ALLIANZ MALAYSIA Q2 NET PROFIT JUMPS TO RM89.87m
KUALA LUMPUR: Allianz Malaysia Bhd’s net profit jumped 35.2 per cent to RM89.87 million in the second quarter ended June 30, from RM66.48 million a year ago.
Revenue increased 9.5 per cent to RM1.31 billion from RM1.19 billion previously.
Allianz said the higher revenue was mainly due to higher gross earned premiums and investment income by RM95.4 million and RM17.6 million, respectively.
For the six months, Allianz’s net profit increased 32.5 per cent to RM177.1 million from RM133.65 million previously, while revenue jumped 7.3 per cent to RM2.58 billion, from RM2.4 billion earlier.
Allianz expects some volatility in the market, given the change in political landscape and economic policies in the short term.
It said intensifying competition from the ongoing liberalisation of motor and fire tariffs was also expected to put some pressure on the industry’s revenue and profits.
However, it said the general insurance segment would continue to prioritise innovative products and services, and further expansion of its multi-distribution model would allow it to maintain its market-leading position.
Allianz said the life insurance segment had recorded a strong new business growth of 11.8 per cent in the second quarter, compared with last year.
“In line with the objectives of the Life Framework, 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.”
It said this year, the life business would prepare for the implementation of minimum allocation rate for investment-linked products and balanced scorecard for bancassurance channel, which were currently slated to be implemented beginning next year.
Allianz said it remained confident in its long-term prospects and ability to continue delivering value to its shareholders this year.