Allianz Malaysia Bhd. · MYX:ALLIANZ

Allianz Malaysia Bhd — FY2019 Earnings Presentation

30 slides from Allianz Malaysia Bhd's earnings presentation, Feb 28, 2020

  1. Slide 1: Allianz Malaysia Berhad Financial Results 4Q 2019 Analyst Briefing

    Allianz Malaysia Berhad (12428-W) Financial Results 4Q 2019 Analyst Briefing 28 February 2020

  2. Slide 2: AMB Group Results

    Allianz @i) AMB Group Results

  3. Slide 3: Profitable growth from Diversification in Two Strong Pillars of Businesses

    Allianz Malaysia Berhad (12428-W) Profitable growth from Diversification in Two Strong Pillars of Businesses Operating revenue  Group operating revenue of RM5.53 billion, an increase of 6.8% compared to corresponding period of RM5.18 billion due to higher gross earned premiums and investment income

  4. Slide 4: Financial Highlights 12M 2019 Operating Revenue

    Allianz Malaysia Berhad (12428-W) Financial Highlights 12M 2019 Operating Revenue (RM’mil) General Business (RM’mil) +6.8% -1.4% 2,345.8 2,312.7 12M 2018 12M 2019 Life Business (RM’mil) 5,534.4 5,182.0 +13.6% 3,207.4 2,822.6 12M 2018 12M 2019 12M 2018 12M 2019 4

  5. Slide 5: Financial Highlights 12M 2019 Gross Written Premiums

    Allianz Malaysia Berhad (12428-W) Financial Highlights 12M 2019 Gross Written Premiums (“GWP”) (RM’mil) General Business (RM’mil) +9.3% +3.6% 2,121.3 2,197.5 12M 2018 12M 2019 4,922.5 Life Business (RM’mil) 4,504.8 +14.3% 2,725.0 2,383.5 12M 2018 12M 2019 12M 2018 12M 2019 5

  6. Slide 6: Financial Highlights 12M 2019 Profit Before Tax

    Allianz Malaysia Berhad (12428-W) Financial Highlights 12M 2019 Profit Before Tax (RM’mil) +33.4% PBT Drivers (RM’mil) 692.1 +136.3 -5.0 692.1 40.7 58.4 +41.8 14.2% * 519.0 519.0 593.0 519.0 PBT General Life Investment PBT 12M 2018 Business Business Holdings 12M 2019 12M 2018 320.6 204.4 (6.0) 519.0

  7. Slide 7: Life Business: Higher PBT driven by fair value gains from change in interest rate

    Allianz Malaysia Berhad (12428-W) Life Business: Higher PBT driven by fair value gains from change in interest rate and contribution from protection business Profit Before Tax Drivers (RM’mil) +58.4 340.7 +13.7 Interest rate 10 years MGS +64.2 2018 4.14% 0.81% 2019 3.33% 204.4 PBT 12M Profit One-off

  8. Slide 8: General Business: One-off impacts contributed to higher profit before tax

    Allianz Malaysia Berhad (12428-W) General Business: One-off impacts contributed to higher profit before tax Profit Before Tax Drivers (RM’mil) +27.0 362.4 +14.8 320.6 2019 2019 (Incl 2018 (Excl one- one-off) off) Net 92.5% 91.0% 92.8% Combined Ratio PBT 12M Profit One-off, PBT 12M 2018 Growth non-re

  9. Slide 9: Group: Higher PBT driven by contribution from life insurance segment and fair value impact

    Allianz Malaysia Berhad (12428-W) Group: Higher PBT driven by contribution from life insurance segment and fair value impact Profit Before Tax Drivers (RM’mil) +58.4 692.1 +40.7 +64.2 519.0 +9.8 PBT 12M Profit Growth Profit Growth One-off, non- Fair Value/Tax PBT 12M 2018 General life insurance recu

  10. Slide 10: Financial Overview

    Allianz Malaysia Berhad (12428-W) Financial Overview 3 YEAR RM’mil 2016 2017 2018 2019 CAGR (2016-2019) Gross Written Premiums 4,182.6 4,285.4 4,504.8 4,922.5 5.6% Management Expenses 513.2 603.8 554.9 618.0 6.4% Expense Ratio (Non Life) 17.4% 20.3% 18.4% 20.2% 5.1 pts Expense Ratio (Life)1 11.3% 12

  11. Slide 11: Summary of Audited Financial Results

    Allianz Malaysia Berhad (12428-W) Summary of Audited Financial Results RM’mil 12M 2018 12M 2019 19/18 % Operating revenue 5,182.0 5,534.4 6.8% Gross earned premiums 4,547.0 4,848.4 6.6% Premiums ceded to reinsurers (366.7) (346.2) 5.6% Net earned premiums (“NEP”) 4,180.3 4,502.2 7.7% Net change in

  12. Slide 12: General Business

    Allianz @i) General Business 12

  13. Slide 13: General Business

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business Gross written premiums  Gross written premium increased by 3.6% as compared to prior year. Profitability  Higher profit before tax from higher underwriting profit. ✔ Net investment results  Stable growth in investment

  14. Slide 14: General Business: GWP is 3.6% higher than prior year

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business: GWP is 3.6% higher than prior year Gross Written Premiums (RM’mil) +3.6% Distribution Channel & Portfolio Mix Telemarketng 2.7% 2,197.5 2,121.3 Agent 57.5% Broker 13.3% Motor Banca 62.6% 1.6% 585.7 576.7 548.3 552.1 Fra

