Jaiz Takaful declares N118m surplus

Jaiz Takaful Insurance Limited has declared a surplus of N118 million for the 2023 financial year to be distributed among participants who did not record any claims during the period. During the Surplus Distribution Ceremony in Abuja, the chairperson of the Board, Hajiya Zainab Abdurrahman, said the event marked the fourth surplus distribution since the […]

Jaiz Takaful Insurance Limited has declared a surplus of N118 million for the 2023 financial year to be distributed among participants who did not record any claims during the period.

During the Surplus Distribution Ceremony in Abuja, the chairperson of the Board, Hajiya Zainab Abdurrahman, said the event marked the fourth surplus distribution since the company began operations in 2017.

She said although the 2023 surplus was lower than the N230.8 million declared in 2022, the company remained committed to providing ethical and Shariah-compliant insurance services in line with its founding principles.

“The Nigerian Takaful industry is highly competitive, and macroeconomic factors such as inflation and currency fluctuations affected investment returns and overall performance,” she said. 

Hajiya Zainab explained that the decline in surplus was also due to a rise in Family Takaful claims, which depleted the risk fund and left no surplus in that category.

She noted that Takaful promotes shared responsibility and equity among participants, offering both financial and spiritual benefits through Tabarru (donation), which makes it inclusive for all, regardless of faith.

Similarly, in an interview, the Managing Director and Chief Executive Officer, Mr. Ibrahim Shehu, said the Takaful model is helping to deepen financial inclusion by bringing more Nigerians into the insurance space.

He said Jaiz Takaful’s surplus-sharing approach differentiates it from conventional insurance models and builds trust among customers.

“Unlike conventional insurance, where premiums are forfeited if there are no claims, Takaful allows customers to share in underwriting profits” he said.

Mr. Shehu said the company’s approach has encouraged many Nigerians who previously distrusted insurance to participate, thereby expanding coverage and supporting the country’s financial inclusion goals. 

“Takaful is a risk-sharing model where participants mutually support each other,” he explained, adding that if there is a claim, it is paid from the risk fund, if there is a profit, it is shared among those without claims.