Allianz Malaysia Bhd. · MYX:ALLIANZ

Allianz Malaysia Bhd — Q3 2020 Earnings Presentation

29 slides from Allianz Malaysia Bhd's earnings presentation, Nov 27, 2020

  1. Slide 1: Allianz Malaysia Berhad Financial Results 3Q 2020 Analyst Briefing

    ALLIANZ MALAYSIA BERHAD (197201000819) FINANCIAL RESULTS 3Q 2020 ANALYST BRIEFING 27 NOVEMBER 2020

  2. Slide 2: AMB Group Results

    1 AMB Group Results 2

  3. Slide 3: Restoring Revenue Growth and Resilient Earnings from Diversification

    Allianz Malaysia Berhad (197201000819) Restoring Revenue Growth and Resilient Earnings from Diversification in Two Strong Pillars of Businesses Operating revenue  Group operating revenue of RM4.42 billion, an increase of 7.0% compared to corresponding period of RM4.13 billion due to higher gross ea

  4. Slide 4: Financial Highlights 9M 2020: Operating Revenue

    Allianz Malaysia Berhad (197201000819) Financial Highlights 9M 2020 Operating Revenue (RM’mil) General Business (RM’mil) +7.0% +6.2% 4,419.6 4,128.9 1,727.5 1,834.2 9M 2019 9M 2020 Life Business (RM’mil) 1,484.8 1,530.8 1,418.6 1,404.0 1,344.3 1,366.0 +7.8% 2,390.3 2,576.4 1Q 2Q 3Q 1Q 2Q 3Q 2019 202

  5. Slide 5: Financial Highlights 9M 2020: Gross Written Premiums

    Allianz Malaysia Berhad (197201000819) Financial Highlights 9M 2020 Gross Written Premiums (“GWP”) (RM’mil) General Business (RM’mil) +8.7% +9.2% 3,994.0 3,675.3 1,433.7 1,362.1 1,289.5 1,206.2 1,645.4 1,797.3 1,179.6 1,198.2 772.1 748.5 712.8 657.9 659.2 676.1 9M 2019 9M 2020 Life Business (RM’mil)

  6. Slide 6: Financial Highlights 9M 2020: Profit Before Tax and Drivers

    Allianz Malaysia Berhad (197201000819) Financial Highlights 9M 2020 Profit Before Tax (RM’mil) +7.7% PBT Drivers (RM’mil) 542.8 248.7 +58.9 -14.0 -6.1 542.8 21.3 504.0 504.0 20.8 202.2 10.0 177.8 175.0 16.2 151.2 17.7 2.8 14.9 10.4 8.8 12.8 91.9 206.6 176.0 161.8 145.2 PBT General Life Investment PB

  7. Slide 7: Life Business: Marginally lower PBT but core profit remains strong

    Allianz Malaysia Berhad (197201000819) Life Business: Marginally lower PBT driven by volatile financial market but core profit remains strong Profit Before Tax Drivers (RM’mil) 268.1 +9.4 -23.4 254.1 (3.5) 29.3 (19.9) +4.7% 25.8 38.1 18.2 Fair Value 210.1 Tax Impact 200.7 Core Profit PBT 9M Profit F

  8. Slide 8: Group: Earnings remain resilient despite challenging environment

    Allianz Malaysia Berhad (197201000819) Group: Despite the challenging operating environment, Group’s earnings remain resilient Profit Before Tax Drivers (RM’mil) +58.9 +9.4 -6.1 -23.4 542.8 504.0 (3.5) (19.9) 25.8 +14.2% 18.2 29.3 38.1 498.8 436.6 PBT 9M Profit Profit Profit Fair Value PBT 9M 2019 G

