Allianz Malaysia Bhd. · MYX:ALLIANZ

Allianz Malaysia Bhd — Q3 2024 Earnings Presentation

29 slides from Allianz Malaysia Bhd's earnings presentation, Nov 25, 2024

  1. Slide 1: Allianz Malaysia Berhad Q3 2024 Financial Results Analyst Briefing

    ALLIANZ MALAYSIA BERHAD (197201000819) Q3 2024 FINANCIAL RESULTS MFRS 9/17 Analyst Briefing 25 November 2024 © 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 9M 2024

    FINANCIAL HIGHLIGHTS 9M 2024 Group General Insurance Life Insurance Investment Holding Investment Holding Gross Written Premium (RM’mil) 5,514.5 (+11.5%) 2,570.2 (+14.2%) 2,944.3 (+9.2%) Insurance Revenue (RM’mil) 4,148.5 (+14.2%) 2,361.6 (+16.1%) 1,786.9 (+11.8%) Profit Before Tax (RM’mil) 720.9 (+

  4. Slide 4: Strong Performance with Robust Top Line Growth and Resilient Earnings

    STRONG PERFORMANCE WITH ROBUST TOP LINE GROWTH AND RESILIENT EARNINGS Comments Insurance revenue Profitability • Group insurance revenue of RM4.15 billion, an increase of 14.2% • Group profit before tax of RM720.9 million, increased by 0.5% (9M from RM3.63 billion in 2023 due to strong insurance rev

  5. Slide 5: Financial Highlights 9M 2024: Gross Written Premium

    FINANCIAL HIGHLIGHTS 9M 2024 Group General Insurance Gross Written Premium (“GWP”) (RM’mil) +14.2% +11.5% 2,570.2 2,251.1 5,514.5 6,546.5 6,023.0 4,947.9 1,904.3 1,908.7 1,705.3 1,730.7 1,701.5 1,511.9 9M 23 9M 24 Life Insurance +9.2% 2,944.3 2,696.8 1Q 23 2Q 23 3Q 23 1Q 24 2Q 24 3Q 24 9M 23 9M 24 ©

  6. Slide 6: Financial Highlights 9M 2024: Insurance Revenue

    FINANCIAL HIGHLIGHTS 9M 2024 Group General Insurance Insurance Revenue (RM’mil) +16.1% +14.2% 2,361.6 2,034.3 4,148.5 4,941.6 4,418.8 3,632.1 1,440.5 1,371.1 1,306.0 1,336.9 1,161.4 1,164.7 9M 23 9M 24 Life Insurance +11.8% 1,786.9 1,597.8 1Q 23 2Q 23 3Q 23 1Q 24 2Q 24 3Q 24 9M 23 9M 24 © Copyright

  7. Slide 7: Financial Highlights 9M 2024: PBT and PAT Drivers

    FINANCIAL HIGHLIGHTS 9M 2024 Profit Before Tax drivers (RM’mil) Profit After Tax drivers (RM’mil) +0.5% +0.5% 9M 23 General Life Investment 9M 24 9M 23 General Life Investment 9M 24 Insurance Insurance Holding Insurance Insurance Holding ∆ 9M 24/23 ∆ 9M 24/23 9M 2023 405.0 320.0 (7.5) 717.5 9M 2023

  8. Slide 8: Life Business: CSM Growth Good at 7.9%

    LIFE BUSINESS: CSM GROWTH GOOD AT 7.9% Contractual Service Margin (RM’mil) +7.9% 1 CSM (net) 2,283.1 Reinsurance 155.6 Non-attributable cost 344.2 Tax 721.0 3,503.9 CSM (gross) 3,503.9 VNB (9M 24) 272.6 + Non-attr. Cost 103.1 - Scope / other (1.7) = New business @ inception 374.0 Economic and non- e

