Allianz Malaysia Bhd. · MYX:ALLIANZ
Allianz Malaysia Bhd — Q3 2018 Earnings Presentation
26 slides from Allianz Malaysia Bhd's earnings presentation, Nov 23, 2018
Slide 1: Allianz Malaysia Berhad Financial Results 3Q 2018 Analyst Briefing
Allianz Malaysia Berhad (12428-W) Financial Results 3Q 2018 Analyst Briefing 23 November 2018
Slide 2: AMB Group Results
1 AMB Group Results 2
Slide 3: Profitable growth from diversification
Allianz Malaysia Berhad (12428-W) Profitable growth from diversification Operating revenue Group operating revenue of RM3.88 billion, an increase of 8.0% as compared to corresponding period of RM3.59 billion due to higher gross earned premiums and investment income by RM229.8 million and RM58.9 mi
Slide 4: Financial Highlights 9M 2018: Group Operating Revenue
Allianz Malaysia Berhad (12428-W) Financial Highlights 9M 2018 Group Operating Revenue (RM’mil) General Business (RM’mil) +8.0% +3.9% 1,699.7 1,765.6 9M 2017 9M 2018 3,879.8 3,591.1 Life Business (RM’mil) +11.9% 1,880.8 2,104.0 9M 2017 9M 2018 9M 2017 9M 2018 4
Slide 5: Financial Highlights 9M 2018: Group Gross Written Premiums
Allianz Malaysia Berhad (12428-W) Financial Highlights 9M 2018 Group Gross Written Premiums (“GWP”) (RM’mil) General Business (RM’mil) +5.2% -0.2% 1,636.5 1,632.8 9M 2017 9M 2018 3,407.3 3,238.6 Life Business (RM’mil) +10.8% 1,774.5 1,602.1 9M 2017 9M 2018 9M 2017 9M 2018 5
Slide 6: Financial Highlights 9M 2018: Group Profit Before Tax
Allianz Malaysia Berhad (12428-W) Financial Highlights 9M 2018 Group Profit Before Tax (RM’mil) PBT Drivers (RM’mil) +25.8% +40.7 391.1 +43.1 310.9 -3.6 391.1 310.9 PBT General Life Investment PBT 9M 2017 Business Business Holdings 9M 2018 9M 2017 199.5 113.4 (2.0) 310.9 9M 2018 242.6 154.1 (5.6) 39
Slide 7: Financial Overview
Allianz Malaysia Berhad (12428-W) Financial Overview 3 YEAR RM’mil 2015 2016 2017 9M 2017 9M 2018 CAGR Gross Written Premiums 4,132.7 4,182.6 4,285.4 2.6% 3,238.6 3,407.3 Management Expenses 464.8 513.2 603.8 11.5% 437.3 413.2 Expense Ratio (Non 19.9% 17.8% 16.9% 17.4% 20.3% (3.0) pts Life) Expense
Slide 8: Summary of unaudited Financial Results
Allianz Malaysia Berhad (12428-W) Summary of unaudited Financial Results RM’mil 9M 2017 9M 2018 18/17 % Operating revenue 3,591.1 3,879.8 8.0% Gross earned premiums 3,175.7 3,405.5 7.2% Premiums ceded to reinsurers (237.6) (277.3) (16.7%) Net earned premiums (“NEP”) 2,938.1 3,128.2 6.5% Net change
Slide 9: General Business
Allianz @i) General Business
Slide 10: General Business
Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business Gross written premiums Gross written premium declined by 0.2% as compared to prior year. Profitability Higher profit before tax due to higher underwriting profit. ✔ Net investment results Stable growth in investmen
Slide 11: General Business: GWP is marginally below prior year
Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business: GWP is marginally below prior year Gross Written Premiums (RM’mil) -0.2% Distribution Channel & Portfolio Mix Telemarketing 1,636.5 2.8% 1,632.8 Agent 38.8 36.7 61.0% Motor 34.4 62.9% Broker 12.2% 585.7 Banca 522.2 514.
