Allianz Malaysia Bhd. · MYX:ALLIANZ

Allianz Malaysia Bhd — Q1 2022 Earnings Presentation

29 slides from Allianz Malaysia Bhd's earnings presentation, May 23, 2022

  1. Slide 1: Allianz Malaysia Berhad Q1 2022 Financial Results Analyst Briefing

    ALLIANZ MALAYSIA BERHAD (197201000819) Q1 2022 FINANCIAL RESULTS Analyst Briefing 23 May 2022 © 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 2022

    FINANCIAL HIGHLIGHTS 3M 2022 Group General Insurance Life Insurance Investment Holding Operating Revenue (RM’mil) 1,707.7 (+6.3%) 656.9 (+4.0%) 1,047.6 (+7.8%) 3.2 (6.7%) Gross Written Premium (RM’mil) 1,622.5 (+9.5%) 733.7 (11.8%) 888.8 (+7.7%) Shareholders’ net income Combined ratio New business v

  4. Slide 4: Resilient Earnings for 3M 2022

    RESILIENT EARNINGS FOR 3M 2022 Comments Operating revenue Profitability • Group operating revenue of RM1.71 billion, an increase of • Group profit before tax of RM151.8 million, increased by 6.3% compared to corresponding period of RM1.61 billion more than 100% (3M 2021: RM67.4 million) mainly due t

  5. Slide 5: Financial Highlights 3M 2022: Operating Revenue

    FINANCIAL HIGHLIGHTS 3M 2022 Group General Insurance Operating Revenue (RM’mil) +6.3% +4.0% 656.9 631.5 1,707.7 1,606.6 3M 21 3M 22 Life Insurance +7.8% 1,047.6 972.1 3M 21 3M 22 3M 21 3M 22 © Copyright Allianz Malaysia Berhad 5

  6. Slide 6: Financial Highlights 3M 2022: Gross Written Premium

    FINANCIAL HIGHLIGHTS 3M 2022 Group General Insurance Gross Written Premium (“GWP”) (RM’mil) +9.5% +11.8% 733.7 656.4 1,622.5 1,482.0 3M 21 3M 22 Life Insurance +7.7% 888.8 825.6 3M 21 3M 22 3M 21 3M 22 © Copyright Allianz Malaysia Berhad 6

  7. Slide 7: Financial Highlights 3M 2022: Profit Before Tax

    FINANCIAL HIGHLIGHTS 3M 2022 Profit Before Tax (RM’mil) PBT drivers (RM’mil) >100% >100% +41.4%* 151.8 * 1.0 184.8 67.4 130.7 3M 21 General Life Investment 3M 22 Insurance Insurance Holding (34.0) ∆ 3M 22/21 (50.4) 3M 2021 92.6 (20.2) (5.0) 67.4 (12.9) 3M 2022 102.2 67.7 (18.1) 151.8 3M 21 3M 22 Cha

  8. Slide 8: Financial Highlights 3M 2022: Profit After Tax

    FINANCIAL HIGHLIGHTS 3M 2022 Profit After Tax (RM’mil) PAT drivers (RM’mil) +60.0% +60.0% +30.1%* * 101.3 63.3 11.1 124.2 18.2 95.5 3M 21 General Life Investment 3M 22 Insurance Insurance Holding ∆ 3M 22/21 (34.0) (50.4) 3M 2021 69.7 0.0 (6.4) 63.3 3M 2022 68.4 51.7 (18.8) 101.3 3M 21 3M 22 Change (

  9. Slide 9: Life: Higher Core PBT & PAT

    LIFE: HIGHER CORE PBT & PAT PBT Drivers (RM’mil) PAT Drivers (RM’mil) >100% >100% >100%* >100%* 67.7 51.7 16.5 13.9 16.4 42.3 57.6 (7.1) 1.0 0.0 11.1 (20.2) 100.7 18.2 74.6 43.1 32.2 (50.4) (34.0) (34.0) (50.4) (12.9) 3M 21 Profit Growth Fair value Tax Impact 3M 22 3M 21 Profit Growth Fair value Tax

