Malaysia: Insurance market saw bigger profits last year
Source: Asia Insurance Review | May 2017
The life insurance market, including family takaful, reported stronger profits of MYR13.6 billion (US$3.1 billion) in 2016, 12% higher than the MYR12.1 billion posted in the previous year.
The performance was boosted by growth in premiums and contributions. Total life insurance gross premiums rose by 7.5% in 2016, exceeding MYR40 billion, while family takaful contributions climbed by 11.8% to MYR7.8 billion.
In addition, the sector’s investment earnings remained steady, backed by capital gains and higher valuations of long-term corporate bonds.
Slower premium growth for non-life but profits increased
Gross premiums in the general insurance segment increased by 0.9% to MYR17.2 billion due to weaker growth in the motor and fire lines of business segments, which collectively represent more than 60% of the sector’s premiums. Similarly, general takaful gross contributions expanded at a slower rate of 4.7% to MYR2.4 billion in 2016.
Despite the moderation in topline growth, the profits of the non-life sector, including general takaful, strengthened to MYR3.4 billion in 2016 compared to MYR2.8 billion recorded in the preceding year – on account of better claims experience. A