Jaiz Takaful shares N467.9m insurance surplus in three years

By Yusuf Issa An-Nuphawi

Jaiz Takaful Insurance has widen its customer base with increasing surplus distribution to insurance policyholders since 2020 financial year.

Briefing journalist on Wednesday on the sideline of 2022 Financial Year Surplus Distribution ceremony in Abuja, the Managing Director, Ibrahim Usman Shehu, said his company led Takaful insurance industry’s performance with N230.8 million surplus distributed to customers in the year under review.  

DAILY COMMERCE NIGERIA, reports that surplus is the underwriting profit that Takaful companies are mandated by law and operational principle to share back to customers called Participants who did not make any claim from the risk fund they participated in the financial year.

DAILY COMMERCE findings showed that Jaiz Takaful has distributed a total of N467.9 million in surplus for three financial years 2020 (N84.5 million), 2021 (N152.5 million) and 2022 (230.8 million). These were achieved amidst Nigerians’ poor attitude to insurance and diminishing disposable income and rising inflation.   

Giving a breakdown of 2022 Surplus, the Managing Director revealed that General Takaful Participants who didn’t make any claim in the year under review, will receive N62.3 million as the Motor Takaful Participants get N60 million.

Further, Shehu stated that the Family (Life) Takaful Participants, both individual and group Takaful, will receive N58.1 million for the year under review.

On market penetration, Shehu said “We are trying to market and reach out to farmers to be able to patronize us. You know, as insurance, you need to have a pool of many to be able to settle a few and make underwriting profit, that’s what we’ve been working hard.”

Earlier, Chairman, Board of Directors, Hajiya Zainab Abdurrahman, told newsmen that Jaiz Takaful has collected over N2 billion underwriting premium from January to November, 2024, adding that the company has projected N6 billion underwriting premium collection for 2025 financial year.

She added that Jaiz Takaful is committed to surplus distribution to participants as it is not a fulfillment of contractual obligations but also reinforcing the principles of Islamic finance, which emphasize fairness, transparency, and justice.

Some of the corporate beneficiaries of 2022 surplus distribution include the Federal Mortgage Bank, Sharia Court of Appeal, Kessel Properties, Federal Inland Revenue Service, Jaiz Bank, and Zamson Global Resources Ltd among others.