TAKAFUL IKHLAS SELECTED ‘BEST TAKAFUL PROVIDER’ IN EUROMONEY ISLAMIC FINANCE AWARDS 2010, Feb 2010

Takaful IKHLAS Sdn Bhd, provider of products and services in Shariah-based financial protection, has won the Best Takaful Provider in Euromoney Islamic Finance Awards 2010. The awards presentation ceremony was held at the Landmark Hotel, London yesterday.

"The prestigious recognition which we received today shows that we are committed in achieving our mission to be the preferred provider of financial protection services guided by Islamic principles and values by offering innovative and quality products to customers at all times. This proves that our products are getting good reviews and attention from the international community," said Dato' Syed Moheeb bin Syed Kamarulzaman, Takaful IKHLAS, President and Chief Executive Office after receiving the Euromoney 2010 award on behalf of Takaful Ikhlas Sdn Bhd.
The Euromoney Islamic Finance Awards 2010 award is a prestigious recognition in the Islamic calendar and annually recognises outstanding performance, quality, service and innovation in the sector.

"We are very delighted to accept this high-status award from Euromoney. This accomplishment ultimately has elevated Takaful IKHLAS brand to a higher position in the services of financial protection guided by Islamic principles and values. Takaful IKHLAS brand has its own mission, destination and image; factors which are not easily to acclimatise by our competitors. Anyone who is an ardent follower will be captured with our development, performance and strategy execution analysis," said Syed Moheeb.

Elaborating, Syed Moheeb said, "I would like to thank the Malaysian government, supportive customers, the upper management and employees of Takaful IKHLAS. This recognition is a mandate for Takaful IKHLAS dedicated team to strive harder to deliver quality, professional service in line with their commitment to ensure that Takaful IKHLAS will always be the preferred provider of financial protection services guided by Islamic principles and values which offers innovative and quality products. Takaful IKHLAS consists of not only committed employees but also employees that carry good values and sincere in executing their tasks."

"We always consolidate and strive to provide more quality products and services to our customers. Customers are our main priority. With solid support given to us by our customers allows us to stand strong and tall in the takaful industry. We will keep our momentum rolling and aggressively introduce and provide more innovative and quality products to our customers. We pledge to continue in spreading the Islamic muamalat and the branding of Takaful products locally and internationally," Syed Moheeb concluded.

Source: Takaful Ikhlas

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MNRB profit jumps 73pc to RM45.5m

MNRB Holdings Bhd saw its profit jump 73 per cent to RM45.5 million for the financial year ended March 31 2010 due mainly to release in unearned premium reserves of Malaysian Re amounting to RM52.4 million, higher share of profits from reinsurance associate, investment income and wakalah fees from its units.

The profit, however, was partly offset by the provision for RM44.5 million impairment loss on MNRB’s investment in Principle Insurance Holdings Ltd (PIHL).

On April 28, PIHL announced the conditional sale of its subsidiaries, namely Principle Insurance Co Ltd and l’rinciple Marketing Services Ltd, to Al Salam Group Holding Co K.S.C.C a member company of the Kuwait based Al Madina Group, for an undisclosed sum.

Given the uncertainty surrounding PIHL, the group has made a full provision amounting RM44.5 million in the curent period for the impairment of its investment in P11Th.

"PIIIL has agreed to accept this offer from the Kuwait based company. Their intention is to recommence the trading and they have indicated an injection of 25 million (RM1I8 million) for recapitalisirig.

"MNRB hopes to see recommencing of business by third or fourth quarter this year," said MNRB executive vice-president and group chief financial officer Norazman Hashim. He was speaking to reporters after announcing the group’s financial results in Kuala Lumpur yesterday.

"PIlL wants to accept this offer from the Kuwait-based company. They intend to start trading again and would need 25 million to recapitalise. We hope to see this materialise by the fourth quarter this year," he said.

MNRB has three main subsidiaries that serve different market segments, namely Malaysian Re, which underwrites treaty and facultative reinsurance from the Malaysian market; Takatul lkhlas, which offers Islamic insurance for the local market; and MNRB Retakaful Bhd, which provides retakaful solutions.

Asked on the group’s outlook, Norazman replied that MNRB wants to expand its underwriting business outside Malaysia. "We are looking at expanding the general and family business of MNRB Retakaful in the overseas market." Currently, the general business is the larger contributor to MNRB Retakaful but the future growth is seen in the family segment.

NST

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Takaful widens reach

The way a product is distributed evolves as customers mature. This can be seen in the takaful industry, which has been growing at a rapid pace. Takaful assets and contributions increased at an average rate of2l% and 29% respectively in the four-year period ended Dec 31, 2008.