  9. Slide 9: Financial Overview

    FINANCIAL OVERVIEW RM’mil 2022 2023 24/23 % 9M 2023 9M 2024 Gross Written Premiums 6,023.0 6,546.5 8.7% 4,947.9 5,514.5 CSM Release 368.6 433.1 17.5% 321.4 358.7 Expense Ratio (Non Life)1 26.6% 26.3% (0.3 pts) 26.3% 24.4% Expense Ratio (Life)2 9.8% 12.1% 2.3 pts 11.2% 10.8% Local Consolidated PBT 8

  10. Slide 10: Summary of Unaudited Financial Results

    SUMMARY OF UNAUDITED FINANCIAL RESULTS RM’mil 9M 2023 9M 2024 24/23 % Insurance revenue 3,632.1 4,148.5 14.2% Claims and benefits (1,899.2) (2,412.4) 27.0% Acquisition and administrative expenses (net) (920.0) (998.8) 8.6% Reversal of losses/(Losses) on onerous contracts 26.0 (2.5) (>100%) Insuranc

  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 • Continued growth momentum in the third quarter with gross • Higher combined ratio of 3.0 pts mainly contributed by higher written premium increased by 14.2% as compared to prior claims from Fire and Engineering partially offset by low

  13. Slide 13: General Business: Good Sales Momentum with Double Digit GWP Growth

    GENERAL BUSINESS: GOOD SALES MOMENTUM WITH DOUBLE DIGIT GWP GROWTH Gross Written Premium (RM’mil) Distribution Channel & Portfolio Mix +14.2% Telemaketing 1.8% 2,570.2 Agent 56.0% 2,251.1 Broker 10.4% Banca 2.0% Franchise 29.8% Fire 884.6 885.2 12.5% 776.1 789.0 800.4 Marine 686.0 2.0% PA & Health 5

  14. Slide 14: General Business: Growth in Investment Income

    GENERAL BUSINESS: GROWTH IN INVESTMENT INCOME IN LINE WITH HIGHER YIELD AND GROWTH IN INVESTMENT ASSETS Net investment income/ Net (re-)insurance finance expenses Portfolio Mix and Investment Yield (Annualised) (RM’mil) +8.7% Portfolio Mix Investment Yield * 130.7 120.2 38.2 38.9 53.6 Deposit Unquot

  15. Slide 15: General Business: Lower PBT Due to Lower Insurance Service Results

    GENERAL BUSINESS: LOWER PBT DUE TO LOWER INSURANCE SERVICE RESULTS Profit Before Tax (RM’mil) PBT Drivers (RM’mil) -4.2% 405.0 388.1 139.8 141.2 139.6 132.3 124.0 116.2 9M 23 Insurance Net Others 9M 24 service investment results income 9M 2023 332.4 162.1 (89.5) 405.0 9M 2024 298.4 183.8 (94.1) 388.

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

    GENERAL BUSINESS: HIGHER COMBINED RATIO DUE TO HIGHER CLAIMS RATIO Combined Ratio +3.0 pts Discounting impact -2.7% Discounting impact -2.5% 90.1% 89.3% 88.7% 84.2% 86.6% 86.2% 85.7% 87.0% 24.1% 24.9% 24.6% 24.4% 24.8% 26.4% 27.4% 26.3% * * 62.9% 65.2% 64.7% 64.3% * 59.4% 60.2% 58.8% 59.4% 1Q 23 2Q

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

    GENERAL BUSINESS: FINANCIAL RESULTS AT A GLANCE RM’mil 9M 2023 9M 2024 24/23 % Insurance revenue 2,034.3 2,361.6 16.1% Claims (1,010.0) (1,411.7) 39.8% Acquisition and administrative expenses (net) (492.7) (544.8) 10.6% Reversal of losses/(Losses) on onerous contracts 31.1 (3.4) (>100%) Net expense

  18. Slide 18: General Business: Performance Compared to Industry (Jan-Sep 2024)

    GENERAL BUSINESS: PERFORMANCE COMPARED TO INDUSTRY (JAN-SEP 2024) AGIC 1 Industry 1 Takaful 1 KPIs 9M 2024 9M 2024 9M 2024 GWP growth 14.3% 7.2% 10.7% Market Share (9M 2024) 2 14.6% Market Ranking (6M 2024) 3 No. 1 Notes: 1) Source: ISM Market PerformanceReport Jan-Sep 2024 (General Insurance & Gene