  10. Slide 10: Financial Overview

    FINANCIAL OVERVIEW 3 YEAR RM’mil 2019 2020 2021 CAGR 3M 2021 3M 2022 (2018-2021) Gross Written Premiums 4,922.5 5,305.2 5,689.6 8.1% 1,482.0 1,622.5 Management Expenses 618.0 641.4 683.8 7.2% 164.7 167.9 Expense Ratio (Non Life) 20.2% 19.8% 18.7% 0.5 pts 18.4% 18.1% Expense Ratio (Life)1 10.5% 9.4%

  11. Slide 11: Summary of Unaudited Financial Results

    SUMMARY OF UNAUDITED FINANCIAL RESULTS RM’mil 3M 2021 3M 2022 22/21 % Operating Revenue 1,606.6 1,707.7 6.3% Gross Earned Premium 1,411.4 1,499.2 6.2% Premiums ceded to reinsurers (100.8) (100.4) 0.4% Net earned premiums (“NEP”) 1,310.6 1,398.8 6.7% Net change in benefits and claims paid (“Claim”)

  12. Slide 12: General Business

    02 GENERAL BUSINESS © Copyright Allianz Malaysia Berhad 12

  13. Slide 13: General Business

    GENERAL BUSINESS Comments Gross written premiums Combined ratio • Gross written premium increased by 11.8% as compared to • Lower combined ratio by 1.6 pts mainly from lower claims and prior year. expense ratio. Profitability Market growth • Higher profit before tax from higher underwriting profit i

  14. Slide 14: General Business: GWP Is 11.8% Higher Than Prior Year

    GENERAL BUSINESS: GWP IS 11.8% HIGHER THAN PRIOR YEAR Gross Written Premium (RM’mil) Distribution Channel & Portfolio Mix +11.8% Telemaketing 2.0% Agent 60.5% 733.7 656.4 Broker 6.4% Banca 1.5% Franchise 29.6% Fire 15.2% Marine 2.7% PA & Health 10.2% Motor 58.1% 3M 21 3M 22 Misc 13.8% © Copyright Al

  15. Slide 15: General Business: Stable Investment Income

    GENERAL BUSINESS: STABLE INVESTMENT INCOME Net Investment Results/ Net Operating Expenses (RM’mil) Portfolio Mix and Investment Yield (Annualised) -1.8% Portfolio Mix Investment Yield * 44.2 43.4 Deposit Unquoted 5.8% Unit Trust 20.1% 44.6 43.5 3.4% Corp 3.1% Bond 26.0% Govt Bond 48.1% (0.4) (0.1) 3

  16. Slide 16: General Business: Higher Profit Before Tax from Higher Underwriting Results

    GENERAL BUSINESS: HIGHER PROFIT BEFORE TAX FROM HIGHER UNDERWRITING RESULTS Profit Before Tax (RM’mil) PBT Drivers (RM’mil) +10.4% 102.2 92.6 3M 21 UW result Investment Others 3M 22 3M 2021 48.4 44.6 (0.4) 92.6 3M 2022 58.8 43.5 (0.1) 102.2 3M 21 3M 22 Change 10.4 (1.1) 0.3 9.6 © Copyright Allianz M

  17. Slide 17: General Business: Lower Combined Ratio Due to Lower Claims and Expense Ratio

    GENERAL BUSINESS: LOWER COMBINED RATIO DUE TO LOWER CLAIMS AND EXPENSE RATIO Combined Ratio +1.6 pts 90.5% 88.9% 18.4% 18.1% 59.7% 57.6% 12.4% 13.2% 3M 21 3M 22 Commission Ratio Claims Ratio Expense Ratio * Combined ratio is calculated at company level © Copyright Allianz Malaysia Berhad 17

  18. Slide 18: General Business: Unaudited Financial Results at a Glance

    GENERAL BUSINESS: UNAUDITED FINANCIAL RESULTS AT A GLANCE RM’mil 3M 2021 3M 2022 22/21 % Gross written premiums 656.4 733.7 11.8% Gross earned premiums 585.8 610.4 4.2% Net earned premiums 522.5 542.2 3.8% Net change in claims incurred (312.2) (312.5) (0.1%) Management expenses (97.2) (99.2) (2.1%)

