TAKAFUL MALAYSIA UNLOCKS LONG-TERM GROWTH

SYARIKAT Takaful Malaysia Keluarga Bhd (Takaful Malaysia), one of Malaysia’s leading family takaful operators as well as the country’s second-largest general takaful operator, continues to demonstrate resilience and reinforce its leadership in the industry.

Takaful Malaysia is committed to building on its solid foundation, further strengthening its competitive position, and driving strategic initiatives that deliver sustainable value for customers, shareholders and business partners.

The company reported a resilient performance in the first half of the year, with takaful revenue rising 9% year-on-year to RM1.85bil, an increase of RM159.2mil from RM1.69bil in 2024.

As of June, it strengthened its market leadership with a 28% share in the family takaful segment and a 23% share in the general takaful segment.

The company remains focused on expanding its market share across both segments, recognising that sustained leadership is vital to supporting long-term earnings visibility.

“Takaful Malaysia’s consistent performance, innovation and leadership in the takaful sector underscore our ability to adapt and grow even in times of market adjustments,” said Takaful Malaysia group chief executive officer Nor Azman Zainal.

“Our focus remains on creating long-term shareholder value while delivering meaningful solutions to our customers.

“By preserving and expanding our market share, we aim to sustain investor confidence and uphold a healthy market valuation.

“Despite market headwinds, we are confident in our ability to continue providing Shariah-compliant protection solutions and delivering long-term value to our customers, business partners and the community we serve.”

As part of its growth strategy, the company is expanding its portfolio beyond its core strengths of credit-related products and motor takaful business by introducing individual life protection offerings. It is poised to expand its general takaful business beyond motor coverage.

With only four players currently active in this segment, the company aims to strengthen its presence and gain a competitive advantage by offering comprehensive non-motor takaful solutions, including fire, solar, personal accident and other asset protection products.

Additionally, the company is also expanding into the family retail market, focusing on life protection and critical illness, which presents vast opportunities for the company to penetrate the untapped market, due to its low penetration rate.

With a takaful penetration rate of approximately 21%, the segment presents growth opportunities.

Building on strong momentum, Takaful Malaysia has garnered notable gains in the regular contribution segment over the past two years.

In line with its strategic expansion, the company is actively reaching customers directly through its digital platform, Kaotim, offering Malaysians competitive, comprehensive and affordable online protection plans.

In a major milestone, Takaful Malaysia secured an exclusive 20-year bancatakaful partnership with RHB Islamic Bank, one of the most significant and long-term collaborations in the local takaful industry.

This exclusive agreement grants the company sole rights to distribute its family and general takaful solutions across RHB’s extensive branch network, while also tapping into RHB’s wealth management clientele.

This partnership reinforces the company’s leading position in bancatakaful and provides a strong foundation for recurring revenue growth over the next two decades.

Furthermore, the company recently proposed an RM1bil Tier 2 Sukuk Wakalah Programme to reinforce its financial strength and growth capacity.

This initiative strengthens its capital base, enabling continued investment in digitalisation and technology infrastructure, and supports the company’s ambition to be the market leader in digital takaful solutions and customer experience.

“These initiatives reflect our proactive approach to future-proofing Takaful Malaysia.

“By investing in innovation, expanding distribution and diversifying our product mix, we are positioning the company for sustained earnings growth and long-term shareholder value creation.

“Equally, our unwavering focus on strengthening market share will be a key driver in supporting sustainable profitability and maintaining positive market sentiment,” added Nor Azman.

With a robust balance sheet and clear growth strategies, Takaful Malaysia remains well-positioned to capture opportunities in FY25, FY26 and beyond.

The company remains committed to delivering sustainable returns to shareholders while reinforcing its role as a leading provider of family takaful solutions and the second-largest general takaful operator.