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Send to friendEtiqa is the single master brand for all Maybank’s insurance businesses, and operates via two anchor subsidiaries – Etiqa Insurance Berhad (for conventional insurance) and Etiqa Takaful Berhad. We are driven by our passion for humanising insurance and takaful, and for helping our customers protect their assets, maintain their lifestyle and build a secure and prosperous future.
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“Etiqa’s dedication to building a sustainable and profitable business is enhanced further by living up to our brand promise to humanise insurance and takaful. Leading the industry by numbers is not enough. Our aspiration is to lead by serving our customers from our hearts.”
Hans De Cuyper |
Highlights
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We are a true multi-channel distributor, providing our customers with unmatched accessibility and convenience. We have an agency force of over 21,000 and 28 insurance and takaful branches – not to mention other distribution channels including over 386 Maybank branches, ATMs and other third-party banks. In addition, we service customers via both our Etiqa Oneline call centre and online at
www.motortakaful.com.
Etiqa offers a comprehensive array of products ranging from general takaful products to general insurance as well as life and family takaful plans. As a customer-centric business, we tailor our products to match the needs of our customers, be they individuals or corporate clients. Believing that no client is too big or too small, the premiums/contributions we charge range from just RM10 to millions.
In FY2011, we not only retained our pole position in life/family new business, general insurance/takaful, and overall takaful business, we also increased our market share in all three areas. As the industry’s No.1 player in these segments, we accounted for 18.3% of all Malaysian life/family new business and 11.5% of general insurance/takaful business, as well as 44.7% of overall takaful business (family takaful: 45.0% and general takaful: 44.1%).
Etiqa is one of Malaysia’s top three insurance companies in term of profitability. For FY2011, we posted 21% growth in profit before tax (PBT), which climbed to RM506.0 million on the back of an improved surplus transfer from our Life Fund and strong investment performance. We also beat our PBT merger target of RM500 million. Meanwhile, total assets rose 8% to RM24.4 billion from RM22.6 billion in the previous year.
For FY2011, total regular premium life/family business grew 2% from RM1.03 billion to RM1.05 billion year on year. For Maybank Bancassurance, total regular premium life/family business advanced 7% from RM316 million to RM340 million. However, a slight decline in life insurance from the previous year was caused by the relatively poor performance of our single premium product due to the unfavourable interest environment. General insurance grew 15%, with Marine, Aviation and Transit (MAT) achieving strong results.
For takaful, gross contribution surpassed the RM2.0 billion mark, equating to 48% of Etiqa’s total gross premium/contribution for the year compared to 42% previously. Overall, takaful continued its positive momentum, increasing 7% over last year with a market share of 44.7%. Our takaful business has expanded commendably over the years, with the growth in family takaful and general takaful consistently outstripping the market. General takaful posted 30% growth, driven by the motor takaful segment, while a dip in family takaful was due to low contributions from Group business.
To be a True Champion for Insurance & Takaful and Asset Management
Looking ahead, Etiqa aspires to become a true insurance, takaful and asset management champion. This means being recognised by the market for the excellence of our products and services through:
We have now almost finished implementing our IT blueprint. During the year, we launched Core Group Life, bringing us a step closer to full rollout of our Core Life Solution. We also automated data entry, billing and claims processing, slashing turn-around time and speeding up data entry. The net result is a vastly improved customer experience.
Process innovation creates value for Etiqa by enhancing customer satisfaction, boosting efficiency and creating a responsive, well-informed and responsible workforce. We have embarked on process innovation in three main areas: general business, life business and branch management. We have identified more than 170 improvement initiatives, of which we have already completed over 60. The results include faster issuing of policies and lower printing and mailing costs.
During the year, we launched a range of new products:
We are wholeheartedly committed to humanising insurance so as to provide our customers with an experience that is not only highly efficient but genuinely personal. We have therefore embarked on a number of initiatives to enhance customer service in the three key areas of customer touch points, post sales support, and customer experience.
We also encourage a continuous communication with the customers through customer-related activities such as:
In line with Maybank’s aspiration to be the top regional player, we are working on expanding our presence abroad – with the main focus especially in countries where Maybank operates. We already have a presence in Singapore, Brunei and Pakistan.
