Allianz Malaysia Bhd. · MYX:ALLIANZ

Allianz Malaysia Bhd — Q4 2021 Earnings Presentation

29 slides from Allianz Malaysia Bhd's earnings presentation, Feb 23, 2022

  1. Slide 1: Allianz Malaysia Berhad Q4 2021 Financial Results Analyst Briefing

    ALLIANZ MALAYSIA BERHAD (197201000819) Q4 2021 FINANCIAL RESULTS Analyst Briefing 23 February 2022 © 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 12M 2021

    FINANCIAL HIGHLIGHTS 12M 2021 Group General Insurance Life Insurance Investment Holding Operating Revenue (RM’mil) 6,431.0 (+8.2%) 2,595.4 (+5.0%) 3,823.3 (+10.4%) 12.3 (3.4%) Gross Written Premium (RM’mil) 5,689.6 (+7.2%) 2,430.6 (3.2%) 3259.0 (+10.5%) Shareholders’ net income Combined ratio New bu

  4. Slide 4: Resilient Earnings for Financial Year 2021 Amid Headwinds

    RESILIENT EARNINGS FOR FINANCIAL YEAR 2021 AMID HEADWINDS Comments Operating revenue Profitability • Group operating revenue of RM6.43 billion, an increase of • Group profit before tax of RM625.6 million, decreased by 8.2% compared to corresponding period of RM5.95 billion 14.3% (12M 2020: RM729.6 m

  5. Slide 5: Financial Highlights 12M 2021: Operating Revenue

    FINANCIAL HIGHLIGHTS 12M 2021 Group General Insurance Operating Revenue (RM’mil) +8.2% +5.0% 2,471.6 2,595.4 6431.0 5,945.7 1,671.3 1,606.6 1,568.6 1,584.5 1,530.8 1,526.1 1,484.7 1,404.1 12M 20 12M 21 Life Insurance +10.4% 3,823.3 3,462.2 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 12M 20 12M 2

  6. Slide 6: Financial Highlights 12M 2021: Gross Written Premium

    FINANCIAL HIGHLIGHTS 12M 2021 Group General Insurance Gross Written Premium (“GWP”) (RM’mil) +7.2% +3.2% 2,430.6 5,689.6 2,356.1 5,305.2 1,525.5 1,482.0 1,433.7 1,362.1 1,384.4 1,311.2 1,297.7 1,198.2 12M 20 12M 21 Life Insurance +10.5% 3,259.0 2,949.1 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21

  7. Slide 7: Financial Highlights 12M 2021: Profit Before Tax

    FINANCIAL HIGHLIGHTS 12M 2021 Profit Before Tax (RM’mil) PBT drivers (RM’mil) -14.3% -14.3% -2.7%* 729.6 625.6 26.4 * 12.3 6.8 690.9 672.4 12M 20 General Life Investment 12M 21 Insurance Insurance Holding ∆ 12M 21/20 (53.7) 12M 2020 432.1 308.7 (11.2) 729.6 12M 2021 437.2 220.5 (32.1) 625.6 12M 20 1

  8. Slide 8: Financial Highlights 12M 2021: Profit After Tax

    FINANCIAL HIGHLIGHTS 12M 2021 Profit After Tax (RM’mil) PAT drivers (RM’mil) -8.0% -8.0% -0.5%* 520.3 478.5 * 12.3 20.2 514.4 512.0 12M 20 General Life Investment 12M 21 Insurance Insurance Holding ∆ 12M 21/20 (6.4) 12M 2020 325.6 215.3 (20.6) 520.3 (53.7) 12M 2021 338.4 191.4 (51.3) 478.5 12M 20 12

  9. Slide 9: Life: Lower PBT & PAT Mainly from Fair Value Losses

    LIFE: LOWER PBT & PAT MAINLY FROM FAIR VALUE LOSSES PBT Drivers (RM’mil) PAT Drivers (RM’mil) -28.6% -11.1% 308.7 -1.0%* 215.3 +7.4%* 191.4 220.5 26.4 15.4 12.3 (2.6) 6.8 20.2 12.3 26.6 (66.0) (19.6) (66.0) 270.0 267.4 209.4 224.9 (53.7) (6.4) (53.7) 12M 20 Profit Growth Fair value Tax Impact 12M 21

  10. Slide 10: Financial Overview

    FINANCIAL OVERVIEW 3 YEAR RM’mil 2018 2019 2020 2021 CAGR (2018-2021) Gross Written Premiums 4,504.8 4,922.5 5,305.2 5,689.6 8.1% Management Expenses 554.9 618.0 641.4 683.8 7.2% Expense Ratio (Non Life) 18.4% 20.2% 19.8% 18.7% 0.5 pts Expense Ratio (Life)1 10.0% 10.5% 9.4% 9.9% (0.3 pts) Local Cons

  11. Slide 11: Summary of Audited Financial Results

    SUMMARY OF AUDITED FINANCIAL RESULTS RM’mil 12M 2020 12M 2021 21/20 % Operating Revenue 5,945.7 6,431.0 8.2% Gross Earned Premium 5,233.2 5,671.1 8.4% Premiums ceded to reinsurers (362.6) (430.3) (18.7%) Net earned premiums (“NEP”) 4,870.6 5,240.8 7.6% Net change in benefits and claims paid (“Claim

  12. Slide 12: General Business

    02 GENERAL BUSINESS © Copyright Allianz Malaysia Berhad 12

  13. Slide 13: General Business Comments

    GENERAL BUSINESS Comments Gross written premiums Combined ratio • Gross written premium increased by 3.2% as compared to • Lower combined ratio by 0.6 pts mainly from lower commission prior year mainly driven by motor and engineering business. and expense ratio. Profitability Market growth • Higher

