1. Introduction 2. Performance a. Main drivers b. Performance indicators 3. Opportunities

1. 1. Introduction 2. Performance a. Main drivers b. Performance indicators 3. Opportunities a. what has been said about Takaful opportunities? b. determinants of Takaful growth potential and opportunities. 4. Conclusion

2. Industry life cycle: Takaful is still hovering around ‘growth’ stage… innovation is apparent to progress to the next phase… MATURITY GROWTH SATURATION INTRODUCTION • Less products (eg. product becomes obsolete) • Diverse products unique to the Islamic sphere PRODUCTS* Basic portfolio of products Product development & replication • Old fashioned services (eg. services does not meet market expectations) Operates model that is unique to takaful Basic services (Lagging behind conventional FIs) Catch-up games with conventional FIs) SERVICES/ OPERATION* … embracing Shariah principles coupled with a positive paradigm shift would reinforce product innovation to meet market’s demand

3. Global takaful contributions grew by 31% in 2009, to US$7b .

4. Opportunities in core markets suggest US$12b industry by 2011 (ERNST&Young 2011 )and US15b by 2015 (Ajmal, HSBC Amanah)

5. Most GCC markets have witnessed a slowdown in takaful growth, with only Saudi’s cooperativeinsurance market remaining strong on the back of compulsory medical. (ERNST&Young 2011)

6. Global contribution growth Growth 2011 12b 9.1b SEA 29% 6.9b GCC 31% 2011 ERNST&Young 2011 2009 2010

8. 1. Surging Family Products

10. Historical Performance

11. Historical Performance

12. Profitability Ratio Earnings per share represent the earning generating ability of a company with regards to the number of common stock (ownership shares) outstanding.

13. Profit – Earning Ratio Takaful Malaysia PE Ratio This ratio shows how much investors are willing to pay for every RM1 of earning that Takaful Malaysia made. In this case, the ratio shows that investors are only willing to pay RM0.056 for every RM1 income made

14. Profitability Indicator

15. Liquidity Ratio Firm’s strength in meeting short term financial obligation. The bigger the better.

16. Operating Profit Margin Operating profit margin evaluates a firm’s effectiveness at controlling the costs and expenses associated with their normal business operation

17. Cost Efficiency

23. Retakaful ratio (retention)

26. Yield on investment

27. What has been said about the opportunities of takaful across the world in General and France in particular?

28. The industry is not without risks, but its potential remains an important feature of Muslim emerging markets for many indigenous and global insurance players.

29. Broad and exciting global growth opportunity, offering a way to capture a huge and currently underserved customer base inside the major Western markets – and with profit streams that, under a correctly designed model, could be more stable than in conventional insurance. (Oliver Wyman, 2)

30. Western Europe, home to only 15 MM (or less than 1%) of the world’s 1.6 billion Muslims, makes up 40% of the potential ‘Muslim demand’ today; adding the US brings the total up to 60% (Oliver Wyman, 2)

31. Low penetration for Takaful products 2. Low Family Takaful penetration 2. Bancatakaful 3. Balance sheet restructuring 4. Consolidation 5. Cross border expansion 6. Solvency II 7. Takaful products for non-Muslims. (Alpen Capital )

32. Established governance and regulatory structures • Favorable tax regime • Flexible legal vehicle • Pro-mutual stance of UK Coalition Government • The European market (Hogan Lovelles)

33. Favorable demographics – young, rapidly growing population • Strong economic fundamentals and growth prospects of Islamic countries • Under-penetrated market • Success of Islamic banking expected to boost Takaful • Potential for Family Takaful in pluralistic societies • Use of Family Takaful to promote economic activities • Greater opportunity for growth than General Takaful • Nil to low penetration • Greater volume for wealth • Greater impact on lives ()

34. Captive Structures • Friendly Societies • Discretionary Mutuals

35. Les français déclarent rechercher : • -la transparence • -le partage des risques financiers • -les informations Et si le mode de finance islamique y répondait ? • -un investissement de longue durée • -le partage des risques et des profits • -l’émergence du collectif au détriment de l’individuel

36. Rapport Jouini-Pastré (2008): "la demande des produits takaful connaît une croissance soutenue, alimentée par le dynamisme économique, par la réduction de la pauvreté et par une évolution démographique favorable dans les pays concernés"

37. A. Main determinants: • Income level • Propensity to save • Inflationary outlook • Tax incentive • Demography • Employment • Cultural and religious tolerance to alternative products.

38. World map showing countries above and below the world GDP (PPP) per capita, currently $10,700. Source: IMF (International Monetary Fund).Blue above world GDP (PPP) per capitaOrange below world GDP (PPP) per capita B. Specific determinants: 1. Takaful potential vis.a vis GDP per Capita France

41. Insurance penetration: (Gross premium/Nominal GDP) in 2010. France= 10.3 %

44. Malaysia: Comprehensive Takaful system Diversified Players Governance • Banking: Bankatakaful • Brokers • Agents • Legal & Regulatory • Takaful Act • Takaful operational framework 2011 (New) • Shariah governance framework 2011 (New) • Shariah Advisory Council • Dispute Resolution • Judicial system: dedicated high court • KL Regional Centre for Arbitration • Financial Mediation Bureau Investment avenues Professional Service • Legal firms • Accounting • Financial Intermediaries • Financial Advisors • Consultancy Service • Shariah compliant equities • Funds • Islamic deposits • Government securities • Real estate, commodites • sukuk Products Family and General 30 years of experiences in developing takaful

45. Takaful has performed steadily but not without troubles during the financial crisis that has affected capital levels and asset values. • The Takaful models chosen have affected operating costs, leading many Takaful operators to choose the “most profitable model”. • balancing between business needs and shariah&regulatory requirements will continue to feature the Takaful industry for decades to come.