Amana Takaful maintains growth momentum

Composite insurer, Amana Takaful PLC (ATPLC) maintained volume and profit momentum through the third quarter of 2013, continuing from the turnaround in 2012, largely from improved under-writing margins and above industry growth in the Life segment, a company release said.

Tyeb Akberally

A profit of Rs 27.7 million was recorded up to to September 2013, compared to Rs. 4.2 million a year ago.

The total Gross Written Premium (GWP) up to September 2013 was Rs. 1,319.7 million, a growth of 14.6% compared with Rs. 1,151.5 million a year ago.

The General segment accounted for Rs. 972.4 million, growing on a par with the industry at 9% in the nine-month period in 2012 while the Life segment's Gross Written Premium of Rs. 347.2 million to September 2013, grew 33.3% compared to the corresponding period, over-performing the industry average of 10%.

While ATPLCs Motor portfolio growth at 8.1% is below the industry's 12%, the Non-Motor portfolio grew at 11.8% versus the industry's 5.7%.

CEO Fazal Ghaffoor said, "While the motor insurance market was on a year-on-year slide due to lower imports, rampant price-cutting by key competition exacerbated the situation, weighing down industry growth.

However, we yielded satisfactory results from prudent underwriting and remaining steadfast in our pricing, resulting in a net claims ratio of 49% compared to 52% over the corresponding period of the past year."

"The motor portfolio reversed the loss-making trend experienced in 2012, with month-on-month product line profitability in 2013," he said.

ATPLC's Life GWP from unitised products grew significantly in comparison to the previous year to reach Rs. 177.7 million.

This performance propelled the Life Fund to a healthy 22.2% expansion over 2012.

At end of September 2013, the Life share of market improved to 1.2%.

Notwithstanding the volatility in bullion, judicious management of the diversified investment portfolio helped to yield a reasonable investment income mainly through other stable modes of investment options.

Amana Takaful Maldives revenue in the first nine months of 2013 was impacted negatively by 17.3% compared to a year ago, due to a slow-down in business activity, stemming from the political instability in the archipelago.

However, profit at Rs 72.5 million was lower by 4.3% over the corresponding period in 2012, notwithstanding the downslide in volume.