Allianz Malaysia Bhd. · MYX:ALLIANZ

Allianz Malaysia Bhd — Shareholder Meeting (June 2023)

33 slides from Allianz Malaysia Bhd's shareholder meeting presentation, Jun 22, 2023

  1. Slide 1: 49th Annual General Meeting

    Annexure I Allianz Malaysia Berhad 197201000819 (12428-W) 49th Annual General Meeting Thursday, 22 June 2023 © Allianz 20XX

  2. Slide 2: Content / topics

    Content / topics Group Performance 1 Life Business 2 General Business 3 Embedding Sustainability into our Business 4 MFRS 9/17 Results 5 2

  3. 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 21 39,877 1 1.3% 2 9.7% +8.7% General insurers General agents Insurance penetration GWP GROWTH 2022 GDP GROWTH 2022 (% of GDP) (2021 2.7%) (2021 3.1%)

  4. Slide 4: Sound fundamental business to overcome the challenges

    GROUP PERFORMANCE Sound fundamental business to overcome the challenges FY 2022 RM 6.77bn RM 6.02bn RM 704.4mn + 5.3% (2021 +8.2%) + 5.8% (2021 +7.2%) +12.6% (2021 -14.3%) Operating revenue GWP Profit before tax ALIM RM 287.2mn +30.2% AGIC RM 462.6mn +5.8% Investment holding RM (45.4mn) -41.4% RM 23

  5. Slide 5: Diversification in two strong pillars of businesses

    GROUP PERFORMANCE Diversification in two strong pillars of businesses: maintain market leadership in general insurance & deliver strong growth in life insurance Gross Written Premium (GWP) (RM’ mil) 5-yr CAGR +7.0% +5.8% 6,022 5,690 Allianz Life achieved top 4 5,305 position in ANP, with 9.5% 4,923

  6. Slide 6: Resilient and diversified business portfolio to protect Group's earnings

    GROUP PERFORMANCE Resilient and diversified business portfolio to protect Group’s earnings Profit before Tax (RM’ mil) 5-yr CAGR Maintain strong discipline in +12.5% pricing & prudent expense +10.0% management +10.4% * 742 692 730 * 672 704 626 Deliver healthy and sustainable 519 margins. Achieved N

  7. Slide 7: Delivered higher core profit

    GROUP PERFORMANCE Delivered higher core profit. Strong underwriting results from General Insurance segment and Life Protection business Profit before Tax (RM’ mil) Core profit excluding fair value and tax impact (RM’ mil) +10.4% +12.5% 742+10.7%* 626 704 672 10 7 26 (14) 5 3 58 325 267 Allianz Life

  8. Slide 8: Our solid track record

    GROUP PERFORMANCE Our solid track record 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. Slide 9: Maintain strong shareholders' dividend return

    GROUP PERFORMANCE Maintain strong shareholders’ dividend return 2020 2021 2022 2023 marks the first time that our dividend payout has exceeded RM1 billion Dividend Yield1 4.3% 5.4% 6.6% Dividend Per Share (RM sen) Payout Ratio 42.4% 50.0% 68.3% 2023 First Interim Dividend declared and Ordinary Share

  10. Slide 10: Content / topics

    Content / topics Group Performance 1 Life Business 2 General Business 3 Embedding Sustainability into our Business 4 MFRS 9/17 Results 5 10

  11. Slide 11: Allianz Life: outperformed industry while market contracted

    LIFE BUSINESS Allianz Life: outperformed industry while market contracted driven by lower volume from Agency business Annualised New Business 12M 2022 Growth 12M 2021 Growth 5-year CAGR (2017 – 2022) ALIM Industry Market Market ALIM Industry Distribution Channel ALIM Industry (% Growth) (% Growth) S

  12. Slide 12: Life Business: year-on-year growth driven by recurring premium

    LIFE BUSINESS Life Business: year-on-year growth driven by recurring premium Gross Written Premium (GWP) (RM’ mil) GWP Mix & Growth (%) (12M 2022) Mix Single Premium 15.7% +3.3% 3,259 3,367 Recurring Premium 84.3% 2,706 2,839 Growth 4.9% 553 528 2021 2022 Single Premium Recurring Premium -4.5% © Cop

