Allianz Malaysia announces full-year results 2018; earns RM 4.5 billion in GWP
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Allianz Malaysia Berhad (AMB) Group today announced its results for the full year 2018. The Group saw a 5.1 percent growth in Gross Written Premium (GWP) which stood at a solid RM4.50 billion as compared to RM4.29 billion from the year before. Profit Before Tax grew 18.7 percent to RM519.0 million in 2018 as compared to RM437.3 million in 2017. The Group’s Total Assets grew 4.9 percent to RM17.40 billion in 2018 as compared to RM16.59 billion in 2017.
AMB Chief Executive Officer, Zakri Khir said, “The past year was indeed a rather challenging year for the Malaysian economy as we experienced a slowdown in GDP growth momentum. Despite these challenges and flat growth in both the general and life insurance sectors, Allianz Malaysia achieved RM4.50 billion in GWP for the full year 2018 thanks to higher contributions from its life business. It was a rough year, but we took the bull by the horns and succeeded. We underestimate the real difficulties of the economy and the coming year will bring about new challenges, and like water, we will find our balance. Our goal as insurers as always, will be to stay financially resilient and to attract better customers with meaningful solutions and value added services.”
Allianz General continues to put customers first
AMB’s general insurance subsidiary; Allianz General Insurance Company (Malaysia) Berhad (Allianz General)’s GWP took in RM2.12 billion in 2018 as compared to RM2.14 billion in 2017, a slight ease of 0.7 percent. Underwriting Profit grew by 35.6 percent to RM137.8 million in 2018 from RM101.6 million in 2017 and Profit Before Tax rose by 20.1 percent in 2018 to RM320.6 million from RM266.9 million in the previous year. Total Assets increased by 1.6 percent to RM 6.05 billion in 2018 from RM5.96 billion in 2017 while the Combined Ratio in 2018 improved to 92.8 percent as compared to 94.5 percent in 2017.
“The year 2018 presented its fair amount of challenges. With Allianz General, we always find a way to rally back from any situation. The year saw the manifestation of the total impact of the end of Allianz General’s bancasurrance agreement with CIMB coupled with a few large fire insurance claims. While our GWP dipped 0.7 percent, our prudent management of expenses and overall lower claims ratio, saw our underwriting results jumped 35.6 percent to RM137.8 million and profit also rose 20.1 percent to RM320.6 million as our agency force remains our strongest distribution channel and has continued to deliver results,” said Zakri Khir, who is also the Chief Executive Officer of Allianz General.
Allianz Life ends 2018 with a strong RM2.38 billion GWP
The life insurance subsidiary of the Group; Allianz Life Insurance Malaysia Berhad (Allianz Life) continues its impressive performance, recording a 10.9 percent growth in GWP to RM2.38 billion in 2018 from RM2.15 billion in 2017. Its New Business Premiums (ANP) rose by 13.3 percent in 2018 to RM512.8 million from RM452.5 million in 2017. Profit Before Tax also grew by 18.2 percent in 2018 to RM 204.4 million compared to RM172.9 million the previous year. Total Assets increased 6.4 percent to RM10.78 billion in 2018 from RM10.14 billion in 2017. Allianz Life holds the fifth position among the life insurance segment, registering an improved 8.4 percent market share in 2018 from 7.4 percent in 2017.
“Life is good. Allianz Life ended the year on a strong note delivering double-digit percentage growth on the bounce, taking RM2.38 billion in GWP which contributed significantly to the Group’s total earning for fiscal year of 2018. Overall, all distribution channels – agency, Bancassurance and Employee Benefits – grew strongly to keep the growth momentum going well into 2019. The launch of our Customer Healthcare Administration (CHA) in October which took over the Managed Care Organisation operations previously handled by several Third-Party Administrators will also help us recapture the medical business. Our focus is on rejuvenating our agency business and delighting our customers. Pull no punches, we are zeroed in on continued profitable growth in the country,” said Joseph Gross, Chief Executive Officer for Allianz Life.
Refining and redefining our service
In 2016, the national insurance penetration rate stood at 56 percent. Three years on, the needle is nowhere close to Bank Negara Malaysia’s goal of reaching a rate of 75 percent by 2020. It will be status quo unless there is real change in the mindsets of Malaysians towards self-protection and their financial capabilities to act on it.
“Let’s get real, insurance is never going to be top on your shopping list and the regression of disposable income is a huge challenge standing in our way because when you buy fewer assets, you insure less. What does not go away is risk. What makes things worse is that Malaysians lack understanding for the need to self-protect. Ignorance is bliss until something bad happens,” said Zakri Khir, Chief Executive Officer of Allianz Malaysia Berhad.
“So the biggest challenge today is to get Malaysians to stop being content with leaving their vulnerability in the hands of others. Accepting vulnerability is not about living in fear. It is an opportunity to take ownership of their health, their life and their assets. As insurers, our focus moving forward will be in addressing this issue and in finding ways to best deliver customer-focused products and services to our customers and at the same time, drive purposeful conversations and change in the industry in 2019,” added Zakri.