Allianz Malaysia Bhd. · MYX:ALLIANZ

Allianz Malaysia Bhd — Q2 2017 Earnings Presentation

26 slides from Allianz Malaysia Bhd's earnings presentation, Aug 18, 2017

  1. Slide 1: Allianz Malaysia Berhad Financial Results 2Q 2017 Analyst Briefing

    Allianz Malaysia Berhad (12428-W) Financial Results 2Q 2017 Analyst Briefing 18 August 2017

  2. Slide 2: AMB Group Results

    Allianz @i) AMB Group Results

  3. Slide 3: Resilient Growth with Diversified Business Portfolio

    Allianz Malaysia Berhad (12428-W) Resilient Growth with Diversified Business Portfolio Operating revenue  Group operating revenue of RM2.40 billion, an increase of 3.8% as compared to corresponding period of RM2.32 billion due to higher gross earned premiums and investment income by RM54.5 million

  4. Slide 4: Financial Highlights 6M 2017: Group Operating Revenue

    Allianz Malaysia Berhad (12428-W) Financial Highlights 6M 2017 Group Operating Revenue (RM’mil) General Business (RM’mil) +3.8% +0.1% 1,128.1 1,129.3 6M 2016 6M 2017 2,315.8 2,402.8 Life Business (RM’mil) +7.2% 1,181.2 1,266.5 6M 2016 6M 2017 6M 2016 6M 2017 4

  5. Slide 5: Financial Highlights 6M 2017: Group Gross Written Premiums

    Allianz Malaysia Berhad (12428-W) Financial Highlights 6M 2017 Group Gross Written Premiums (“GWP”) (RM’mil) General Business (RM’mil) +3.9% +2.3% 1,087.1 1,112.0 6M 2016 6M 2017 2,113.4 2,196.5 Life Business (RM’mil) +5.7% 1,026.3 1,084.5 6M 2016 6M 2017 6M 2016 6M 2017 5

  6. Slide 6: Financial Highlights 6M 2017: Group Profit Before Tax

    Allianz Malaysia Berhad (12428-W) Financial Highlights 6M 2017 Group Profit Before Tax (RM’mil) PBT Drivers (RM’mil) -4.7% 224.3 213.7 +0.8 -23.9 +12.5 224.3 213.7 PBT General Life Investment PBT 6M 2016 Business Business Holdings 6M 2017 6M 2016 172.7 54.4 (2.8) 224.3 6M 2017 148.8 66.9 (2.0) 213.7

  7. Slide 7: Financial Overview

    Allianz Malaysia Berhad (12428-W) Financial Overview 3 YEAR RM’mil 2014 2015 2016 6M 2016 6M 2017 CAGR Gross Written Premiums 3,968.2 4,132.7 4,182.6 5.3% 2,113.4 2,196.5 Management Expenses 436.0 464.8 513.2 8.7% 236.4 290.1 Expense Ratio (Non 16.0% 19.8% 17.3% 16.9% 17.4% 0.5 pts Life) Expense Rat

  8. Slide 8: Summary of unaudited Financial Results

    Allianz Malaysia Berhad (12428-W) Summary of unaudited Financial Results RM’mil 6M 2016 6M 2017 17/16 % Operating revenue 2,315.8 2,402.8 3.8% Gross earned premiums 2,076.5 2,131.0 2.6% Premiums ceded to reinsurers (249.3) (227.5) 8.7% Net earned premiums (“NEP”) 1,827.2 1,903.5 4.2% Net change in

  9. Slide 9: General Business

    Allianz @i) * ——_— — - All } \ General Business

  10. Slide 10: General Business

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business Gross written premiums  Gross written premium growth by 2.3% as compared to prior year. Combined ratio  Higher combined ratio due to higher expense ratio (exceptional provision for impairment on insurance receivables).

  11. Slide 11: General Business: GWP is 2.3% above prior year

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business: GWP is 2.3% above prior year Gross Written Premiums (RM’mil) +2.3% Distribution Channel & Portfolio Mix Telemarketing 1,112.0 2.7% 1,087.1 Agent 61.2% Broker 9.3% Motor 60.5% Banca 7.4% 547.0 540.1 561.0 551.0 Franchise

  12. Slide 12: General Business: Stable growth in investment income

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business: Stable growth in investment income Net Investment Results/Net Operating Expenses (RM’mil) +1.7% Portfolio Mix and Investment Yield (Annualised) Portfolio Mix Investment Yield 79.1 77.8 Deposit Property 9.6% 0.6% Corp Bo

