Malaymail

RAM Ratings: #Takaful industry’s strong capitalisation sufficient to withstand headwinds

RAM Ratings Services has maintained its "stable" outlook on the Malaysian takaful industry for 2020 despite the economic slowdown. Its Financial Institution Ratings co-head Sophia Lee said the industry’s strong capitalisation is sufficient to withstand headwinds. In 2019, the family takaful’s new business contributions grew 25% to RM6.2 billion, an additional 13% from 2018, mainly driven by the MySalam initiative, the national health protection scheme. Excluding MySalam, growth was still commendable at an estimated 16%, anchored by credit-related takaful products and the employee benefits. Similarly, the general takaful industry expanded by a strong 20% in 2019, led primarily by the motor business.

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