Allianz Malaysia Bhd. · MYX:ALLIANZ

Allianz Malaysia Bhd — FY2020 Earnings Presentation

29 slides from Allianz Malaysia Bhd's earnings presentation, Feb 25, 2021

  1. Slide 1: Allianz Malaysia Berhad Q4 2020 Financial Results Analyst Briefing

    ALLIANZ MALAYSIA BERHAD (197201000819) Q4 2020 FINANCIAL RESULTS Analyst Briefing 25 February 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 12M 2020

    FINANCIAL HIGHLIGHTS 12M 2020 Group General Insurance Life Insurance Investment Holding Operating Revenue (RM’mil) 5,945.7 (+7.4%) 2,471.6 (+6.9%) 3,462.2 (+7.9%) 11.9 (-16.8%) Gross Written Premium (RM’mil) 5,305.2 (+7.8%) 2,356.1 (+7.2%) 2,949.1 (+8.2%) Shareholders’ net income Combined ratio New

  4. Slide 4: Revenue growth and resilient earnings from diversification in two strong pillars

    REVENUE GROWTH AND RESILIENT EARNINGS FROM DIVERSIFICATION IN TWO STRONG PILLARS OF BUSINESSES Comments Operating revenue Profitability • Group operating revenue of RM5.95 billion, an increase of • Group profit before tax of RM729.6 million increased by 7.4% compared to corresponding period of RM5.5

  5. Slide 5: Financial Highlights 12M 2020: Operating Revenue

    FINANCIAL HIGHLIGHTS 12M 2020 Group General Insurance Operating Revenue (RM’mil) +7.4% +6.9% 2,471.6 2,312.7 5,945.7 5,534.4 1,530.8 1,526.1 1,484.8 1,418.6 1,405.5 1,404.0 1,344.3 1,366.0 12M 19 12M 20 Life Insurance +7.9% 3,462.2 3,207.4 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 12M 19 12M 2

  6. Slide 6: Financial Highlights 12M 2020: Gross Written Premium

    FINANCIAL HIGHLIGHTS 12M 2020 Group General Insurance Gross Written Premium (“GWP”) (RM’mil) +7.8% +7.2% 2,356.1 5,305.2 2,197.5 4,922.5 1,433.7 1,362.1 1,289.5 1,311.2 1,247.2 1,206.2 1,179.6 1,198.2 12M 19 12M 20 Life Insurance +8.2% 2,949.1 2,725.0 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20

  7. Slide 7: Financial Highlights 12M 2020: Profit Before Tax

    FINANCIAL HIGHLIGHTS 12M 2020 Profit Before Tax (RM’mil) PBT drivers (RM’mil) +5.4% +5.4% +10.7%* 729.6 248.6 692.1 * 20.8 21.3 202.2 186.9 188.2 177.7 175.0 4.8 206.5 16.2 8.2 10.4 187.8 10.0 192.2 151.2 14.9 2.8 176.0 17.7 161.8 12.8 8.8 145.1 91.9 129.6 116.2 12M 19 General Life Investment 12M 20

  8. Slide 8: Life: lower PBT from impact from financial markets, core earnings intact

    LIFE: LOWER PBT FROM IMPACT FROM FINANCIAL MARKETS. CORE EARNINGS INTACT PBT Drivers (RM’mil) Interest rate 10 years MGS -9.4% Dec 19 3.3% Dec 18 4.1% -1.0%* 340.7 Dec 20 2.5% Dec 19 3.3% 308.7 42.9 (2.9) ∆ 20/19 (0.8) pts ∆ 19/18 (0.8) pts (12.6) (16.5) 26.4 24.9 12.3 272.9 270.0 Bursa Malaysia KLC

  9. Slide 9: Financial Overview

    FINANCIAL OVERVIEW 3 YEAR RM’mil 2017 2018 2019 2020 CAGR (2017-2020) Gross Written Premiums 4,285.4 4,504.8 4,922.5 5,305.2 7.4% Management Expenses 603.8 554.9 618.0 641.4 2.0% Expense Ratio (Non Life) 20.3% 18.4% 20.2% 19.8% 0.5 pts Expense Ratio (Life)1 12.1% 10.0% 10.5% 9.4% 2.7 pts Local Conso

