Allianz Malaysia Bhd. · MYX:ALLIANZ

Allianz Malaysia Bhd — Q1 2021 Earnings Presentation

29 slides from Allianz Malaysia Bhd's earnings presentation, May 20, 2021

  1. Slide 1: Allianz Malaysia Berhad Q1 2021 Financial Results Analyst Briefing

    ALLIANZ MALAYSIA BERHAD (197201000819) Q1 2021 FINANCIAL RESULTS Analyst Briefing 20 May 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 3M 2021

    FINANCIAL HIGHLIGHTS 3M 2021 Group General Insurance Life Insurance Investment Holding Operating Revenue (RM’mil) 1,606.6 (+8.2%) 631.5 (+4.4%) 972.1 (+10.9%) 3.0 (-9.1%) Gross Written Premium (RM’mil) 1,482.0 (+8.8%) 656.4 (+7.0%) 825.6 (+10.3%) Shareholders’ net income Combined ratio New business

  4. Slide 4: Strong Revenue Growth for 1Q 2021 from Diversification in Two Pillars

    STRONG REVENUE GROWTH FOR 1Q 2021 FROM DIVERSIFICATION IN TWO STRONG PILLARS OF BUSINESSES Comments Operating revenue Profitability • Group operating revenue of RM1.61 billion, an increase of • Group profit before tax of RM67.4 million, decreased by 8.2% compared to corresponding period of RM1.48 bi

  5. Slide 5: Financial Highlights 3M 2021: Operating Revenue

    FINANCIAL HIGHLIGHTS 3M 2021 Group General Insurance Operating Revenue (RM’mil) +8.2% +4.4% 604.6 631.5 1,606.6 1,484.7 3M 20 3M 21 Life Insurance +10.9% 972.1 876.8 3M 20 3M 21 3M 20 3M 21 © Copyright Allianz Malaysia Berhad 5

  6. Slide 6: Financial Highlights 3M 2021: Gross Written Premium

    FINANCIAL HIGHLIGHTS 3M 2021 Group General Insurance Gross Written Premium (“GWP”) (RM’mil) +8.8% +7.0% 656.4 613.6 1,482.0 1,362.1 3M 20 3M 21 Life Insurance +10.3% 825.6 748.5 3M 20 3M 21 3M 20 3M 21 © Copyright Allianz Malaysia Berhad 6

  7. Slide 7: Financial Highlights 3M 2021: Profit Before Tax

    FINANCIAL HIGHLIGHTS 3M 2021 Profit Before Tax (RM’mil) PBT drivers (RM’mil) -26.7% -26.7% +12.4%* 67.4 91.9 * 130.7 116.2 (5.5) 3M 20 General Life Investment 3M 21 (18.9) Insurance Insurance Holding (50.4) ∆ 12M 21/20 (12.9) 3M 2020 74.5 23.5 (6.1) 91.9 3M 20 3M 21 3M 2021 92.6 (20.2) (5.0) 67.4 Ch

  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 (>100%) -10.0%* Dec 20 2.6% Dec 19 3.3% 23.5 (20.2) Mar 21 3.3% Mar 20 3.5% (4.8) ∆ 21/20 0.7 pts ∆ 20/19 0.2 pts 47.9 43.1 6.0 (5.5) Bursa Malaysia KLCI Index (44.9) (18.9) Dec 20 1,627 Dec 19 1,588 (50.4)

  9. Slide 9: Financial Overview

    FINANCIAL OVERVIEW 3 YEAR RM’mil 2018 2019 2020 CAGR 3M 2020 3M 2021 (2017-2020) Gross Written Premiums 4,504.8 4,922.5 5,305.2 7.4% 1,362.1 1,482.0 Management Expenses 554.9 618.0 641.4 2.0% 167.1 164.7 Expense Ratio (Non Life) 18.4% 20.2% 19.8% 0.5 pts 19.9% 18.4% Expense Ratio (Life)1 10.0% 10.5%

  10. Slide 10: Summary of Unaudited Financial Results

    SUMMARY OF UNAUDITED FINANCIAL RESULTS RM’mil 3M 2020 3M 2021 21/20 % Operating Revenue 1,484.7 1,606.6 8.2% Gross Earned Premium 1,306.1 1,411.4 8.1% Premiums ceded to reinsurers (78.4) (100.8) (28.6%) Net earned premiums (“NEP”) 1,227.7 1,310.6 6.8% Net change in benefits and claims paid (“Claim”

  11. Slide 11: General Business

    02 GENERAL BUSINESS © Copyright Allianz Malaysia Berhad 11

  12. Slide 12: General Business

    GENERAL BUSINESS Comments Gross written premiums Combined ratio • Gross written premium increased by 7.0% as compared to • Lower combined ratio by 4.3 pts mainly from lower motor prior year mainly driven by motor and fire business. claims ratio as traffic was lower during lockdown period. Profitabil

  13. Slide 13: General Business: GWP Is 7.0% Higher Than Prior Year

    GENERAL BUSINESS: GWP IS 7.0% HIGHER THAN PRIOR YEAR Gross Written Premium (RM’mil) Distribution Channel & Portfolio Mix +7.0% Telemaketing 2.2% Agent 57.6% 656.4 613.6 Broker 6.3% Banca 2.2% Franchise 31.7% Fire 17.6% Marine 2.6% PA & Health 4.7% Misc Motor 12.8% 62.3% 3M 20 3M 21 © Copyright Allia