  13. Slide 13: General Business: Lower underwriting profit from higher expense ratio

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business: Lower underwriting profit from higher expense ratio Profit Before Tax (RM’mil) -13.8% PBT Drivers (RM’mil) 172.7 (25.2) 3.4 172.7 (2.1) 148.8 148.8 90.0 82.7 73.5 75.3 PBT UW Investment Others PBT 6M 2016 result income

  14. Slide 14: General Business: Lower underwriting profit as compared to prior year

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business: Lower underwriting profit as compared to prior year Comments Underwriting Result Drivers (RM’mil) Comments  Malaysian Motor Insurance Pool - Release 94.9 of MMIP claims reserve for Q4 2015 (7.7) booked in Q1 2016 which

  15. Slide 15: General Business: Higher combined ratio due to higher expense ratio

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business: Higher combined ratio due to higher expense ratio Combined Ratio -3.2 pts 88.6% 89.7% 89.1% 92.6% 92.0% 92.3% 15.3% 16.8% 16.0% 20.3% 19.3% 19.8% 61.1% 62.5% 61.8% 59.7% 60.6% 60.1% 12.2% 10.4% 11.3% 12.6% 12.1% 12.4% 1

  16. Slide 16: General Business: Unaudited financial results at a glance

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business: Unaudited financial results at a glance RM’mil 6M 2016 6M 2017 17/16 % Gross written premiums 1,087.1 1,112.0 2.3% Gross earned premiums 1,050.2 1,046.5 (0.4%) Net earned premiums 874.4 901.4 3.1% Net change in claims

  17. Slide 17: Life Business

    Allianz @i) Life Business

  18. Slide 18: Life Business

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business Gross written premiums  Gross written premiums grew by 5.7%. Distribution  Strong performance from Agency and Bancassurance.  Agency ANP achieved 15.5% growth. Remain focus on building professional and productive agency force.  Banc

  19. Slide 19: Life Business: Growth in GWP mainly from Agency and Bancassurance channels

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: Growth in GWP mainly from Agency and Bancassurance channels Gross Written Premiums (“GWP”) (RM’mil) +5.7% GWP Mix & Growth (%) (6M 2017) 1,026.3 1,084.5 Mix Single Premium 555.0 20.1% 525.5 529.5 500.8 403.3 428.5 403.0 438.1 Recurring

  20. Slide 20: Life Business: Growth in ANP driven by Agency and Bancassurance channels

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: Growth in ANP driven by Agency and Bancassurance channels Annualised New Premiums (“ANP”) (RM’mil) ANP Channel Mix (%) +27.4% (6M 2017) 222.5 Corporate 5.2% 174.7 112.3 110.2 Alternative 4.3 Distribution/ 7.2 0.5 Bancassurance 1.0 21.0

  21. Slide 21: Life Business (Agency): Continue focus on profitable regular Investment-Linked products

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business (Agency): Continue focus on profitable regular Investment-Linked products Agency Annualised New Premiums (RM’mil) +15.5% Agency Product Mix (%) (6M 2017) Traditional 164.3 By ANP 142.3 21.0% By Policy Count 81.3 83.0 Traditional 12.7% 7

  22. Slide 22: Life Business: Protection Business (Investment-Linked) continues to grow

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: Protection Business (Investment-Linked) continues to grow Annualised New Premiums (RM’mil) Gross Written Premiums (RM’mil) 22.9% +17.8% 504.1 129.8 428.0 105.6 248.0 256.1 67.3 62.5 210.9 217.1 55.6 50.0 1Q 2Q 1Q 2Q 1Q 2Q 1Q 2Q 2016 20

  23. Slide 23: Life Business: Lower net investment results due to lower fair value gains

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: Lower net investment results due to lower fair value gains and lower realised gains on investment Net Investment Results (RM’mil) (LF+SHF) -5.9% Portfolio Mix and Investment Yield (LF+SHF) (%) (Annualized) 200.3 188.5 Cash Others 8.4%

  24. Slide 24: Life Business: Unaudited financial results at a glance

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: Unaudited financial results at a glance RM’mil 6M 2016 6M 2017 17/16 % Gross written premiums 1,026.3 1,084.5 5.7% Premiums ceded to reinsurers (73.6) (82.4) (12.0%) Net earned premiums 952.7 1,002.1 5.2% Net change in benefits and cl

  25. Slide 25: Thank You for Your Attention

    Thank You for Your Attention Allianz @)

  26. Slide 26: 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 levels, (vi) the extent of credit defaults, (vii) interest rate levels, (viii) currency expecta

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