  15. Slide 15: General Business: Higher profit before tax from higher underwriting profit

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business: Higher profit before tax from higher underwriting profit. Profit Before Tax (RM’mil) +13.0% PBT Drivers (RM’mil) 12.3 0.7 362.4 28.8 362.4 320.6 320.6 119.7 91.5 88.4 85.7 78.0 77.0 77.2 65.5 PBT UW Investment Others PB

  16. Slide 16: General Business: Stable growth in investment income

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business: Stable growth in investment income Net Investment Results/Net Operating Expenses (RM’mil) +7.0% Portfolio Mix and Investment Yield (Annualised) Portfolio Mix 195.6 Unquoted Property Investment Yield 182.8 1.2 unit trust

  17. Slide 17: General Business: Lower Combined ratio due to lower Claims ratio

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business: Lower Combined ratio due to lower Claims ratio Combined Ratio 1.8 pts 90.6% 92.9% 93.8% 93.6% 92.8% 91.3% 90.3% 96.4% 86.0% 91.0% 18.7% 18.4% 16.7% 17.9% 20.0% 18.4% 20.5% 17.2% 20.2% 24.5% 61.1% 62.9% 63.4% 61.0% 62.1%

  18. Slide 18: General Business: Audited financial results at a glance

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business: Audited financial results at a glance RM’mil 12M 2018 12M 2019 19/18 % Gross written premiums 2,121.3 2,197.5 3.6% Gross earned premiums 2,163.5 2,123.4 (1.9%) Net earned premiums 1,897.0 1,858.4 (2.0%) Net change in c

  19. Slide 19: General Business: Performance compared to Industry (Jan-Dec 2019)

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business: Performance compared to Industry (Jan-Dec 2019) AGIC Industry 1 Takaful 2 KPIs 12M 2019 12M 2019 12M 2019 GWP growth 3.6% -0.8% 18.8% Commission ratio 11.7% 10.0% 9.4% Claims ratio • Overall 59.1% 58.1% 58.1% • Motor 63

  20. Slide 20: Life Business

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) 3 Life Business 20

  21. Slide 21: Life Business

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business Gross written premiums  Gross written premiums grew by 14.3%. Market position  ALIM ANP grew by 16.3%, outpacing industry growth of 14.8%.  Market share 12M 2019 increased to 8.5% (12M 2018: 8.4%). Distribution  Total Company ANP gr

  22. Slide 22: Life Business: Y-o-Y growth in both Single Premium and Recurring Premium

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: Y-o-Y growth in both Single Premium and Recurring Premium Gross Written Premiums (“GWP”) (RM’mil) +14.3% GWP Mix & Growth (%) (12M 2019) 2,725.0 Mix Single 2,383.5 Premium 712.8 695.1 18.0% 657.9 659.2 608.2 594.3 609.0 572.0 498.0 543

  23. Slide 23: Life Business: Growth in ANP driven by Agency, Bancassurance and Employee Benefits

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: Growth in ANP driven by Agency, Bancassurance and Employee Benefits Channel Annualised New Premiums (“ANP”) (RM’mil) ANP Channel Mix (%) +16.0% (12M 2019) 594.8 Alternative Corporate 176.7 Distribution/ 4.1% 512.8 167.8 2.7 Bancassuran

  24. Slide 24: Life Business (Agency): Continue focus on profitable regular Investment-Linked products

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business (Agency): Continue focus on profitable regular Investment-Linked products Agency Annualised New Premiums (RM’mil) +12.2% Agency Product Mix (%) (12M 2019) 454.0 Traditional 404.5 By ANP 26.9% 133.0 146.4 By Policy Count 111.6 113.6 Trad

  25. Slide 25: Life Business: Protection Business (Investment-Linked) continues to grow

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: Protection Business (Investment-Linked) continues to grow Annualised New Premiums (RM’mil) Gross Written Premiums (RM’mil) +12.2% +15.2% 332.9 1,454.0 296.8 1,261.9 93.0 94.8 93.0 403.8 79.0 365.3 377.9 70.3 68.3 331.1 341.2 65.2 66.1

  26. Slide 26: Life Business: Higher net investment results due to fair value gains

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: Higher net investment results due to fair value gains Investment Results by Investment Results funds (RM’mil) (RM’mil) >100% >100% Portfolio Mix and Investment Yield (LF+SHF) (%) (Annualized) 806.9 806.9 Cash Others Investment Yield 10

  27. Slide 27: Life Business: Audited financial results at a glance

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: Audited financial results at a glance RM’mil 12M 2018 12M 2019 19/18 % Gross written premiums 2,383.5 2,725.0 14.3% Premiums ceded to reinsurers (100.2) (81.2) 19.0% Net earned premiums 2,283.3 2,643.8 15.8% Net change in benefits and

  28. Slide 28: Allianz Life: ANP growth driven by all distribution channels

    Allianz Life Insurance Malaysia Berhad (104248-X) Allianz Life: ANP growth driven by all distribution channels Market growth analysis (12M 2019) Annualised New Business 5-year CAGR 12M 2019 Growth 12M 2018 Growth (2014-2019) ALIM Industry Market Market ALIM Industry Distribution Channel ALIM Industr

  29. Slide 29: Thank You for Your Attention

    Thank You for Your Attention Allianz @)

  30. Slide 30: 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 levels, (vi) the extent of credit defaults, (vii) interest rate levels, (viii) currency expecta

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