiums rising 17% to RM7.2 billion in FY18.
Its life insurance and family takaful business grew 16% to RM4.3 billion, while the general insurance and takaful business improved 17% to RM2.9 billion.
The group retained its position as the largest general insurer and takaful player in the country, with a 12.3% market share of the general takaful segment versus 11.6% in 2017.
In the life/family (new business) segment, Etiqa came in fourth with a market share of 11.2% for the Malaysian market, compared to 9.9% in the year prior.
It was also the biggest online insurer domestically with over 65% market share, while Etiqa’s bancassurance channel held a 20% market share in the overall life and family new business and a 22.8% share in regular premium weighted average sales.
He added that the group will continue to keep its focus simple in 2019, by ensuring fast and easy customer experience coupled with sound advice.
“We grew 17% in 2018 with new life/family business growing by 19% and general business growing by 10%, while the Malaysian insurance/takaful industry grew by 5% and 4% for new life business and general business respectively.
“We retained our No 1 bancassurance position as well as our No 1 online insurer position, and we’re No 2 for our fire general business,” Kamaludin said.
The group’s total assets stood at RM36.1 billion in FY18, up 4.7% from the previous year.
Etiqa operates in Malaysia, Singapore, the Philippines and Indonesia, via a 10,000- strong agency force, 46 branches and 17 offices over 490 bancassurance network.
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