According to the Ernst & Young World Takaful Report 2010, the global takaful industry will surpass US$8.8 billion (RM28.15 billion) in contributions this year while Malaysia and Saudi Arabia, with contributions of US$900 million and US$2.9 billion respectively in 2008, are the two-biggest takaful markets in the world.

Evolving distribution channels Much like the conventional insurance industry, takaful operators use a variety of different distribution channels. The commonly used channels are branches, agents and Islamic banks known as bancatakaful. The main difference between conventional insurance and takaful is the way these products are distributed. "The manner in which takaful is distributed must be syariahcompliant. Distribution channels must also avoid misrepresenting the idea of takaful, which is different from conventional insurance:’ says Datuk Syed Moheeb Syed Kamarulzaman, president and CEO of Takaful Ikhlas Sdn Bhd.

Takaful Malaysia has changed its mix of distribution channels to grow its business. The company uses various distribution channels such as retail and corporate agents, bancatakaful, brokers, branches and direct dealings with corporations. "Previously, we used more branch distribution but have moved to replace this channel with commission-based agents. Moving forward, we will continue to expand our retail agency to grow both family and general takaful product lines:’ says Datuk Mohamed Hassan Kamil, group managing director of Syarikat Takaful Malaysia Bhd.

Agents are also seen as a way to penetrate the non-Muslim market.

Takaful Ikhlas is looking at gaining an operational advantage by using nonbumiputera agents as all of its 5,000 family agents are currently Muslim. "Non-Muslim general agents account for about 5% of our total agency force and they contribute approximately 4% to the business generated by agents. We find that non-Muslim agents are able to promote takaful because of its transparent nature and underlying concepts. Having non-Muslim agents to promote takaful products to non-Muslim consumers will increases the chances of having non-Muslim consumers as participants:’ says Syed Moheeb.

Bancatakaful is another distribution channel that is expected to continue playing an important role in the distribution of takaful as it provides economies of scale. Takaful Ikhlas uses family agents (those who promote family insurance), general agents (those who promote general insurance) and bancatakaful to distribute their products.

The company has found its current mix of channels, with a higher percentage of agents, to be effective. "This mix of different channels will continue to drive our revenue but we are exploring other avenues such as direct marketing. This should enable us to promote our products at a lower cost. Internet sales and bancatakaful are likely to become increasingly important to the industry in the coming years:’ says Syed Moheeb.

HSBC, a global financial institution, distributes its takaful products to clients through its own Islamic banking division, HSBC Amanah Takaful, which was set up in 1998. "We leverage our banking presence and our main channel is the local HSBC branches. We also use HSBC’s call centre for telemarketing activities and occasionally use direct marketing and online campaign initiatives:’ says Zainudin Ishak, executive director, HSBC Amanah Takaful Malaysia.

Personal Money

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Perolehan MNRB Naik 14.6 Peratus Kepada RM1.345 Bilion

KUALA LUMPUR, 31 Mei (Bernama) -- Perolehan MNRB Holdings Bhd naik 14.6 peratus kepada RM1.345 bilion bagi tahun kewangan yang berakhir pada 31 Mac, 2010 daripada RM1.174 bilion tahun lepas.

Naib Presiden Eksekutif dan Ketua Pegawai Kewangan Kumpulan Norazman Hashim berkata perolehan yang lebih tinggi itu berikutan kenaikan dalam premium bertulis insurans semula kasar oleh anak syarikat milik penuhnya, Malaysia Reinsurance Bhd (Malaysian RE), serta peningkatan dalam fi wakalah yang diperoleh Takaful Ikhlas Sdn Bhd dan MNRB Retakaful Bhd (MRT).

"Malaysian Re and Takaful masing-masing menyumbang 85 peratus (RM1.143 bilion) dan 14 peratus (RM190.2 juta) kepada perolehan kumpulan, diikuti dengan satu peratus oleh MRT," katanya kepada pemberita selepas pengumuman keputusan kewangan belum diaudit kumpulan di sini hari Isnin.

Malaysian Re dan MRT mencatatkan keuntungan bersih lebih tinggi masing-masing sebanyak RM88.596 juta dan RM4.508 juta bagi tahun berkenaan manakala Takaful mencatatkan untuk bersih yang lebih rendah sebanyak RM6.789 juta.

Norazman berkata premium bertulis insurans kasar oleh Malaysian RE bagi tahun berkenaan berjumlah RM1.091 bilion, kenaikan sebanyak 16 peratus berikutan premium kasar yang lebih tinggi daripada perniagaan triti seberang laut serta peningkatan dalam premium kasar daripada perniagaan kebakaran dan motor tempatan.

