Allianz Malaysia Bhd. · MYX:ALLIANZ

Allianz Malaysia Bhd — FY2022 Earnings Presentation

30 slides from Allianz Malaysia Bhd's earnings presentation, Feb 24, 2023

  1. Slide 1: Q4 2022 Financial Results Analyst Briefing

    ALLIANZ MALAYSIA BERHAD (197201000819) Q4 2022 FINANCIAL RESULTS Analyst Briefing 24 February 2023 © 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 2022

    FINANCIAL HIGHLIGHTS 12M 2022 Group General Insurance Life Insurance Investment Holding Operating Revenue (RM’mil) 6,773.0 (+5.3%) 2,758.8 (+6.3%) 4,000.7 (+4.6%) 13.5 (+9.8%) Gross Written Premium (RM’mil) 6,021.7 (+5.8%) 2,655.0 (+9.2%) 3,366.7 (+3.3%) Shareholders’ net income Combined ratio New b

  4. Slide 4: Resilient Earnings Amid Volatile Market

    RESILIENT EARNINGS AMID VOLATILE MARKET Comments Operating revenue Profitability • Group operating revenue of RM6.77 billion, an increase of • Group profit before tax of RM704.4 million, increased by 5.3% compared to corresponding period of RM6.43 billion 12.6% (12M 2021: RM625.6 million) due to hig

  5. Slide 5: Financial Highlights 12M 2022 - Operating Revenue

    FINANCIAL HIGHLIGHTS 12M 2022 Group General Insurance Operating Revenue (RM’mil) +5.3% +6.3% 2,758.8 2,595.4 6,773.0 6,431.0 1,707.7 1,706.9 1,703.9 1,671.2 1,654.5 12M 21 12M 22 1,606.6 1,584.5 1,568.7 Life Insurance +4.6% 3,823.3 4,000.7 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 12M 21 12M 2

  6. Slide 6: Financial Highlights 12M 2022 - Profit Before Tax

    FINANCIAL HIGHLIGHTS 12M 2022 Profit Before Tax (RM’mil) +12.6% +10.4%* 704.4 625.6 267.5 27.4 208.3 193.0 27.5 8.3 151.7 156.9 6.1 118.7 166.5 212.6 24.1 1.0 5.4 195.7 2.7 175.9 184.7 67.4 170.1 173.2 171.8 130.7 (18.6) (8.8) (8.0) (50.4) (34.0) (34.6) (19.9) (12.9) 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q

  7. Slide 7: Financial Highlights 12M 2022 - Gross Written Premium

    FINANCIAL HIGHLIGHTS 12M 2022 Group General Insurance Gross Written Premium (“GWP”) (RM’mil) +5.8% +9.2% 2,655.0 6,021.7 5,689.6 2,430.6 1,622.5 1,525.5 1,482.0 1,487.9 1,466.3 1,445.0 1,384.4 1,297.7 12M 21 12M 22 Life Insurance +3.3% 3,366.7 3,259.0 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22

  8. Slide 8: Financial Highlights 12M 2022 - PBT Drivers

    FINANCIAL HIGHLIGHTS 12M 2022 Profit Before Tax (RM’mil) PBT drivers (RM’mil) +12.6% +12.6% +10.4%* * 704.4 625.6 11.2 6.9 742.3 672.4 12M 21 General Life Investment 12M 22 Insurance Insurance Holding ∆ 12M 22/21 (53.7) (49.1) 12M 2021 437.2 220.5 (32.1) 625.6 12M 2022 462.6 287.2 (45.4) 704.4 12M 2

  9. Slide 9: Financial Highlights 12M 2022 - PAT Drivers

    FINANCIAL HIGHLIGHTS 12M 2022 Profit After Tax (RM’mil) PAT drivers (RM’mil) -1.2% -1.2% -1.2%* * 478.5 472.8 20.2 16.2 512.0 505.7 12M 21 General Life Investment 12M 22 Insurance Insurance Holding ∆ 12M 22/21 (53.7) (49.1) 12M 2021 338.4 191.4 (51.3) 478.5 12M 2022 305.6 233.2 (66.0) 472.8 12M 21 1

  10. Slide 10: Life: Higher Core PBT and PAT

    LIFE: HIGHER CORE PBT AND PAT PBT Drivers (RM’mil) PAT Drivers (RM’mil) +30.2% +21.8% +21.6%* +18.3%* 287.2 233.2 220.5 191.4 57.7 11.2 16.2 6.8 20.2 41.2 4.4 325.1 266.1 267.4 4.6 224.9 4.6 (53.7) (49.1) (53.7) (49.1) (4.0) 12M 21 Profit Growth Fair value Tax Impact 12M 22 12M 21 Profit Growth Fair

