Takaful market in Malaysia

SYARIKAT Takaful Malaysia Bhd aims to capture more than half of the takaful industry's total asset market share within the next two years amid the current economic slowdown.

Group managing director, Datuk Mohamad Hassan Kamil, said the industry''s total assets amounted to between RM11 billion and RM12 billion while the company''s share currently was RM4.05 billion.

"We will grow slightly above the current takaful market rate, which is between 20 and 25 per cent per annum," he told a media briefing after signing an agreement with Standard Financial Planner Sdn Bhd (SFP) in Kuala Lumpur today.

SFP, which was set up in 1999, is one of only ten licensed financial advisors in Malaysia.
It is a member of the Australian-based Professional Investment Group of Companies that operates across seven countries.
Hassan said under the agreement, SFP would market Takaful Malaysia's products through its nationwide network of more than 300 representatives, of which 75 per cent were licensed financial advisors with Bank Negara Malaysia.

He said the addition of SFP to its existing portfolio of distribution channels would boost the company's revenue by 10 per cent.

"This will enhance the penetration rate of our family and general products into the middle-upper Malaysian market as well as making them more accessible wider customer base.

"We will work closely with SFP's financial advisors to offer comprehensive insurance, investment and saving options to satisfy the holistic demand from customers," he said.

Takaful Malaysia posted a pre-tax loss of RM11.461 million for the third quarter ended March 31, 2009 compared to a pre-tax profit of RM11.07 million in the same quarter last year.

Revenue declined to RM187.667 million from RM280.678 million previously.

Hassan said Takaful Malaysia planned to undertake a rebranding exercise to reflect its fresh characteristics in conjunction with its 25th year anniversary in December. - Bernama