  10. Slide 10: Summary of Audited Financial Results

    SUMMARY OF AUDITED FINANCIAL RESULTS RM’mil 12M 2019 12M 2020 20/19 % Operating Revenue 5,534.4 5,945.7 7.4% Gross Earned Premium 4,848.4 5,233.2 7.9% Premiums ceded to reinsurers (346.2) (362.6) (4.7%) Net earned premiums (“NEP”) 4,502.2 4,870.6 8.2% 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 7.2% as compared to • Lower combined ratio by 2.6 pts mainly from lower motor prior year mainly driven by motor business. claims ratio. Profitability Market growth • Higher profit before tax from hig

  13. Slide 13: General Business: GWP is 7.2% higher than prior year

    GENERAL BUSINESS: GWP IS 7.2% HIGHER THAN PRIOR YEAR Gross Written Premium (RM’mil) Distribution Channel & Portfolio Mix +7.2% Telemaketing 2.4% 2,356.1 Agent 55.6% 2,197.5 661.6 Broker 11.7% 613.6 576.7 548.3 552.1 558.8 Banca 1.6% 520.4 522.1 Franchise 28.7% Fire 14.5% Marine 2.8% PA & Health 5.3%

  14. Slide 14: General Business: stable growth in investment income

    GENERAL BUSINESS: STABLE GROWTH IN INVESTMENT INCOME Net Investment Results/ Net Operating Expenses (RM’mil) Portfolio Mix and Investment Yield (Annualized) +0.5% Portfolio Mix Investment Yield * 196.5 195.6 Deposit Unquoted 1.2 0.1 9.0% Unit Trust 0.2 0.6 23.5% 0.4 4.10% 52.5 49.3 51.7 3.70% 45.8 4

  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) +19.2% 432.1 362.4 130.5 119.7 119.4 107.7 91.5 85.7 74.5 65.5 12M 19 UW result Investment Others 12M 20 12M 2019 166.6 194.9 0.9 362.4 12M 2020 235.6 197.0 (0.5) 432.1 1Q 19 2Q

  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 +2.6 pts 96.5% 94.8% 91.4% 90.3% 91.0% 88.9% 86.0% 88.4% 85.4% 84.2% 18.4% 19.9% 20.5% 17.2% 20.2% 19.9% 17.6% 19.8% 24.5% 21.6% 65.3%* 62.3% 58.7% 61.1% 59.1% 54.5% 56.3% 55.5% 51.6% 49.0% 12.2% 12.0% 12.8% 9.9% 11.7% 1

  17. Slide 17: General Business: audited financial results at a glance

    GENERAL BUSINESS: AUDITED FINANCIAL RESULTS AT A GLANCE RM’mil 12M 2019 12M 2020 20/19 % Gross written premiums 2,197.5 2,356.1 7.2% Gross earned premiums 2,123.4 2,284.1 7.6% Net earned premiums 1,858.4 2,027.2 9.1% Net change in claims incurred (1,099.2) (1,124.6) (2.3)% Management expenses (375.

  18. Slide 18: General Business: performance compared to industry (Jan-Dec 2020)

    GENERAL BUSINESS: PERFORMANCE COMPARED TO INDUSTRY (JAN-DEC 2020) KPIs AGIC Industry 1 Takaful 2 12M 2020 12M 2020 12M 2020 GWP growth 7.2% -0.6% 4.6% Commission ratio 13.1% 9.9% 8.4% Claims ratio • Overall 55.5% 52.9% 55.7% • Motor 59.6% 62.5% 68.2% Expense ratio 19.8% 25.7% 30.9% Combined ratio 88

  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 8.2%. • 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 declined by 10.0%, whil

  21. Slide 21: Life Business: Y-o-Y growth driven by recurring premium

    LIFE BUSINESS: Y-O-Y GROWTH DRIVEN BY RECURRING PREMIUM Gross Written Premiums (“GWP”) (RM’mil) GWP Mix & Growth (%) (12M 2020) +8.2% Mix Single 2,949.1 Premium 17.3% 2,725.0 748.5 772.1 752.4 712.8 695.1 Recurring 657.9 659.2 676.1 Premium 82.7% Growth 568.9 619.5 498.0 586.8 682.2 543.1 607.7 568.

