Kuala Lumpur – Syarikat Takaful Malaysia Bhd ( Valuation: 0.50, Fundamental: 0.95) reported a flat net profit growth of 3.49% to RM34.42 million or 4.21 sen a share for the third quarter ended Sept 30, 2015 (3QFY15), from RM33.26 million or 5.11 sen a share a year ago.
The group recorded a revenue of RM389.24 million for the quarter, 1.29% lower from RM394.32 million in 3QFY14, mainly due to lower sales generated by the Family Takaful business.
For the quarter under review, Family Takaful recorded gross earned contributions of RM252.3 million against RM225.2 million in the same quarter last year.
Meanwhile, the General Takaful business generated gross earned contributions of RM112.6 million as compared to RM115.8 million a year ago.
“The nine-month period (9MFY15) saw a 7.97% increase in net profit to RM119.59 million or 14.65 sen a share, from RM110.77 million or 13.61 sen a share a year ago, attributable to higher wakalah fee income,” Takaful Malaysia said in a filing to Bursa Securities ( Valuation: 1.70, Fundamental: 2.30) today.
Revenue for 9MFY15 jumped 11.2% to RM1.39 billion from RM1.25 billion a year ago, as the group generated higher sales from both Family Takaful and General Takaful businesses, as well as higher net investment income.
The group said in the filing that it will continue its value proposition of rewarding its customers with 15% cash back for General Takaful products and establish a strong foothold in the local insurance and takaful arena.
Takaful Malaysia closed one sen or 0.26% lower at RM3.78, with 227,100 shares traded. It had earlier reached an intra-day high of RM3.8 before paring down some gains.
The group’s share price gives it a market capitalisation of RM3.09 billion.
Originally published on www.theedgemarkets.com