  14. Slide 14: General Business: GWP Is 3.2% Higher Than Prior Year

    GENERAL BUSINESS: GWP IS 3.2% HIGHER THAN PRIOR YEAR Gross Written Premium (RM’mil) Distribution Channel & Portfolio Mix +3.2% Telemaketing 2.0% 2,430.6 Agent 55.4% 2,356.1 Broker 12.8% Banca 1.9% Franchise 27.9% 661.6 Fire 656.4 643.5 14.8% 613.6 597.5 558.8 533.2 522.1 Marine 2.8% PA & Health 4.9%

  15. Slide 15: 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) -8.3% Portfolio Mix Investment Yield * 196.5 Deposit Unquoted 0.1 180.1 9.9% Unit Trust 0.6 19.5% 49.3 51.7 48.4 3.7% 47.6 44.6 44.9 46.4 45.9 3

  16. Slide 16: 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) +1.2% 437.2 432.1 130.5 119.4 115.0 115.1 114.5 107.7 92.6 74.5 12M 20 UW result Investment Others 12M 21 12M 2020 235.6 197.0 (0.5) 432.1 12M 2021 257.1 181.1 (1.7) 437.2 1Q 20

  17. Slide 17: 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 +0.6 pts 94.8% 88.9% 88.4% 90.5% 87.8%* 85.4% 87.2% 86.8% 86.4% 84.2% 19.9% 19.9% 19.8% 18.4% 17.6% 17.5% 19.1% 19.9% 18.7% 21.6% 62.3% 59.7% 54.5% 56.3% 49.0% 55.5% 58.1% 55.4% 52.8% 56.6% 12.6% 13.3% 12

  18. Slide 18: General Business: Audited Financial Results at a Glance

    GENERAL BUSINESS: AUDITED FINANCIAL RESULTS AT A GLANCE RM’mil 12M 2020 12M 2021 21/20 % Gross written premiums 2,356.1 2,430.6 3.2% Gross earned premiums 2,284.1 2,412.1 5.6% Net earned premiums 2,027.2 2,124.1 4.8% Net change in claims incurred (1,124.6) (1,201.9) (6.9%) Management expenses (402.

  19. Slide 19: General Business: Performance Compared to Industry (Jan-Dec 2021)

    GENERAL BUSINESS: PERFORMANCE COMPARED TO INDUSTRY (JAN-DEC 2021) KPIs AGIC Industry 1 Takaful 1 12M 2021 12M 2021 12M 2021 GWP growth 3.2% 2.7% 10.6% Commission ratio 12.5% 10.0% 8.4% Claims ratio • Overall 56.6% 49.9% 51.3% • Motor 53.0% 55.6% 60.1% Expense ratio 18.7% 24.6% 31.2% Combined ratio 8

  20. Slide 20: Life Business

    03 LIFE BUSINESS © Copyright Allianz Malaysia Berhad 20

  21. Slide 21: Life Business Comments

    LIFE BUSINESS Comments Gross written premiums Product mix • Gross written premiums grew by 10.5% 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 Growt

  22. Slide 22: Life Business: Y-o-Y Growth Driven by Single Premium 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 (%) (12M 2021) +10.5% Mix Single Premium 3,259.0 17.3% 2,949.1 882.0 825.6 772.1 786.9 748.5 752.4 764.5 676.1 Recurring Premium 82.7% 734.4 Growth 642.1 568.9 619.5 67

  23. Slide 23: 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 (%) (12M 2021) +29.2% 687.2 Alternative Distribution/ 204.5 Bancassurance 531.8 22.1% 3.4 167.7 0.0 171.3 159.4 36.8 150.7 3.4 152.0 12.1 0.0 0.0 7.0 6.8 24.6 6.2 0.1 122.6 0

  24. Slide 24: Life Business (Agency): Strong Momentum in 2021

    LIFE BUSINESS (AGENCY): STRONG MOMENTUM IN 2021 Agency Annualized New Premiums (RM’mil) Agency Product Mix (%) (12M 2021) +27.8% By ANP By Policy Count 506.7 Traditional Traditional 32.8% 23.5% 164.3 396.6 139.7 126.6 92.2 Investment Investment 109.7 94.8 113.1 Linked Linked 102.7 67.2% 76.5% 70.9 1

  25. Slide 25: 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) +65.5% +21.0% 1,928.1 405.9 1,593.4 245.3 158.5 577.1 487.5 426.3 429.9 433.6 95.7 382.3 379.9 404.9 73.6 71.3 79.5 72.2 56.7 43.7 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2

  26. Slide 26: Life Business: Investment Results Impacted by Fair Value Losses as Interest Rate Goes Up

    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 (>100%) (>100%) Others Cash Loans 7.5% 0.8% 571.7 571.

  27. Slide 27: Life Business: Audited Financial Results at a Glance

    LIFE BUSINESS: AUDITED FINANCIAL RESULTS AT A GLANCE RM’mil 12M 2020 12M 2021 21/20 % Gross written premiums 2,949.1 3,259.0 10.5% Premiums ceded to reinsurers (105.6) (142.3) (34.8%) Net earned premiums 2,843.5 3,116.7 9.6% Net change in benefits and claims paid (1,235.9) (1,272.3) (2.9%) Net chan

  28. Slide 28: Thank You for Your Attention

    THANK YOU FOR YOUR ATTENTION © Copyright Allianz Malaysia Berhad

  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 expectations and Union, (xi) changes in the policies of central banks and/or foreign government

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