Slide 12: 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) +9.7% Portfolio Mix and Investment Yield (Annualized) Portfolio Mix Investment Yield 135.1 123.2 Deposit Property 2.2 12.4% 0.4%
Slide 13: General Business: Higher PBT due to higher underwriting profit
Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business: Higher PBT due to higher underwriting profit Profit Before Tax (RM’mil) 21.6% PBT Drivers (RM’mil) 242.6 242.6 199.5 31.2 199.5 7.4 4.5 88.4 73.5 75.4 77.0 77.2 50.6 PBT UW Investment Others PBT 9M 2017 result income 9M
Slide 14: General Business: Lower combined ratio due to lower expense ratio
Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business: Lower combined ratio due to lower expense ratio Combined Ratio 1.9 pts 92.6% 92.0% 98.6% 94.4% 92.9% 93.8% 92.5% 90.6% 1.4% 1.5% 1.7% 1.5% 18.8% 18.8% 18.4% 16.7% 17.9% 18.7% 17.8% 17.6% 65.6% 62.0% 61.1% 62.9% 63.4% 62
Slide 15: General Business: Unaudited financial results at a glance
Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business: Unaudited financial results at a glance RM’mil 9M 2017 9M 2018 18/17 % Gross written premiums 1,636.5 1,632.8 (0.2%) Gross earned premiums 1,573.6 1,631.0 3.6% Net earned premiums 1,368.7 1,427.3 4.3% Net change in cla
Slide 16: General Business: Performance compared to Industry (Jan-Sept 2018)
Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business: Performance compared to Industry (Jan-Sept 2018) AGIC AGIC (excl. CIMB) Industry 1 Takaful 2 KPIs 9M 2018 9M 2018 9M 2018 9M 2018 GWP growth -0.2% 7.3% 1.5% 8.4% Commission ratio 12.2% 10.0% 4.4% Claims ratio • Overall
Slide 17: Life Business
Allianz General Insurance Company (Malaysia) Berhad (735426-V) 3 Life Business 17
Slide 18: Life Business
Allianz Life Insurance Malaysia Berhad (104248-X) Life Business Gross written premiums Gross written premiums grew by 10.8%. Distribution Strong performance from Agency channels. Agency ANP achieved 19.5% growth. Remain focus on building professional and productive agency force. Product mix
Slide 19: Life Business: Growth in both Single Premium and Recurring Premium
Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: Growth in both Single Premium and Recurring Premium Gross Written Premiums (“GWP”) (RM’mil) +10.8% 1,774.5 GWP Mix & Growth (%) (9M 2018) 1,602.1 608.2 594.3 Mix Single 555.0 572.0 Premium 529.5 517.6 20.2% 479.2 485.6 428.5 451.7 438.
Slide 20: Life Business: Growth in ANP driven by Agency and Employee Benefits channels
Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: Growth in ANP driven by Agency and Employee Benefits channels Annualised New Premiums (“ANP”) (RM’mil) ANP Channel Mix (%) +16.2% (9M 2018) 377.5 Alternative Corporate 140.3 Distribution/ 4.9% 324.8 5.8 Bancassurance 1.6 128.8 18.0% 5.
Slide 21: 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 plus higher sales from traditional business Agency Annualised New Premiums (RM’mil) +19.5% Agency Product Mix (%) (9M 2018) 290.9 By ANP Traditional 243.4 111.6 9
Slide 22: 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) +4.5% +16.3% 896.6 203.8 195.1 771.0 301.0 302.8 70.3 292.8 67.3 68.3 65.3 65.2 266.9 62.5 248.0 256.1 1Q 2Q 3Q
Slide 23: Life Business: Lower net investment results due to fair value losses
Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: Lower net investment results due to fair value losses Investment Results by Investment Results funds (RM’mil) (RM’mil) -61.5% -61.5% Portfolio Mix and Investment Yield (LF+SHF) 519.2 519.2 (%) (Annualized) Investment Yield 129.8 Loans
Slide 24: Life Business: Unaudited financial results at a glance
Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: Unaudited financial results at a glance RM’mil 9M 2017 9M 2018 18/17 % Gross written premiums 1,602.1 1,774.5 10.8% Premiums ceded to reinsurers (32.7) (73.6) (>100.0%) Net earned premiums 1,569.4 1,700.9 8.4% Net change in benefits a
Slide 25: Life Business: Outperformance against market led by Agency channel
Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: Outperformance against market led by Agency channel Market growth analysis (Jan to Sept 2018) Annualised New Business 5-year CAGR 9M 2018 Growth 12M 2017 Growth (2012-2017) ALIM Industry Market Market ALIM Industry Distribution Channel
Slide 26: Thank You for Your Attention
Thank You for Your Attention Allianz @)
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