Mounting claims result in 700k Q3 deficit to Amana Takaful

Amana Takaful has been hit by a deficit of MVR 720,499 over mounting Takaful claims during the third quarter, but report remained focused on delivering results to their stakeholders and achieving results in all aspects.

The deficit during third quarter comes after it earned MVR 1.1 million during the second quarter.

Amana Takaful has put down part of the reason for deficit to drop in written premiums. It earned MVR 6 million in written premium during the third quarter, a large drop compared to MVR 21.7 million in written premium during the second quarter.

Senior Business Development Executive, Ahmed Shamool Abdulla said that the deficit was a result of increase in claims made by customers.

“We operate multiple funds as a company. Claims are managed by the general fund. This funds is where we collect insurance premiums to. This is a result of increase in claims from general fund,” said Shamool.

He said that the company had expected the result, and provide reassurance that it would have no impact on shareholders’ fund.

"Despite the challenges faced in the market, we have performed well in all classes of business and expanded our service in various operational aspects," said Shamool.

He said that the company was performing in line with the plan, and showed a 29 percent improvement compared to first three quarters of 2015.

Amana Takaful released its third quarter financial performance last Saturday night, October 29.