"Takaful mencatatkan peningkatan dalam fi wakalah kepada RM181.6 juta daripada RM157.3 juta yang dicatatkan tahun kewangan yang berakhir pada 2009," jelas beliau.

Keuntungan bersih kumpulan naik 73 peratus kepada RM45.5 juta daripada RM26.3 juta sebelumnya disebabkan oleh kesan dalam rizab premium yang tidak diperoleh Malaysian Re hasil daripada perubahan dalam anggaran semasa tahun berkenaan.

"Peningkatan keuntungan bersih juga disumbangkan oleh keuntungan bahagian yang lebih tinggi dalam sekutu insurans semula, pendapatan pelaburan yang bertambah dan fi wakalah yang lebih tinggi," katanya.

Bagaimanapun, kenaikan dalam keuntungan bersih diimbangi sebahagiannya oleh peruntukan untuk kerugian pengurangan sebanyak RM44.5 juta yang terhadappelaburan MNRB dalam Principle Insurance Holdings Ltd (PIHL).

Pada 28 April, PIHL mengumumkan penjualan bersyarat anak syarikatnya, Principle Insurance Company Ltd dan Principle Marketing Services Ltd kepada Al Salam Group Holding Company K.S.C.C, anggota syarikat yang berpangkalan di Kuwait, Al Madina Group, pada jumlah yang tidak dinyatakan.

Memandangkan ketidaktentuan yang menyelubungi PIHL, kumpulan membuat peruntukan penuh berjumlah RM44.5 juta dalam tempoh semasa untuk pengurangan pelaburannya dalam PIHL.

"PIHL bersetuju untuk menerima tawaran ini daripada syarikat yang berpangkalan di Kuwait ini. Hasrat mereka ialah untuk memulakan semula dagangan dan mereka telah memberi bayangan yang suntikan sebanyak 25 juta pound untuk permodalan semula.

"MRNB berharap untuk menyaksikan permulaan semula perniagaan menjelang suku ketiga dan keempat tahun ini," katanya.

Mengenai pengembangan, beliau berkata MNRB mempunyai rancangan untuk memperluaskan perniagaan taja jamin di luar negara selain memberi tumpuan kepada kategori perniagaan keluarga MRT.

"Kami meninjau untuk pengembangan di pelbagai negara untuk MRT. MRT mempunyai kategori, perniagaan am dan keluarga."

Beliau berkata perniagaan am kini memberi sumbangan yang besar kepada syarikat dan tumpuan masa depan adalah kepada pengembangan perniagaan keluarga.

-- BERNAMA

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Some Questions About Takaful

A lot of people may not know much about Takaful, aside from it being a part of Islamic banking and that it is compliant with Syariah law.

So how does Takaful differ from conventional insurance and why is it Syariah compliant? Most importantly to the insurer, does its policy offer the same benefits of conventional insurance, or is it more beneficial?

President and CEO of Takaful Ikhlas Datuk Haji Syed Moheeb bin Syed Kamarulzaman talks to StarProperty.my about the concept of Takaful and how it differentiates from conventional insurance, as well as the value proposition of the company and its services for homebuyers or homeowners.

What are the benefits or differences of Takaful Ikhlas compared to conventional insurance?

A lot of people may not know much about Takaful, aside from it being a part of Islamic banking and that it is compliant with Syariah law.

So how does Takaful differ from conventional insurance and why is it Syariah compliant? Most importantly to the insurer, does its policy offer the same benefits of conventional insurance, or is it more beneficial?

President and CEO of Takaful Ikhlas Datuk Haji Syed Moheeb bin Syed Kamarulzaman talks to StarProperty.my about the concept of Takaful and how it differentiates from conventional insurance, as well as the value proposition of the company and its services for homebuyers or homeowners.

What are the benefits or differences of Takaful Ikhlas compared to conventional insurance?

Datuk Hj Syed Moheeb: The Takaful industry follows what the conventional industry does. By agreement, we have agreed not to innovate outside the tariff. We agreed to follow exactly what is in the tariff, we have agreed to play along the same rules, level playing fields.

To ensure consistency of practice and to facilitate proper growth of the industry, Bank Negara required all tariffs. So there is really no difference between conventional House Holders and a conventional House Owners, compared to what is being offered by the Takaful industry. No difference at all in the cover.

There are other types of differences in between conventional and Takaful. Conventional insurance is a contract of exchange. In Takaful, it is not a contract of exchange. You are actually putting the money into the pool with a “niat" (benevolent wish).

If anything unfortunate befalls any one of the participants, the Takaful operator use this money to assist them. So, you have the charitable, benevolent intention in that particular act. And you know that any charitable or any benevolent act will receive rewards in life hereafter.

