Allianz Malaysia Bhd. · MYX:ALLIANZ

Allianz Malaysia Bhd — Q3 2022 Earnings Presentation

29 slides from Allianz Malaysia Bhd's earnings presentation, Nov 24, 2022

  1. Slide 1: Allianz Malaysia Berhad Q3 2022 Financial Results Analyst Briefing

    ALLIANZ MALAYSIA BERHAD (197201000819) Q3 2022 FINANCIAL RESULTS Analyst Briefing 24 November 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 9M 2022

    FINANCIAL HIGHLIGHTS 9M 2022 Group General Insurance Life Insurance Investment Holding Operating Revenue (RM’mil) 5,069.1 (+6.5%) 2,041.4 (+4.8%) 3,018.2 (+7.7%) 9.5 (+4.4%) Gross Written Premium (RM’mil) 4,555.4 (+9.4%) 2,007.5 (+12.3%) 2,547.9 (+7.2%) Shareholders’ net income Combined ratio New bu

  4. Slide 4: Resilient Earnings Amid Volatile Market

    RESILIENT EARNINGS AMID VOLATILE MARKET Comments Operating revenue Profitability • Group operating revenue of RM5.07 billion, an increase of • Group profit before tax of RM436.9 million, increased by 6.5% compared to corresponding period of RM4.76 billion 1.0% (9M 2021: RM432.6 million) mainly due t

  5. Slide 5: Financial Highlights 9M 2022: Operating Revenue

    FINANCIAL HIGHLIGHTS 9M 2022 Group General Insurance Operating Revenue (RM’mil) +6.5% +4.8% 2,041.4 1,948.6 5,069.1 4,759.8 1,707.7 1,706.9 1,654.5 1,606.6 9M 21 9M 22 1,568.7 1,584.5 Life Insurance +7.7% 2,802.1 3,018.2 1Q 21 2Q 21 3Q 21 1Q 22 2Q 22 3Q 22 9M 21 9M 22 © Copyright Allianz Malaysia Be

  6. Slide 6: Financial Highlights 9M 2022: Gross Written Premium

    FINANCIAL HIGHLIGHTS 9M 2022 Group General Insurance Gross Written Premium (“GWP”) (RM’mil) +9.4% +12.3% 2,007.5 4,555.4 1,787.1 4,164.1 1,622.5 1,482.0 1,487.9 1,445.0 1,384.4 9M 21 9M 22 1,297.7 Life Insurance +7.2% 2,547.9 2,377.0 1Q 21 2Q 21 3Q 21 1Q 22 2Q 22 3Q 22 9M 21 9M 22 © Copyright Allian

  7. Slide 7: Financial Highlights 9M 2022: Profit Before Tax

    FINANCIAL HIGHLIGHTS 9M 2022 Profit Before Tax (RM’mil) PBT drivers (RM’mil) +1.0% +1.0% +11.1%* * 436.9 432.6 0.8 529.7 476.7 9M 21 General Life Investment 9M 22 Insurance Insurance Holding ∆ 9M 22/21 (44.9) (76.6) 9M 2021 322.7 132.4 (22.5) 432.6 (16.2) 9M 2022 331.6 142.4 (37.1) 436.9 9M 21 9M 22

  8. Slide 8: Financial Highlights 9M 2022: Profit After Tax

    FINANCIAL HIGHLIGHTS 9M 2022 Profit After Tax (RM’mil) PAT drivers (RM’mil) -5.3% -5.3% +1.5%* * 323.8 306.5 16.8 25.8 351.9 357.3 9M 21 General Life Investment 9M 22 Insurance Insurance Holding ∆ 9M 22/21 (44.9) 9M 2021 242.1 106.9 (25.2) 323.8 (76.6) 9M 2022 220.9 123.3 (37.7) 306.5 9M 21 9M 22 Ch

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

    LIFE: HIGHER CORE PBT AND PAT PBT Drivers (RM’mil) PAT Drivers (RM’mil) +7.6% +15.4% +33.3%* +29.1%* 142.4 123.3 132.4 58.7 106.8 25.8 0.8 39.2 9.0 16.8 235.2 176.5 174.1 (31.7) 134.9 (17.0) (31.7) (44.9) (76.6) (44.9) (76.6) (16.2) 9M 21 Profit Growth Fair value Tax Impact 9M 22 9M 21 Profit Growth

  10. Slide 10: Financial Overview

    FINANCIAL OVERVIEW 3 YEAR RM’mil 2019 2020 2021 CAGR 9M 2021 9M 2022 (2018-2021) Gross Written Premiums 4,922.5 5,305.2 5,689.6 8.1% 4,164.1 4,555.4 Management Expenses 618.0 641.4 683.8 7.2% 492.9 497.0 Expense Ratio (Non Life) 20.2% 19.8% 18.7% 0.5 pts 18.3% 16.3% Expense Ratio (Life)1 10.5% 9.4%

  11. Slide 11: Summary of Unaudited Financial Results

    SUMMARY OF UNAUDITED FINANCIAL RESULTS RM’mil 9M 2021 9M 2022 22/21 % Operating Revenue 4,759.8 5,069.1 6.5% Gross Earned Premium 4,189.3 4,445.9 6.1% Premiums ceded to reinsurers (300.6) (266.3) 11.4% Net earned premiums (“NEP”) 3,888.7 4,179.6 7.5% 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 12.3% as compared to • Lower combined ratio by 0.6 pts driven by lower claims ratio prior year. excluding impact of VSC adjustment (see Note 11 page 28 of Q2 2022 Quarter Announcement for details). P