  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) -8.3% Portfolio Mix Investment Yield * Deposit Unquoted 48.2 6.9% Unit Trust 44.2 23.9% 4.00% 49.3 Corp 3.40% 44.6 Bond 22.0% Govt (0.4) Bond (1

  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) +24.3% 92.6 74.5 3M 20 UW result Investment Others 3M 21 3M 2020 26.3 49.3 (1.1) 74.5 3M 2021 48.4 44.6 (0.4) 92.6 3M 20 3M 21 Change 22.1 (4.7) 0.7 18.1 © Copyright Allianz Mal

  16. Slide 16: General Business: Lower Combined Ratio Due to Lower Claims Ratio

    GENERAL BUSINESS: LOWER COMBINED RATIO DUE TO LOWER CLAIMS RATIO Combined Ratio +4.3 pts 94.8% 90.5%* 19.9% 18.4% 62.3% 59.7% 12.6% 12.4% 3M 20 3M 21 Commission Ratio Claims Ratio Expense Ratio * Combined ratio is calculated at company level © Copyright Allianz Malaysia Berhad 16

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

    GENERAL BUSINESS: UNAUDITED FINANCIAL RESULTS AT A GLANCE RM’mil 3M 2020 3M 2021 21/20 % Gross written premiums 613.6 656.4 7.0% Gross earned premiums 557.6 585.8 5.1% Net earned premiums 500.5 522.5 4.4% Net change in claims incurred (311.8) (312.2) (0.1%) Management expenses (99.4) (97.2) 2.2% Ne

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

    GENERAL BUSINESS: PERFORMANCE COMPARED TO INDUSTRY (JAN-MAR 2021) KPIs AGIC Industry 1 Takaful 2 3M 2021 3M 2021 3M 2021 GWP growth 7.0% 3.9% 16.5% Commission ratio 12.4% 10.3% 9.9% Claims ratio • Overall 59.7% 53.9% 57.2% • Motor 58.8% 58.8% 65.6% Expense ratio 18.4% 23.9% 35.4% Combined ratio 90.5

  19. Slide 19: Life Business

    03 LIFE BUSINESS © Copyright Allianz Malaysia Berhad 19

  20. Slide 20: Life Business

    LIFE BUSINESS Comments Gross written premiums Product mix • Gross written premiums grew by 10.3%. • 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. • ALIM ANP increased by 39.1%, ou

  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 (%) (3M 2021) +10.3% Mix Single Premium 825.6 22.2% 748.5 Recurring Premium 642.1 77.8% 568.9 Growth 179.6 183.5 12.9% 3M 20 3M 21 Single Premium Recurring Premium 2.2% Recurri

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

    LIFE BUSINESS: GROWTH IN ANP DRIVEN BY AGENCY AND EMPLOYEE BENEFITS CHANNELS Annualized New Premiums (“ANP”) (RM’mil) ANP Channel Mix (%) (3M 2021) +39.7% Alternative 171.3 Distribution/ Bancassurance 12.1 19.0% 0.0 32.6 122.6 Corporate 10.3 0.0 7.1% 36.0 126.6 Agency 76.3 73.9% 3M 20 3M 21 Agency B

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

    LIFE BUSINESS (AGENCY): STRONG MOMENTUM IN FIRST QUARTER 2021 Agency Annualized New Premiums (RM’mil) Agency Product Mix (%) (3M 2021) +65.9% By ANP By Policy Count Traditional Traditional 126.6 38.2% 25.4% 92.2 76.3 78.2 Investment Investment 94.8 Linked Linked 61.8% 74.6% 56.3 65.2 Agency ANP Grow

  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) +40.2% +12.5% 79.5 429.9 382.3 56.7 3M 20 3M 21 3M 20 3M 21 © Copyright Allianz Malaysia Berhad 24

  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 +49.5% +49.5% Others Cash 1.3% Loans 9.1% Govt Bonds (

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

    LIFE BUSINESS: UNAUDITED FINANCIAL RESULTS AT A GLANCE RM’mil 3M 2020 3M 2021 21/20 % Gross written premiums 748.5 825.6 10.3% Premiums ceded to reinsurers (21.3) (37.5) (76.1%) Net earned premiums 727.2 788.1 8.4% Net change in benefits and claims paid (305.4) (260.3) 14.8% Net change in contract

  27. Slide 27: Allianz Life: ANP Growth Driven by Agency and Employee Benefits Channels

    ALLIANZ LIFE: ANP GROWTH IN ANP DRIVEN BY AGENCY AND EMPLOYEE BENEFITS CHANNELS Market growth analysis (3M 2021) Annualised New Business 3M 2021 Growth 12M 2020 Growth 5-year CAGR (2015 – 2020) ALIM Industry Market Market ALIM Industry Distribution Channel ALIM Industry (% Growth) (% Growth) Share R

  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-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 — Q1 2021 Earnings Presentation on 6ix