Allianz Malaysia Bhd. · MYX:ALLIANZ
Allianz Malaysia Bhd — Shareholder Meeting (June 2024)
36 slides from Allianz Malaysia Bhd's shareholder meeting presentation, Jun 20, 2024
Slide 1: 50th Annual General Meeting
Annexure I Allianz Malaysia Berhad 197201000819 (12428-W) 50th Annual General Meeting Thursday, 20 June 2024 © Allianz 20XX
Slide 2: Content / topics
Content / topics Group Performance 1 Embedding Sustainability into our Business 2 Overview of Q1 2024 Results 3 Life Business 4 General Business 5 Allianz Malaysia IT Transformation 6 2
Slide 3: Malaysia insurance market is under penetrated but growth remains subdued and challenging
GROUP PERFORMANCE Malaysia insurance market is under penetrated but growth remains subdued and challenging Malaysian Conventional Insurance Industry 19 40,462 1 1.4% 2 +7.8% +3.7% General insurers General agents Insurance penetration GWP GROWTH 2023 GDP GROWTH 2023 (% of GDP) (2022 +9.7%) (2022 +8.7
Slide 4: Sound fundamental business to overcome the challenges
GROUP PERFORMANCE Sound fundamental business to overcome the challenges FY 2023 RM 6.55bn RM 4.94bn RM 956.9mn + 8.7% (2022 +5.8%) + 11.8% +9.5% GWP Insurance revenue Profit before tax ALIM RM 411.2mn +8.9% AGIC RM 556.2mn +7.9% Investment holding RM (10.5mn) +45.3% RM 25.92bn RM 14.85 RM 1.01 + 8.1
Slide 5: Diversification in two strong pillars of businesses
GROUP PERFORMANCE Diversification in two strong pillars of businesses: maintain market leadership in general insurance and deliver double digit growth in life insurance Gross Written Premium (GWP) (RM’ mil) 4-yr CAGR +7.4% +8.7% 6,547 5,690 6,022 Allianz Life achieved top 4 5,305 position in ANP, wi
Slide 6: Resilient and diversified business portfolio contributing to strong earnings for Group
GROUP PERFORMANCE Resilient and diversified business portfolio contributing to strong earnings for Group Profit before Tax (RM’ mil) 2-yr CAGR +9.5% Maintain strong discipline in -4.9% pricing & prudent expense 957 management 874 730 Allianz Life 692 411 626 378 8.9% y-o-y growth Deliver healthy and
Slide 7: Delivered higher profit. Strong profit contribution from both General and Life Insurance segment
GROUP PERFORMANCE Delivered higher profit. Strong profit contribution from both General and Life Insurance segment Profit Before Tax (RM’ mil) PBT drivers (RM’ mil) +9.5% +9.5% 33 9 957 874 41 957 874 411 378 Allianz Life 8.9% y-o-y growth 874 12M 22 General Life Insurance Investment 12M 23 Allianz
Slide 8: Life Business: Contractual Service Margin (CSM) growth good at 10.8%
GROUP PERFORMANCE Life Business: Contractual Service Margin (“CSM”) growth good at 10.8% Contractual Service Margin (RM’ mil) 1 +10.8% 1 60 CSM (net) 2,115 212 Reinsurance 143 Non-attributable cost 322 478 Tax 668 3,248 CSM (gross) 3,248 (433) 2 2,931 VNB (12M 23) 349 + Non-attr. Cost 140 - Scope /
Slide 9: Our solid track record
GROUP PERFORMANCE Our solid track record MFRS 4 BASIS MFRS 17 BASIS 3 YEAR RM’mil 2020 2021 2022 CAGR 2022 2023 (2019-2022) Gross Written Premiums 5,305.2 5,689.6 6,021.7 6.9% 6,023.0 6,546.5 CSM Release N/A N/A N/A N/A 368.6 433.1 Expense Ratio (Non Life)1 32.9% 31.2% 29.6% 2.3 pts 26.6% 26.3% Expe
Slide 10: Declared highest dividend for financial year 2023 with RM382 mil paid
GROUP PERFORMANCE Declared highest dividend for financial year 2023 with RM382 mil paid 2021 2022 2023 (MFRS 4) (MFRS 17) (MFRS 17) Dividend Per Share (RM sen) Dividend Yield1 5.4% 6.6% 5.9% Payout Ratio 50.0% 52.6% 52.2% 2024 First Interim Dividend declared and Ordinary Share 4-yr CAGR to be paid o
Slide 11: Content / topics
Content / topics Group Performance 1 Embedding Sustainability into our Business 2 Overview of Q1 2024 Results 3 Life Business 4 General Business 5 Allianz Malaysia IT Transformation 6 11
Slide 12: Our key sustainability progress in 2023 – our environmental efforts