Therefore even if there is a cross-subsidy, we still take up that risk. At the very least, the intention here is that one is donating to the pool.

What is the value proposition of Takaful Ikhlas for the public?

Datuk Hj Syed Moheeb: What makes us unique is our use of technology. Our distribution finds it very convenient working with us. To the buying public, we have a reputation of being prompt and fair in claims handling.

Takaful insurance is free from “riba”, “gharar” and “maisir”. Please explain these terms.

Datuk Hj Syed Moheeb: Conventional insurance is a contract of exchange of goods or service. In Takaful, in Syariah, when you want to exchange something, there must be a definite amount as well as a definite time for the exchange.

When you put your money into an insurance company, you don’t know when you’re going to get back something as an exchange. You don’t know whether you are going to get anything back, when you may get it back, and how much. There is a lot of uncertainty. And, as such, that uncertainty is what we call ‘gharar’: this leads to wagering. You don’t know whether you’re going to get your money or not.

It’s wagering where you are going to lose. So that contract is unfair and has the element of uncertainty. Wagering, and whichever kind of contract that is unfair, is prohibited in Islam.

Under Islamic contract law, you cannot and should not enter into a contract which is weak. So this contract is called “fasir”’. If you enter into a contract which is weak, you are entering into a contract whereby one party is going to be oppressed, and that is “Haram” (forbidden).

Therefore, entering into an insurance contract is “Haram”.

"Riba" is of course when you pay a premium to an insurance company, they will invest it in interest bearing instruments. Takaful companies are not invested nor are they kept in any "riba" arrangement.

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Takaful IKHLAS Sasar Pertumbuhan RM625 Juta Tahun Ini

KOTA BAHARU, 19 Mac (Bernama) -- Takaful Ikhlas Sdn Bhd menyasarkan pertumbuhan premium untuk mencecah RM625 juta bagi tahun kewangan semasanya yang berakhir 31 Mac ini.

Presiden dan Ketua Pegawai Eksekutifnya, Datuk Syed Moheeb Syed Kamarulzaman berkata angka itu berdasarkan pertumbuhan positif yang dicatatkan.

Katanya, syarikat itu yang kini mempunyai 1.4 juta pelanggan, mencatatkan pertumbuhan premium RM580 juta pada tahun lepas.

"Pertumbuhan yang dicapai itu dilihat mampu mengatasi pertumbuhan syarikat insurans yang besar yang lain, yang telah sekian lama beroperasi di negara ini," katanya kepada pemberita semasa Lawatan Siri Kembara CEO Takaful Ikhlas Sdn Bhd di Semenanjung Malaysia di sini Jumaat.

"Dalam tempoh enam tahun penubuhan Takaful Ikhlas ini, pertumbuhan yang dicapai dilihat begitu pantas di luar jangkaan kami," katanya, sambil menyatakan kejayaan itu jelas membuktikan Takaful Ikhlas mempunyai strategi terutama sistem dalaman tersendiri yang kukuh untuk bersaing dan mengatasi syarikat lain.

Mengenai lawatan siri kembara itu, Syed Moheeb berkata ia merupakan program penjelajahan Ketua Pegawai Eksekutif Takaful Ikhlas untuk melawat pejabat-pejabat Ketua Agensi Takaful Ikhlas di Semenanjung Malaysia.

Beliau berkata, objektif kembara terbabit bagi bertemu muka dengan Ketua Agensi yang mengendali setiap pejabat bagi mengenal pasti permasalahan yang timbul secara lebih terperinci.

"Tujuan utama program kembara ini sebagai pertemuan merapatkan silaturrahim antara kakitangan kanan dari ibu pejabat dengan ketua agensi. Apabila adanya pertemuan dan jalinan rapat seumpama ini, barulah dapat memahami sekiranya ada segala permasalahan yang timbul," katanya.

Selain itu, Syed Moheeb berkata pihaknya merancang untuk membuka dua cawangan Takaful Ikhlas, yang masing-masing satu di Terengganu dan Klang, Selangor pada pertengahan tahun ini, bagi menjadikan 12 cawangan Takaful Ikhlas di seluruh negara.

Menurutnya, bilangan cawangannya itu meski pun dilihat sedikit untuk menampung jumlah pelanggan yang ramai, pihaknya tidak mempunyai masalah kerana menggunakan sistem internet untuk menjalankan urus niaga dengan pelanggan.

"(Kami) tidak perlu memiliki berpuluh-puluh cawangan kerana apa yang lebih penting ialah impak syarikat ini dengan kos yang efisien tetap mampu menyaksikan pertumbuhan yang lebih baik setiap tahun," katanya.



-- BERNAMA

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