The majority of Takaful Malaysia’s operations are chugging along well, HLIB Research said.
PETALING JAYA: Syarikat Takaful Malaysia Keluarga Bhd
(Takaful Malaysia) is optimistically cautious on its performance, with the exception of the employee benefit (EB) and motor segments, which are running smoothly.
According to Hong Leong Investment Bank (HLIB) Research, Takaful Malaysia had to deliberately prune some of its unprofitable clients to protect margins for the EB segment in the first quarter of 2024 (1Q24).
On its motor segment, HLIB Research noted that Takaful Malaysia’s motor takaful growth had tapered compared with 1Q24, given slower business from its online vehicle insurance marketplace BJAK.
“However, we are not unduly worried since customers here are generally younger and we think they have higher claims risk propensity, which could erode the already thin motor margin,” the research house said.
On the brighter side, the majority of Takaful Malaysia’s operations are chugging along well, HLIB Research noted.
The research house stated that the sales of credit-related products had remained resilient in 2Q24, riding on the tailcoat of strong Islamic banking growth via the bancassurance channel.