  13. Slide 13: Life Business: continue focus on investment-linked products

    LIFE BUSINESS Life Business: continue focus on investment-linked products Annualised New Premiums (“ANP”) (RM’ mil) ANP Channel Mix (%) (12M 2022) -3.8% 687 661 Alternative 29 Distribution/ 33 Bancassurance 151 27.80% 183 Agency 507 67.30% 445 Corporate 4.90% 2021 2022 Agency Bancassurance Employee

  14. Slide 14: Life Business (Agency): lower sales against last year but outperformed industry

    LIFE BUSINESS Life Business (Agency): lower sales against last year but outperformed industry Agency Annualised New Premiums (“ANP”) (RM’ mil) Agency Product Mix (%) (12M 2022) By ANP By Policy Count -12.2% Traditional Traditional 35.8% 22.2% 507 445 Investment- 166 Investment- Linked 159 64.2% Link

  15. Slide 15: Life business delivered higher core profit

    LIFE BUSINESS Life business delivered higher core profit Profit before Tax (RM’ mil) +10.7% 29.9% 341 • Focus on healthy and sustainable margins 309 287 supported by disciplined pricing 68 21.7% methodologies and sound risk management. 39 221 -1.1% • Focus on writing more investment-linked protectio

  16. Slide 16: Life Business value creation for 2023 onwards

    Internal Life business Life Business value creation for 2023 onwards Value Creation = Growth + Margin expansion + Capital efficiency Our value creation  Agency transformation  Steering agency  Focus new business gr program via quality recruitment, mix towards higher owth on preferred lines and th

  17. Slide 17: Content / topics

    Content / topics Group Performance 1 Life Business 2 General Business 3 Embedding Sustainability into our Business 4 MFRS 9/17 Results 5 17

  18. Slide 18: Allianz General: maintaining market leadership

    GENERAL BUSINESS Allianz General: maintaining market leadership KPIs ALLIANZ GENERAL ALLIANZ GENERAL Industry1 Takaful1 12M 2022 12M 2021 12M 2022 12M 2022 GWP growth 9.2% 3.2% 9.7% 21.1% Commission ratio 12.7% 12.5% 11.0% 9.3% Claims ratio • Overall 57.7% 56.6% 53.7% 60.7% • Motor 60.7% 53.0% 65.3%

  19. Slide 19: Top-line growth despite difficult market conditions

    GENERAL BUSINESS Top-line growth despite difficult market conditions Gross Written Premium (GWP) (RM’ mil) Distribution Channel & Portfolio Mix Telemaketing 1.9% 2022 GI Industry Growth +9.7% Agent 55.7% +9.2% Broker 11.6% Banca 1.6% CIMB -143 Franchise 29.2% CIMB 143 Fire 13.1% Marine 2,655 2,431 2

  20. Slide 20: General Business: higher profit before tax from higher underwriting profit

    GENERAL BUSINESS General Business: higher profit before tax from higher underwriting profit Profit Before Tax (RM’ mil) PBT Drivers (RM’ mil) +5.8% 463 437 12M 21 UW result Investment Others 12M 22 12M 2021 257 182 (2) 437 12M 2022 290 176 (3) 463 Change 33 (6) (1) 26 2021 2022 © Copyright Allianz M

  21. Slide 21: General Business: better combined ratio due to better loss and expense ratio

    GENERAL BUSINESS 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% 17.5% 18.7% 18.1% 11.5% 19.2% 16.9% 19.1% 19.9% 18.8% 59.7% 58.1% 55.4% 52.8% 56.6% 57.6% 61.5% 56.8% 55.0% 57.7% 1

  22. Slide 22: General Business value creation for 2023 onwards

    GENERAL BUSINESS General Business value creation for 2023 onwards Value Creation = Growth + Margin expansion + Capital efficiency  innovative product  enhance portfolio  prioritisation on high Our value proposition and management to Return on Equity creation service differentiation strengthen und

  23. Slide 23: Content / topics

    Content / topics Group Performance 1 Life Business 2 General Business 3 Embedding Sustainability into our Business 4 MFRS 9/17 Results 5 23

