Allianz Malaysia Bhd. · MYX:ALLIANZ

Allianz Malaysia Bhd — Q2 2023 Earnings Presentation

27 slides from Allianz Malaysia Bhd's earnings presentation, Aug 25, 2023

  1. Slide 1: Allianz Malaysia Berhad Q2 2023 Financial Results Analyst Briefing

    ALLIANZ MALAYSIA BERHAD (197201000819) Q2 2023 FINANCIAL RESULTS MFRS 9/17 Analyst Briefing 25 August 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 6M 2023

    FINANCIAL HIGHLIGHTS 6M 2023 Group General Insurance Life Insurance Gross Written Premium (RM’mil) 3,217.2 (+4.5%) 1,462.1 (+7.6%) 1,755.1 (+2.0%) Insurance Revenue (RM’mil) 2,326.1 (+8.4%) 1,327.4 (+7.4%) 998.7 (+9.8%) Profit Before Tax (RM’mil) 455.2 (+6.4%) 263.8 (+17.9%) 195.2 (-10.4%) Sharehold

  4. Slide 4: Strong Earnings for First Half of 2023

    STRONG EARNINGS FOR FIRST HALF OF 2023 Comments Insurance revenue Profitability • Group insurance revenue of RM2.33 billion, an increase of 8.4% • Group profit before tax of RM455.2 million, increased by 6.4% (6M from RM2.15 billion in 2022 due to higher insurance revenue from 2022: RM428.0 million)

  5. Slide 5: Financial Highlights 6M 2023: Gross Written Premium

    FINANCIAL HIGHLIGHTS 6M 2023 Group General Insurance Gross Written Premium (“GWP”) (RM’mil) +7.6% +4.5% 1,462.1 1,359.3 3,217.2 3,079.7 1,705.3 1,630.2 1,511.9 1,449.5 6M 22 6M 23 Life Insurance +2.0% 1,720.4 1,755.1 1Q 22 2Q 22 1Q 23 2Q 23 6M 22 6M 23 © Copyright Allianz Malaysia Berhad 5

  6. Slide 6: Financial Highlights 6M 2023: PBT and PAT Drivers

    FINANCIAL HIGHLIGHTS 6M 2023 Profit Before Tax drivers (RM’mil) Profit After Tax drivers (RM’mil) +6.4% +12.9% 6M 22 General Life Investment 6M 23 6M 22 General Life Investment 6M 23 Insurance Insurance Holding Insurance Insurance Holding ∆ 6M 23/22 ∆ 6M 23/22 6M 2022 223.7 217.8 (13.5) 428.0 6M 202

  7. Slide 7: Life Business: CSM Growth Good at 2.1%

    LIFE BUSINESS: CSM GROWTH GOOD AT 2.1% Contractual Service Margin (RM’mil) +2.1% CSM (net) 1,986.2 Reinsurance 110.5 Non-attributable cost 269.1 Tax 627.2 CSM (gross) 2,993.0 2,993.0 VNB (6M 23) 147.3 + Non-attr. Cost 50.5 - Scope / other (16.8) = New business @ inception 181.0 Economic and non- eco

  8. Slide 8: Financial Overview

    FINANCIAL OVERVIEW MFRS 4 BASIS MFRS 9/17 BASIS 3 YEAR RM’mil 2020 2021 2022 CAGR 6M 2022 6M 2023 12M 2022 (2019-2022) Gross Written Premiums 5,305.2 5,689.6 6,021.7 6.9% 3,079.7 3,217.2 6,023.0 CSM Release N/A N/A N/A N/A 183.6 191.4 368.6 Expense Ratio (Non 32.9% 31.2% 29.6% 2.3 pts 26.8% 25.6% 26

  9. Slide 9: Summary of Unaudited Financial Results

    SUMMARY OF UNAUDITED FINANCIAL RESULTS RM’mil 6M 2022 6M 2023 23/22 % Insurance revenue 2,145.9 2,326.1 8.4% Claims and benefits (1,040.8) (1,190.4) 14.4% Acquisition and administrative expenses (net) (526.7) (558.4) 6.0% Reversal of losses/(Losses) on onerous contracts 12.4 (9.8) (>100%) Insurance

  10. Slide 10: General Business

    02 GENERAL BUSINESS © Copyright Allianz Malaysia Berhad 10

  11. Slide 11: General Business

    GENERAL BUSINESS Comments Gross written premiums Combined ratio • Gross written premium increased by 7.6% as compared to • Higher combined ratio by 0.2 pts contributed by higher claims prior year. ratio. Profitability Market growth • Higher profit before tax from higher insurance service results • M

  12. Slide 12: General Business: GWP Is 7.6% Higher Than Prior Year

    GENERAL BUSINESS: GWP IS 7.6% HIGHER THAN PRIOR YEAR Gross Written Premium (RM’mil) Distribution Channel & Portfolio Mix +7.6% Telemaketing 2.2% Agent 56.1% 1,462.1 1,359.3 Broker 9.3% Banca 1.5% Franchise 30.9% Fire 776.1 13.7% 741.4 686.0 Marine 617.9 2.2% PA & Health 5.4% Total 1,462.1 Misc 13.3%

  13. Slide 13: General Business: Growth in Investment Income

    GENERAL BUSINESS: GROWTH IN INVESTMENT INCOME Investment Return/ Net (re-)insurance finance expenses Portfolio Mix and Investment Yield (Annualised) (RM’mil) +59.4% Portfolio Mix Investment Yield * 73.0 6.5 4.0 Deposit Unquoted 45.8 7.8% Unit Trust 19.3% 47.8 49.3 42.8 43.2 Total 5,948.2 3.3% 3.4% (

