Allianz Malaysia Bhd. · MYX:ALLIANZ

Allianz Malaysia Bhd — Shareholder Meeting (June 2020)

33 slides from Allianz Malaysia Bhd's shareholder meeting presentation, Jun 30, 2020

  1. Slide 1: Allianz Malaysia Berhad 46th Annual General Meeting

    ALLIANZ MALAYSIA BERHAD (12428-W) 46TH ANNUAL GENERAL MEETING TUESDAY, 30 JUNE 2020 © Copyright Allianz SE

  2. Slide 2: Poll Administrator and Scrutineers

    POLL ADMINISTRATOR AND SCRUTINEERS Poll Administrator Independent Scrutineer Tricor Investor & Issuing Mega Corporate Services House Services Sdn Bhd Sdn Bhd © Copyright Allianz SE 30-Jun-20 2

  3. Slide 3: Item 1 of the Agenda: Audited Financial Statements

    ITEM 1 OF THE AGENDA To receive the Audited Financial FOR Statements for the financial year INFORMATION ended 31 December 2019 and the Directors’ and Auditors’ Reports thereon © Copyright Allianz SE 30-Jun-20 3

  4. Slide 4: Group Performance

    GROUP PERFORMANCE 01 © Copyright Allianz SE 30-Jun-20 4

  5. Slide 5: Malaysia Insurance Market Is Under Penetrated But Growth Remains Subdued

    MALAYSIA INSURANCE MARKET IS UNDER PENETRATED BUT GROWTH REMAINS SUBDUED AND CHALLENGING Malaysian Conventional Insurance Industry 21 38,918 1.3% 2 -0.8% 4.3% General insurers General agents Insurance penetration GWP GROWTH 2019 GDP GROWTH 2019 (% of GDP) (2018 +4.7%) (2018 +1.5%) +14.8% -2.0% - 14

  6. Slide 6: Delivered a Strong Performance with a Record Set of Financial Results

    DELIVERED A STRONG PERFORMANCE WITH A RECORD SET OF FINANCIAL RESULTS FY 2019 RM 5.5 bil RM 4.9 bil RM 692.1 mil + 6.8% (2018 + 7.9%) + 9.3% (2018 + 5.1%) +33.4% (2018 + 18.7%) Operating revenue Gross Written Profit before tax Premium ALIM RM340.7 mil +66.7% AGIC RM362.4 mil +13.0% AMB RM(11.0) mil

  7. Slide 7: Diversification in Two Strong Pillars of Businesses

    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 +4.4% +9.3% 4,923 Allianz Life maintained 4,505 top 5 position in ANP, with 3,968 4,133 4,183 4,285 Allianz L

  8. Slide 8: Delivered a Profitable Growth from Diversified Business Portfolio

    DELIVERED A PROFITABLE GROWTH FROM DIVERSIFIED BUSINESS PORTFOLIO Managing the impact and challenges from de-tariffication and liberalisation Profit before Tax (RM’ mil) Maintain strong discipline in pricing & 5-yr CAGR prudent expense management +10.3% +33.4% Deliver healthy and 692 sustainable mar

  9. Slide 9: Record PBT Driven by Strong Growth in Core Profit and Fair Value Impact

    RECORD PBT DRIVEN BY A STRONG GROWTH IN CORE PROFIT AND FAIR VALUE IMPACT Core profit excluding fair value gain and non- Profit before Tax (RM’ mil) recurring adjustments (RM’ mil) +58.4 692.1 +14.2% +40.7 11.7 +64.2 -5.0 46.7 593.0 519.0 +14.8 519.0 268.6 Allianz Life 204.4 31.4% y-o-y growth Allia

  10. Slide 10: Delivering Our Promise to Shareholders to Strengthen Dividend Returns

    DELIVERING OUR PROMISE TO SHAREHOLDERS TO STRENGTHEN DIVIDEND RETURNS 2017 2018 2019 Dividend Yield 0.9% 3.1% 4.4% Achieved a record high dividend payout ratio of 50.2% and dividend yield1 of 4.4% Payout Ratio 15.9% 40.3% 50.2% Dividend Per Share (RM sen) Dividend policy of minimum payment ratio of

  11. Slide 11: General Business

    GENERAL BUSINESS 02 © Copyright Allianz SE 30-Jun-20 11

  12. Slide 12: Allianz General: Maintaining Market Leadership

    ALLIANZ GENERAL: MAINTAINING MARKET LEADERSHIP KPIs ALLIANZ ALLIANZ Industry1 Takaful2 GENERAL GENERAL 12M 2019 12M 2019 12M 2019 12M 2018 GWP growth 3.6% -0.7% -0.8% 18.8% Commission ratio 11.7% 12.3% 10.0% 9.4% Claims ratio  Overall 59.1% 62.1% 58.1% 58.1%  Motor 63.6% 67.3% 70.1% 72.7% Expense

