Syarikat Takaful 40 net income 90.9M ringgit, +11 Y/Y
TL;DR
Takaful Malaysia reported an 11% year-over-year net income growth to RM90.9 million in Q3 FY2023, driven by a 27% revenue increase. However, analysts warn of headwinds from higher taxes and costs, with the stock down 21% year-to-date as of September 2025.
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Syarikat Takaful 40 net income 90.9M ringgit, +11 Y/Y
Takaful Malaysia Reports 11% Year-Over-Year Net Income Growth in Q3 FY2023
Takaful Malaysia, the country's largest family takaful operator, reported a net income of RM90.9 million for the third quarter of FY2023, representing an 11% year-over-year increase compared to RM81.9 million in the same period of FY2022. This growth was driven by a 27% rise in takaful revenue to RM639.5 million, attributed to stronger performance in family and general takaful segments.
The company's family takaful business generated RM523.5 million in revenue, up 17% year-on-year, while general takaful revenue surged 27% to RM332.7 million, fueled by higher contributions from fire and motor insurance classes. Profit before zakat and tax also increased by 10% to RM130.9 million, reflecting improved investment income from fixed-income assets.
Despite these gains, analysts have flagged potential headwinds for Takaful Malaysia in subsequent periods. Elevated tax rates, financing costs from a RM1 billion sukuk issuance, and the implementation of sales and service tax (SST) on bancatakaful commissions are expected to constrain earnings growth in FY2025 and FY2026. The company's stock has declined 21% year-to-date as of September 2025, reflecting investor caution over these challenges.
Group CEO Nor Azman Zainal emphasized confidence in the company's long-term prospects, citing strong demand for takaful products and strategic initiatives such as expanding bancatakaful partnerships and diversifying into individual life and non-motor protection offerings. However, RHB Research noted that the renewed 20-year bancatakaful agreement with RHB Bank, while beneficial for distribution, comes with significant upfront costs that may pressure short-term profitability.
Takaful Malaysia's takaful penetration rate in Malaysia remains at approximately 21%, indicating substantial growth potential. The company aims to balance underwriting margins with business expansion while navigating near-term fiscal pressures. Analysts remain divided, with seven of eight research houses maintaining a "buy" rating, though earnings projections for FY2025–FY2027 have been revised downward.
(https://www.takaful-malaysia.com.my/en/news/takaful-malaysia-revenue-up-27-in-third-quarter-fy2023/): Takaful Malaysia Revenue Up 27% in Third Quarter FY2023 (November 2023)
(https://theedgemalaysia.com/node/772105): Looming Headwinds Seen for Takaful Malaysia (September 2025)