  11. Slide 11: Financial Overview

    FINANCIAL OVERVIEW 3 YEAR RM’mil 2019 2020 2021 2022 CAGR (2019-2022) Gross Written Premiums 4,922.5 5,305.2 5,689.6 6,021.7 6.9% Management Expenses 618.0 641.4 683.8 690.1 (3.7%) Expense Ratio (Non Life) 20.2% 19.8% 18.7% 16.9% 3.3 pts Expense Ratio (Life)1 10.5% 9.4% 9.9% 9.9% 0.6 pts Local Conso

  12. Slide 12: Summary of Audited Financial Results

    SUMMARY OF AUDITED FINANCIAL RESULTS RM’mil 12M 2021 12M 2022 22/21 % Operating Revenue 6,431.0 6,773.0 5.3% Gross Earned Premium 5,671.1 5,930.0 4.6% Premiums ceded to reinsurers (430.3) (364.2) 15.4% Net earned premiums (“NEP”) 5,240.8 5,565.8 6.2% Net change in benefits and claims paid (“Claim”)

  13. Slide 13: General Business

    02 GENERAL BUSINESS © Copyright Allianz Malaysia Berhad 13

  14. Slide 14: General Business Comments

    GENERAL BUSINESS Comments Gross written premiums Combined ratio • Gross written premium increased by 9.2% as compared to • Lower combined ratio by 0.5 pts driven by lower claims ratio prior year. excluding impact of VSC adjustment (see Note 11 page 28 of Q2 2022 Quarter Announcement for details). Pr

  15. Slide 15: General Business: GWP Is 9.2% Higher Than Prior Year

    GENERAL BUSINESS: GWP IS 9.2% HIGHER THAN PRIOR YEAR Gross Written Premium (RM’mil) Distribution Channel & Portfolio Mix +9.2% Telemaketing 1.9% 2,655.0 Agent 55.7% 2,430.6 Broker 11.6% Banca 1.6% Franchise 29.2% Fire 733.7 13.1% 656.4 643.5 660.4 647.5 Marine 597.5 613.4 533.2 2.9% PA & Health 7.5%

  16. Slide 16: General Business: Stable Investment Income

    GENERAL BUSINESS: STABLE INVESTMENT INCOME Net Investment Results/ Net Operating Expenses (RM’mil) Portfolio Mix and Investment Yield (Annualised) +3.0% Portfolio Mix Investment Yield * 185.5 180.1 Deposit Unquoted 9.1% Unit Trust 19.1% Total 50.7 51.9 44.6 44.9 46.4 45.9 5,865.9 3.2% 3.4% 43.5 42.1

  17. Slide 17: General Business: Higher Profit Before Tax From Higher Underwriting Results

    GENERAL BUSINESS: HIGHER PROFIT BEFORE TAX FROM HIGHER UNDERWRITING RESULTS Profit Before Tax (RM’mil) PBT Drivers (RM’mil) +5.8% 462.6 437.2 131.0 115.0 115.1 114.5 116.7 112.7 102.2 92.6 12M 21 UW result Investment Others 12M 22 12M 2021 257.1 181.8 (1.7) 437.2 12M 2022 289.6 175.7 (2.7) 462.6 1Q

  18. Slide 18: General Business: Better Combined Ratio

    GENERAL BUSINESS: BETTER COMBINED RATIO DUE TO BETTER LOSS AND EXPENSE RATIO Combined Ratio +0.5 pts 90.5% 87.8% 88.9% 89.0% 87.2% 86.8% 86.4% 84.9% 86.4% 87.3%* 18.4% 18.1% 11.5% 19.2% 16.9% 17.5% 19.1% 19.9% 18.7% 18.8% 59.7% 58.1% 55.4% 52.8% 56.6% 57.6% 61.5% 56.8% 55.0% 57.7% 12.4% 11.6% 12.3%

  19. Slide 19: General Business: Financial Results at a Glance

    GENERAL BUSINESS: FINANCIAL RESULTS AT A GLANCE RM’mil 12M 2021 12M 2022 22/21 % Gross written premiums 2,430.6 2,655.0 9.2% Gross earned premiums 2,412.1 2,563.4 6.3% Net earned premiums 2,124.1 2,304.0 8.5% Net change in claims incurred (1,201.9) (1,329.5) (10.6%) Management expenses (400.6) (393

