Allianz Malaysia announces third-quarter results, earns RM 3.4 billion in GWP
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Allianz Malaysia Berhad Group (Allianz Malaysia) announced its results for the first nine months of 2018. A total of RM3.41 billion was recorded in the Group’s Gross Written Premiums (GWP) from January to September this year as compared to RM3.24 billion last year; a 5.2 percent increase. The Group’s Total Assets grew 7.2 percent to RM17.50 billion in the first nine months of 2018 as compared to RM16.33 billion last year. Profit Before Tax stood at RM391.1 million from January to September this year as compared to RM310.9 million in the same corresponding period of 2017.
Allianz Malaysia Berhad Chief Executive Officer, Zakri Khir said: “The fiscal third quarter of the year presented new challenges. We were in a post-General Election high, with the newly-formed government chomping at the bits to deliver change. On the back of these developments, Allianz Malaysia achieved RM3.41 billion in GWP in the nine months of 2018 as our overall profitability continued on its positive trend. There will be good days and challenging days, but we will manage it. With renewed optimism, our goal as an insurer is to stay financially resilient and to continue to serve our customers with thoughtful and relevant products and services.”
Allianz General remains resilient despite challenges
In a difficult market, Allianz Malaysia general insurance operation, Allianz General Insurance Company (Malaysia) Berhad’s (Allianz General) maintained a GWP of RM1.63 billion for the first nine months of 2018, the same earnings as of last year despite a slight ease of 0.2 percent. Profit Before Tax was at RM242.6 million in the first nine months of 2018 as compared to RM199.5 million in the previous year. Total Assets rose 3.4 percent to RM6.25 billion in the third quarter of 2018 from RM6.04 billion in the previous year, contributed by better expense ratio. Underwriting profit rose 40.9 percent to RM107.5 million in the third quarter of 2018 as compared to RM76.3 million in the corresponding period of 2017 mainly due to normalisation of the impairment in reinsurance receivables last year as well as strong technical fundamentals and prudent expense management to weather through a phased liberalisation environment. Combined Ratio stood at 92.5 percent in the first nine months of 2018 as compared to 94.4 percent in the same corresponding period of 2017. Allianz General holds the market leading position among the general insurance segment’s market share of 11.9 percent based on Persatuan Insurans Am Malaysia (PIAM) statistics for January to June 2018 and is still outpacing the market growth in Fire and Motor even with the on-going liberalisation.
“Despite market challenges, Allianz Malaysia has remained resilient for the first nine months of the year, closely maintaining our GWP to RM1.63 billion with new car sales soaring in July and August as the consumption tax holiday was made official on 1 June this year, and then dropping in September as consumers adjust to post-tax holiday environment and the reintroduction of the sales and service tax (SST) on 1 September 2018. However, we are buoyed by the growth and profitability of our non-motor business and the outlook of the business will largely depend on consumer behaviour in the coming months,” said Zakri, who is also the Chief Executive Officer of Allianz General.
Allianz Life continues positive growth
The life insurance operation of Allianz Malaysia, Allianz Life Insurance Malaysia Berhad (Allianz Life) continues its strong growth, recording a 10.8 percent increase in GWP to RM1.77 billion in the first nine months of 2018 from RM1.60 billion in 2017. Its Annualised New Premiums (ANP) also improved by 16.2 percent to a total of RM377.5 million in the third quarter of 2018 from RM324.8 million in the same corresponding period of 2017. Profit Before Tax saw a 35.9 percent increase to RM154.1 million from January to September this year as compared to RM113.4 million achieved in 2017 while Total Assets rose by 9.8 percent to RM10.85 billion in the first nine months of 2018 as compared to RM9.88 billion in 2017. Allianz Life holds the fifth position among the life insurance segment, registering an 8.7percent market share, based on Life Insurance Association of Malaysia (LIAM) statistics for January to September 2018, an increase of 1.3 percent point from the year before, as it looks towards establishing a stronger foothold in the industry.
“Allianz Life experienced an encouraging first nine months of 2018, taking in RM1.77 billion in GWP to solidify the strategies that we have in place to be profitable and one of the fastest growing life insurance business in Malaysia. Our strong performance is complimentary of our 4,367-agent strong workforce, solid bancassurance partnerships and profitable Employee Benefits business. While the market re-energised, consumers have remained cautious. Strong performance is a great foundation to continue our goal towards boosting our investment-linked products, diversify our portfolio and to fundamentally develop products with simple proposition focused on consumer demands,” said Joseph Gross, Chief Executive Officer of Allianz Life.
Reminding customers why they chose Allianz
In the third quarter of 2018, Allianz Malaysia focused on consistency and continues to drive business.
From June to September, the Allianz Road Rangers went on a nationwide eight-location tour to properly introduce its free-of-charge motor accident assistance service applicable to all its Motor Comprehensive (Private Car) policyholders. The service was first launched in the Klang Valley in 2017 before going nationwide in January this year.
“The Allianz Road Rangers tour served as the perfect platform to re-connect with our customers all across Malaysia. At every location we were able to touch base with our customers and reiterate our consistency and commitment towards providing first-rate service and solutions that will make a difference in people’s lives. Malaysians unfortunately lack a sense of vulnerability and instead have a great sense of entitlement. As insurers, we want to play a role in changing this mindset so that people realise the importance of protection. It is also important that we have a sense of awareness for what our customers want and need. We must possess the ability to not only recognise their needs, to then provide the solutions; but to also simplify our products and the way we deliver them complemented with great service,” said Zakri.