Crown Takaful Maps Expansion After First-Ever ₦100.9m Surplus Distribution

The ethical insurer unveils expansion plans as regulators, Islamic finance experts and industry leaders call for greater awareness, stronger digital innovation and wider adoption of Takaful across Nigeria.

By Abdullahi Yusuf

Crown Takaful Insurance Limited has outlined an ambitious expansion strategy after becoming one of the few Takaful operators in Nigeria to distribute surplus to participants following its first full year of operations, as regulators, Islamic scholars and insurance industry leaders called for wider adoption of ethical insurance to deepen financial inclusion and strengthen economic resilience.

The company made the announcement during its inaugural Surplus Distribution Ceremony held in Abuja, where it formally commemorated the distribution of ₦100,997,759.09 to eligible participants under its General Takaful and Group Family Takaful funds for the 2024 financial year following regulatory approval by the National Insurance Commission (NAICOM).

Speaking at the ceremony, Crown Takaful’s Managing Director and Chief Executive Officer, Mallam Nasir Abubakar Song, described the surplus distribution as more than a financial milestone, saying it represented the practical fulfilment of Takaful’s foundational principle of mutual cooperation, transparency and shared responsibility.

“When Crown Takaful commenced operations in 2024, our vision was clear: to provide ethical, transparent and inclusive insurance solutions founded on the principles of mutual cooperation, shared responsibility and fairness,” he said.

According to Song, the company has grown its gross contribution income from about ₦1.9 billionduring its first year of operations to more than ₦2.8 billion, while expanding its workforce, strengthening strategic partnerships and extending its presence across Nigeria through public awareness campaigns, digital engagement and community outreach.

The company announced that the distributable surplus comprised ₦53.9 million for Fire Takaful participants, ₦30.5 million for Motor Takaful participants and ₦16.6 million for participants under the Family Takaful Fund.

Looking ahead, Song said Crown Takaful would accelerate the development of new products covering retail, family, agricultural, small and medium-sized enterprise and micro-Takaful segments, while adopting a cloud-first digital operating model aimed at improving efficiency, transparency and customer experience.

Speaking in an interview with PEACE Magazine, Song explained that the surplus-sharing exercise illustrates one of the defining differences between Takaful and conventional insurance.

He said participants, rather than the operator, own the risk fund, making them eligible to receive any surplus remaining after claims, reserves and other obligations have been settled.

According to him, Takaful remains open to all Nigerians regardless of religious affiliation, with products covering motor insurance, property, education, savings, Hajj and family protection.

Chairman of the occasion and President of the Supreme Council for Shariah in Nigeria, Prof. Bashir Aliyu Umar, described the ceremony as a landmark for Nigeria’s Islamic finance industry, saying the return of surplus to participants demonstrated one of the model’s most distinctive features.

In a lecture on the challenges of insurance and Takaful in Northern Nigeria, he said the industry’s greatest obstacle remained low public awareness despite an enabling legal and regulatory environment.

He said many Nigerians remained unaware that Shariah-compliant insurance was available and urged operators to expand digital distribution, strengthen capacity development and develop micro-Takaful products for low-income households and small businesses.

Former Commissioner for Insurance and Chief Executive Officer of NAICOM, (Wazirin Bauchi) Alhaji Muhammad Kari, urged state governments to integrate insurance and Takaful into public-sector welfare programmes through group life, healthcare, retirement protection and micro-Takaful schemes. He said such measures would improve workers’ welfare while reducing governments’ financial exposure during emergencies, describing Crown Takaful’s surplus declaration as evidence that the ethical insurance model is commercially viable.

Commissioner for Policy, Personnel Management and Finance at NAHCON, Prince Mallam Aliu Abdul Razak, described the surplus-sharing initiative as a demonstration of transparency and ethical business practice. He urged operators to intensify public awareness, develop products tailored to households, businesses and public institutions, and use beneficiaries of the programme to promote wider acceptance of Takaful.

