According to the insurer’s Chief Executive Fazal Ghaffoor; “While the Life segment contributed to our overall growth in volume, the modest increase in the General segment contributed largely to profits. This was possible mainly due to our ability to hold price, in addition to productivity gains and efficiency improvements, despite pressure on margins”. Elaborating, the company noted that the “Life business growth was balanced with new subscriptions between the regular portfolio and Prosper, our wealth management product, growing collectively by almost 50 per cent over 2012. The motor and non-motor classes improved by 9.8 per cent and 13.3 per cent, respectively. Motor class achieved product-line profitability for the first time in a full year while all other classes continued their profit momentum”.
Adding to this, Mr. Ghaffoor stated that the “net claims experience was Rs. 595 million, which is 2.9 per cent over 2012. Industry-wide, Amana Takaful has a record of a relatively low claims ratio, attributable to astute claims management due to prudent underwriting and risk assessment. This is reflected in our claims ratio of 54.2 per cent for the segment, which is the lowest amongst the insurance players who are listed in the Colombo Stock Exchange.
The combined ratio of the segment is 97 per cent and as a consequence the risk fund is in surplus for the second successive year, enabling the company to distribute a surplus to non-claimant participants this year too. The overall operational efficiency of the company is reflected in the underwriting margin of 28 per cent, the highest amongst the listed insurers. The total underwriting result for the year is Rs. 531 million, 24 per cent higher than 2012″.