  22. Slide 22: Life Business: ANP growth affected by COVID-19 and MCOs

    LIFE BUSINESS: ANP GROWTH AFFECTED BY COVID-19 AND MCOS Annualized New Premiums (“ANP”) (RM’mil) ANP Channel Mix (%) (12M 2020) -10.6% 594.8 Alternative 531.8 Distribution/ 176.7 Bancassurance 167.8 167.7 20.2% 2.7 7.1 0.0 3.4 150.7 0.0 0.2 27.7 132.8 6.8 24.6 27.5 0.1 5.8 122.6 Corporate 117.5 5.2%

  23. Slide 23: Life Business (Agency): recovery of new business in second half

    LIFE BUSINESS (AGENCY): RECOVERY OF NEW BUSINESS IN SECOND HALF OF THE YEAR Agency Annualized New Premiums (RM’mil) Agency Product Mix (%) (12M 2020) -12.6% By ANP By Policy Count Traditional Traditional 454.0 38.5% 24.3% 396.6 146.4 139.7 133.0 92.2 109.7 Investment Investment 93.3 94.8 70.9 Linked

  24. Slide 24: Life Business: protection business (investment-linked) GWP continues to grow

    LIFE BUSINESS: PROTECTION BUSINESS (INVESTMENT-LINKED) GWP CONTINUES TO GROW DESPITE LOWER NEW BUSINESS Annualised New Premiums (RM’mil) Gross Written Premiums (RM’mil) -26.3% +9.6% 1,593.4 332.9 1,454.0 245.3 94.8 93.0 404.9 426.3 403.8 382.3 377.9 379.9 79.0 331.1 341.2 73.6 71.3 66.1 56.7 43.7 1Q

  25. Slide 25: Life Business: lower investment results due to lower net fair value results

    LIFE BUSINESS: LOWER INVESTMENT RESULTS DUE TO LOWER NET FAIR VALUE RESULTS Investment Results by funds Investment Results Portfolio Mix and Investment Yield (LF+SHF) (%) (Annualized) (RM’mil) (RM’mil) Portfolio Mix Investment Yield -29.1% -29.1% Others Cash 1.1% Loans 10.0% Govt Bonds 1.2% 51.0% 80

  26. Slide 26: Life Business: audited financial results at a glance

    LIFE BUSINESS: AUDITED FINANCIAL RESULTS AT A GLANCE RM’mil 12M 2019 12M 2020 20/19 % Gross written premiums 2,725.0 2,949.1 8.2% Premiums ceded to reinsurers (81.2) (105.6) (30.0%) Net earned premiums 2,643.8 2,843.5 7.6% Net change in benefits and claims paid (1,258.3) (1,235.9) 1.8% Net change i

  27. Slide 27: Allianz Life: ANP growth affected by COVID-19 and MCOs

    ALLIANZ LIFE: ANP GROWTH AFFECTED BY COVID-19 AND MCOS Market growth analysis (12M 2020) Annualised New Business 12M 2020 Growth 12M 2019 Growth 5-year CAGR (2015 – 2020) ALIM Industry Market Market ALIM Industry Distribution Channel ALIM Industry (% Growth) (% Growth) Share Rank (% Growth) (% Growt

  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-LookingStatements The statements contained herein may include statements of future expectations and Union, (xi) changes in the policies of central banks and/or foreign governments

Allianz Malaysia Berhad — FY2020 Earnings Presentation on 6ix