Allianz Malaysia Bhd. · MYX:ALLIANZ

Allianz Malaysia Bhd — Q2 2020 Earnings Presentation

29 slides from Allianz Malaysia Bhd's earnings presentation, Aug 28, 2020

  1. Slide 1: Allianz Malaysia Berhad Financial Results 2Q 2020 Analyst Briefing

    ALLIANZ MALAYSIA BERHAD (197201000819) FINANCIAL RESULTS 2Q 2020 ANALYST BRIEFING 28 AUGUST 2020

  2. Slide 2: AMB Group Results

    1 AMB Group Results 2

  3. Slide 3: Restoring Revenue Growth and Resilient Earnings from Diversification in Two Strong Pillars of Businesses

    Allianz Malaysia Berhad (197201000819) Restoring Revenue Growth and Resilient Earnings from Diversification in Two Strong Pillars of Businesses Operating revenue  Group operating revenue of RM2.89 billion, an increase of 6.6% compared to corresponding period of RM2.71 billion due to higher gross ea

  4. Slide 4: Financial Highlights 6M 2020: Operating Revenue

    Allianz Malaysia Berhad (197201000819) Financial Highlights 6M 2020 Operating Revenue (RM’mil) General Business (RM’mil) +6.6% +4.3% 1,153.4 1,202.8 6M 2019 6M 2020 Life Business (RM’mil) 2,888.8 2,710.3 +8.4% 1,550.0 1,679.9 6M 2019 6M 2020 6M 2019 6M 2020 4

  5. Slide 5: Financial Highlights 6M 2020: Gross Written Premiums

    Allianz Malaysia Berhad (197201000819) Financial Highlights 6M 2020 Gross Written Premiums (“GWP”) (RM’mil) General Business (RM’mil) +7.3% +6.3% 1,068.7 1,135.7 6M 2019 6M 2020 2,560.3 Life Business (RM’mil) 2,385.8 +8.2% 1,317.1 1,424.6 6M 2019 6M 2020 6M 2019 6M 2020 5

  6. Slide 6: Financial Highlights 6M 2020: Profit Before Tax and PBT Drivers

    Allianz Malaysia Berhad (197201000819) Financial Highlights 6M 2020 Profit Before Tax (RM’mil) PBT Drivers (RM’mil) +3.5% +16.7 -2.5 -2.7 340.5 329.0 340.5 329.0 +17.4%* 15.8 2.0 26.5 27.7 322.7 274.8 PBT General Life Investment PBT 6M 2019 Business Business Holdings 6M 2020 6M 2019 177.2 157.6 (5.8

  7. Slide 7: Life Business: Marginally lower PBT driven by volatile financial market but core profit remains strong

    Allianz Malaysia Berhad (197201000819) Life Business: Marginally lower PBT driven by volatile financial market but core profit remains strong Profit Before Tax Drivers (RM’mil) +33.9 157.6 -36.4 155.1 (10.7) 15.8 26.5 2.0 +32.8% (25.7) 27.7 Core Profit Tax Impact 137.3 Fair Value 103.4 PBT 6M Profit

  8. Slide 8: Group: Despite the challenging operating environment, Group's earnings remain resilient

    Allianz Malaysia Berhad (197201000819) Group: Despite the challenging operating environment, Group’s earnings remain resilient Profit Before Tax Drivers (RM’mil) +33.9 -2.7 +16.7 340.5 329.0 -36.4 15.8 +17.4% (10.7) 2.0 26.5 (25.7) 27.7 322.7 274.8 PBT 6M Profit Profit Profit Fair Value/Tax PBT 6M 2

  9. Slide 9: Financial Overview

    Allianz Malaysia Berhad (197201000819) Financial Overview 3 YEAR RM’mil 2017 2018 2019 CAGR 6M 2019 6M 2020 (2016-2019) Gross Written Premiums 4,285.4 4,504.8 4,922.5 5.6% 2,385.8 2,560.3 Management Expenses 603.8 554.9 618.0 6.4% 287.3 312.1 Expense Ratio (Non Life) 20.3% 18.4% 20.2% 5.1 pts 18.8%