  9. Slide 9: Financial Overview

    Allianz Malaysia Berhad (197201000819) Financial Overview 3 YEAR RM’mil 2017 2018 2019 CAGR 9M 2019 9M 2020 (2016-2019) Gross Written Premiums 4,285.4 4,504.8 4,922.5 5.6% 3,675.3 3,994.0 Management Expenses 603.8 554.9 618.0 6.4% 425.6 469.3 Expense Ratio (Non Life) 20.3% 18.4% 20.2% 5.1 pts 18.6%

  10. Slide 10: Summary of Unaudited Financial Results

    Allianz Malaysia Berhad (197201000819) Summary of Unaudited Financial Results RM’mil 9M 2019 9M 2020 20/19 % Operating revenue 4,128.9 4,419.6 7.0% Gross earned premiums 3,617.3 3,890.3 7.5% Premiums ceded to reinsurers (259.2) (257.4) 0.7% Net earned premiums (“NEP”) 3,358.1 3,632.9 8.2% Net chang

  11. Slide 11: General Business

    2 General Business 11

  12. Slide 12: General Business

    Allianz General Insurance Company (Malaysia) Berhad (200601015674) General Business Gross written premiums  Gross written premium increased by 9.2% as compared to prior year. Profitability  Higher profit before tax due to higher underwriting profit. ✔ Net investment results  Stable growth in inve

  13. Slide 13: General Business: GWP is 9.2% higher than prior year

    Allianz General Insurance Company (Malaysia) Berhad (200601015674) General Business: GWP is 9.2% higher than prior year Gross Written Premiums (RM’mil) +9.2% Distribution Channel & Portfolio Mix Telemarketing 1,797.3 2.5% 1,645.4 Agent 57.7% Broker 9.0% Motor 65.6% Banca 1.7% 661.6 576.7 613.6 548.3

  14. Slide 14: General Business: Stable growth in investment income

    Allianz General Insurance Company (Malaysia) Berhad (200601015674) General Business: Stable growth in investment income Net Investment Results/Net Operating Expenses (RM’mil) +4.0% Portfolio Mix and Investment Yield (Annualised) Portfolio Mix 141.9 147.5 Investment Yield 0.1 Unquoted 0.2 unit trust

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

    Allianz General Insurance Company (Malaysia) Berhad (200601015674) General Business: Higher profit before tax due to higher underwriting profit Profit Before Tax (RM’mil) PBT Drivers (RM’mil) +24.3% 53.5 6.4 -1.0 301.6 301.6 242.7 242.7 119.4 107.7 85.7 91.5 74.5 PBT UW Net Others PBT 65.5 9M 2019 r

  16. Slide 16: General Business: Lower combined ratio due to lower claims ratio

    Allianz General Insurance Company (Malaysia) Berhad (200601015674) General Business: Lower combined ratio due to lower claims ratio Combined Ratio +2.9 pts 96.4% 94.8% 91.3% 90.3% 92.6% 88.9% 89.7% 85.4% 18.3% 19.9% 20.4% 17.2% 18.6% 19.9% 19.1% 17.6% 61.1% 65.3%* 61.7% 62.3% 58.7% 54.5% 56.3% 57.7%

  17. Slide 17: General Business: Unaudited financial results at a glance

    Allianz General Insurance Company (Malaysia) Berhad (200601015674) General Business: Unaudited financial results at a glance RM’mil 9M 2019 9M 2020 20/19 % Gross written premiums 1,645.4 1,797.3 9.2% Gross earned premiums 1,587.4 1,693.6 6.7% Net earned premiums 1,386.6 1507.7 8.7% Net change in cl

  18. Slide 18: General Business: Performance compared to Industry (Jan-Sep 2020)

    Allianz General Insurance Company (Malaysia) Berhad (200601015674) General Business: Performance compared to Industry (Jan-Sep 2020) AGIC Industry 1 Takaful 2 KPIs 9M 2020 9M 2020 9M 2020 GWP growth 9.2% -0.9% 3.6% Commission ratio 12.9% 9.9% 8.5% Claims ratio • Overall 57.7% 54.4% 57.0% • Motor 59.

