The introduction of Islamic treasury bills (T-bills) and the Viyana platform in 2022 proved to be a major boost for investment strategies executed by Amana Takaful Maldives, CEO and Managing Director Hareez Sulaiman shared with IFN Investor.
Combined with exceptional performance across fixed income instruments, equities and structured facilities, the Takaful operator saw its profit blossom in the latest year, on the back of a 24% increase in premiums received. This Maldives Stock Exchange-listed company reported that its total comprehensive income saw an upside of 203% to MVR67 million (US$4.28 million) from MVR22.32 million (US$1.43 million) in 2022 — driven primarily by the performance of strategic investments. Pretax profit rose 13% to MVR20.05 million (US$1.28 million).
Figure 1: Snapshot of Amana Takaful 2023 financials
Despite the prospect of higher earnings with the Islamic T-bills, Hareez cautioned: “We are experiencing a learning curve, together with other industry players, to the extent that a collective effort is needed in underwriting precision, pricing and partnerships, together with regulatory concurrence to maintain a semblance of balanced results in this fast-growing segment.”
Table 1: Amana Takaful Maldives’s investment income comparison
| Year ended the 31st December 2023 MVR | Year ended the 31st December 2022 MVR | |
|---|---|---|
| Dividend income | 3,499,577 | 1,981,608 |
| Murabahah, Wakalah and Ijarah income | 2,537,101 | 3,102,667 |
| Mudarabah income | 1,085,519 | 968,599 |
| Sukuk income | 716,546 | 449,560 |
| Income from Islamic T-Bills | 1,867,392 | 1,035,299 |
| Net realized capital gain | - | 57,243 |
| Net fair value gains on financial assets at the fair value through profit or loss | 2,588,027 | 2,783,933 |
| Income from deposit Maldives Monetary Authority (MMA) | 19,998 | 19,998 |
| 12,314,160 | 10,398,907 |
Source: Annual Report 2023 of Amana Takaful Maldives
Hareez also said timely agility in grasping new opportunities in bolstering the investment portfolio has resulted in meeting financial challenges and mitigating the impact of surging claims.
Table 2: Amana Takaful Maldives’s financial assets
| Year ended the 31st December 2023 MVR | Year ended the 31st December 2022 MVR | |
|---|---|---|
| Bullion | - | 1,265,036 |
| Investments in equity shares | 10,878,653 | 7,956,427 |
| Dhivehi Raajjeyge Gulhun | 308,266 | 251,970 |
| Maldives Islamic Bank | 471,018 | 254,880 |
| Ooredoo Maldives | 9,266,000 | 7,000,000 |
| Amana Bank | 833,369 | 449,577 |
| Investment in equity securities | 133,056, 000 | 72,000,000 |
| Maldives Islamic Bank | 133,056, 000 | 72,000,000 |
Further, Amana Takaful Maldives holds debts instruments at an amortized cost to collect the contractual cash flows.
Table 3: Amana Takaful Maldives’s debt instruments (at an amortized cost)
| Year ended the 31st December 2023 MVR | Year ended the 31st December 2022 MVR | |
|---|---|---|
| Murabahah investments | 337,844 | 707,331 |
| Mudarabah investments | 65,061,046 | 40,524,950 |
| Wakalah investment | 30,194,450 | 43,730,700 |
| Ijarah investment | 175,374 | 191,774 |
| Sukuk investment | 10,235,898 | 5,500,000 |
| Islamic treasury bills | 62,621,400 | 32,500,000 |
| 168,626,012 | 123,154,755 |
Source: Annual Report 2023 of Amana Takaful Maldives
Having earned an investment return of MVR12.3 million (US$785,441) in 2023, Amana Takaful Maldives rewarded shareholders with an interim dividend of 10% and total payout came to MVR6.6 million (US$421,580) for the year.
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