KUALA LUMPUR: Etiqa Insurance and Takaful is on its way to becoming the market leader for insurance and takaful with a total combined gross premium and contribution of RM5.4 billion for its financial year ended Dec 31, 2012 (FY12).
The insurance and takaful arm of Malayan Banking Bhd (Maybank) claims to be the leading takaful operator in Malaysia with a market share of 49.9% in general takaful and 36.3% in family takaful.
It registered a 11% year-on-year growth in pretax profit of RM660.5 million, citing improved surplus transfer from the life insurance/family takaful fund and favourable investment performance of all funds as the driver behind the growth.
“We are looking to leverage on the group’s strength and build a wider distribution footprint for our products and services as well as to be the market leader in this industry, to bring Etiqa to achieve its 2015 aspiration.
“It is definitely an achievable target for us considering our solid financial strength and as we increase our gross written premium (GWP) from RM2.8 billion in 2006 to RM5.4 billion this year,” said Etiqa Insurance and Takaful acting CEO and officer-in-charge Kamaludin Ahmad in a statement released yesterday.
The statement added both the life insurance/family takaful and general insurance/ takaful businesses for Etiqa with a recorded growth of 15% from last financial year, while total assets rose 9% to RM27.5 billion from RM25.1 billion in the previous year.
In FY11, Etiqa declared a GWP of RM4.3 billion, while number one contender Great Eastern Life Assurance (M) Bhd (GE) declared RM5.8 billion of gross premium for the same period. In FY12, GE declared a 6% increase in gross premium to RM6.15 billion.
Another major contender is American International Assurance Bhd. Its acquisition of ING Management Holdings (M) Sdn Bhd with a 13.5% share of total premium pushed the enlarged merged entity to a claimed top position within the life insurance industry with a 24.8% share of gross premium.
Etiqa is a merger between Malaysia National Insurance Bhd and Takaful Nasional Sdn Bhd with Mayban Fortis Holdings Bhd which consisted of Mayban Life Assurance Bhd, Mayban General Assurance Bhd and Mayban Takaful Bhd.
Etiqa is 69%-owned by Etiqa International Holdings Sdn Bhd and 31% by Belgium and Netherlands-based Ageas Insurance International.
Etiqa has a 23,000 agency force, 30 insurance and takaful branches, more than 450 Maybank branches, ATMs and other third-party banks.