Allianz Malaysia Berhad (AMB) Group announced its results for the first quarter of 2019 with a total RM1.21 billion recorded in the Group’s Gross Written Premiums (GWP) from January to March this year as compared to RM1.16 billion last year; a 4.2 percent increase. The Group’s Total Assets grew 7.4 percent to RM18.05 billion in the first three months of 2019 as compared to RM16.81 billion last year while Profit Before Tax increased by 18.5 percent to RM151.2 million in the first quarter of 2019 as compared to RM127.6 million in the first quarter of 2018.
AMB Chief Executive Officer, Zakri Khir said: “Amidst slower growth for Malaysian economy in the first quarter of 2019, Allianz Malaysia remained resilient to deliver RM1.21 billion in GWP. The Company is lucky to have two solid subsidiaries in the general and life insurance business. Our focus for the next nine months will be to continuously put customers first and deliver the highest of standards in products and services as we want the Allianz brand to be top of mind when it comes to protection for all their needs, from A to Z. In essence, we want to push the brand and pull the customer.”
Allianz General continues to put customers first
AMB’s general insurance subsidiary; Allianz General Insurance Company (Malaysia) Berhad (Allianz General) recorded RM548.3 million GWP in the first quarter of 2019, a 6.4 percent drop from RM585.7 million earned in 2018. Underwriting Profit fell 12.1 percent to RM39.4 million from January to March of 2019 compared to RM44.8 million in 2018 while Profit Before Tax also dipped 3.1 percent to RM85.6 million in the first three months of 2019 as compared to RM88.3 million the previous year. Total Assets was up by 3.1 percent to RM6.22 billion in the first quarter of 2019 from RM6.03 billion the previous year. Combined Ratio for the first three months of 2019 stood at 91.3 percent, compared to 90.6 percent in first quarter of 2018.
“General insurers faced quite a challenging start to the year as the industry experienced a growth of -8.3 percent as at February 2019, affected by all lines of business. This was due to slow economic activity especially in the commercial sector coupled with increasing competition in the Motor and Fire segments with some downward pressure on pricing. Our underwriting results also dipped due to higher management expense ratio from impairment of insurance receivables on slower collection. Excluding this, we would have better profit position than what we achieved in the first quarter of 2018. Allianz General, we always find ways to rally back from any situation and will be looking towards the next nine months in,” said Zakri Khir, who is also the Chief Executive Officer of Allianz General.
Allianz Life sustains positive growth
The life insurance subsidiary of the Group; Allianz Life Insurance Malaysia Berhad (Allianz Life) registered a GWP of RM657.9 million in the first three months of 2019, an impressive 15.0 percent increase from RM572.0 million it achieved in 2018.
Its Annualised New Business Premiums grew by 8.4 percent to a total of RM117.5 million in the first quarter of 2019 from RM108.4 million in 2018 with growth from Bancassurance and Employee Benefits channels. Profit Before Tax saw a 66.0 percent increase to RM68.9 million in 2019 as compared to RM41.5 million achieved in 2018 while Total Assets rose by 9.9 percent to RM11.41 billion in 2019 as compared to RM10.38 billion in 2018. Based on Life Insurance Association of Malaysia statistics for January to March 2019, Allianz Life holds the fifth position among the life insurance industry, capturing 8.0 percent market share in 2019.
“Amidst weaker consumer sentiments and rising cost of living concerns, the life insurance industry performed as usual. For Allianz Life, we were largely able to keep our momentum from last year. Our goal of delivering profitable growth is very much intact as our distribution channels did well to deliver 15 percent growth in GWP to RM657.9 million for the first quarter of 2019. Profit was significantly higher due to fair value gain arising from changes in interest rates. Allianz Life’s priorities are still very much focused on becoming the fastest growing life insurer. Through persistency, the Company aims to drive profitability to outperform top line growth and to steer simplicity and productivity backed by IT enhancements.” said Joseph Gross, Chief Executive Officer of Allianz Life.
The essential role of an insurer as an advocate
Despite market sentiment, Allianz General will continue its push in the retail segment (Motor and Fire) with emphasis placed on the non-motor business.
At the Smart Home, Safe Home media forum, Allianz Malaysia partnered the Fire and Rescue Department of Malaysia (Bomba) and Real Estate and Housing Developers’ Association Malaysia (REHDA) to raise awareness about fire safety and the importance of home insurance. Statistics from Bomba revealed that the value of properties lost due to fire was estimated at RM 3.317 billion in 2018.
“Malaysians lack a sense of vulnerability and are very comfortable relegating that liability to someone else or even the government. Somehow, it does not come naturally for Malaysians to relate liability to needing protection. It is very telling when out of eight million homes in Malaysia; roughly only two million are insured. That said, we felt there was a nagging need to educate and raise awareness about home insurance by highlighting the common misconceptions and what Malaysians should look for in a home insurance,” said Zakri.