Allianz Malaysia Bhd. · MYX:ALLIANZ

Allianz Malaysia Bhd — Q3 2021 Earnings Presentation

28 slides from Allianz Malaysia Bhd's earnings presentation, Nov 25, 2021

  1. Slide 1: Allianz Malaysia Berhad Q3 2021 Financial Results Analyst Briefing

    ALLIANZ MALAYSIA BERHAD (197201000819) Q3 2021 FINANCIAL RESULTS Analyst Briefing 25 November 2021 © Copyright Allianz Malaysia Berhad

  2. Slide 2: AMB Group Financial Results

    01 AMB GROUP FINANCIAL RESULTS © Copyright Allianz Malaysia Berhad 2

  3. Slide 3: Financial Highlights 9M 2021

    FINANCIAL HIGHLIGHTS 9M 2021 Group General Insurance Life Insurance Investment Holding Operating Revenue (RM’mil) 4,759.8 (+7.7%) 1,948.6 (+6.2%) 2,802.1 (+8.8%) 9.1 (1.1%) Gross Written Premium (RM’mil) 4,164.1 (+4.3%) 1,787.1 (-0.6%) 2,377.0 (+8.2%) Shareholders’ net income Combined ratio New busi

  4. Slide 4: Resilient Earnings for Nine Months of 2021 Amid Headwinds

    RESILIENT EARNINGS FOR NINE MONTHS OF 2021 AMID HEADWINDS Comments Operating revenue Profitability • Group operating revenue of RM4.76 billion, an increase of • Group profit before tax of RM432.6 million, decreased by 7.7% compared to corresponding period of RM4.42 billion 20.3% (9M 2020: RM542.8 mi

  5. Slide 5: Financial Highlights 9M 2021

    FINANCIAL HIGHLIGHTS 9M 2021 Group General Insurance Operating Revenue (RM’mil) +7.7% +6.2% 1,948.6 1,834.2 4,759.8 4,419.6 1,606.6 1,568.7 1,584.5 1,530.8 1,484.8 1,404.0 9M 20 9M 21 Life Insurance +8.8% 2,576.4 2,802.1 1Q 20 2Q 20 3Q 20 1Q 21 2Q 21 3Q 21 9M 20 9M 21 © Copyright Allianz Malaysia Be

  6. Slide 6: Financial Highlights 9M 2021

    FINANCIAL HIGHLIGHTS 9M 2021 Group General Insurance Gross Written Premium (“GWP”) (RM’mil) +4.3% -0.6% 1,797.3 1,787.1 4,164.1 3,994.0 1,482.0 1,433.7 1,362.1 1,384.4 1,297.7 1,198.2 9M 20 9M 21 Life Insurance +8.2% 2,377.0 2,196.7 1Q 20 2Q 20 3Q 20 1Q 21 2Q 21 3Q 21 9M 20 9M 21 © Copyright Allianz

  7. Slide 7: Financial Highlights 9M 2021

    FINANCIAL HIGHLIGHTS 9M 2021 Profit Before Tax (RM’mil) PBT drivers (RM’mil) -20.3% -20.3% -4.4%* 542.8 18.2 432.6 25.8 0.8 * 498.8 476.7 9M 20 General Life Investment 9M 21 Insurance Insurance Holding ∆ 9M 21/20 (44.9) 9M 2020 301.6 254.1 (12.9) 542.8 9M 2021 322.7 132.4 (22.5) 432.6 9M 20 9M 21 Ch

  8. Slide 8: Life: Lower PBT Mainly from Fair Value Losses

    LIFE: LOWER PBT MAINLY FROM FAIR VALUE LOSSES PBT Drivers (RM’mil) Interest rate 10 years MGS -47.9% -16.0%* Dec 20 2.6% Dec 19 3.3% 254.1 Sep 21 3.5% Sep 20 2.6% 18.2 25.8 ∆ 21/20 0.9 pts ∆ 20/19 -0.7 pts (33.6) 132.4 0.8 (70.7) Bursa Malaysia KLCI Index (17.4) 210.1 176.5 Dec 20 1,627 Dec 19 1,588

  9. Slide 9: Financial Overview

    FINANCIAL OVERVIEW 3 YEAR RM’mil 2018 2019 2020 CAGR 9M 2020 9M 2021 (2017-2020) Gross Written Premiums 4,504.8 4,922.5 5,305.2 7.4% 3,994.0 4,164.1 Management Expenses 554.9 618.0 641.4 2.0% 469.3 492.9 Expense Ratio (Non Life) 18.4% 20.2% 19.8% 0.5 pts 19.1% 18.3% Expense Ratio (Life)1 10.0% 10.5%

