Allianz Malaysia announces financial results for Q2 2019; earns RM 2.38 billion in GWP
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Allianz Malaysia Berhad (AMB) Group announced its results for the first six months of 2019. The Group recorded a total of RM2.38 billion in Gross Written Premiums (GWP) in the first six months of 2019, a 4.8 percent increase as compared to RM2.27 billion it achieved in the same corresponding period in 2018. The Group’s Total Assets saw a 12.2 percent increase to RM18.83 billion as at June 2019 as compared to RM16.78 billion last year. Profit Before Tax rose 35.1 percent to RM329.0 million in the first half of the 2019, as compared to RM243.5 million it achieved in the same corresponding period last year.
AMB Chief Executive Officer, Zakri Khir said: “Amidst a challenging economic environment, Allianz Malaysia has relied on its strong pillar of business to deliver RM2.38 billion in GWP in the first six months of 2019. The results we achieved were driven by the positive performance of our life insurance business and satisfactory numbers from the general insurance business. Overall, the results remain satisfactory and up to our expectations. Our focus now is on the second half of 2019 and controlling our expense ratio while continuing to deliver on our promise to offer customers protection that really matters, when it is needed the most.”
Allianz General sees dip in GWP; increase in underwriting result and profit
AMB’s general insurance subsidiary; Allianz General Insurance Company (Malaysia) Berhad’s (Allianz General) GWP registered in RM1.07 billion in the first six months of 2019, easing 2.5 percent from RM1.10 billion in 2018. Underwriting Result rose 7.0 percent to RM84.0 million from January to June this year from RM78.5 million last year while Profit Before Tax improved by 7.1 percent to RM177.2 million in the first six months of 2019 from RM165.4 million in the previous year. Total Assets rose 5.5 percent to RM6.40 billion as at June 2019 from RM6.06 billion in the previous year. Allianz General’s Combined Ratio stood at 90.8 percent in 2019 as compared to 91.8 percent in 2018.
“The numbers in the general insurance business is not great. The industry’s GWP fell 2.3 percent for the first four months this year, mainly due to the decline in non-motor business. For Allianz General, the drop in fire business was the contributing factor which saw our GWP dip 2.5 percent to RM1.07 billion in first six months in 2019. Nevertheless, lower claims in our motor segment resulted in an increase in our underwriting result (RM84.0 mil) and profit before tax (RM177.2 mil). Our Combined Ratio of 90.8 percent is proof that we are holding on well. We have persevered despite challenges and we have measures in place to keep us going in the right direction,” added Zakri who is also Chief Executive Officer for Allianz General.
Allianz Life continues to chart positive growth; delivering RM1.32 billion in GWP
The life insurance subsidiary of the Group; Allianz Life Insurance Malaysia Berhad (Allianz Life) continues to charts positive growth, recording a 11.6 percent increase in GWP to RM1.32 billion in the first six months of 2019 from RM1.18 billion in 2018. Its New Business Premiums (ANP) also improved by 14.7 percent to a total of RM285.3 million in the first six months of 2019 from RM248.7 million in 2018. Profit Before Tax saw an impressive 92.2 percent increase to RM157.6 million from January to June this year as compared to RM82.0 million achieved in 2018 while Total Assets rose by 16.6 percent to RM12.03 billion as at June 2019 as compared to RM10.31 billion in 2018. Allianz Life holds the fifth position among the life insurance industry and captured an 8.6 percent market share based on Life Insurance Association of Malaysia (LIAM) statistics for January to June 2019.
“Allianz Life showed improvement in its main distribution channels. Our agency force, Bancassurance, and Employee Benefit were the main factors that drove the double-digit percentage growth in GWP. Besides that, New Business Premiums experienced 14.7 percent growth in the first half of 2019. Our immense 92.2 percent growth in profit was mainly due to the fair value gain arising from the change in interest rates. This is very much in line with our aim this year to grow strongly and outperform the market,” said Joseph Gross, Chief Executive Officer of Allianz Life.
Reaching out to all segments of society
In May, Allianz General became the first insurer to provide motorcycles under 245cc added protection at no extra cost through Allianz Motorcycle Plus.
Allianz Motorcycle Plus (Comprehensive) coverage includes Accident Cover of RM5,000 (for death or permanent disablement), Hospital Income of RM50 a day (up to 60 Days) and the All Special Perils Full Sum-Insured Protection (covering flood, landslides or any natural disasters); while Allianz Motorcycle Plus (Third Party Only) which offers Accident Cover of RM5,000 (for death or permanent disablement) as well as Hospital Income of RM50 a day (up to 60 Days) with no added premium.
“Coming up with a product is not just about getting your brand name out there or making a profit. It’s about serving a larger purpose and the needs of the public. In this case, we really saw a gap in motorcycle insurance that needed to be addressed. With insurance penetration within the B40 group, we focused on providing added coverage for motorcycles under 245cc at no extra cost,” said Zakri.
“Riding motorcycles is risky business, but most of them do it anyways for various reasons. As insurers, it is in our best interest to be able to afford the riders and their families the protection coverage they deserve. We were able to issue 98,000 policies between May and July. This is exactly what it means to provide customers protection that really matters, when it is needed the most,” added Zakri.