Allianz Malaysia Berhad Group (Allianz Malaysia), which announced its results for the first nine months of 2018, recorded a total of RM3.41 billion 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.”
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.
“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.
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.