  24. Slide 24: Embedding sustainability into our business

    Embedding sustainability into our business As an Organisation As an Insurer & Investor GHG reduction in own operations of 50% by 2025 (vs 2019); Net-Zero by Net-Zero investment and insurance portfolios by 2050 2030 Environment • Investment and Underwriting: ESG screening; Phase out of coal and O&G •

  25. Slide 25: Content / topics

    Content / topics Group Performance 1 Life Business 2 General Business 3 Embedding Sustainability into our Business 4 MFRS 9/17 Results 5 25

  26. Slide 26: Adoption of new accounting standards of MFRS 9 and MFRS 17

    MFRS 9/17 RESULTS Adoption of new accounting standards of MFRS 9 Financial Instruments and MFRS 17 Insurance Contracts Summary: Fundamentals unchanged, disclosure improved • Adoption of MFRS 9/17 welcome as supporting better visibility of profit emergence, higher transparency and comparability 1 Gen

  27. Slide 27: Highlights 2022: Accelerated Results Under MFRS 9/17

    MFRS 9/17 RESULTS Highlights 2022: Accelerated Results Under MFRS 9/17 (31 December 2022) Group General Insurance Life Insurance Gross Written Premium (RM’ mil) 6,023.0 2,656.3 3,366.7 Insurance Revenue (RM’ mil) 4,450.1 2,597.8 1,852.3 Profit Before Tax (RM’ mil) (values in brackets based on MFRS 4

  28. Slide 28: Highlights 2022: Accelerated Results Under MFRS 9/17

    MFRS 9/17 RESULTS Highlights 2022: Accelerated Results Under MFRS 9/17 Group balance sheet equity (RM’ bil) Highlights 31 December 2022 • Difference versus MFRS 4 mainly driven by difference in profit emergence in the 4.68 life insurance business; 4.23 • Higher retained earnings for general insuranc

  29. Slide 29: Life Segment Profit Before Tax Changes

    MFRS 9/17 RESULTS Life Segment Profit Before Tax Changes Profit before Tax (RM’ mil) Profits under MFRS 17 against MFRS 4 31 December 2022 mainly due to: +90.3mil Acceleration of profit under MFRS 17 for investment-linked business Fair value impact on investment assets being recognised in OCI MFRS 4

  30. Slide 30: Life Segment New Business Value Aligned to MFRS 17 Framework

    MFRS 9/17 RESULTS Life Segment New Business Value Aligned to MFRS 17 Framework Value of new business (“VNB”) (RM’ mil) Highlights 31 December 2022 MFRS 4 VNB ~8% 275 mil MFRS 4 KPI for new business value; basis for NBM NBM Tax MFRS 9/17 view is before tax +88 mil Difference in risk adjustment, valua

  31. Slide 31: General Segment Profit Before Tax Changes

    MFRS 9/17 RESULTS General Segment Profit Before Tax Changes Profit before Tax (RM’ mil) Profits under MFRS 17 against MFRS 4 31 December 2022 mainly due to: +52.8mil Higher PBT from discounting on claims due to higher interest rate Others: Fair value impact on investment assets being recognised in F

  32. Slide 32: General Segment Combined Ratio In Detail

    MFRS 9/17 RESULTS General Segment Combined Ratio In Detail Combined ratio (“CoR”) Highlights 31 December 2022 Similar or lower level1 New topline: CoR calculation based on gross instead of net premiums earned 87.3% 85.3% • Lower loss ratio due to discounting of current accident year claims reserves

  33. Slide 33: Financial Highlights 3M 2023

    MFRS 9/17 RESULTS Financial Highlights 3M 2023 Group General Insurance Life Insurance Gross Written Premium (RM’ mil) 1,705.3 (+4.6%) 776.1 (+4.7%) 929.2 (+4.5%) Insurance Revenue (RM’ mil) 1,161.4 (+9.2%) 661.5 (+8.1%) 499.9 (+10.8%) Profit Before Tax (RM’ mil) 232.3 (+7.8%) 139.8 (+50.3%) 96.5 (-2

Allianz Malaysia Berhad — Shareholder Meeting (June 2023) on 6ix