  20. Slide 20: General Business: Performance Compared to Industry

    GENERAL BUSINESS: PERFORMANCE COMPARED TO INDUSTRY (JAN-DEC 2022) KPIs AGIC Industry 1 Takaful 1 12M 2022 12M 2022 12M 2022 GWP growth 9.2% 9.7% 21.1% Commission ratio 12.7% 11.0% 9.3% Claims ratio • Overall 57.7% 53.7% 60.7% • Motor 60.7% 65.3% 72.3% Expense ratio 16.9% 24.1% 32.4% Combined ratio 8

  21. Slide 21: Life Business

    03 LIFE BUSINESS © Copyright Allianz Malaysia Berhad 21

  22. Slide 22: Life Business Comments

    LIFE BUSINESS Comments Gross written premiums Product mix • Gross written premiums grew by 3.3% from all key • Remain focused on sales of investment-linked products with distribution channels. protection rider which provides higher margins but to also cater for demand for saving products. Market Gro

  23. Slide 23: 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 (%) (12M 2022) +3.3% Mix Single Premium 3,366.7 15.7% 3,259.0 882.0 888.8 825.6 831.6 827.5 818.8 Total 786.9 3,366.7 764.5 Recurring Premium 84.3% 734.4 689.7 Growth 642.1 701.2 708.4 65

  24. Slide 24: Life Business: Lower Contribution From Agency Channel

    LIFE BUSINESS: LOWER CONTRIBUTION FROM AGENCY CHANNEL Annualised New Premiums (“ANP”) (RM’mil) ANP Channel Mix (%) (12M 2022) -3.8% 687.2 661.0 Alternative 204.5 Distribution/ 194.5 Bancassurance 3.4 27.8% 171.3 0.0 163.5 4.0 159.4 0.1 36.8 155.9 Growth +20.9% 12.1 152.0 7.0 147.1 7.7 50.5 0.0 6.2 7

  25. Slide 25: Life Business (Agency): Lower Sales But Outperformed Industry

    LIFE BUSINESS (AGENCY): LOWER SALES AGAINST LAST YEAR BUT OUTPERFORMED INDUSTRY Agency Annualised New Premiums (RM’mil) Agency Product Mix (%) (12M 2022) -12.2% Q1 -26.9% Q2 -3.9% By ANP By Policy Count 506.7 Q3 +1.1% Traditional Traditional Q4 -14.9% 35.8% 22.2% 164.3 444.9 139.9 Total Total 444.9

  26. Slide 26: Life Business: Protection Business (Investment-Linked) GWP Continues to Grow

    LIFE BUSINESS: PROTECTION BUSINESS (INVESTMENT-LINKED) GWP CONTINUES TO GROW DESPITE LOWER NEW BUSINESS Annualised New Premiums (RM’mil) Gross Written Premiums (RM’mil) -6.5% +4.3% 405.9 2,010.4 379.5 1,928.1 158.5 577.1 526.1 477.5 490.7 494.3 499.3 123.3 429.9 443.6 95.7 99.4 79.5 83.0 72.2 73.8 1

  27. Slide 27: Life Business: Higher Investment Results From Lower Fair Value Losses

    LIFE BUSINESS: HIGHER INVESTMENT RESULTS FROM LOWER FAIR VALUE LOSSES Investment Results by funds Investment Results Portfolio Mix and Investment Yield (LF+SHF) (%) (Annualised) (RM’mil) (RM’mil) Portfolio Mix Investment Yield +63.1% +63.1% Others Cash Loans 7.3% 0.4% 308.6 308.6 1.0% Equities Govt

  28. Slide 28: Life Business: Financial Results at a Glance

    LIFE BUSINESS: FINANCIAL RESULTS AT A GLANCE RM’mil 12M 2021 12M 2022 22/21 % Gross written premiums 3,259.0 3,366.7 3.3% Premiums ceded to reinsurers (142.3) (104.8) 26.4% Net earned premiums 3,116.7 3,261.9 4.7% Net change in benefits and claims paid (1,272.3) (1,675.6) (31.7%) Net change in cont

  29. Slide 29: Thank You for Your Attention

    THANK YOU FOR YOUR ATTENTION © Copyright Allianz Malaysia Berhad

  30. Slide 30: 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 — FY2022 Earnings Presentation on 6ix