Allianz Malaysia Bhd. · MYX:ALLIANZ

Allianz Malaysia Bhd — Q2 2021 Earnings Presentation

29 slides from Allianz Malaysia Bhd's earnings presentation, Aug 26, 2021

  1. Slide 1: Allianz Malaysia Berhad Q2 2021 Financial Results Analyst Briefing

    ALLIANZ MALAYSIA BERHAD (197201000819) Q2 2021 FINANCIAL RESULTS Analyst Briefing 26 August 2021 © 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 2021

    FINANCIAL HIGHLIGHTS 6M 2021 Group General Insurance Life Insurance Investment Holding Operating Revenue (RM’mil) 3,175.2 (+9.9%) 1,298.4 (+7.9%) 1,870.8 (+11.4%) 6.0 (-1.6%) Gross Written Premium (RM’mil) 2,779.7 (+8.6%) 1,189.6 (+4.7%) 1,590.1 (+11.6%) Shareholders’ net income Combined ratio New b

  4. Slide 4: Resilient Earnings for First Half of 2021 Amid Headwinds

    RESILIENT EARNINGS FOR FIRST HALF OF 2021 AMID HEADWINDS Comments Operating revenue Profitability • Group operating revenue of RM3.18 billion, an increase of • Group profit before tax of RM273.7 million, decreased by 9.9% compared to corresponding period of RM2.89 billion 19.6% (6M 2020: RM340.5 mil

  5. Slide 5: Financial Highlights 6M 2021: Operating Revenue

    FINANCIAL HIGHLIGHTS 6M 2021 Group General Insurance Operating Revenue (RM’mil) +9.9% +7.9% 1,202.8 1,298.4 3,175.2 2,888.8 1,606.6 1,568.6 1,484.7 1,404.1 6M 20 6M 21 Life Insurance +11.4% 1,870.8 1,679.9 1Q 20 2Q 20 1Q 21 2Q 21 6M 20 6M 21 © Copyright Allianz Malaysia Berhad 5

  6. Slide 6: Financial Highlights 6M 2021: Gross Written Premium

    FINANCIAL HIGHLIGHTS 6M 2021 Group General Insurance Gross Written Premium (“GWP”) (RM’mil) +8.6% +4.7% 1,189.6 1,135.7 2,779.7 2,560.3 1,482.0 1,362.1 1,297.7 1,198.2 6M 20 6M 21 Life Insurance +11.6% 1,590.1 1,424.6 1Q 20 2Q 20 1Q 21 2Q 21 6M 20 6M 21 © Copyright Allianz Malaysia Berhad 6

  7. Slide 7: Financial Highlights 6M 2021: Profit Before Tax

    FINANCIAL HIGHLIGHTS 6M 2021 Profit Before Tax (RM’mil) PBT drivers (RM’mil) -19.6% -19.6% -5.6%* 340.5 2.0 15.8 273.7 * 322.7 304.6 6M 20 General Life Investment 6M 21 Insurance Insurance Holding ∆ 6M 21/20 (26.3) (4.6) 6M 2020 193.9 155.1 (8.5) 340.5 6M 20 6M 21 6M 2021 207.6 76.7 (10.6) 273.7 Cha

  8. Slide 8: Life: Lower PBT Mainly from Fair Value Losses

    LIFE: LOWER PBT MAINLY FROM FAIR VALUE LOSSES PBT Drivers (RM’mil) Interest rate 10 years MGS -50.5% -21.6%* Dec 20 2.6% Dec 19 3.3% 155.1 Jun 21 3.4% Jun 20 3.0% 2.0 15.8 ∆ 21/20 0.8 pts ∆ 20/19 (0.3 pts) 76.7 (29.7) 137.3 (42.1) Bursa Malaysia KLCI Index (6.6) 107.6 Dec 20 1,627 Dec 19 1,588 Jun 2

  9. Slide 9: Financial Overview

    FINANCIAL OVERVIEW 3 YEAR RM’mil 2018 2019 2020 CAGR 6M 2020 6M 2021 (2017-2020) Gross Written Premiums 4,504.8 4,922.5 5,305.2 7.4% 2,560.3 2,779.7 Management Expenses 554.9 618.0 641.4 2.0% 312.1 327.3 Expense Ratio (Non Life) 18.4% 20.2% 19.8% 0.5 pts 18.7% 18.0% Expense Ratio (Life)1 10.0% 10.5%