  10. Slide 10: Summary of Unaudited Financial Results

    SUMMARY OF UNAUDITED FINANCIAL RESULTS RM’mil 9M 2020 9M 2021 21/20 % Operating Revenue 4,419.6 4,759.8 7.7% Gross Earned Premium 3,890.3 4,189.3 7.7% Premiums ceded to reinsurers (257.4) (300.6) (16.8%) Net earned premiums (“NEP”) 3,632.9 3,888.7 7.0% Net change in benefits and claims paid (“Claim

  11. Slide 11: General Business

    02 GENERAL BUSINESS © Copyright Allianz Malaysia Berhad 11

  12. Slide 12: General Business

    GENERAL BUSINESS Comments Gross written premiums Combined ratio • Gross written premium decreased by -0.6% as compared to • Lower combined ratio by 1.5 pts mainly from lower commission prior year due to drop in motor business. and expense ratio. Profitability Market growth • Higher profit before tax

  13. Slide 13: General Business: GWP Is 0.6% Lower Than Prior Year

    GENERAL BUSINESS: GWP IS 0.6% LOWER THAN PRIOR YEAR Gross Written Premium (RM’mil) Distribution Channel & Portfolio Mix -0.6% Telemaketing 2.1% Agent 57.9% 1,797.3 1,787.1 Broker 10.0% Banca 2.0% Franchise 28.0% 661.6 Fire 656.4 613.6 597.5 15.3% 522.1 533.2 Marine 3.0% PA & Health 4.9% Misc Motor 1

  14. Slide 14: General Business: Lower Growth in Investment Income

    GENERAL BUSINESS: LOWER GROWTH IN INVESTMENT INCOME Net Investment Results/ Net Operating Expenses (RM’mil) Portfolio Mix and Investment Yield (Annualized) -9.0% Portfolio Mix Investment Yield * Deposit 147.5 5.8% Unquoted 0.1 134.2 Unit Trust 22.1% 49.3 51.7 3.6% 47.6 44.6 44.9 46.4 Corp 3.3% Bond

  15. Slide 15: General Business: Higher Profit Before Tax from Higher Underwriting Profit

    GENERAL BUSINESS: HIGHER PROFIT BEFORE TAX FROM HIGHER UNDERWRITING PROFIT Profit Before Tax (RM’mil) PBT Drivers (RM’mil) +7.0% 322.7 301.6 119.4 115.0 115.1 107.7 92.6 74.5 9M 20 UW result Investment Others 9M 21 9M 2020 154.1 148.6 (1.1) 301.6 9M 2021 188.5 135.9 (1.7) 322.7 1Q 20 2Q 20 3Q 20 1Q

  16. Slide 16: General Business: Lower Combined Ratio Due to Lower Commission and Expense Ratio

    GENERAL BUSINESS: LOWER COMBINED RATIO DUE TO LOWER COMMISSION AND EXPENSE RATIO Combined Ratio +1.5 pts 94.8% 88.9% 89.7% 90.5% 88.2%* 85.4% 87.2% 86.8% 19.9% 19.9% 19.1% 18.4% 18.3% 17.6% 17.5% 19.1% 62.3% 57.7% 59.7% 57.8% 54.5% 56.3% 58.1% 55.4% 12.6% 13.3% 12.7% 12.9% 12.4% 11.6% 12.3% 12.1% 1Q

  17. Slide 17: General Business: Unaudited Financial Results at a Glance

    GENERAL BUSINESS: UNAUDITED FINANCIAL RESULTS AT A GLANCE RM’mil 9M 2020 9M 2021 21/20 % Gross written premiums 1,797.3 1,787.1 (0.6%) Gross earned premiums 1,693.6 1,812.3 7.0% Net earned premiums 1507.7 1,613.1 7.0% Net change in claims incurred (870.3) (931.9) (7.1%) Management expenses (289.0)

  18. Slide 18: General Business: Performance Compared to Industry (Jan-Sep 2021)

    GENERAL BUSINESS: PERFORMANCE COMPARED TO INDUSTRY (JAN-SEP 2021) KPIs AGIC Industry 1 Takaful 1 9M 2021 9M 2021 9M 2021 GWP growth -0.6% 1.1% 6.7% Commission ratio 12.1% 9.4% 8.4% Claims ratio • Overall 57.8% 49.6% 52.3% • Motor 51.5% 54.2% 61.4% Expense ratio 18.3% 24.1% 30.9% Combined ratio 88.2%