EMBEDDING SUSTAINABILITY INTO OUR BUSINESS Our key sustainability progress in 2023 – our environmental efforts and results: E Environmental Embedding Env. Efforts Into Environmental Offering To Own Operation Combat Env. Risks As An Insurer 100% Scope 2 emissions offset with 100% renewal 49% recycled
Slide 13: Our key sustainability progress in 2023 – our social efforts
EMBEDDING SUSTAINABILITY INTO OUR BUSINESS Our key sustainability progress in 2023 – our social efforts and results: S Social Our Reach To Accredited Employer Of Choice The Unserved/Underserved With Recognitions As A Responsible Business and Citizen 89% Employee Engagement RM1.6 mil spent Index on t
Slide 14: Our key sustainability progress in 2023 – our governance efforts
EMBEDDING SUSTAINABILITY INTO OUR BUSINESS Our key sustainability progress in 2023 – our governance efforts and progress witness by: G Governance Governance & Ethics Embraced International Sustainability <IR> Disclosure As Our Core Value Framework Governance 100% participation in Anti-Corruption Enh
Slide 15: Content / topics
Content / topics Group Performance 1 Embedding Sustainability into our Business 2 Overview of Q1 2024 Results 3 Life Business 4 General Business 5 Allianz Malaysia IT Transformation 6 15
Slide 16: Financial Highlights 3M 2024
OVERVIEW OF Q1 2024 RESULTS Financial Highlights 3M 2024 Group General Insurance Life Insurance Investment Holding Investment Holding Gross Written Premium (RM’mil) 1,904 (+11.7%) 884 (+14.0%) 1,020 (+9.7%) Insurance Revenue (RM’mil) 1,337 (+15.1%) 755 (+14.1%) 582 (+16.4%) Profit Before Tax (RM’mil
Slide 17: Life Business: CSM growth good at 4.1%
OVERVIEW OF Q1 2024 RESULTS Life Business: CSM growth good at 4.1% Contractual Service Margin (RM’ mil) 1 +4.1% 1 CSM (net) 2,209 3,382 Reinsurance 144 Non-attributable cost 331 Tax 698 CSM (gross) 3,382 VNB (3M 24) 103 + Non-attr. Cost 40 - Scope / other (1) = New business @ inception 142 Economic
Slide 18: Financial Overview
OVERVIEW OF Q1 2024 RESULTS Financial Overview RM’mil 2022 2023 23/22 % 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.
Slide 19: Content / topics
Content / topics Group Performance 1 Embedding Sustainability into our Business 2 Overview of Q1 2024 Results 3 Life Business 4 General Business 5 Allianz Malaysia IT Transformation 6 19
Slide 20: Allianz Life: significantly outperformed industry with growth from agency and employee benefit channels
LIFE BUSINESS Allianz Life: significantly outperformed industry with growth from agency channel and employee benefit channel Annualised New Business 12M 2023 Growth 12M 2022 Growth 5-year CAGR (2018 – 2023) ALIM Industry Market Market ALIM Industry Distribution Channel ALIM Industry (% Growth) (% Gr
Slide 21: Life Business: GWP growth driven by recurring premium growth
LIFE BUSINESS Life Business: GWP growth driven by recurring premium growth from first year and renewal year premium Gross Written Premium (GWP) (RM’ mil) GWP Mix & Growth (%) (12M 2023) Mix Single Premium 16.0% +5.2% Total 3,543 3,367 3,543 Recurring Premium 84.0% 2,762 2,977 Growth 7.8% 605 566 202
Slide 22: Life Business: growth in ANP driven by all key distribution channels
LIFE BUSINESS Life Business: growth in ANP driven by all key distribution channels Annualised New Premiums (ANP) (RM’ mil) ANP Channel Mix (%) (12M 2023) +14.6% 758 661 40 33 Bancassurance/ 193 Direct Marketing 25.4% 183 Growth +5.2% 525 Agency Corporate 445 69.3% 5.3% Growth +17.9% Growth +22.5% 20
Slide 23: Life Business (Agency): continue focus on regular investment-linked products
LIFE BUSINESS Life Business (Agency): continue focus on preferred segment of regular investment-linked products with better margins Agency Annualised New Premiums (ANP) (RM’ mil) Agency Product Mix (%) (12M 2023) By ANP By Policy Count +18.0% Traditional Traditional 14.0% 525 32.6% Total Total 445 5
Slide 24: Life Business delivered higher profit
