Allianz Malaysia delivers resilient RM3.99 billion GWP in first nine months of 2020
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Allianz Malaysia Berhad Group (Allianz Malaysia) announced its results for the first nine months of 2020. The Group recorded a total of RM3.99 billion in Gross Written Premiums (GWP) from January to September this year, an increase of 8.7 percent from the RM3.68 billion earned in the same corresponding period of 2019. Profit Before Tax rose 7.7 percent to RM542.8 million from January to September this year as compared to RM504.0 million in 2019. The Group’s Total Assets grew 10.9 percent to RM21.33 billion as at September 2020 as compared to RM19.24 billion last year.
Allianz Malaysia Berhad Chief Executive Officer, Zakri Khir said: “The Group’s results for the first nine months of the year were within our expectations as we continue to navigate these peculiar times. Since the COVID-19 pandemic hit our shores, our general insurance arm as well as our life business has focused on prioritising resiliency as we do the best for our customers and shareholders. That said, we remain mindful that it has been a rough year for our fellow Malaysians, and that we are not out of the woods yet with the recent surge of COVID-19 cases in the country. While we hold onto cautious optimism, COVID-19 has brought on such vast uncertainty, that we must also be prepared for things to get a lot tougher next year.”
Allianz General remains resilient despite market challenges
In a difficult market, Allianz Malaysia’s general insurance operation, Allianz General Insurance Company (Malaysia) Berhad (Allianz General) earned RM1.80 billion in GWP in the first nine months of 2020, a 9.2 percent increase from RM1.65 billion earned in the same corresponding period of 2019. Profit Before Tax improved by 24.3 percent to RM301.6 million in the first nine months of 2020 as compared to RM242.7 million in the previous year. Underwriting profit improved by 53.2 percent to RM154.1 million in the first nine months of 2020 as compared to RM100.6 million in the corresponding period of 2019. Combined Ratio stood at 89.7 percent in the first nine months of 2020 compared to 92.6 percent in the same corresponding period of 2019. Total Assets increased by 10.5 percent to RM7.14 billion as at September 2020 from RM6.46 billion in the previous year. Allianz General holds the market leader position in the general insurance industry with a market share of 13.3 percent based on Persatuan Insurans Am Malaysia (PIAM) statistics for January to September 2020.
“Allianz General’s results for the first nine months of the year indicates that we are moving in a positive direction. Our improved underwriting profit of RM154.1 million stemmed from the intermittent Movement Control Order (MCO) enforced nationwide, which resulted in fewer vehicles being on the road (lowering the probability of accidents) that led to a lower motor claims ratio. This also had a direct contribution to a higher Profit Before Tax. We are fully aware that we must hold onto our dogged determination and remain fluid in our strategies as whatever measures we implement in this quarter must manifest in the fourth quarter of the year as we brace ourselves of yet another challenging year in 2021,” said Zakri, who is also the Chief Executive Officer of Allianz General.
Allianz Life surpasses RM2 billion in GWP in Q3
The life insurance operation of Allianz Malaysia, Allianz Life Insurance Malaysia Berhad (Allianz Life) stayed the course to deliver RM2.20 billion in GWP in the first nine months of 2020, an increase of 8.2 percent compared to RM2.03 billion earned in 2019. Annualised New Premiums (ANP) dipped 12.9 percent to RM364.1 million in the first nine months of 2020 from RM418.1 million in the same corresponding period of 2019. Profit Before Tax eased by 5.2 percent to RM254.1 million between January and September this year, compared to RM268.1 million achieved in 2019. Total Assets rose by 11.7 percent to RM13.82 billion as at September of 2020 as compared to RM12.37 billion in 2019. Allianz Life holds the fifth position in the life insurance segment, registering a 7.9 percent market share, based on Life Insurance Association of Malaysia (LIAM) statistics for January to September 2020.
Allianz Life Chief Executive Officer, Joseph Gross, said: “While the life insurance industry is in a decline as a result of changing consumer sentiments and lingering caution and uncertainties, Allianz Life has remained resilient, working diligently to serve our customers and rebuild new business to offset the effects of the COVID-19 pandemic. The Company managed an ANP of RM364.1 million as our agency force continued to do its best to regain lost ground on the acquisition of new business. While lower Profit Before Tax was due mainly to fair value losses arising from changes in interest rate, our underlying operating profit remains strong as we find effective ways to control cost and claims.” said Joseph Gross, Chief Executive Officer of Allianz Life.
Staying resilient amidst the COVID-19 pandemic
Despite trying times, Allianz Malaysia continues to win over customer confidence and trust, encouraged by Allianz Group’s recent success at being listed as the highest-ranking insurer for the second consecutive year on the 2020 Interbrand’s Best Global Brand Rankings recently.
Allianz Group placed No.39 amongst the top 100 global brands with a brand value of USD12.94 billion. While the Group continues to nurture the growth of the brand strength and its impact on people’s lives, locally Allianz Malaysia has continued to drive brand trust and affinity through its offering of more definite, meaningful, and palatable products that relates to the needs of Malaysians.
The Allianz We Care Community is curated to offer complimentary COVID-19 benefits, including cash relief (upon diagnosis of COVID-19 and hospitalisation) and death benefit due to COVID-19, as well as meaningful health care services including wellness and lifestyle rewards and virtual healthcare benefits.
“Our role as insurers is more than just about providing protection. It is about fostering and building inclusive and resilient communities that are able to respond to adverse situations together – which is what we hope to achieve with Allianz We Care Community,” said Gross
The Company’s general insurance arm also launched several products between January to September this year, with Allianz Lifestyle Protect and an enhanced version of our modular home insurance Smart Home Cover taking precedence in the third quarter of the year.
On top of that, Allianz Life’s offered Allianz MoneyBack, a life insurance policy that offers a 15-year protection coverage on a six-year commitment and a money back guarantee when the policy matures. The policy also offers a Maturity Benefit of a lump sum payment of the total premium paid over the first six years if no claim is made during the 15-year coverage period.
“With insurance, it is important to have options and flexibility. And with COVID-19 and so much uncertainty, Allianz MoneyBack offers individuals in their prime and with young families the best of both worlds in having protection coverage on a short term commitment as well as a feature that refunds all the premiums paid at the end of the term if no claim is made,” said Gross.