Takaful: Demand for family policies to boost contributions
(Business Times) ISLAMIC insurer Takaful Ikhlas Sdn Bhd will be banking on demand for its family policies to grow its gross contributions to RM600 million for 2010 and 2011.
At the same time, it wants to re-jig its general takaful business to reduce its dependence on motor insurance.
The company, a wholly-owned subsidiary of MNRB Holdings Bhd, had projected RM520 million in contributions for the year to March 31 2009. It has yet to report the full-year numbers.
In 2008, Takaful Ikhlas made RM428 million in contributions, a third more than a year earlier.
Some 80 per cent of its business come from family takaful with the rest coming from general policies. Takaful Ikhlas is bullish on the family business.
“It will definitely expand the family business as it is a long term business and profitable,” MNRB president and group chief executive officer Anuar Mohd Hassan said in an interview recently.
As for its general business, it plans to restructure the portfolio so that motor policies will make up half of its total by 2011 from 70 per cent now.
The motor insurance industry has been hit hard by high claims due to rising vehicle theft and the slump in vehicle sales.
“It a good time for Takaful Ikhlas to consolidate (its general business),” Anuar said.
MNRB, a company under the Permodalan Nasional Bhd group, is a sponsor of the Minggu Saham Amanah Malaysia 2009, currently being held at Padang Angsana, Johor Baru.