Jaiz Takaful Insurance Managing Director Ibrahim Usman Shehu said Takaful complements rather than competes with conventional insurance by expanding consumer choice. Describing himself as one of the pioneers of Takaful in Nigeria, he said operators should work collectively to increase insurance penetration and welcomed Crown Takaful’s surplus distribution as a demonstration of the industry’s core principles.

He rejected the notion that Takaful serves only Muslims, describing it instead as an ethical business model open to everyone regardless of religion or background. He added that operators should be seen as partners working collectively to increase insurance penetration across Nigeria rather than competitors dividing a limited market.

Professor of Islamic Banking and Finance, Prof. Adam Muhammad Abubakar, said Takaful could play a significant role in reducing poverty by protecting households and businesses against financial shocks. He argued that wider adoption would strengthen financial inclusion, improve resilience and support sustainable economic development.

Founder of IFING Media, Mudathir Adesanya, urged industry stakeholders to move beyond awareness campaigns towards strategic communication capable of correcting misconceptions about Islamic finance.

He argued that the future growth of Takaful would depend on stronger branding, improved media engagement, public education and collaboration among operators, stressing that the products are based on fairness and shared value rather than religious identity.

Representing the Director-General of the Nigerian Insurers Association, Mrs. Bola Odukale, a representative of the association said insurance and Takaful would play an increasingly important role in supporting Nigeria’s long-term economic ambitions by strengthening financial resilience and advancing financial inclusion. The representative described surplus distribution as a practical demonstration of trust, saying it demonstrated that participants could benefit directly from the performance of the shared risk pool, thereby strengthening public confidence in insurance.

Beyond the industry leaders, guests at the ceremony also welcomed the surplus-sharing initiative.

Speaking to PEACE Magazine, Hajiya Rahama Musa Sani, Director of Esteem Learning Centre, described the initiative as “heartwarming”, saying it demonstrated how participants could benefit from ethical insurance while encouraging wider public awareness of Takaful.

“For you to insure your property and, at the end of the year, if Allah has protected you and nothing happened, to receive something back that adds value to your asset is worth appreciating,” she said.

Speaking on behalf of the Board, Mallam Usama Saleh said the inaugural surplus distribution reflected prudent management, transparency and the confidence reposed in the company by participants. He said Crown Takaful would continue expanding access to Shari’ah-compliant insurance through innovation and professionalism.

Delivering the vote of thanks, Crown Takaful’s Executive Director, Operations, Abiodun Aliu Agbabiaka, expressed appreciation to the keynote speakers, regulators, industry leaders, partners and participants for supporting what he described as a landmark moment in the company’s history. Quoting author William Arthur Ward, he said, “Feeling gratitude and not expressing it is like wrapping a present and not giving it,” adding that the ceremony was an opportunity to recognise the collective efforts that made the company’s first surplus distribution possible.

He also thanked NAICOM, members of the Board of Directors, the Advisory Council of Experts, shareholders, customers and the organising committee, reaffirming Crown Takaful’s commitment to expanding ethical insurance, promoting greater awareness of Takaful and sustaining the confidence reposed in the company by participants.

For much of the ceremony, the discussion extended beyond Crown Takaful itself.

Speakers repeatedly returned to broader questions about financial inclusion, public confidence, regulatory support, technology and the place of ethical finance within Nigeria’s evolving financial system.

The consensus was that while Takaful still represents a relatively small segment of the country’s insurance market, its growth will depend less on regulatory approval than on sustained public education, product innovation and the industry’s ability to demonstrate practical value to consumers.

Against that backdrop, Crown Takaful’s inaugural surplus distribution became more than a corporate milestone.

It demonstrated how the principles of mutual risk-sharing can be translated into practical benefits for participants while providing a platform for regulators, scholars and industry leaders to examine the opportunities and challenges facing non-interest insurance.

PEACE Magazine in Abuja

SPONSORED

SPONSORED