  10. Slide 10: Summary of Unaudited Financial Results

    Allianz Malaysia Berhad (197201000819) Summary of Unaudited Financial Results RM’mil 6M 2019 6M 2020 20/19 % Operating revenue 2,710.3 2,888.8 6.6% Gross earned premiums 2,378.2 2,534.1 6.6% Premiums ceded to reinsurers (173.1) (166.4) 3.9% Net earned premiums (“NEP”) 2,205.1 2,367.7 7.4% Net chang

  11. Slide 11: General Business

    2 General Business 11

  12. Slide 12: General Business

    Allianz General Insurance Company (Malaysia) Berhad (200601015674) General Business Gross written premiums  Gross written premium increased by 6.3% as compared to prior year. Profitability  Higher profit before tax due to higher underwriting profit. ✔ Net investment results  Stable growth in inve

  13. Slide 13: General Business: GWP is 6.3% higher than prior year

    Allianz General Insurance Company (Malaysia) Berhad (200601015674) General Business: GWP is 6.3% higher than prior year Gross Written Premiums (RM’mil) +6.3% Distribution Channel & Portfolio Mix Telemarketing 1,135.7 3.0% 1,068.7 Agent 62.9% Broker 11.4% Motor 64.1% Banca 1.5% 613.6 548.3 520.4 522.

  14. Slide 14: General Business: Stable growth in investment income

    Allianz General Insurance Company (Malaysia) Berhad (200601015674) General Business: Stable growth in investment income Net Investment Results/Net Operating Expenses (RM’mil) +2.6% Portfolio Mix and Investment Yield (Annualised) Portfolio Mix 93.2 95.6 Property Investment Yield Unquoted 0.3% unit tr

  15. Slide 15: General Business: Higher profit before tax due to higher underwriting profit

    Allianz General Insurance Company (Malaysia) Berhad (200601015674) General Business: Higher profit before tax due to higher underwriting profit Profit Before Tax (RM’mil) PBT Drivers (RM’mil) +9.4% 14.3 3.1 -0.7 193.9 193.9 177.2 177.2 119.4 85.7 91.5 74.5 PBT UW Net PBT Others 6M 2019 result invest

  16. Slide 16: General Business: Lower combined ratio due to lower claims ratio

    Allianz General Insurance Company (Malaysia) Berhad (200601015674) General Business: Lower combined ratio due to lower claims ratio Combined Ratio 0.7 pts 94.8% 91.3% 90.3% 90.8% 90.1% 85.4% 19.9% 20.4% 17.2% 18.8% 18.7% 17.6% 58.7% 61.1% 59.9% 62.3% 58.5% 54.5% 12.2% 12.0% 12.1% 12.6% 13.3% 12.9% 1

  17. Slide 17: General Business: Unaudited financial results at a glance

    Allianz General Insurance Company (Malaysia) Berhad (200601015674) General Business: Unaudited financial results at a glance RM’mil 6M 2019 6M 2020 20/19 % Gross written premiums 1,068.7 1,135.7 6.3% Gross earned premiums 1,061.1 1,109.5 4.6% Net earned premiums 920.8 992.8 7.8% Net change in claim

  18. Slide 18: General Business: Performance compared to Industry (Jan-Jun 2020)

    Allianz General Insurance Company (Malaysia) Berhad (200601015674) General Business: Performance compared to Industry (Jan-Jun2020) AGIC Industry 1 Takaful 2 KPIs 6M 2020 6M 2020 6M 2020 GWP growth 6.3% -3.1% 0.6% Commission ratio 12.9% 9.5% 8.2% Claims ratio • Overall 58.5% 53.9% 53.3% • Motor 61.8

  19. Slide 19: Life Business

    Allianz General Insurance Company (Malaysia) Berhad (200601015674) 3 Life Business 19

