Family portfolio pushes Noor Takaful claims payout to N3.14bn in 2022
By Yusuf Issa An-Nuphawi
Nigeria’s pioneer full-fledged Sharia compliant insurance, Noor Takaful Insurance Limited, has reported a N3.14 billion claims payment for 2022 financial year, representing a 62.7 per cent rise compared to N1.97 billion in 2021.
Despite prudent underwriting capacity demonstrated by the company over five years of corporate existence, the Family Takaful Claims gulped N2.176 billion as the Individual Family/Life savings matured and Group Family/Life claims rose in the 2022 financial year.
Noor Takaful reported the General Takaful Claims payout of N961.42 million in the year under review.
DAILY COMMERCE reports Noor Takaful has distributed a total of N381 million in five years as surplus to its participants who didn’t make any claim, making it the most consistent surplus distributing Takaful company in Nigeria, since 2019.
Takaful insurance is a social solidarity and cooperation with a pact among a group of people who agreed to jointly indemnify loss or damage from a fund they donate to collectively and managed by a company which is entitled to commission and other charges stipulated by the law of the country of operation. Underwriting profits are given back to clients called participants unlike conventional insurance models where a profit belongs to the company and shareholders.
Noor Takaful reported a N4.97 billion gross premium/contribution collection in the year under review, according to its Annual Report and Accounts copied to DAILY COMMERCE after the 6th Annual General Meeting held in Lagos on Wednesday.
The company’s gross Contribution under review represents a sharp growth of 36% compared to N3.66 billion recorded in the 2021 financial year.
According to the report, the Board of Directors recommended the dividend payment of N46.84 million at 3 kobo per ordinary share as Noor Takaful Profit After Tax increased from N422.72 million in 2021 to N478.049 million in 2022.
Further breakdown of the results showed that Investment Income grew from N151.26 million in 2021 to N204.55, while underwriting expenses rose by over 68% from N434.5 million in 2021 to N728.19 million in 2022.
The Board Chairman, Muhtar Bakare, noted that “Our prudent risk management and disciplined underwriting practices have enabled us to weather some of the worst of the storms of uncertainty.”
Despite the challenging operational landscape, Bakare said, the company’s strategic initiatives yielded encouraging results.
“We are equally determined to take actions that would serve the best interest of our shareholders,” he said.
