Allianz Malaysia Bhd. · MYX:ALLIANZ
Allianz Malaysia Bhd — Q1 2024 Earnings Presentation
32 slides from Allianz Malaysia Bhd's earnings presentation, May 24, 2024
Slide 1: Allianz Malaysia Berhad Q1 2024 Financial Results Analyst Briefing
ALLIANZ MALAYSIA BERHAD (197201000819) Q1 2024 FINANCIAL RESULTS MFRS 9/17 Analyst Briefing 24 May 2024 © Copyright Allianz Malaysia Berhad
Slide 2: AMB Group Financial Results
01 AMB GROUP FINANCIAL RESULTS © Copyright Allianz Malaysia Berhad 2
Slide 3: Financial Highlights 3M 2024
FINANCIAL HIGHLIGHTS 3M 2024 Group General Insurance Life Insurance Investment Holding Investment Holding Gross Written Premium (RM’mil) 1,904.3 (+11.7%) 884.6 (+14.0%) 1,019.7 (+9.7%) Insurance Revenue (RM’mil) 1,336.9 (+15.1%) 754.8 (+14.1%) 582.1 (+16.4%) Profit Before Tax (RM’mil) 251.0 (+8.0%)
Slide 4: Strong Performance with Robust Top Line Growth and Resilient Earnings
STRONG PERFORMANCE WITH ROBUST TOP LINE GROWTH AND RESILIENT EARNINGS Comments Insurance revenue Profitability • Group insurance revenue of RM1.34 billion, an increase of 15.1% • Group profit before tax of RM251.0 million, increased by 8.0% (3M from RM1.16 billion in 2023 due to strong insurance rev
Slide 5: Financial Highlights 3M 2024: Gross Written Premium
FINANCIAL HIGHLIGHTS 3M 2024 Group General Insurance Gross Written Premium (“GWP”) (RM’mil) +11.7% +14.0% 884.6 6,546.5 776.1 1,904.3 6,023.0 1,705.3 3M 23 3M 24 Life Insurance +9.7% 1,019.7 929.2 3M 23 3M 24 3M 23 3M 24 © Copyright Allianz Malaysia Berhad 5
Slide 6: Financial Highlights 3M 2024: Insurance Revenue
FINANCIAL HIGHLIGHTS 3M 2024 Group General Insurance Insurance Revenue (RM’mil) +15.1% +14.1% 754.8 661.5 1,336.9 4,941.6 4,418.8 1,161.4 3M 23 3M 24 Life Insurance +16.4% 582.1 499.9 3M 23 3M 24 3M 23 3M 24 © Copyright Allianz Malaysia Berhad 6
Slide 7: Financial Highlights 3M 2024: PBT and PAT Drivers
FINANCIAL HIGHLIGHTS 3M 2024 Profit Before Tax drivers (RM’mil) Profit After Tax drivers (RM’mil) +8.0% +9.9% 3M 23 General Life Investment 3M 24 3M 23 General Life Investment 3M 24 Insurance Insurance Holding Insurance Insurance Holding ∆ 3M 24/23 ∆ 3M 24/23 3M 2023 139.8 96.5 (4.0) 232.3 3M 2023 1
Slide 8: Life Business: CSM Growth Good at 4.1%
LIFE BUSINESS: CSM GROWTH GOOD AT 4.1% Contractual Service Margin (RM’mil) +4.1% 1 CSM (net) 2,209.3 Reinsurance 144.3 3,381.9 Non-attributable cost 330.6 Tax 697.7 CSM (gross) 3,381.9 VNB (3M 24) 102.9 + Non-attr. Cost 39.9 - Scope / other (1.4) = New business @ inception 141.4 Economic and non- ec
Slide 9: Financial Overview
FINANCIAL OVERVIEW RM’mil 2022 2023 24/23 % 3M 2023 3M 2024 Gross Written Premiums 6,023.0 6,546.5 8.7% 1,705.3 1,904.3 CSM Release 368.6 433.1 17.5% 95.0 115.6 Expense Ratio (Non Life)1 26.6% 26.3% (0.3 pts) 24.8% 24.1% Expense Ratio (Life)2 9.8% 12.1% 2.3 pts 10.6% 11.1% Local Consolidated PBT 87
Slide 10: Summary of Unaudited Financial Results
SUMMARY OF UNAUDITED FINANCIAL RESULTS RM’mil 3M 2023 3M 2024 24/23 % Insurance revenue 1,161.4 1,336.9 15.1% Claims and benefits (543.1) (684.4) 26.0% Acquisition and administrative expenses (net) (268.6) (319.5) 19.0% Losses on onerous contracts (14.6) (3.7) (74.7%) Insurance service expenses (82
Slide 11: General Business
02 GENERAL BUSINESS © Copyright Allianz Malaysia Berhad 11
Slide 12: General Business