  10. Slide 10: Summary of Unaudited Financial Results

    SUMMARY OF UNAUDITED FINANCIAL RESULTS RM’mil 6M 2020 6M 2021 21/20 % Operating Revenue 2,888.8 3,175.2 9.9% Gross Earned Premium 2,534.1 2,798.1 10.4% Premiums ceded to reinsurers (166.4) (194.1) (16.6%) Net earned premiums (“NEP”) 2,367.7 2,604.0 10.0% Net change in benefits and claims paid (“Cla

  11. Slide 11: General Business

    02 GENERAL BUSINESS © Copyright Allianz Malaysia Berhad 11

  12. Slide 12: General Business Comments

    GENERAL BUSINESS Comments Gross written premiums Combined ratio • Gross written premium increased by 4.7% as compared to • Lower combined ratio by 1.2 pts mainly from lower commission prior year mainly driven by motor business. and expense ratio. Profitability Market growth • Higher profit before ta

  13. Slide 13: General Business: GWP Is 4.7% Higher Than Prior Year

    GENERAL BUSINESS: GWP IS 4.7% HIGHER THAN PRIOR YEAR Gross Written Premium (RM’mil) Distribution Channel & Portfolio Mix +4.7% Telemaketing 2.1% Agent 57.3% 1,189.6 1,135.7 Broker 8.5% Banca 2.1% Franchise 30.0% 656.4 Fire 613.6 16.0% 522.1 533.2 Marine 3.0% PA & Health 5.0% Misc Motor 1Q 20 2Q 20 1

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

    GENERAL BUSINESS: LOWER GROWTH IN INVESTMENT INCOME Net Investment Results/ Net Operating Expenses (RM’mil) Portfolio Mix and Investment Yield (Annualized) -8.2% Portfolio Mix Investment Yield * Deposit 95.6 5.3% Unquoted 87.8 Unit Trust 23.6% 49.3 3.73% 47.5 44.6 44.9 Corp 3.31% Bond 24.6% Govt Bon

  15. Slide 15: General Business: Higher Profit Before Tax from Higher Underwriting Profit

    GENERAL BUSINESS: HIGHER PROFIT BEFORE TAX FROM HIGHER UNDERWRITING PROFIT Profit Before Tax (RM’mil) PBT Drivers (RM’mil) +7.1% 207.6 193.9 119.4 115.0 92.6 74.5 6M 20 UW result Investment Others 6M 21 6M 2020 98.3 96.8 (1.2) 193.9 6M 2021 119.8 89.5 (1.7) 207.6 1Q 20 2Q 20 1Q 21 2Q 21 Change 21.5

  16. Slide 16: General Business: Lower Combined Ratio Due to Lower Commission and Expense Ratio

    GENERAL BUSINESS: LOWER COMBINED RATIO DUE TO LOWER COMMISSION AND EXPENSE RATIO Combined Ratio +1.2 pts 94.8% 90.1% 90.5% 88.9%* 85.4% 87.2% 19.9% 18.7% 18.4% 18.0% 17.6% 17.5% 62.3% 58.5% 59.7% 58.9% 54.5% 58.1% 12.6% 13.3% 12.9% 12.4% 11.6% 12.0% 1Q 20 2Q 20 6M 20 1Q 21 2Q 21 6M 21 Commission Rat

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

    GENERAL BUSINESS: UNAUDITED FINANCIAL RESULTS AT A GLANCE RM’mil 6M 2020 6M 2021 21/20 % Gross written premiums 1,135.7 1,189.6 4.7% Gross earned premiums 1,109.5 1,208.0 8.9% Net earned premiums 992.8 1,084.9 9.3% Net change in claims incurred (580.3) (638.9) (10.1%) Management expenses (185.9) (1

  18. Slide 18: General Business: Performance Compared to Industry (Jan-Jun 2021)

    GENERAL BUSINESS: PERFORMANCE COMPARED TO INDUSTRY (JAN-JUN 2021) KPIs AGIC Industry 1 Takaful 2 6M 2021 6M 2021 6M 2021 GWP growth 4.7% 4.0% 13.5% Commission ratio 12.0% 9.3% 9.1% Claims ratio • Overall 58.9% 51.1% 51.8% • Motor 51.6% 55.1% 61.0% Expense ratio 18.0% 24.0% 31.3% Combined ratio 88.9%