  14. Slide 14: General Business: Higher PBT from Higher Investment Return

    GENERAL BUSINESS: HIGHER PBT FROM HIGHER INVESTMENT RETURN Profit Before Tax (RM’mil) PBT Drivers (RM’mil) +17.9% 263.8 223.7 139.8 130.7 124.0 93.0 6M 22 Insurance Investment Others 6M 23 service return results 6M 2022 207.0 74.4 (57.7) 223.7 6M 2023 221.2 107.6 (65.0) 263.8 1Q 22 2Q 22 1Q 23 2Q 23

  15. Slide 15: General Business: Higher Combined Ratio Due to Higher Claims Ratio

    GENERAL BUSINESS: HIGHER COMBINED RATIO DUE TO HIGHER CLAIMS RATIO Combined Ratio +0.2 pts Discounting impact -2.0% Discounting impact -2.7% 88.4% 86.6% 85.2% 84.2% 85.4% 81.9% 27.7% 26.8% 24.8% 26.4% 25.6% 25.9% 60.7% * 60.2% 59.8% * 56.0% 58.4% 59.4% 1Q 22 2Q 22 6M 22 1Q 23 2Q 23 6M 23 Claims Rati

  16. Slide 16: General Business: Financial Results at a Glance

    GENERAL BUSINESS: FINANCIAL RESULTS AT A GLANCE RM’mil 6M 2022 6M 2023 23/22 % Insurance revenue 1,236.3 1,327.4 7.4% Claims (636.0) (626.6) (1.5%) Acquisition and administrative expenses (net) (308.1) (312.5) 1.4% Reversal of losses/(Losses) on onerous contracts 8.2 (5.5) (>100%) Reinsurance resul

  17. Slide 17: General Business: Performance Compared to Industry (Jan-Jun 2023)

    GENERAL BUSINESS: PERFORMANCE COMPARED TO INDUSTRY (JAN-JUN 2023) AGIC Industry 1 Takaful 1 KPIs 6M 2023 6M 2023 6M 2023 GWP growth 7.7% * 8.0% 20.1% Market Share (6M 2023) 2 13.4% Market Ranking (3M 2023) 3 No. 1 Notes: 1) Source: ISM Market PerformanceReport Jan-Jun 2023 (General Insurance & Gener

  18. Slide 18: Life Business

    03 LIFE BUSINESS © Copyright Allianz Malaysia Berhad 18

  19. Slide 19: Life Business

    LIFE BUSINESS Comments Gross written premiums Profitability • Gross written premiums grew by 2.0% with growth from Agency • Profit before tax of RM195.2 million (6M 2022: RM217.8 million), a and Employee Benefit. reduction due to normalised claims experience from investment- linked protection busine

  20. Slide 20: 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 (%) (6M 2023) +2.0% Mix Single 1,755.1 Premium 1,720.4 19.1% 929.2 888.8 831.6 825.9 Total 1,755.1 Recurring Premium 80.9% 703.7 679.5 Growth 682.3 715.4 4.2% -6.3% 209.3 225.5 149.3 110.

  21. Slide 21: Life Business: Growth in ANP Driven by Bancassurance and Employee Benefit

    LIFE BUSINESS: GROWTH IN ANP DRIVEN BY BANCASSURANCE AND EMPLOYEE BENEFIT Annualised New Premiums (“ANP”) (RM’mil) ANP Channel Mix (%) (6M 2023) +6.0% 321.2 303.0 163.4 Bancassurance/Direct 155.9 157.8 Marketing 147.1 7.4 18.9 7.9 30.3% 13.4 Growth +20.0% 39.8 46.2 51.0 41.2 Total 321.2 Growth +28.8

  22. Slide 22: 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 2023) -2.0% Q1 +1.1% Q2 -4.6% By ANP By Policy Count Traditional 201.2 27.2% Traditional 197.2 15.6% Total Total 19

  23. Slide 23: Life Business: Double Digits Growth of Investment-Linked with Protection Features

    LIFE BUSINESS: DOUBLE DIGITS GROWTH OF INVESTMENT-LINKED WITH PROTECTION FEATURES Annualised New Premiums (RM’mil) Gross Written Premiums (RM’mil) +22.3% +3.6% 191.8 1,020.6 985.0 156.8 494.3 509.8 510.8 100.0 490.7 91.8 83.0 73.8 1Q 22 2Q 22 1Q 23 2Q 23 1Q 22 2Q 22 1Q 23 2Q 23 © Copyright Allianz M

  24. Slide 24: Life Business: Growth in Investment Income

    LIFE BUSINESS: GROWTH IN INVESTMENT INCOME Investment Income by funds Portfolio Mix and Investment Yield (LF+SHF) (%) (RM’mil) Investment Yield Portfolio Mix (>100%) (Annualised) Cash Others Loans 6.7% 0.4% 353.2 0.9% Equities Govt Bonds 70.7 8.3% 56.2% (80.8) 282.5 4.0% 3.8% 60.7 Corp Bonds 27.5% (

  25. Slide 25: Life Business: Financial Results at a Glance

    LIFE BUSINESS: FINANCIAL RESULTS AT A GLANCE RM’mil 6M 2022 6M 2023 23/22 % Insurance revenue 909.6 998.7 9.8% - Release contractual service margin 183.6 191.4 4.2% - Release of expected cash flows, risk adjustments and others 726.0 807.3 11.2% Claims and benefits (400.1) (563.8) 40.9% Acquisition

  26. Slide 26: Thank You for Your Attention

    THANK YOU FOR YOUR ATTENTION © Copyright Allianz Malaysia Berhad

  27. Slide 27: 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 expectations and Union, (xi) changes in the policies of central banks and/or foreign government

Allianz Malaysia Berhad — Q2 2023 Earnings Presentation on 6ix