Takaful Malaysia Posts Higher 4th Quarter 2020 Profit Amidst the COVID-19 Pandemic


Kuala Lumpur, 24 February 2021 – Syarikat Takaful Malaysia Keluarga Berhad (“the Group” or “Takaful Malaysia”) profit before zakat and tax (“PBZT”) for the fourth quarter ended 31 December 2020 was RM117.2 million, higher by 37% as compared to RM85.6 million registered in the corresponding quarter of the previous year whilst profit after zakat and tax (“PAZT”) for the quarter under review was RM103.8 million, increased by 34% compared to RM77.6 million recorded in the same quarter of the previous year. The Group reported a full year net profit after tax of RM 363.6 million, registering almost same results as compared to 2019. The Group’s total assets continued to witness a sterling performance over the last five years, increased by 14% to RM11.8 billion during the year under review from RM10.3 billion registered in the last financial year. Takaful Malaysia’s net assets per share also augmented to RM1.82 in 2020 from RM1.48 in the previous year.

Dato’ Sri Mohamed Hassan Kamil, Group Chief Executive Officer of Takaful Malaysia said, “We have been operating in a challenging market environment, amid the uncertainty and economic slowdown due to the impact of the COVID-19 pandemic, while adjusting to the new normal in order to maintain our business operations and protect the health and safety of our stakeholders. We recorded an increase by 2% in our profit before zakat and tax (“PBZT”) to RM426.8 million during the year under review from RM417.7 million registered in the previous financial year, mainly attributable from higher sales registered from our online sales portal.

Dato’ Sri Hassan Kamil further explained, “The unprecedented COVID-19 pandemic has dominated the economy and imposed multiple challenges, from business continuity issues to customer service considerations as well as the financial outlook. The decline in our operating revenue was mainly on account of lower sales generated from our Family Takaful business but our General Takaful business registered a growth of 7% compared to 2019. However, as a pioneer and an early adopter of online distribution and new digital technologies, our tranche of innovative online protection plans offered via our Click for Cover Online Sales Portal (“OSP”) has gained substantial sales volume, a testament to our successful digitalisation journey. Given the constraints of business activity arising from the phased lockdowns, we navigate the market uncertainty vigilantly to mitigate sales and operational challenges and thrive in the highly competitive landscape, with an eye to deliver sustainable shareholder value.”

Takaful Malaysia declared an interim single tier dividend of 12.0 sen per ordinary share amounting to RM99.7 million on 21 December 2020, which was paid on 29 January 2021. This translated into a dividend yield of 2.5% based on the Group’s share closing market price of RM4.84 as at 31 December 2020. The declared interim dividend represented a payout ratio of approximately 27.4% of the net profit generated for the period ended 31 December 2020.

“In spearheading the industry as a whole, we will focus on lower costs, better balance sheet supervision, and robust management of our business growth, profitability as well as financial position. Takaful Malaysia will continue to adopt sophisticated strategies through our digital agenda, introduction of innovative online protection solutions, increased distribution capabilities, strategic collaborations with leading Islamic financial institutions, as well as the implementation of investor relations program and advanced marketing strategies to further strengthen our brand-building efforts. We will keep embarking on digital solutions and constantly enhance our customer engagement approach through service propositions to achieve sustainable top-line and bottom-line growth,” said Dato’ Sri Hassan Kamil in conclusion.