  20. Slide 20: Life Business

    Allianz Life Insurance Malaysia Berhad (198301008983) Life Business Gross written premiums  Gross written premiums grew by 8.2%. Market position  ALIM ANP declined by 24.8% while industry growth declined by 19.2%.  Market share 6M 2020 stood at 8.0% (6M 2019: 8.6%). Distribution  Employee Benefi

  21. Slide 21: Life Business: Y-o-Y growth in both Single Premium and Recurring Premium

    Allianz Life Insurance Malaysia Berhad (198301008983) Life Business: Y-o-Y growth in both Single Premium and Recurring Premium Gross Written Premiums (“GWP”) (RM’mil) +8.2% 1,426.6 GWP Mix & Growth (%) (6M 2020) 1,317.1 748.5 Mix Single Premium 657.9 659.2 676.1 20.1% 568.9 498.0 543.1 568.8 Growth

  22. Slide 22: Life Business: ANP growth affected by COVID-19 and MCOs

    Allianz Life Insurance Malaysia Berhad (198301008983) Life Business: ANP growth affected by COVID-19 and MCOs Annualised New Premiums (“ANP”) (RM’mil) ANP Channel Mix (%) -25.2% (6M 2020) 285.3 Corporate 167.8 8.3% Alternative 7.1 0.2 Distribution/ 213.4 Bancassurance 27.5 22.7% Agency 122.6 69.0% 1

  23. Slide 23: Life Business (Agency): Agency's sale activities and movements restricted by MCOs

    Allianz Life Insurance Malaysia Berhad (198301008983) Life Business (Agency): Agency’s sale activities and movements restricted by MCOs Agency Annualised New Premiums (RM’mil) -31.3% Agency Product Mix (%) (6M 2020) 214.3 By ANP Traditional 147.2 32.1% 133.0 By Policy Count Traditional Investment- 1

  24. Slide 24: Life Business: Protection Business (Investment-Linked) GWP continues to grow, while ANP takes a breather

    Allianz Life Insurance Malaysia Berhad (198301008983) Life Business: Protection Business (Investment-Linked) GWP continues to grow, while ANP takes a breather Annualised New Premiums (RM’mil) Gross Written Premiums (RM’mil) -37.6% +13.4% 160.9 762.2 100.4 672.3 94.8 382.3 379.9 66.1 56.7 43.7 341.2

  25. Slide 25: Life Business: Lower net investment results while fair value losses reduced

    Allianz Life Insurance Malaysia Berhad (198301008983) Life Business: Lower net investment results while fair value losses reduced Investment Results by Investment Results funds (RM’mil) (RM’mil) -89.2% -89.2% Portfolio Mix and Investment Yield (LF+SHF) 533.4 (%) (Annualized) 533.4 Portfolio Mix Inve

  26. Slide 26: Life Business: Unaudited financial results at a glance

    Allianz Life Insurance Malaysia Berhad (198301008983) Life Business: Unaudited financial results at a glance RM’mil 6M 2019 6M 2020 20/19 % Gross written premiums 1,317.1 1,424.6 8.2% Premiums ceded to reinsurers (32.8) (49.7) (51.5%) Net earned premiums 1,284.3 1,374.9 7.1% Net change in benefits

  27. Slide 27: ANP growth affected by COVID-19 and MCOs

    Allianz Life Insurance Malaysia Berhad (198301008983) ANP growth affected by COVID-19 and MCOs Market growth analysis (6M 2020) Annualised New Business 5-year CAGR 6M 2020 Growth 12M 2019 Growth (2014-2019) ALIM Industry Market Market ALIM Industry Distribution Channel ALIM Industry (% Growth) (% Gr

  28. Slide 28: Thank You for Your Attention

    Thank You for Your Attention Allianz @)

  29. Slide 29: 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 levels, (vi) the extent of credit defaults, (vii) interest rate levels, (viii) currency expecta

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