Allianz Malaysia Q2 net profit rises to RM90mil
PETALING JAYA: Allianz Malaysia Bhd’s (AMB) net profit for its second quarter ended June 30, 2018 increased 35% to RM89.87mil from RM66.48mil in the previous corresponding period, mainly due to lower management expenses ratio from lower impairment of insurance receivables.
In a filing with Bursa Malaysia yesterday, AMB said the life insurance segment recorded a higher pre-tax profit of RM40.5mil, an increase of 31.9% or RM9.8mil compared with the previous corresponding period, due mainly to higher contribution from its protection business.
“For the quarter under review, the investment holding segment registered a pre-tax loss of RM1.8mil as compared to a pre-tax loss of RM1mil in the previous corresponding period, due mainly to agency commission being paid from the shareholder’s fund in the current quarter.
Revenue in the second quarter rose to RM1.31bil from RM1.19bil a year earlier.
For the six-months period ended June 30, 2018 AMB’s net profit grew to RM177.1mil from RM133.65mil in the previous corresponding period, while revenue improved to RM2.58bil from RM2.40bil a year earlier.
Commenting on the insurance industry’s prospects, AMB said the general insurance industry growth is usually correlated to the economic and regulatory developments of the country.
“In the short term, we anticipate some volatility in the market given the change in political landscape and economic policies. In addition, intensifying competition with the ongoing liberalisation of motor and fire tariffs is expected to put some pressure on the industry’s revenue and profits.
“However, the general insurance segment will continue to prioritise offering innovative products and services and further expansion of its multi-distribution model to maintain its market leading position.”
AMB said the life insurance segment recorded a strong new business growth of 11.8% in second quarter of 2018 as compared to last year.
“In line with the objectives of the life frame- work, the life insurance segment will remain focused on strengthening its multi-distribution channels through professionalisation and expansion of its agency force, improving end-to-end sales process digitisation and increasing the productivity of the agency force.
“In 2018, the life business will prepare for the implementation of minimum allocation rate (MAR) for investment linked products and balanced scorecard for Bancassurance channel which are currently slated to be implemented beginning 2019.”
AMB said it remains confident in its long term prospects and ability to continue delivering value to its shareholders in 2018.
In a separate statement, Allianz General chief executive officer Zakri Khir acknowledged that as insurer, the company’s priority is to make a difference in its our customer’s lives.
“We have to change our mindset, rethink how we provide insurance and be more flexible in the way we offer our products and services if we want to attract more customers.”