Allianz Malaysia Bhd. · MYX:ALLIANZ

Allianz Malaysia Bhd — Q1 2020 Earnings Presentation

29 slides from Allianz Malaysia Bhd's earnings presentation, Jun 17, 2020

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

    ALLIANZ MALAYSIA BERHAD (12428-W) FINANCIAL RESULTS 1Q 2020 ANALYST BRIEFING 17 JUNE 2020

  2. Slide 2: AMB Group Results

    1 AMB Group Results 2

  3. Slide 3: Restoring Revenue Growth and Resilient Earnings from Diversification

    Allianz Malaysia Berhad (12428-W) Restoring Revenue Growth and Resilient Earnings from Diversification in Two Strong Pillars of Businesses Operating revenue  Group operating revenue of RM1.48 billion, an increase of 10.4% compared to corresponding period of RM1.34 billion due to higher gross earned

  4. Slide 4: Financial Highlights 3M 2020: Operating Revenue

    Allianz Malaysia Berhad (12428-W) Financial Highlights 3M 2020 Operating Revenue (RM’mil) General Business (RM’mil) +10.4% +5.8% 571.4 604.6 3M 2019 3M 2020 Life Business (RM’mil) 1,484.8 1,344.3 +14.0% 876.6 769.2 3M 2019 3M 2020 3M 2019 3M 2020 4

  5. Slide 5: Financial Highlights 3M 2020: Gross Written Premiums

    Allianz Malaysia Berhad (12428-W) Financial Highlights 3M 2020 Gross Written Premiums (“GWP”) (RM’mil) General Business (RM’mil) +12.9% +11.9% 613.6 548.3 3M 2019 3M 2020 1,362.1 Life Business (RM’mil) 1,206.2 +13.8% 748.5 657.9 3M 2019 3M 2020 3M 2019 3M 2020 5

  6. Slide 6: Financial Highlights 3M 2020: Profit Before Tax

    Allianz Malaysia Berhad (12428-W) Financial Highlights 3M 2020 Profit Before Tax (RM’mil) -39.2% PBT Drivers (RM’mil) 151.2 -11.1 -45.4 -2.8 91.9 151.2 PBT General Life Investment PBT 91.9 3M 2019 Business Business Holdings 3M 2020 3M 2019 85.6 68.9 (3.3) 151.2 3M 2020 74.5 23.5 (6.1) 91.9 Change (1

  7. Slide 7: Life Business: Lower PBT driven by volatile financial market but core profit remains strong

    Allianz Malaysia Berhad (12428-W) Life Business: Lower PBT driven by volatile financial market but core profit remains strong Profit Before Tax Drivers (RM’mil) 68.9 +1.0 -46.4 Core profit excluding FV gains/losses adjustment: (14.4) +2.1% (32.0) 23.5 47.0 48.0 PBT 3M Profit Fair Value/Tax PBT 3M 3M

  8. Slide 8: Group: Despite the challenging operating environment, earnings remain resilient

    Allianz Malaysia Berhad (12428-W) Group: Despite the challenging operating environment, Group’s earnings remain resilient Profit Before Tax Drivers (RM’mil) 151.2 -11.1 Core profit excluding FV gains/losses +1.0 -2.8 -46.4 adjustment: (14.4) -10.2% (32.0) 91.9 129.5 116.3 PBT 3M Profit Profit Profit

  9. Slide 9: Financial Overview

    Allianz Malaysia Berhad (12428-W) Financial Overview 3 YEAR RM’mil 2017 2018 2019 CAGR 3M 2019 3M 2020 (2016-2019) Gross Written Premiums 4,285.4 4,504.8 4,922.5 5.6% 1,206.2 1,362.1 Management Expenses 603.8 554.9 618.0 6.4% 151.9 178.7 Expense Ratio (Non Life) 20.3% 18.4% 20.2% 5.1 pts 20.4% 19.9%

  10. Slide 10: Summary of Unaudited Financial Results

    Allianz Malaysia Berhad (12428-W) Summary of Unaudited Financial Results RM’mil 3M 2019 3M 2020 20/19 % Operating revenue 1,344.3 1,484.8 10.5% Gross earned premiums 1,183.4 1,306.1 10.4% Premiums ceded to reinsurers (83.2) (78.4) 5.8% Net earned premiums (“NEP”) 1,100.2 1,227.7 11.6% Net change in

  11. Slide 11: General Business

    2 General Business 11

  12. Slide 12: General Business

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business Gross written premiums  Gross written premium increased by 11.9% as compared to prior year. Profitability  Lower profit before tax due to lower underwriting profit. ✔ Net investment results  Stable growth in investmen

  13. Slide 13: General Business: GWP is 11.9% higher than prior year

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business: GWP is 11.9% higher than prior year Gross Written Premiums (RM’mil) +11.9% Distribution Channel & Portfolio Mix Telemarketing 2.6% Agent 59.6% Broker 2.6% Banca Motor 1.7% 62.2% Franchise 613.6 33.5% 548.3 Fire Misc 16.