  19. Slide 19: Life Business

    03 LIFE BUSINESS © Copyright Allianz Malaysia Berhad 19

  20. Slide 20: Life Business

    LIFE BUSINESS Comments Gross written premiums Product mix • Gross written premiums grew by 8.2% from all key • Remain focus on sales of investment-linked products with distribution channels. protection rider which provide higher margins but to also cater for demand for saving products. Market Growth

  21. Slide 21: Life Business: Y-o-Y Growth Driven by Recurring Premium

    LIFE BUSINESS: Y-O-Y GROWTH DRIVEN BY RECURRING PREMIUM Gross Written Premiums (“GWP”) (RM’mil) GWP Mix & Growth (%) (9M 2021) +8.2% Mix Single Premium 17.0% 2,377.0 2,196.7 825.6 772.1 786.9 748.5 764.5 676.1 Recurring Premium 83.0% Growth 642.1 568.9 619.5 677.2 652.5 568.8 12.2% 179.6 152.6 183.5

  22. Slide 22: Life Business: Growth in ANP Driven by All Key Distribution Channels

    LIFE BUSINESS: GROWTH IN ANP DRIVEN BY ALL KEY DISTRIBUTION CHANNELS Annualized New Premiums (“ANP”) (RM’mil) ANP Channel Mix (%) (9M 2021) +32.6% Alternative 482.7 Distribution/ Bancassurance 364.1 171.3 23.9% 150.7 12.1 152.0 159.4 0.0 7.0 6.8 6.2 0.1 0.1 32.6 0.1 122.6 32.6 34.1 49.6 10.3 0.0 Cor

  23. Slide 23: Life Business (Agency): Strong Momentum in Nine Months of 2021

    LIFE BUSINESS (AGENCY): STRONG MOMENTUM IN NINE MONTHS OF 2021 Agency Annualized New Premiums (RM’mil) Agency Product Mix (%) (9M 2021) +33.3% By ANP By Policy Count Traditional 342.4 Traditional 22.8% 40.4% 256.9 126.6 109.7 113.1 102.7 92.2 Investment Investment 94.8 Linked Linked 78.2 59.6% 77.2%

  24. Slide 24: Life Business: Protection Business (Investment-Linked) Continues to Grow

    LIFE BUSINESS: PROTECTION BUSINESS (INVESTMENT-LINKED) CONTINUES TO GROW Annualised New Premiums (RM’mil) Gross Written Premiums (RM’mil) +42.2% +15.8% 247.4 1,351.0 1,167.1 174.0 487.5 95.7 429.9 433.6 404.9 79.5 382.3 379.9 73.6 72.2 56.7 43.7 1Q 20 2Q 20 3Q 20 1Q 21 2Q 21 3Q 21 1Q 20 2Q 20 3Q 20

  25. Slide 25: Life Business: Investment Results Impacted by Fair Value Losses

    LIFE BUSINESS: INVESTMENT RESULTS IMPACTED BY FAIR VALUE LOSSES AS INTEREST RATE GOES UP Investment Results by funds Investment Results Portfolio Mix and Investment Yield (LF+SHF) (%) (Annualized) (RM’mil) (RM’mil) Portfolio Mix Investment Yield -71.7% -71.7% Others Cash Loans 6.2% 0.9% 333.5 333.5

  26. Slide 26: Life Business: Unaudited Financial Results at a Glance

    LIFE BUSINESS: UNAUDITED FINANCIAL RESULTS AT A GLANCE RM’mil 9M 2020 9M 2021 21/20 % Gross written premiums 2,196.7 2,377.0 8.2% Premiums ceded to reinsurers (71.5) (101.4) (41.8%) Net earned premiums 2,125.2 2,275.6 7.1% Net change in benefits and claims paid (903.0) (885.4) 1.9% Net change in co

  27. Slide 27: Thank You for Your Attention

    THANK YOU FOR YOUR ATTENTION © Copyright Allianz Malaysia Berhad

  28. Slide 28: Disclaimer

    DISCLAIMER These assessments are, as always, subject to the disclaimer provided below. Cautionary Note Regarding Forward-LookingStatements The statements contained herein may include statements of future expectations and Union, (xi) changes in the policies of central banks and/or foreign governments

Allianz Malaysia Berhad — Q3 2021 Earnings Presentation on 6ix