  13. Slide 13: Outperform Industry Amidst Subdued Growth Environment

    OUTPERFORM INDUSTRY AMIDST SUBDUED GROWTH ENVIRONMENT Gross Written Premium (RM’ mil) Distribution Channel & Portfolio Mix 2019 GI Industry Growth -0.8% Tele- marketing 2.7% +3.6% Agent 57.5% CIMB -143 Motor CIMB -143 Broker 62.6% 13.3% Banca 1.6% Franchise 2,134 2,181 2,083 2,136 2,121 2,198 24.9%

  14. Slide 14: General Business: Higher Underwriting Profit & Investment Income

    GENERAL BUSINESS: HIGHER UNDERWRITING PROFIT & INVESTMENT INCOME Profit Before Tax (RM’ mil) PBT Drivers (RM’ mil) +13.0% +12.3 +0.7 +28.8 362.4 320.6 362.4 PBT UW Investment Others PBT 320.6 12M 2018 result income 12M 2019 12M 2018 137.8 182.6 0.2 320.6 12M 2019 166.6 194.9 0.9 362.4 2018 2019 Chan

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

    GENERAL BUSINESS: LOWER COMBINED RATIO DUE TO LOWER CLAIMS RATIO Combined Ratio 1.8 pts  Commission Ratio  Claims Ratio 90.6% 92.9% 93.8% 93.6% 92.8% 91.3% 90.3% 96.4% 86.0% 91.0%  Expense Ratio 18.7% 18.4% 16.7% 17.9% 20.0% 18.4% 20.5% 17.2% 20.2% 24.5% Net Combine Ratio excluding one-off impact

  16. Slide 16: Transformation of General Business

    TRANSFORMATION OF GENERAL BUSINESS Push For Profitable Underwriting & Claims Organisational Digital Portfolio Transformation Transformation Leadership 1 Shift to NM 5 Claims 7 Increase  E2E digital 10 2 Introduce new management corporate ecosystem to products 6 Underwriting & productivity serv

  17. Slide 17: Digital Partners at a Glance

    DIGITAL PARTNERS AT A GLANCE Growth via Digital Partnerships How It Works/ Partnership Benefits Digital Channel GWP grew by more than 2.5x from Participate in an open digital ecosystem through RM3.6mn in 2018 to RM 9.4mn in 2019 win-win digital partnerships e-Commerce Financial Home  Customised Sol

  18. Slide 18: Life Business

    LIFE BUSINESS 03 © Copyright Allianz SE 30-Jun-20 18

  19. Slide 19: Allianz Life: Outperformed the Market

    ALLIANZ LIFE: OUTPERFORMED THE MARKET Annualised New Premiums 12M 2019 Growth 12M 2018 Growth 5-year CAGR (2014 – 2019) Distribution Channel ALLIANZ Industry Market Market ALLIANZ Industry ALLIANZ Industry LIFE (% growth) share rank LIFE (% growth) LIFE (% growth) (% growth) (% growth) (% growth) Ag

  20. Slide 20: Life Business: Growth in Both Single Premium and Recurring Premium

    LIFE BUSINESS: GROWTH IN BOTH SINGLE PREMIUM AND RECURRING PREMIUM Gross Written Premiums (“GWP”) (RM’ mil) GWP Mix & Growth (%) (12M 2019) Mix Single Premium 18.0% +14.3% 2,725.0 2,383.5 Recurring 2,235.6 Premium 1,963.3 82.0% Growth 420.2 489.4 16.5% 13.9% 2018 2019 Single Premium Recurring Premiu

  21. Slide 21: Life Business: Growth in ANP Driven by Agency, Bancassurance and Employee Benefits

    LIFE BUSINESS: GROWTH IN ANP DRIVEN BY AGENCY, BANCASSURANCE AND EMPLOYEE BENEFITS CHANNELS Annualised New Premiums (“ANP”) (RM’ mil) ANP Channel Mix (%) (12M 2019) +16.0% Alternative Corporate 594.8 4.1% 24.5 Distribution/ 0.3 Bancassurance 512.8 20.7 116.0 19.6% 1.8 85.8 454.0 Agency 404.5 76.3% 2

