TakafulMalaysia

The prevailing need of Malaysians for a Shariah-compliant alternative to conventional insurance inspired the development of the takaful industry in Malaysia in the early 1980s. Following the recommendations of a special Task Force established in 1982 to study the viability of establishing an Islamic insurance company, the Takaful Act was enacted in 1984. As a result, Takaful Malaysia or formally known as Syarikat Takaful Malaysia Keluarga Berhad, the first takaful operatorinMalaysia,wasincorporatedon29November1984.

Since its inception over three decades ago, Takaful Malaysia has experienced rapid growth and transformation. Despite operating in a challenging market environment due to the normalisation of the economy as business and social activities resumed post-pandemic levels, Takaful Malaysia sustained its business operations to close the financial year 2022inasurpluspositionanddeliversustainableshareholder value.

Takaful Malaysia posted a record-breaking operating revenue of RM3.765 billion, higher by 18% for the financial year ending 31 December 2022, compared to RM3.179 billion in 2021. Its record-breaking operating revenue was mainly attributable to higher family and general takaful business sales. Takaful Malaysia recorded a substantial increase of 14%initsprofitbeforezakatandtaxtoRM500.0millionin2022, compared to RM438.7 million in the previous financial year, mainly due to higher net wakalah fee income.

Takaful Malaysia’s family takaful business generated gross earned contributions of RM2.177 billion, which rose 15% compared to RM1.887 billion in 2021, attributable to higher sales from credit-related products. Its general takaful business recorded gross earned contributions of RM1.026 billion, increased by 17% in 2022, compared to RM878.7 million in 2021, mainly attributable to the fire and motor class of business.

Solid financial fundamentals and strong operational resilience have supported Takaful Malaysia’s market leadership, enabling the takaful operator to continue with good business performance post-pandemic to support its growth strategies and expand its market share. Takaful Malaysia continues to leverage its leading market position in credit-related and general takaful business segments, develop advisory family takaful business and focus on retail market expansion to provide Malaysians with greater access to comprehensive and affordable protection solutions, ranging from general to family takaful products and has been providing takaful solutions and financial security to more than 3 million customers.

Theestablishedcorebusinessesinthebancatakaful,treasury, employee benefits and general takaful business segments continue to set a solid foothold of Takaful Malaysia’s market presence to expand its market share and strengthen its leadership in the local takaful industry. Furthermore, given the increasing demand for takaful products and the vibrant marketenvironment,TakafulMalaysiafocusesonpenetrating themarketfurtherandcapitalizingonbusinessopportunities.

With a portfolio of family and general takaful businesses, multi-channel distribution capability, strategic partnerships, customer-centric products and services, strong digital capabilities and brand equity, Takaful Malaysia is committed to helping people achieve their ambitions of a brighter and financially more secure future. Despite the uncertainties in the current economic environment to support business expansion, Takaful Malaysia remains vigilant and cautious in maintainingitsmarketshareandmanagingbusinessgrowth in 2023.

Takaful Malaysia incorporates sustainability in its business strategy and sets standards and frameworks to enhance its risk management and increase brand value and reputation. In addition, Takaful Malaysia establishes standards and guidance to provide reliable sustainability disclosures and reporting for improvement and transparency in conducting itsbusiness.TakafulMalaysiamanagesitsoperatingfootprint to minimize the impact of business operations to preserve the environment for future generations and meet the needs of its stakeholders.

Takaful Malaysia is a constituent of the FTSE4Good Index

Series following the FTSE4Good Index Series December 2022 review. In its continued efforts to improve financial performance, Takaful Malaysia is committed to adopting the environmental,socialandgovernance(“ESG”)principlesand recognizing the importance of ESG in its business operation. Takaful Malaysia focuses on creating long-term stakeholder valuebyimplementingstrategiesthatemphasizetheethical, social, environmental, and economic dimensions of its business.

Products and services offered by Takaful Malaysia, including itsbusinesspracticesandstrategies,arealignedtogenerate a sustainable impact on the economy, community, and environment. As a leading takaful operator, Takaful Malaysia is committed to adopting sustainable practices as part of its business strategy to operate efficiently and increase its growth curve.

Implementing “Impact Investment” and integrating ESG in its investment evaluation for equity and corporate Sukuk, Takaful Malaysia systematically uses environmental, social and governance data in investment decision-making, especially for two key asset classes, equity and Sukuk. Additionally, Takaful Malaysia identifies and evaluates profitable investment opportunities with a specific social or environmental impact by generating financial returns commensurate with the risks.

Committed to adopting sustainable practices as part of its business strategy to operate efficiently and competitively, Takaful Malaysia continues to be vigilant and prudent in managing operating costs, business growth and the risk profile of its business portfolios. Takaful Malaysia’s strategic direction is to diversify its business portfolio and ensure future sustainable business to complement its existing core businesses.

Staying competitive in the local takaful industry, Takaful Malaysia will continue to capture the next wave of growth and propel its leading position to maintain a strong foothold in the family takaful business, expand its general takafulbusinessandseizemarketopportunitiestogrowits business in the years to come. As a pioneer in the takaful industry,TakafulMalaysiaemphasizesbuildingalong-term sustainablebusinessindeliveringvaluetoitsshareholders and meeting the protection needs of customers.

Key Highlights Of Takaful Malaysia

• Achieved a new milestone with a historical record of RM3.3 billion in total gross contributions and RM500 million profit before zakat and tax in 2022

• Leading family takaful operator with a 21% market share in the family takaful business

• Second largest general takaful operator with a 25% market share in the general takaful business

• A constituent of the FTSE4Good Index Series following the FTSE4Good Index Series December 2022 review

• Winner of the Highest Growth in Profit After Tax Over Three Years (Financial Services Sector) Award - The Edge Billion Ringgit Club Corporate Awards 2022

• Voted the Most Outstanding Company in Malaysia (Insurance Sector Category) – Asiamoney Asia’s Outstanding Companies Poll 2022

• Recognised as Graduates’ Choice Award (GCA) Most Preferred Graduate Employers to Work For in 2022 by Talentbank

• Awarded as one of HR Asia’s Best Companies to Work for in Asia in 2022 – Insurance (Malaysia Edition)