April 18, 2007 (LBO) – Fledgling Islamic insurer, Amana Takaful Insurance (ATI), which was listed on the second board of the Colombo bourse last November, has reported a 57 percent growth in premium collections it the audited accounts for 2006. The company’s shares last traded at 31.50 at the close of market in April though its earnings per share was only 92 cents, indicating that the firm has a relatively high price earnings multiple of 34. Gross written premium grew to 679.9 million rupees with the general side (general Takaful) growing by 53.4 percent to 589 million rupees and life side (life Takaful) growing by 85 percent to 90.8 million rupees in the year ended 2006.
Takaful is an Islamic insurance concept, based on the principles of Islamic finance with origins dating back over 600 years.
ATI Chairman Tyeab Akbarally told shareholders in the annual report that its products have been well received though it was a new concept in Sri Lanka, allowing for rapid growth.
The merits and effectiveness of the Takaful concept are increasingly receiving serious attention in Sri Lanka, Akbarally said.
Amana Takaful is 15 percent owned by Syarikat Takaful Malaysia, and controlled by 60 percent owner, Amana Investments.