Malaysian National Reinsurance Bhd’s subsidiary Takaful Ikhlas Sdn Bhd expects revenue for the financial year ending March 31, 2008, to grow 90% on-year to RM400 million, underpinned by aggressive marketing by agents and technology usage.
Its chief executive officer Syed Moheeb Syed Kamarulzaman said on Dec 31 that the company was recording about RM38 million in revenue every month. Its family takaful segment accounted for 75% of group revenue, with the rest coming from general takaful business.
He said the present penetration rate for conventional insurance in Malaysia was 39.8%, compared with only 6.1% for takaful insurance.
“The company will focus on selling more takaful products. We are targeting the Muslim community in urban and rural areas by enhancing the awareness, use of branding and a distribution network of insurance,” Syed Moheeb said.
He was speaking to reporters after presenting RM500 each to 20 students who excelled in the recent Uijian Penilaian Sekolah Rendah (UPSR) examinations here on Monday.
“We are also targeting the non-Muslim community by ensuring adequate price and service, product benefits and promotions provided."
Takaful Ikhlas is currently spending by “quite a substantial amount” in branding, corporate promotions and training its staffs, he added.
Out of the eight takaful operators in Malaysia, its market share was 13%. Syed Moheeb said the company was looking to increase it to 20% by 2010.
It has six branches currently, and plans to open another four in Putrajaya, Melaka, Kuantan and Ipoh by 2008. The investment in each branch was estimated at RM500,000.