In FY2011, 56% of EIB Singapore’s Gross Premium Written (GPW) came from the agency force, while the bancassurance contribution increased to 18% from 8% the year before. Enhancing overall portfolio balance, the motor segment contribution dropped from 47% to 36% of GPW, while there were significant rises in the miscellaneous segment (from 38% to 43%), the fire segment (from 12% to 17%) and the MAT segment (from 3% to 4%). Meanwhile, to boost our customer base and enhance our bottom line, we continued to develop products for the retail and SME markets.
Our Brunei operation has successfully recorded slight increases in GPW year on year. Its business is mainly agency-driven and focuses chiefly on corporate and project risk. Looking ahead, we aim to grow our retail business primarily in the motor class in view of our favourable claims experience in this market. We are also planning to launch incentives to reward agents for helping us achieve our aspirations.
Through our 32.5% shareholding in PKTCL, Etiqa Oversea Insurance Private Limited (EOIPL) has emerged as the single largest investor in Pakistan’s first takaful company. In FY2011, despite many challenges, the company grew all its business segments by 10.4%.
The Government is implementing major investment programmes with the aim of doubling GDP per capita and turning Malaysia into a high income country by 2020. Driven by the New Economic Model, the Economic Transformation Programme and the Tenth Malaysia Plan, the insurance sector is expected to flourish. Such initiatives as the Employee Insurance Scheme, the Private Pension Scheme and the Foreign Workers Health Insurance Scheme will all intensify Malaysia’s insurance sector development.
Moving forward, we are confident that Etiqa’s operational strengths, multi-channel network and powerful brand will ensure that we achieve our aim to become a true champion of insurance, takaful and asset management.
MIM is the fund management arm of the Maybank Group. With more than 30 years’ experience in the asset management industry, MIM focuses on providing investment solutions across asset classes such as equities, fixed income and money market. Today, our customers include corporates and institutions, insurance companies, high net-worth individuals, unit trust funds and wholesale funds.
During the period under review, our operating revenue grew by 18% to RM38.4 million from RM32.5 million whilst our PBT grew by 11% to RM18.5 million from RM16.7 million and shareholders’ funds grew by 52% to RM39.7 million from RM26.2 million.
Our assets under management (AUM) advanced 16% from RM20.5 billion to RM23.8 billion, underpinned by continuous marketing efforts, improved fund performance and new product launches. There was strong growth in new accounts from corporates and high net worth individuals generating a total injection of over RM1.5 billion. MIM and Pelaburan Hartanah Berhad (PHB) jointly launched Amanah Hartanah Bumiputera unit trust fund worth RM1 billion.
In addition to our seven existing wholesale funds, the AUM of our wholesale funds climbed 17% to
RM1.9 million from RM0.7 million.
We share Etiqa’s aspiration to become a true insurance, takaful and asset management champion. Through this aspiration, we aim to become a top three asset management company and achieve first quartile investment performance.
During the year, we implemented a number of broad-based enhancement initiatives. We realigned our organisation structure and business processes, enhanced our systems, and built up our human capital. Some of the major changes include:
Some of our key strategic milestones for FY2011 were:
Moving forward, by leveraging on the strengths of both Etiqa and the Maybank Group, we aspire to become a leading regional asset management company. To realise this aspiration, our strategic intent and initiatives for the year under review and over the next two to three years are, firstly, to be recognised as a domestic leader, secondly, to fully tap the Islamic asset management segment and opportunities and, thirdly, to extend our capabilities into the ASEAN region.
Reinforcing our brand platform of humanising insurance and takaful, we once again garnered an array of prestigious awards in recognition of our excellent service and outstanding performance.
– Best Contact Centre Manager (below 100 seats) – Silver Award
– Best In House Contact Centre (below 100 seats) – Bronze Award
– Best Group Business Operator
– Best Bancatakaful Operator
– Most Outstanding Takaful Company
– Champion, Best of Malaysia Service to Care (Life Insurance category)