GENERAL BUSINESS Comments Gross written premiums Combined ratio • Continued growth momentum in the first quarter with gross • Higher combined ratio of 2.8 pts mainly from extraordinary low written premium increased by 14.0% as compared to prior combined ratio in preceding financial period due to low
Slide 13: General Business: Good Sales Momentum with Double Digit GWP Growth
GENERAL BUSINESS: GOOD SALES MOMENTUM WITH DOUBLE DIGIT GWP GROWTH Gross Written Premium (RM’mil) Distribution Channel & Portfolio Mix +14.0% Telemaketing 1.7% 884.6 Agent 57.1% 776.1 Broker 10.5% Banca 1.7% Franchise 29.0% Fire 12.5% Marine 2.2% PA & Health 5.3% Total 884.6 Misc 13.0% Motor 3M 23 3
Slide 14: General Business: Investment Income Continued to Grow
GENERAL BUSINESS: INVESTMENT INCOME CONTINUED TO GROW IN LINE WITH HIGHER YIELD AND INVESTMENT ASSETS Net investment income/ Net (re-)insurance finance expenses Portfolio Mix and Investment Yield (Annualised) (RM’mil) +1.3% Portfolio Mix Investment Yield * 38.2 37.7 Deposit Unquoted 4.6 9.8% Unit Tr
Slide 15: General Business: Lower PBT Due to Lower Insurance Service Results
GENERAL BUSINESS: LOWER PBT DUE TO LOWER INSURANCE SERVICE RESULTS Profit Before Tax (RM’mil) PBT Drivers (RM’mil) -5.4% 556.2 139.8 515.3 132.3 3M 23 Insurance Net Others 3M 24 service investment results income 3M 2023 116.8 54.9 (31.9) 139.8 3M 2024 104.2 59.8 (31.7) 132.3 3M 23 3M 24 Change (12.6
Slide 16: General Business: Higher Combined Ratio Due to Higher Claims Ratio
GENERAL BUSINESS: HIGHER COMBINED RATIO DUE TO HIGHER CLAIMS RATIO Combined Ratio +2.8 pts Discounting impact -3.0% Discounting impact -2.9% 87.0% 84.2% 24.1% 24.8% * * * 59.4% * 62.9%* 3M 23 3M 24 Claims Ratio Expense Ratio * Include reinsurance results - reinsurance ratio 13.8% in 3M 23, 7.9% in 3
Slide 17: General Business: Financial Results at a Glance
GENERAL BUSINESS: FINANCIAL RESULTS AT A GLANCE RM’mil 3M 2023 3M 2024 24/23 % Insurance revenue 661.5 754.8 14.1% Claims (294.3) (413.0) 40.3% Acquisition and administrative expenses (net) (151.8) (175.9) 15.9% Losses on onerous contracts (7.4) (2.1) (71.6%) Net expenses from reinsurance contracts
Slide 18: General Business: Performance Compared to Industry (Jan-Mar 2024)
GENERAL BUSINESS: PERFORMANCE COMPARED TO INDUSTRY (JAN-MAR 2024) AGIC 1 Industry 1 Takaful 1 KPIs 3M 2024 3M 2024 3M 2024 GWP growth 13.6% 10.0% 10.8% Market Share (3M 2024) 2 13.7% Market Ranking (12M 2023) 3 No. 1 Notes: 1) Source: ISM Market Performance Report Jan-Mar 2024 (General Insurance & G
Slide 19: Life Business
03 LIFE BUSINESS © Copyright Allianz Malaysia Berhad 19
Slide 20: Life Business
LIFE BUSINESS Comments Gross written premiums Product mix • Gross written premiums grew by 9.7% with growth from • Remain focused on sales of investment-linked products with Bancassurance (+ 50.3%) and Employee Benefit (+ 9.5%). protection rider which provides higher margins but to also cater for de
Slide 21: Life Business: Y-o-Y Growth Driven by Single and Recurring Premium
LIFE BUSINESS: Y-O-Y GROWTH DRIVEN BY SINGLE PREMIUM AND RECURRING PREMIUM Gross Written Premiums (“GWP”) (RM’mil) GWP Mix & Growth (%) (3M 2024) +9.7% Mix Single 1,019.7 3,543.0 Premium 25.3% 3,366.7 929.2 Total 1,019.7 Recurring Premium 761.5 74.7% 703.7 Growth 14.5% 225.5 258.2 8.2% 3M 23 3M 24 R
Slide 22: Life Business: Growth in ANP Driven by All Key Distribution Channels
