Business activities: insurance
Products: divided into 2 groups
Family takaful insurance | General Takaful insurance |
Employee benefits | Takaful myMotor |
Takaful mySME partner | Takaful myFire |
Group Credit Family Takaful | Takaful myHouseowners and householders |
Takaful myMortgage | Takaful myHome content |
Takaful myTerm | Takaful myPA care |
Takaful myCI Cover | Takaful mySME |
| Boilers and pressure vessel |
| Contractor’s all risks |
| Machinery breakdown |
| Foreign workers takaful quarantee |
| Foreign workers hospitalisation and surgical scheme |
| Employee’s liability |
| Public liability |
| Workmen’s compensation |
| Marine cargo |
| All risks |
| Burglary |
| Fidelity guarantee |
| Group personal accident |
| Money |
| Takaful myTravel PA |
| Takaful myTravel Umr |
Core business foundation:
1. Bancatakaful
2. Public sector home financing board (LPPSA)
3. Employee benefit segment
Bancatakaful partner:
1. RHB islamic (for general and family takaful-2020-2025)
https://www.theedgemarkets.com/article/syarikat-takaful-inks-two-bancatakaful-deals-rhb-islamic
2. Bank Islam
3. Bank Rakyat
4. Bank Affin
Family takaful/general takaful market share for STKM:
Year | 2018 | 2019 | 2020 | 2021 | 2022 |
Family takaful | 28% | 30% | 23% | 20% | - |
General takaful | 25% | 22% | 24% | 24% | - |
Stock information:
Number of share :827.31 mil
Share price : RM 3.15
Market capital : 2637 mil
Revenue and PAT (million)
| 2018 | 2019 | 2020 | 2021 | 2022 (YTD) |
Revenue | 2639 | 3125 | 2957 | 3179 | 997.4 |
PBT | 337 | 418 | 427 | 439 | 122 |
PAT | 295 | 365 | 362 | 411 | 87 |
Family/general takaful Performance (million)
Family takaful | 2018 | 2019 | 2020 | 2021 | 2022 (YTD) |
GEC | 1608.5 | 2042.3 | 1756.9 | 1887 | 531.4 |
Net benefit/claims | -803.1 | -801.6 | -751.9 | -752 | -295.6 |
Investment income | 251.5 | 277.9 | 286 | 288.5 | 73.5 |
Fair value | -71.0 | 30.3 | 17.2 | 17.8 | -35.5 |
General takaful | 2018 | 2019 | 2020 | 2021 | 2022 |
GEC | 685.8 | 706.2 | 756.5 | 878.7 | 252.5 |
Net benefit/claims | -204.7 | -202.2 | -153.2 | -212.7 | -57.2 |
Investment income | 28.7 | 31.2 | 30.7 | 29.6 | 7.9 |
Fair value | -2.8 | 0.7 | -0.1 | 0.1 | - |
Revenue and profit/loss from Indonesia
| 2018 | 2019 | 2020 | 2021 | 2022 (YTD) |
Revenue | 133.9 | 141.0 | 125.0 | 124.6 | 39.4 |
Profit/loss before tax | -5.1 | 0.6 | 4.7 | 3.5 | -0.8 |
*challenging landscape in Indonesia based on CEO.
Latest information by CEO on MFRS 4 and MFRS 17 in AGM
-under MFRS4, profit can be recognised upfront
-under MFRS 17, it is required to
a) defer profit and gradually release the unearned profit over lifetime of contract
b) Capitalise unearned profit (contractual service margin will be classified as liability in balance sheet)
- expected to decrease retained earning by 30-45%
-expected profit to decline by 15-20%. (*profit expected to be normalised within 5-6 years
If we calculate, (taking into consideration of worst case scenario on latest equity and trailing EPS)
NTA:2.25 x 0.55 (reduction of retained earning by 45%)= 1.23
EPS: 46sen x 0.8 (reduction of profit by 20%)= 36.8 sen
And it takes 5-6 years to grow the profit back to 46 sen.
https://www.takaful-malaysia.com.my/footer/MinutesAGM/37th_AGM_Minutes.pdf
(a lot of useful information is written in AGM. Pls read through if you are considering investing in STKM)
Dividen:
24% as for 2021, no fixed dividen distribution policy
Risks to business
1. Increasing competition with market share (family takaful) for STKM is reducing from 30% (2019) to 20% (2021)
https://www.theedgemarkets.com/article/syarikat-takaful-down-34-after-launch-fwd-takaful
2. Possible more flood due to global warming
https://api.nst.com.my/opinion/columnists/2021/10/734295/expect-more-flooding-malaysia-because-global-warming
3. Economy downturn (less people purchases houses/cars/insurance)
Strength/good
1. Penetration rate for takaful is still low (18.6%) and still space to grow
https://www.bernama.com/en/business/news.php?id=2075657
Market share
Market share for family takaful | 2018 | 2019 | 2020 | 2021 | 2022 |
STKM | 28 | 30 | 23 | 20 |
|
ETIQA | 20.97 |
|
|
|
|
PRU BSN | 11.37 |
|
|
|
|
AIA | 9.19 |
|
|
|
|
SUN LIFE | 8.08 |
|
|
|
|
TAKAFUL IKHLAS | 8.03 |
|
|
|
|
GREAT EASTERN | 5.43 |
|
|
|
|
OTHERS | 9.52 |
|
|
|
|
Market share for general takaful | 2018 | 2019 | 2020 | 2021 | 2022 |
STKM | 25 | 22 | 24 | 24 |
|
ETIQA | 46.27 |
|
|
|
|
ZURICH | 15.59 |
|
|
|
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TAKAFUL IKHLAS | 9.84 |
|
|
|
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HL-MSIG | 1.8 |
|
|
|
|
OTHERS | 1 |
|
|
|
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* I don’t have the information on market share except 2018.
Some information on FWD takaful - one of the family takaful operator launched 2019 (by Robert Kuok-controlled JAB Capital Bhd, the Employees Provident Fund (EPF) and Hong Kong business magnate Li Ka-shing's son Richard Li)
Family takaful (FWD takaful)
RM million | 2018 | 2019 | 2020 | 2021 | 2022 |
GEC | 161.2 | 140.5 | 260.0 | 445.7 |
|
GEC triple from year 2019 to 2021.
Financial statement (FWD takaful)
Year 2019
Year 2020
Year 2021
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