  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 9.2% with growth from • Remain focused on sales of investment-linked products with Bancassurance (+ 29.4%) and Employee Benefit (+ 15.9%). protection rider which provides higher margins but to also cater for d

  21. Slide 21: Life Business: Strong Growth Driven by First Year Premium and In-Force Premium

    LIFE BUSINESS: STRONG GROWTH DRIVEN BY FIRST YEAR PREMIUM AND IN-FORCE PREMIUM Gross Written Premiums (“GWP”) (RM’mil) GWP Mix & Growth (%) (9M 2024) +9.2% Mix Single 2,944.3 Premium 3,543.0 16.3% 2,696.8 3,366.7 1,019.7 1,023.5 929.2 941.7 Total 901.1 2,944.3 825.9 Recurring Premium 83.7% 761.5 703

  22. Slide 22: Life Business: Higher PBT Due to Higher CSM Release and Net Investment Results

    LIFE BUSINESS: HIGHER PBT DUE TO HIGHER CSM RELEASE AND HIGHER NET INVESTMENT RESULTS Profit Before Tax (RM’mil) PBT Drivers (RM’mil) +6.8% 341.7 320.0 124.8 * 122.3 112.3 107.1 96.5 98.7 9M 23 Insurance Net investment 9M 24 service income results ^ and others 9M 2023 306.9 13.1 320.0 9M 2024 293.5

  23. Slide 23: Life Business: Growth in ANP Driven by Bancassurance and Employee Benefits

    LIFE BUSINESS: GROWTH IN ANP DRIVEN BY BANCASSURANCE AND EMPLOYEE BENEFITS Annualised New Premiums (“ANP”) (RM’mil) ANP Channel Mix (%) (9M 2024) +16.4% 643.0 552.8 231.6 234.8 8.0 20.6 211.1 Bancassurance/Direct 9.6 197.1 Marketing 50.8 36.1% 10.2 163.4 157.8 91.6 74.7 Growth +57.2% 18.9 7.9 66.2 T

  24. Slide 24: 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) Total: Agency Product Mix (%) (9M 2024) Q1 +31.1% +0.1% Q2 +22.3% Traditional By ANP By Policy Count 524.8 Q3 -30.2% 20.7% 370.1 Traditional 3

  25. Slide 25: Life Business: Investment-Linked with Protection Features Continues to Grow

    LIFE BUSINESS: INVESTMENT-LINKED WITH PROTECTION FEATURES CONTINUES TO GROW Annualised New Premiums (RM’mil) Gross Written Premiums (RM’mil) +65.5% +17.4% 1,831.7 459.9 1,560.1 277.9 615.6 622.5 174.8 593.6 153.8 539.5 509.8 510.8 131.3 100.0 91.8 86.1 1Q 23 2Q 23 3Q 23 1Q 24 2Q 24 3Q 24 1Q 23 2Q 23

  26. Slide 26: Life Business: Higher Investment Income Driven by Fair Value and Realised Gains

    LIFE BUSINESS: HIGHER INVESTMENT INCOME DRIVEN BY FAIR VALUE AND REALISED GAINS FROM FAVOURABLE MARKET CONDITION Investment Income by funds Portfolio Mix and Investment Yield (LF) (%) (RM’mil) Investment Yield Portfolio Mix +75.9% (Annualised) Cash Others 6.6% 0.5% 1,060.3 Equities Govt Bonds 8.2% 5

  27. Slide 27: Life Business: Financial Results at a Glance

    LIFE BUSINESS: FINANCIAL RESULTS AT A GLANCE RM’mil 9M 2023 9M 2024 24/23 % Insurance revenue 1,597.8 1,786.9 11.8% - Release contractual service margin 321.4 358.7 11.6% - Release of expected cash flows, risk adjustments and others 1,276.4 1,428.2 11.9% Claims and benefits (888.8) (1,000.3) 12.5%

  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 — Q3 2024 Earnings Presentation on 6ix