Jaiz Takaful Insurance Limited has declared a surplus of N118 million from its 2023 financial year, rewarding customers who did not record any claims during the period.

The Managing Director, Ibrahim Usman, in his brief presentation on surplus distribution in Abuja, announcing the surplus distribution, said the declaration followed the approval of its financial statement by the National Insurance Commission (NAICOM).

According to him, the surplus represents underwriting profits returned to policyholders who participated in the 2023 financial year without making any claims.

“The purpose of this event is to declare to the public our 2023 surplus of N118 million, which has been approved by the regulator. The amount is being shared among participants who did not record any claim during the financial year,” he explained.

He noted that the distribution process is proportional to each customer’s contribution, meaning those who paid higher premiums would receive correspondingly higher surplus returns.

“Insurance typically runs on a one-year cycle. At the end of that cycle, customers who did not record any claims are entitled to a share of the underwriting profits. For example, a customer who contributed N1 million will receive more surplus than one who paid N100,000,” he said.

Explaining the uniqueness of the Takaful model, he emphasised that it remains the only insurance system in Nigeria that gives back surplus to customers, describing it as a “win-win” form of risk sharing.

“With Takaful, we have expanded insurance inclusion in Nigeria. Many people who previously avoided insurance due to mistrust or religious concerns are now participating.  Unlike conventional insurance, where premiums are forfeited if no claim occurs, Takaful returns part of the profit to customers who did not make any claim,” he said.

Furthermore, he explained that Takaful operates as a risk-sharing model rather than a risk-transfer model.

“In conventional insurance, the company takes the risk. But in Takaful, participants share the risk among themselves while we manage the funds on their behalf,” he added.

He also pointed out that while the company operates within Nigeria, it maintains strategic partnerships with international reinsurers and assessors to support its services.

He acknowledged that limited awareness remains a major challenge, as many Nigerians still view Takaful as an Islamic product, whereas it is open to all irrespective of religion or background.

 “Takaful is for everyone. It offers a fairer, more transparent, and participatory insurance model that rewards both prudence and partnership,” he added.

On her part, the Chairman of Jaiz Takaful Insurance Limited, Zainab Abdulrahman, expressed gratitude to stakeholders and participants for their continued trust and partnership.

She explained that while the 2023 surplus of N118 million represented a 48.9 per cent decline from the N230.8 million declared in 2022, the dip was largely due to macroeconomic challenges, inflation, currency fluctuations, and an unprecedented rise in Family Takaful claims, which depleted the risk fund.

Despite these challenges, she assured participants that Jaiz Takaful remains committed to its mission of providing Shariah-compliant insurance solutions and optimising its operations for sustainable growth.

The Chairman also emphasised that surplus sharing, a process guided by Shariah principles, promotes equity, transparency, and cooperation among participants.

 “While the surplus reported today is modest compared to 2022, our performance reflects unwavering commitment to integrity, transparency, and full disclosure,” she said.

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