Allianz Malaysia Bhd. · MYX:ALLIANZ

Allianz Malaysia Bhd — Q2 2024 Earnings Presentation

28 slides from Allianz Malaysia Bhd's earnings presentation, Aug 26, 2024

  1. Slide 1: Allianz Malaysia Berhad Q2 2024 Financial Results Analyst Briefing

    ALLIANZ MALAYSIA BERHAD (197201000819) Q2 2024 FINANCIAL RESULTS MFRS 9/17 Analyst Briefing 26 August 2024 © 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 6M 2024

    FINANCIAL HIGHLIGHTS 6M 2024 Group General Insurance Life Insurance Investment Holding Investment Holding Gross Written Premium (RM’mil) 3,605.8 (+12.1%) 1,685.0 (+15.2%) 1,920.8 (+9.4%) Insurance Revenue (RM’mil) 2,708.0 (+16.4%) 1,534.7 (+15.6%) 1,173.3 (+17.5%) Profit Before Tax (RM’mil) 475.8 (+

  4. Slide 4: Strong Performance with Robust Top Line Growth and Resilient Earnings

    STRONG PERFORMANCE WITH ROBUST TOP LINE GROWTH AND RESILIENT EARNINGS Comments Insurance revenue Profitability • Group insurance revenue of RM2.71 billion, an increase of 16.4% • Group profit before tax of RM475.8 million, increased by 4.5% (6M from RM2.33 billion in 2023 due to strong insurance rev

  5. Slide 5: Financial Highlights 6M 2024: Gross Written Premium

    FINANCIAL HIGHLIGHTS 6M 2024 Group General Insurance Gross Written Premium (“GWP”) (RM’mil) +12.1% +15.2% 1,685.0 3,605.8 6,546.5 1,462.1 6,023.0 3,217.2 1,904.3 1,705.3 1,701.5 1,511.9 6M 23 6M 24 Life Insurance +9.4% 1,920.8 1,755.1 1Q 23 2Q 23 1Q 24 2Q 24 6M 23 6M 24 © Copyright Allianz Malaysia

  6. Slide 6: Financial Highlights 6M 2024: Insurance Revenue

    FINANCIAL HIGHLIGHTS 6M 2024 Group General Insurance Insurance Revenue (RM’mil) +16.4% +15.6% 1,534.7 2,708.0 4,941.6 1,327.4 4,418.8 2,326.1 1,371.1 1,336.9 1,161.4 1,164.7 6M 23 6M 24 Life Insurance +17.5% 1,173.3 998.7 1Q 23 2Q 23 1Q 24 2Q 24 6M 23 6M 24 © Copyright Allianz Malaysia Berhad 6

  7. Slide 7: Financial Highlights 6M 2024: PBT and PAT Drivers

    FINANCIAL HIGHLIGHTS 6M 2024 Profit Before Tax drivers (RM’mil) Profit After Tax drivers (RM’mil) +4.5% +5.1% 6M 23 General Life Investment 6M 24 6M 23 General Life Investment 6M 24 Insurance Insurance Holding Insurance Insurance Holding ∆ 6M 24/23 ∆ 6M 24/23 6M 2023 263.8 195.2 (3.8) 455.2 6M 2023

  8. Slide 8: Life Business: CSM Growth Good at 6.4%

    LIFE BUSINESS: CSM GROWTH GOOD AT 6.4% Contractual Service Margin (RM’mil) +6.4% 1 CSM (net) 2,263.3 Reinsurance 142.8 Non-attributable cost 335.4 3,456.2 Tax 714.7 CSM (gross) 3,456.2 VNB (6M 24) 186.7 + Non-attr. Cost 80.7 - Scope / other (1.4) = New business @ inception 266.0 Economic and non- ec

  9. Slide 9: Financial Overview

    FINANCIAL OVERVIEW RM’mil 2022 2023 24/23 % 6M 2023 6M 2024 Gross Written Premiums 6,023.0 6,546.5 8.7% 3,217.2 3,605.8 CSM Release 368.6 433.1 17.5% 191.4 236.6 Expense Ratio (Non Life)1 26.6% 26.3% (0.3 pts) 25.6% 24.3% Expense Ratio (Life)2 9.8% 12.1% 2.3 pts 10.9% 11.7% Local Consolidated PBT 8

  10. Slide 10: Summary of Unaudited Financial Results

    SUMMARY OF UNAUDITED FINANCIAL RESULTS RM’mil 6M 2023 6M 2024 24/23 % Insurance revenue 2,326.1 2,708.0 16.4% Claims and benefits (1,190.4) (1,583.0) 33.0% Acquisition and administrative expenses (net) (558.4) (654.4) 17.2% Losses on onerous contracts (9.8) (4.3) (56.1%) Insurance service expenses

  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 • Continued growth momentum in the second quarter with • Higher combined ratio of 3.0 pts mainly contributed by higher gross written premium increased by 15.2% as compared to claims from fire and engineering large losses partially offse

  13. Slide 13: General Business: Good Sales Momentum with Higher GWP Growth

    GENERAL BUSINESS: GOOD SALES MOMENTUM WITH HIGHER GWP GROWTH Gross Written Premium (RM’mil) Distribution Channel & Portfolio Mix +15.2% Telemaketing 1.7% 1,685.0 Agent 56.6% 1,462.1 Broker 10.5% Banca 1.7% Franchise 29.5% 884.6 Fire 800.4 12.0% 776.1 Marine 686.0 2.1% PA & Health 5.4% Total Misc 1,6

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

    GENERAL BUSINESS: GROWTH IN INVESTMENT INCOME IN LINE WITH HIGHER YIELD AND GROWTH IN INVESTMENT ASSETS Net investment income/ Net (re-)insurance finance expenses Portfolio Mix and Investment Yield (Annualised) (RM’mil) +4.2% Portfolio Mix Investment Yield * 77.1 74.0 38.2 38.9 Deposit Unquoted 37.7