LIFE BUSINESS: GROWTH IN ANP DRIVEN BY ALL KEY DISTRIBUTION CHANNELS Annualised New Premiums (“ANP”) (RM’mil) ANP Channel Mix (%) (3M 2024) +43.8% 234.8 757.6 20.6 Bancassurance/Direct Marketing 163.4 39.0% 91.6 18.9 Growth +79.5% Total 51.0 234.8 Agency 52.2% 122.6 Growth +31.2% 93.5 Corporate 8.8%
Slide 23: Life Business (Agency): Focus on Regular Investment-Linked Products
LIFE BUSINESS (AGENCY): CONTINUE FOCUS ON PREFERRED SEGMENT OF REGULAR INVESTMENT-LINKED PRODUCTS WITH BETTER MARGINS Agency Annualised New Premiums (RM’mil) Agency Product Mix (%) (3M 2024) +31.2% Traditional By ANP By Policy Count 524.8 13.9% 122.6 Traditional 10.8% Total Total 93.5 122.6 21,005.0
Slide 24: Life Business: Investment-Linked with Protection Features Continues to Grow
LIFE BUSINESS: INVESTMENT-LINKED WITH PROTECTION FEATURES CONTINUES TO GROW Annualised New Premiums (RM’mil) Gross Written Premiums (RM’mil) +90.4% +20.8% 615.6 174.8 509.8 91.8 3M 23 3M 24 3M 23 3M 24 © Copyright Allianz Malaysia Berhad 24
Slide 25: Life Business: Higher Investment Income Driven by Larger Asset Base
LIFE BUSINESS: HIGHER INVESTMENT INCOME DRIVEN BY LARGER INVESTMENT ASSETS BASE Investment Income by funds Portfolio Mix and Investment Yield (LF+SHF) (%) (RM’mil) Investment Yield Portfolio Mix >100% (Annualised) Cash Others 7.1% 0.1% 460.9 Equities Govt Bonds 41.3 8.3% 57.5% 215.2 3.8% 3.8% 419.6
Slide 26: Life Business: Financial Results at a Glance
LIFE BUSINESS: FINANCIAL RESULTS AT A GLANCE RM’mil 3M 2023 3M 2024 24/23 % Insurance revenue 499.9 582.1 16.4% - Release contractual service margin 95.0 115.6 21.8% - Release of expected cash flows, risk adjustments and others 404.9 466.5 15.2% Claims and benefits (248.8) (271.4) 9.1% Acquisition
Slide 27: Gearshift
04 GEARSHIFT © Copyright Allianz Malaysia Berhad 27
Slide 28: Gearshift: Benefits of the Regional Delivery Center for Allianz Malaysia
GEARSHIFT: BRINGING IT TO THE NEXT LEVEL – BENEFITS OF THE REGIONAL DELIVERY CENTER (“RDC”) FOR ALLIANZ MALAYSIA With Project Gearshift, Allianz aims to consolidate IT Supply Services into one global service provider: Allianz Technology. This move enables opportunities for improvement for AZ Malaysi
Slide 29: Gearshift: Regional Delivery Center as Long-Term Strategy
GEARSHIFT: BRINGING IT TO THE NEXT LEVEL – REGIONAL DELIVERY CENTER AS LONG-TERM STRATEGY In the next 2 years, Allianz Technology Malaysia will continue to build and operationalize the RDC, providing end-to-end IT shared services in Asia and creating over 500+ roles as part of Allianz Group IT Strat
Slide 30: Gearshift: Scope & Progress for Allianz Malaysia
GEARSHIFT: SCOPE & PROGRESS FOR ALLIANZ MALAYSIA Transfer of Total Contract Value RM98.6 mil Total contract value transferred to AZ Tech MY with committed cost neutrality in 2024 Original Entity: Receiving Entity: Transfer date: Allianz Malaysia Allianz Technology Sdn. Bhd. • October 1, 2023 • 111 I
Slide 31: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION © Copyright Allianz Malaysia Berhad
Slide 32: Disclaimer
DISCLAIMER These assessments are, as always, subject to the disclaimer provided below. Cautionary Note Regarding Forward-Looking Statements The statements contained herein may include statements of future expectations and Union, (xi) changes in the policies of central banks and/or foreign government
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