LIFE BUSINESS Life Business delivered higher profit Profit Before Tax (RM’ mil) 8.9% 341 • Focus on healthy and sustainable margins 309 supported by disciplined pricing 68 221 methodologies and sound risk management. 39 • Focus on writing more investment-linked 411 protection products with protectio
Slide 25: Life Business value creation for 2024 onwards
LIFE BUSINESS Life Business value creation for 2024 onwards Value Creation = Growth + Margin expansion + Capital efficiency Our value creation ▪ Agency transformation ▪ Steering agency ▪ Focus new business program via quality recruitment of mix towards higher growth on preferred lines Kingmaker prog
Slide 26: Content / topics
Content / topics Group Performance 1 Embedding Sustainability into our Business 2 Overview of Q1 2024 Results 3 Life Business 4 General Business 5 Allianz Malaysia IT Transformation 6 26
Slide 27: Allianz General: maintaining market leadership
GENERAL BUSINESS Allianz General: maintaining market leadership KPIs ALLIANZ GENERAL1 ALLIANZ GENERAL1 Industry1 Takaful1 12M 2023 12M 2022 12M 2023 12M 2023 GWP growth 13.0% 9.2% 7.8% 17.4% Market Share (12M 2023)2 14.0% Market Rank (12M 2023)2 1 Notes: 1) Source: ISM Market Performance Report Jan-
Slide 28: General Business: good sales momentum with double digit GWP growth
GENERAL BUSINESS General Business: good sales momentum with double digit GWP growth Gross Written Premium (GWP) (RM’ mil) Distribution Channel & Portfolio Mix Telemaketing 1.9% 2023 GI Industry Growth +7.8% Agent 54.4% +13.1% Broker 12.4% Banca 1.7% Franchise 29.6% Fire 13.9% Marine 3,004 1.9% 2,655
Slide 29: General Business: stronger PBT with higher insurance service results and investment income
GENERAL BUSINESS General Business: stronger PBT with higher contribution from both insurance service results and investment income Profit Before Tax (RM’ mil) PBT Drivers (RM’ mil) +7.9% 556 515 12M 22 Insurance Net Others 12M 23 service investment results income 12M 2022 443 184 (112) 515 12M 2023
Slide 30: General Business: higher combined ratio due to higher claims ratio
GENERAL BUSINESS General Business: higher combined ratio due to higher claims ratio Combined Ratio +0.7 pts Discounting impact -2.3% Discounting impact -2.8% 88.4% 88.5% 86.6% 86.2% 85.7% 85.7% 85.0% 84.2% 81.9% 81.4% 27.7% 27.6% 26.6% 24.8% 26.4% 27.4% 26.6% 26.3% 25.9% 25.1% * 60.7% 56.0% 60.9% 56
Slide 31: General Business value creation for 2024 onwards
GENERAL BUSINESS General Business value creation for 2024 onwards Value Creation = Growth + Margin expansion + Capital intelligence Our value creation ▪ Innovative product ▪ Enhanced portfolio ▪ Disciplined portfolio program proposition and management to steering with service differentiation strengt
Slide 32: Content / topics
Content / topics Group Performance 1 Embedding Sustainability into our Business 2 Overview of Q1 2024 Results 3 Life Business 4 General Business 5 Allianz Malaysia IT Transformation 6 32
Slide 33: Bringing IT to the next level – Benefits of the Regional Delivery Center
ALLIANZ MALAYSIA IT TRANSFORMATION 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 im
Slide 34: Bringing IT to the next level – Regional Delivery Center as long-term strategy
ALLIANZ MALAYSIA IT TRANSFORMATION 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 o
Slide 35: Scope & Progress for Allianz Malaysia
ALLIANZ MALAYSIA IT TRANSFORMATION 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. •
Slide 36: Operational governance and service continuity
ALLIANZ MALAYSIA IT TRANSFORMATION Operational governance and service continuity: Allianz MY will be fully accountable for all outsourced activities including regulatory compliance Governance Hierarchy Description Allianz MY Governance Bodies Low frequency • Highest decision body Strategic with CEO
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