  19. Slide 19: General Business: Performance Compared to Industry (Jan-Mar 2022)

    GENERAL BUSINESS: PERFORMANCE COMPARED TO INDUSTRY (JAN-MAR 2022) KPIs AGIC Industry 1 Takaful 1 3M 2022 3M 2022 3M 2022 GWP growth 11.8% 6.5% 13.6% Commission ratio 13.2% 11.3% 10.8% Claims ratio • Overall 57.6% 51.9% 58.5% • Motor 54.9% 61.2% 73.3% Expense ratio 18.1% 24.7% 37.4% Combined ratio 88

  20. Slide 20: Life Business

    03 LIFE BUSINESS © Copyright Allianz Malaysia Berhad 20

  21. Slide 21: Life Business

    LIFE BUSINESS Comments Gross written premiums Product mix • Gross written premiums grew by 7.7% from all key • Remain focus on sales of investment-linked products with distribution channels. protection rider which provide higher margins but to also cater for demand for saving products. Market Growth

  22. Slide 22: Life Business: Y-O-Y Growth Driven by Single Premium and Recurring Premium

    LIFE BUSINESS: Y-O-Y GROWTH DRIVEN BY SINGLE PREMIUM AND RECURRING PREMIUM Gross Written Premiums (“GWP”) (RM’mil) GWP Mix & Growth (%) (3M 2022) +7.7% Mix Single Premium 888.8 22.2% 825.6 Recurring Premium 77.8% 689.7 642.1 Growth 8.5% 183.5 199.1 7.4% 3M 21 3M 22 Recurring Premium Single Premium S

  23. Slide 23: Life Business: Lower Contribution from Agency Channel

    LIFE BUSINESS: LOWER CONTRIBUTION FROM AGENCY CHANNEL Annualised New Premiums (“ANP”) (RM’mil) ANP Channel Mix (%) (3M 2022) -14.1% Alternative 171.3 Distribution/ Bancassurance 12.1 28.0% 0.0 147.1 32.6 13.4 0.0 41.2 Agency 62.9% 126.6 Corporate 9.1% 92.5 3M 21 3M 22 Agency Bancassurance Direct Mar

  24. Slide 24: Life Business (Agency): Slower Sales from Agency

    LIFE BUSINESS (AGENCY): SLOWER SALES FROM AGENCY Agency Annualised New Premiums (RM’mil) Agency Product Mix (%) (3M 2022) -26.9% By ANP By Policy Count 126.6 Traditional 41.4% Traditional 38.6% 92.5 Investment 92.2 Investment Linked 78.2 Linked 61.4% 94.8 58.6% 54.2 65.2 Agency ANP Growth (%) (3M 20

  25. Slide 25: Life Business: Lower Investment-Linked New Business

    LIFE BUSINESS: LOWER INVESTMENT-LINKED NEW BUSINESS Annualised New Premiums (RM’mil) Gross Written Premiums (RM’mil) -7.1% +14.1% 490.7 79.5 73.8 429.9 3M 21 3M 22 3M 21 3M 22 © Copyright Allianz Malaysia Berhad 25

  26. Slide 26: Life Business: Higher Net Investment Results from Lower Fair Value Losses

    LIFE BUSINESS: HIGHER NET INVESTMENT RESULTS FROM LOWER FAIR VALUE LOSSES Investment Results by funds Investment Results Portfolio Mix and Investment Yield (LF+SHF) (%) (Annualised) (RM’mil) (RM’mil) Portfolio Mix Investment Yield (>100%) (>100%) Others Cash Loans 0.6% 5.8% 34.6 1.0% Equities Govt B

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

    LIFE BUSINESS: UNAUDITED FINANCIAL RESULTS AT A GLANCE RM’mil 3M 2021 3M 2022 22/21 % Gross written premiums 825.6 888.8 7.7% Premiums ceded to reinsurers (37.5) (32.1) 14.4% Net earned premiums 788.1 856.7 8.7% Net change in benefits and claims paid (260.3) (345.6) (32.8%) Net change in contract l

  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 2022 Earnings Presentation on 6ix