  19. Slide 19: Life Business

    Allianz General Insurance Company (Malaysia) Berhad (200601015674) 3 Life Business 19

  20. Slide 20: Life Business

    Allianz Life Insurance Malaysia Berhad (198301008983) Life Business Gross written premiums  Gross written premiums grew by 8.2%. Market position  ALIM ANP declined by 11.9% while industry growth declined by 7.0%.  Market share 9M 2020 stood at 7.9% (9M 2019: 8.4%). Distribution  Employee Benefit

  21. Slide 21: Life Business: Y-o-Y growth in both Single Premium and Recurring Premium

    Allianz Life Insurance Malaysia Berhad (198301008983) Life Business: Y-o-Y growth in both Single Premium and Recurring Premium Gross Written Premiums (“GWP”) (RM’mil) +8.2% GWP Mix & Growth (%) (9M 2020) 2,196.7 2,029.9 Mix Single 772.1 Premium 748.5 712.8 20.0% 657.9 659.2 676.1 568.9 619.5 498.0 5

  22. Slide 22: Life Business: ANP growth affected by COVID-19 and MCOs

    Allianz Life Insurance Malaysia Berhad (198301008983) Life Business: ANP growth affected by COVID-19 and MCOs Annualised New Premiums (“ANP”) (RM’mil) ANP Channel Mix (%) -12.9% (9M 2020) 418.1 364.1 Corporate 167.8 6.7% 7.1 Alternative 0.2 150.7 Distribution/ 27.5 6.8 Bancassurance 132.8 0.1 22.7%

  23. Slide 23: Life Business (Agency): Strong recovery in Q3 as MCOs partially lifted

    Allianz Life Insurance Malaysia Berhad (198301008983) Life Business (Agency): Strong recovery in Q3 as MCOs was partially lifted Agency Annualised New Premiums (RM’mil) -16.5% Agency Product Mix (%) (9M 2020) 307.7 By ANP Traditional 256.9 32.6% 133.0 By Policy Count 109.7 Traditional 93.4 Investmen

  24. Slide 24: Life Business: Protection Business (Investment-Linked) GWP continues to grow

    Allianz Life Insurance Malaysia Berhad (198301008983) Life Business: Protection Business (Investment-Linked) GWP continues to grow, while ANP takes a breather Annualised New Premiums (RM’mil) Gross Written Premiums (RM’mil) -27.5% +11.1% 239.9 1,050.2 1,167.1 174.0 94.8 79.0 73.6 377.9 382.3 379.9 4

  25. Slide 25: Life Business: Lower net investment results while fair value losses reduced

    Allianz Life Insurance Malaysia Berhad (198301008983) Life Business: Lower net investment results while fair value losses reduced Investment Results by Investment Results funds (RM’mil) (RM’mil) -52.8% -52.8% Portfolio Mix and Investment Yield (LF+SHF) (%) (Annualized) 706.5 706.5 Portfolio Mix Inve

  26. Slide 26: Life Business: Unaudited financial results at a glance

    Allianz Life Insurance Malaysia Berhad (198301008983) Life Business: Unaudited financial results at a glance RM’mil 9M 2019 9M 2020 20/19 % Gross written premiums 2,029.9 2,196.7 8.2% Premiums ceded to reinsurers (58.4) (71.5) (22.4%) Net earned premiums 1,971.5 2,125.2 7.8% Net change in benefits

  27. Slide 27: ANP growth affected by COVID-19 and MCOs

    Allianz Life Insurance Malaysia Berhad (198301008983) ANP growth affected by COVID-19 and MCOs Market growth analysis (9M 2020) Annualised New Business 5-year CAGR 9M 2020 Growth 12M 2019 Growth (2014-2019) ALIM Industry Market Market ALIM Industry Distribution Channel ALIM Industry (% Growth) (% Gr

  28. Slide 28: Thank You for Your Attention

    Thank You for Your Attention Allianz @)

  29. Slide 29: 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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