  14. Slide 14: General Business: GWP Is 12.3% Higher Than Prior Year

    GENERAL BUSINESS: GWP IS 12.3% HIGHER THAN PRIOR YEAR Gross Written Premium (RM’mil) Distribution Channel & Portfolio Mix +12.3% Telemaketing 2.1% Agent 57.8% 2,007.5 1,787.1 Broker 9.0% Banca 1.7% Franchise 29.4% Fire 733.7 13.5% 656.4 660.4 Marine 597.5 613.4 533.2 3.0% PA & Health 8.2% Misc Motor

  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) +0.3% Portfolio Mix Investment Yield * 134.6 Deposit Unquoted 134.2 8.2% Unit Trust 19.8% 50.7 3.3% 3.3% 44.6 44.9 46.4 43.5 42.1 Corp Bond 27.0% Govt Bo

  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) +2.8% 331.6 322.7 115.0 115.1 116.7 112.7 102.2 92.6 9M 21 UW result Investment Others 9M 22 9M 2021 188.5 135.9 (1.7) 322.7 9M 2022 209.4 123.8 (1.6) 331.6 1Q 21 2Q 21 3Q 21 1

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

    GENERAL BUSINESS: BETTER COMBINED RATIO DUE TO LOWER EXPENSE RATIO Combined Ratio +0.6 pts 90.5% 88.2% 88.9% 89.0% 87.2% 86.8% 84.9% 87.6%* 18.4% 18.3% 18.1% 11.5% 19.2% 16.3% 17.5% 19.1% 59.7% 58.1% 55.4% 57.8% 57.6% 61.5% 56.8% 58.6% 12.4% 11.6% 12.3% 12.1% 13.2% 11.9% 13.0% 12.7% 1Q 21 2Q 21 3Q 2

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

    GENERAL BUSINESS: UNAUDITED FINANCIAL RESULTS AT A GLANCE RM’mil 9M 2021 9M 2022 22/21 % Gross written premiums 1,787.1 2,007.5 12.3% Gross earned premiums 1,812.3 1,898.0 4.7% Net earned premiums 1,613.1 1,710.9 6.1% Net change in claims incurred (931.9) (1,003.4) (7.7%) Management expenses (297.9

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

    GENERAL BUSINESS: PERFORMANCE COMPARED TO INDUSTRY (JAN-SEP 2022) KPIs AGIC Industry 1 Takaful 1 9M 2022 9M 2022 9M 2022 GWP growth 12.3% 10.8% 20.6% Commission ratio 12.7% 10.9% 9.6% Claims ratio • Overall 58.6% 54.0% 62.4% • Motor 58.1% 64.2% 76.6% Expense ratio 16.3% 24.0% 32.3% Combined ratio 87

  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 7.2% from all key • Remain focused on sales of investment-linked products with distribution channels. protection rider which provides higher margins but to also cater for demand for saving products. Market Gro

  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 (%) (9M 2022) +7.2% Mix Single Premium 17.6% 2,547.9 2,377.0 888.8 825.6 831.6 827.5 764.5 786.9 Recurring Premium 82.4% Growth 689.7 642.1 701.2 708.4 652.5 677.2 10.7

  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 (%) (9M 2022) -3.4% 482.7 Alternative 466.5 Distribution/ 171.3 Bancassurance 159.4 155.9 163.5 28.5% 12.1 152.0 7.7 0.0 7.0 147.1 7.4 6.2 0.1 0.0 Growth +15.7% 0.1 0.1 32.6 13.4 32.6 0.0 5

  24. Slide 24: Life Business (Agency): Agency Sales Lower but Gain Market Share

    LIFE BUSINESS (AGENCY): AGENCY SALES LOWER BUT GAIN MARKET SHARE Agency Annualised New Premiums (RM’mil) Agency Product Mix (%) (9M 2022) -10.9% Q1 -26.9% Q2 -3.9% By ANP By Policy Count Q3 +1.1% Traditional 342.4 34.9% Traditional 305.0 126.6 38.6% 113.1 108.7 Investment 102.7 103.8 92.2 Linked 92.

  25. Slide 25: 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) +3.6% +9.9% 256.2 1,484.3 1,351.0 247.4 499.3 99.4 490.7 494.3 95.7 83.0 477.5 79.5 72.2 73.8 443.6 429.9 1Q 21 2Q 21 3Q 21 1Q 22 2Q 22 3Q 22 1Q 21 2Q 21 3Q 21 1Q

  26. Slide 26: Life Business: Investment Results Impacted by Fair Value Losses as Interest Rate Goes Up

    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) (%) (Annualised) (RM’mil) (RM’mil) Portfolio Mix Investment Yield (>100.0%) (>100.0%) Cash Others Loans 5.7% 0.4% 1.0% 9

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

    LIFE BUSINESS: UNAUDITED FINANCIAL RESULTS AT A GLANCE RM’mil 9M 2021 9M 2022 22/21 % Gross written premiums 2,377.0 2,547.9 7.2% Premiums ceded to reinsurers (101.4) (79.2) 21.9% Net earned premiums 2,275.6 2,468.7 8.5% Net change in benefits and claims paid (885.4) (1,195.1) (35.0%) Net change in

  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 2022 Earnings Presentation on 6ix