  14. Slide 14: 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) +4.3% Portfolio Mix and Investment Yield (Annualised) Portfolio Mix 48.2 46.2 Property Investment Yield Unquoted 0.4% unit trust

  15. Slide 15: General Business: Lower profit before tax due to lower underwriting profit

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business: Lower profit before tax due to lower underwriting profit. Profit Before Tax (RM’mil) -13.0% PBT Drivers (RM’mil) 85.6 -13.1 3.5 -1.5 74.5 85.6 74.5 PBT UW Investment PBT Others 3M 2019 result income 3M 2020 3M 2019 39.4

  16. Slide 16: General Business: Higher combined ratio due to higher claims ratio

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business: Higher combined ratio due to higher claims ratio Combined Ratio -3.5 pts 94.8% 91.3% 19.9% 20.4% 58.7% 62.3% 12.2% 12.6% 3M 2019 3M 2020  Claims Ratio  Commission Ratio  Expense Ratio 16

  17. Slide 17: 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 3M 2019 3M 2020 20/19 % Gross written premiums 548.3 613.6 11.9% Gross earned premiums 525.5 557.6 6.1% Net earned premiums 458.1 500.5 9.3% Net change in claims incurred

  18. Slide 18: General Business: Performance compared to Industry (Jan-Mar 2020)

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business: Performance compared to Industry (Jan-Mar 2020) AGIC Industry 1 Takaful 2 KPIs 3M 2020 3M 2020 3M 2020 GWP growth 11.9% 0.9% 5.0% Commission ratio 12.6% 9.8% 8.7% Claims ratio • Overall 62.3% 59.4% 59.8% • Motor 67.2% 7

  19. Slide 19: Life Business

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) 3 Life Business 19

  20. Slide 20: Life Business

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business Gross written premiums  Gross written premiums grew by 13.8%. Market position  ALIM ANP grew by 2.9%, outpacing industry growth of 0.7%.  Market share 3M 2020 increased to 8.2% (3M 2019: 8.0%). Distribution  Bancassurance performed

  21. Slide 21: Life Business: Y-o-Y growth in both Single Premium and Recurring Premium

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: Y-o-Y growth in both Single Premium and Recurring Premium Gross Written Premiums (“GWP”) (RM’mil) +13.8% GWP Mix & Growth (%) (3M 2020) Mix Single 748.5 Premium 657.9 24.0% 568.9 498.0 Recurring Growth Premium 76.0% 159.9 179.6 12.3% 1

  22. Slide 22: Life Business: Growth in ANP driven by Bancassurance and Employee Benefits

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: Growth in ANP driven by Bancassurance and Employee Benefits Channels Annualised New Premiums (“ANP”) (RM’mil) ANP Channel Mix (%) +4.3% (3M 2020) Corporate 8.4% Alternative 122.6 Distribution/ 117.5 Bancassurance 10.3 29.4% 8.9 0.0 Age

  23. Slide 23: 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) Agency Product Mix (%) (3M 2020) -6.2% By ANP Traditional 26.2% 81.3 By Policy Count 76.3 Traditional 14.6% Investment- Li

  24. Slide 24: 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) -14.2% +15.5% 382.3 66.1 56.7 331.1 3M 2019 3M 2020 3M 2019 3M 2020 24

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

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: Lower net investment results due to fair value losses from volatile financial market Investment Results by Investment Results funds (RM’mil) (RM’mil) >100% >100% Portfolio Mix and Investment Yield (LF+SHF) (%) (Annualized) 278.5 278.5

  26. Slide 26: 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 3M 2019 3M 2020 20/19 % Gross written premiums 657.9 748.5 13.8% Premiums ceded to reinsurers (15.8) (21.3) (34.8%) Net earned premiums 642.1 727.2 13.3% Net change in benefits and claims

  27. Slide 27: Allianz Life: ANP growth driven by Bancassurance and Employee Benefits channels

    Allianz Life Insurance Malaysia Berhad (104248-X) Allianz Life: ANP growth driven by Bancassurance and Employee Benefits channels Market growth analysis (3M 2020) Annualised New Business 5-year CAGR 3M 2020 Growth 12M 2019 Growth (2014-2019) ALIM Industry Market Market ALIM Industry Distribution Cha

  28. Slide 28: Thank You for Your Attention

    Thank You for Your Attention Allianz @i)

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

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