  19. Slide 19: Life Business

    03 LIFE BUSINESS © Copyright Allianz Malaysia Berhad 19

  20. Slide 20: Life Business Comments

    LIFE BUSINESS Comments Gross written premiums Product mix • Gross written premiums grew by 11.6%. • Remain focus on sales of investment-linked products with protection rider which provide higher margins but to also cater Market Growth for demand for saving products. • ANP increased by 50% in part du

  21. Slide 21: Life Business: Y-o-Y Growth Driven by Recurring and Single Premium

    LIFE BUSINESS: Y-O-Y GROWTH DRIVEN BY RECURRING AND SINGLE PREMIUM Gross Written Premiums (“GWP”) (RM’mil) GWP Mix & Growth (%) (6M 2021) +11.6% Mix Single Premium 18.6% 1,590.1 1,424.6 825.6 748.5 764.5 676.1 Recurring Premium 81.4% Growth 642.1 568.9 652.5 568.8 13.8% 179.6 183.5 107.3 112.0 3.0%

  22. Slide 22: Life Business: Growth in ANP Driven by Agency and Bancassurance Channels

    LIFE BUSINESS: GROWTH IN ANP DRIVEN BY AGENCY AND BANCASSURANCE CHANNELS Annualized New Premiums (“ANP”) (RM’mil) ANP Channel Mix (%) (6M 2021) +51.5% Alternative 323.3 Distribution/ Bancassurance 171.3 20.2% 12.1 152.0 213.4 0.0 6.2 32.6 0.1 122.6 32.6 Corporate 10.3 5.7% 0.0 90.8 36.0 7.4 0.0 12.5

  23. Slide 23: Life Business (Agency): Strong Momentum in First Half of 2021

    LIFE BUSINESS (AGENCY): STRONG MOMENTUM IN FIRST HALF OF 2021 Agency Annualized New Premiums (RM’mil) Agency Product Mix (%) (6M 2021) +62.8% By ANP By Policy Count Traditional 239.7 Traditional 23.2% 39.7% 126.6 113.1 92.2 147.2 Investment Investment 94.8 Linked Linked 78.2 60.3% 76.8% 76.3 70.9 66

  24. Slide 24: Life Business: Protection Business (Investment-Linked) Continues to Grow

    LIFE BUSINESS: PROTECTION BUSINESS (INVESTMENT-LINKED) CONTINUES TO GROW Annualised New Premiums (RM’mil) Gross Written Premiums (RM’mil) +51.1% +14.6% 151.7 873.5 762.2 100.4 79.5 429.9 443.6 72.2 382.3 379.9 56.7 43.7 1Q 20 2Q 20 1Q 21 2Q 21 1Q 20 2Q 20 1Q 21 2Q 21 © Copyright Allianz Malaysia Ber

  25. Slide 25: Life Business: Investment Results Impacted by Fair Value Losses

    LIFE BUSINESS: INVESTMENT RESULTS IMPACTED BY FAIR VALUE LOSSES AS INTEREST RATE GOES UP Investment Results by funds Investment Results Portfolio Mix and Investment Yield (LF+SHF) (%) (Annualized) (RM’mil) (RM’mil) Portfolio Mix Investment Yield (>100%) (>100%) Others Cash Loans 6.2% 0.9% 57.8 1.1%

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

    LIFE BUSINESS: UNAUDITED FINANCIAL RESULTS AT A GLANCE RM’mil 6M 2020 6M 2021 21/20 % Gross written premiums 1,424.6 1,590.1 11.6% Premiums ceded to reinsurers (49.7) (71.0) (42.9%) Net earned premiums 1,374.9 1,519.1 10.5% Net change in benefits and claims paid (545.4) (571.2) (4.7%) Net change in

  27. Slide 27: Allianz Life: Growth in ANP Driven by Agency and Bancassurance Channels

    ALLIANZ LIFE: GROWTH IN ANP DRIVEN BY AGENCY AND BANCASSURANCE CHANNELS Market growth analysis (6M 2021) Annualised New Business 6M 2021 Growth 12M 2020 Growth 5-year CAGR (2015 – 2020) ALIM Industry Market Market ALIM Industry Distribution Channel ALIM Industry (% Growth) (% Growth) Share Rank (% G

  28. Slide 28: Thank You for Your Attention

    THANK YOU FOR YOUR ATTENTION © Copyright Allianz Malaysia Berhad

  29. Slide 29: 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 2021 Earnings Presentation on 6ix