  15. Slide 15: General Business: Lower PBT Due to Lower Insurance Service Results

    GENERAL BUSINESS: LOWER PBT DUE TO LOWER INSURANCE SERVICE RESULTS Profit Before Tax (RM’mil) PBT Drivers (RM’mil) -5.8% 263.8 515.3 248.5 139.8 132.3 124.0 116.2 6M 23 Insurance Net Others 6M 24 service investment results income 6M 2023 221.2 108.6 (66.0) 263.8 6M 2024 196.1 120.5 (68.1) 248.5 1Q 2

  16. Slide 16: General Business: Higher Combined Ratio Due to Higher Claims Ratio

    GENERAL BUSINESS: HIGHER COMBINED RATIO DUE TO HIGHER CLAIMS RATIO Combined Ratio +3.0 pts Discounting impact -2.9% Discounting impact -2.7% 90.1% 88.4% 84.2% 86.6% 85.4% 87.0% 24.1% 24.9% 24.3% 24.8% 26.4% 25.6% 59.4% 60.2% 59.8% * * 62.9% 65.2% 64.1% * 1Q 23 2Q 23 6M 23 1Q 24 2Q 24 6M 24 Claims Ra

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

    GENERAL BUSINESS: FINANCIAL RESULTS AT A GLANCE RM’mil 6M 2023 6M 2024 24/23 % Insurance revenue 1,327.4 1,534.7 15.6% Claims (626.6) (951.4) 51.8% Acquisition and administrative expenses (net) (312.5) (355.1) 13.6% Losses on onerous contracts (5.5) (3.6) (34.5%) Net expenses from reinsurance contr

  18. Slide 18: General Business: Performance Compared to Industry (Jan-Jun 2024)

    GENERAL BUSINESS: PERFORMANCE COMPARED TO INDUSTRY (JAN-JUN 2024) AGIC 1 Industry 1 Takaful 1 KPIs 6M 2024 6M 2024 6M 2024 GWP growth 15.1% 9.5% 10.5% Market Share (6M 2024) 2 14.1% Market Ranking (3M 2024) 3 No. 1 Notes: 1) Source: ISM Market PerformanceReport Jan-Jun 2024 (General Insurance & Gene

  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 9.4% with growth from • Remain focused on sales of investment-linked products with Bancassurance (+ 43.5%) and Employee Benefit (+ 12.8%). protection rider which provides higher margins but to also cater for d

  21. Slide 21: Life Business: Strong Growth Driven by Single and Recurring Premium

    LIFE BUSINESS: STRONG GROWTH DRIVEN BY SINGLE PREMIUM (DOUBLE DIGIT GROWTH) AND RECURRING PREMIUM Gross Written Premiums (“GWP”) (RM’mil) GWP Mix & Growth (%) (6M 2024) +9.4% Mix Single 1,920.8 Premium 3,543.0 20.8% 1,755.1 3,366.7 1,019.7 929.2 Total 901.1 1,920.8 825.9 Recurring Premium 79.2% 761.

  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 Annualised New Premiums (“ANP”) (RM’mil) ANP Channel Mix (%) (6M 2024) +38.9% 757.6 445.9 234.8 20.6 211.1 Bancassurance/Direct 9.6 Marketing 321.2 37.3% 163.4 157.8 91.6 74.7 Growth +71.2% 18.9 7.9 Total 445.9 46.2 51.0 Agency 55.

  23. Slide 23: Life Business (Agency): Focus on Regular Investment-Linked Products

    LIFE BUSINESS (AGENCY): CONTINUE FOCUS ON PREFERRED SEGMENT OF REGULAR INVESTMENT-LINKED PRODUCTS WITH BETTER MARGINS Agency Annualised New Premiums (RM’mil) Agency Product Mix (%) (6M 2024) +26.5% Q1 +31.1% Traditional By ANP By Policy Count Q2 +22.3% 524.8 249.4 20.6% Traditional 126.8 12.4% 197.2

  24. Slide 24: Life Business: Investment-Linked with Protection Features Continues to Grow

    LIFE BUSINESS: INVESTMENT-LINKED WITH PROTECTION FEATURES CONTINUES TO GROW Annualised New Premiums (RM’mil) Gross Written Premiums (RM’mil) +71.3% +18.5% 1,209.2 328.6 1,020.6 191.8 615.6 174.8 593.6 153.8 509.8 510.8 100.0 91.8 1Q 23 2Q 23 1Q 24 2Q 24 1Q 23 2Q 23 1Q 24 2Q 24 © Copyright Allianz Ma

  25. Slide 25: Life Business: Higher Investment Income Driven by Fair Value Gains

    LIFE BUSINESS: HIGHER INVESTMENT INCOME DRIVEN FAIR VALUE GAINS FROM FAVOURABLE MARKET CONDITION Investment Income by funds Portfolio Mix and Investment Yield (LF+SHF) (%) (RM’mil) Investment Yield Portfolio Mix >100% (Annualised) Cash Others 8.2% 0.3% 822.5 Equities Govt Bonds 56.4% 82.6 8.3% 355.5

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

    LIFE BUSINESS: FINANCIAL RESULTS AT A GLANCE RM’mil 6M 2023 6M 2024 24/23 % Insurance revenue 998.7 1,173.3 17.5% - Release contractual service margin 191.4 236.6 23.6% - Release of expected cash flows, risk adjustments and others 807.3 936.7 16.0% Claims and benefits (563.8) (631.6) 12.0% Acquisit

  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 — Q2 2024 Earnings Presentation on 6ix