  22. Slide 22: Life Business (Agency): Focus on Profitable Regular Investment-Linked Products

    LIFE BUSINESS (AGENCY): CONTINUE TO FOCUS ON PROFITABLE REGULAR INVESTMENT-LINKED PRODUCTS WITH CONTRIBUTION FROM TRADITIONAL BUSINESS Agency Annualised New Premiums (RM’mil) Agency Product Mix (%) (12M 2019) By ANP Traditional By Policy Count +12.2% 26.9% Traditional 454.0 13.0% 404.5 121.9 107.7 I

  23. Slide 23: Life Business Delivered Profitable Growth

    LIFE BUSINESS DELIVERED PROFITABLE GROWTH Profit Before Tax (RM’ mil) +26% 67% • Focus on healthy and sustainable margins supported by disciplined pricing methodologies and sound risk 72 Fair value gain and non-recurring management 32% • Focus on writing more investment- linked protection products 2

  24. Slide 24: Operation Transformation Objectives

    OPERATION TRANSFORMATION OBJECTIVES Change Customer and Distributor Experience and drive end-to-end Automation : “True Straight Through Processing (STP)” Transformation success based on its three pillars: Key Principles: • Instant Issuance of Policy in 5 minutes ( needs analysis, quotation and e-sub

  25. Slide 25: Item 2 (a): Directors' Fees

    FOR ITEM 2 (a) OF THE AGENDA To approve the payment of Directors’ fees of RM2,036,194 to ORDINARY Non-Executive Directors of the RESOLUTION 1 Company and its insurance subsidiaries for the financial year ended 31 December 2019 © Copyright Allianz SE 30-Jun-20 25

  26. Slide 26: Item 2 (b): Directors' Benefits

    ITEM 2 (b) OF THE AGENDA To approve the payment of Directors’ benefits of up to an amount of RM1,140,860 to Non- ORDINARY Executive Directors of the RESOLUTION 2 Company and its insurance subsidiaries from 1 July 2020 until the next Annual General Meeting of the Company © Copyright Allianz SE 30-Jun

  27. Slide 27: Item 3: Re-election of Director

    ITEM 3 OF THE AGENDA ORDINARY RESOLUTION 3 To re-elect Y. A.M Tunku Zain Al-’Abidin Ibni Tuanku Muhriz, who retires by rotation in accordance with Clause 19.1 of the Constitution of the Company © Copyright Allianz SE 30-Jun-20 27

  28. Slide 28: Item 4 (a): Re-election of Claudia Salem

    ITEM 4 (a) OF THE AGENDA ORDINARY RESOLUTION 4 To re-elect Madam Claudia Salem, who was appointed to the Board during the year and retires in accordance with Clause 19.7 of the Constitution of the Company © Copyright Allianz SE 30-Jun-20 28

  29. Slide 29: Item 4 (b): Re-election of Peter Ho Kok Wai

    ITEM 4 (b) OF THE AGENDA ORDINARY RESOLUTION 5 To re-elect Mr. Peter Ho Kok Wai, who was appointed to the Board during the year and retires in accordance with Clause 19.7 of the Constitution of the Company © Copyright Allianz SE 30-Jun-20 29

  30. Slide 30: Item 5: Re-appointment of Auditors

    ITEM 5 OF THE AGENDA To re-appoint Messrs. PricewaterhouseCoopers PLT as ORDINARY Auditors of the Company for the RESOLUTION 6 financial year ending 31 December 2020 and to authorise the Directors to fix their remuneration © Copyright Allianz SE 30-Jun-20 30

  31. Slide 31: Item 6: Related Party Transactions Mandate with Allianz SE Group

    ITEM 6 OF THE AGENDA Proposed Shareholders’ ORDINARY Mandate for Recurrent Related RESOLUTION 7 Party Transactions with Allianz SE Group © Copyright Allianz SE 30-Jun-20 31

  32. Slide 32: Item 7: Related Party Transactions Mandate with Rapidpro Consulting

    ITEM 7 OF THE AGENDA Proposed Shareholders’ ORDINARY Mandate for Recurrent Related RESOLUTION 8 Party Transactions with Rapidpro Consulting Sdn Bhd © Copyright Allianz SE 30-Jun-20 32

  33. Slide 33: Meeting Ended

    ALLIANZ MALAYSIA BERHAD (12428-W) 46TH ANNUAL GENERAL MEETING TUESDAY, 30 JUNE 2020 MEETING ENDED © Copyright Allianz SE

Allianz Malaysia Berhad — Shareholder Meeting (June 2020) on 6ix