Allianz Malaysia Bhd. · MYX:ALLIANZ

Allianz Malaysia Bhd — Shareholder Meeting (May 2019)

55 slides from Allianz Malaysia Bhd's shareholder meeting presentation, May 30, 2019

  1. Slide 1: Allianz Malaysia Berhad 45th Annual General Meeting

    ALLIANZ MALAYSIA BERHAD (12428-W) 45TH ANNUAL GENERAL MEETING 30 May 2019 © Copyright Allianz

  2. Slide 2: Poll Administrator and Scrutineers

    POLL ADMINISTRATOR AND SCRUTINEERS Poll Administrator Independent Scrutineers Tricor Investor & Issuing BDO Consulting Sdn Bhd House Services Sdn Bhd © Copyright Allianz 2

  3. Slide 3: Shareholders Who Have Appointed Chairman as Proxy

    SHAREHOLDERS WHO HAVE APPOINTED CHAIRMAN AS PROXY No. Name of Shareholders No. of Vote Vote Abstain Shares For Against 1. Citigroup Nominees (Tempatan) Sdn Bhd 200,600 All - - 2. Citigroup Nominees (Asing) Sdn Bhd 37,900 All - - 3. Citigroup Nominees (Tempatan) Sdn Bhd 388,600 All - - 4. DB (Malaysi

  4. Slide 4: Shareholders Who Have Appointed Chairman as Proxy

    SHAREHOLDERS WHO HAVE APPOINTED CHAIRMAN AS PROXY No. Name of Shareholders No. of Vote Vote Abstain Shares For Against 6. DB (Malaysia) Nominee (Asing) Sdn Bhd 4,300 OR1, OR2, OR4, OR7, OR8, OR9 and 0R3, 0R5, - SR1 0R6, 7. DB (Malaysia) Nominee (Asing) Sdn Bhd 4,200 OR1, OR2, OR7, OR8 and SR1 0R3, O

  5. Slide 5: Shareholders Who Have Appointed Chairman as Proxy

    SHAREHOLDERS WHO HAVE APPOINTED CHAIRMAN AS PROXY No. Name of Shareholders No. of Vote Vote Abstain Shares For Against 11. DB (Malaysia) Nominee (Asing) Sdn Bhd 241,500 ALL - - 12. Cartaban Nominees (Asing) Sdn Bhd 200 OR1, OR2, OR4, OR7, OR8, OR9 and 0R3, 0R5, - SR1 0R6 13. Cartaban Nominees (Asing

  6. Slide 6: Shareholders Who Have Appointed Chairman as Proxy

    SHAREHOLDERS WHO HAVE APPOINTED CHAIRMAN AS PROXY No. Name of Shareholders No. of Vote Vote Abstain Shares For Against 16. Citigroup Nominees (Asing) Sdn Bhd 151,800 ALL - - 17. Citigroup Nominees (Asing) Sdn Bhd 67,900 ALL - - 18. Citigroup Nominees (Asing) Sdn Bhd 27,400 ALL - - 19. Citigroup Nomi

  7. Slide 7: Shareholders Who Have Appointed Chairman as Proxy

    SHAREHOLDERS WHO HAVE APPOINTED CHAIRMAN AS PROXY No. Name of Shareholders No. of Vote Vote Abstain Shares For Against 21. Citigroup Nominees (Tempatan) Sdn Bhd 2,808,400 ALL - - 22. Citigroup Nominees (Tempatan) Sdn Bhd 250,000 ALL - - 23. Citigroup Nominees (Asing) Sdn Bhd 6,900 ALL - - 24. Citigr

  8. Slide 8: Shareholders Who Have Appointed Chairman as Proxy

    SHAREHOLDERS WHO HAVE APPOINTED CHAIRMAN AS PROXY No. Name of Shareholders No. of Vote Vote Abstain Shares For Against 26. Citigroup Nominees (Asing) Sdn Bhd 600 OR1, OR2, OR3, OR4, OR6, OR7, OR5 - OR8, OR9 and SR1 27. Citigroup Nominees (Asing) Sdn Bhd 4,400 OR1, OR2, OR3, OR4, OR6, OR7, OR5 - OR8,

  9. Slide 9: Shareholders Who Have Appointed Chairman as Proxy

    SHAREHOLDERS WHO HAVE APPOINTED CHAIRMAN AS PROXY No. Name of Shareholders No. of Vote Vote Abstain Shares For Against 31. HSBC Nominees (Asing) Sdn Bhd 40,200 OR1, OR2, OR3, OR4, OR5, OR6, OR9 - OR7, OR8 and SR1 32. HSBC Nominees (Asing) Sdn Bhd 15,800 OR1, OR2, OR3, OR4, OR5, OR6, OR7 - OR8, OR9 a

  10. Slide 10: Shareholders Who Have Appointed Chairman as Proxy

    SHAREHOLDERS WHO HAVE APPOINTED CHAIRMAN AS PROXY No. Name of Shareholders No. of Vote Vote Abstain Shares For Against 36. Maybank Nominees (Tempatan) Sdn Bhd 1,140,000 ALL - - 37. Maybank Nominees (Tempatan) Sdn Bhd 306,400 ALL - - 38. DB (Malaysia) Nominee (Tempatan) Sdn 271,500 OR1, OR3, OR4, OR5

  11. Slide 11: Shareholders Who Have Appointed Chairman as Proxy

    SHAREHOLDERS WHO HAVE APPOINTED CHAIRMAN AS PROXY No. Name of Shareholders No. of Vote Vote Abstain Shares For Against 41. Citigroup Nominees (Asing) Sdn Bhd 67,900 ALL - - 42. Citigroup Nominees (Asing) Sdn Bhd 27,400 ALL - - 43. Citigroup Nominees (Asing) Sdn Bhd 2,306,900 ALL - - 44. Citigroup No

  12. Slide 12: Shareholders Who Have Appointed Chairman as Proxy

    SHAREHOLDERS WHO HAVE APPOINTED CHAIRMAN AS PROXY No. Name of Shareholders No. of Vote Vote Abstain Shares For Against 46. Citigroup Nominees (Asing) Sdn Bhd 6,900 ALL - - 47. Citigroup Nominees (Asing) Sdn Bhd 28,900 ALL - - 48. Citigroup Nominees (Asing) Sdn Bhd 600 OR1, OR2, OR3, OR4, OR6, OR7, O

  13. Slide 13: Shareholders Who Have Appointed Chairman as Proxy

    SHAREHOLDERS WHO HAVE APPOINTED CHAIRMAN AS PROXY No. Name of Shareholders No. of Vote Vote Abstain Shares For Against 51. Citigroup Nominees (Asing) Sdn Bhd 200 OR1, OR2, OR3, OR4, OR6, OR7, OR5 - OR8, OR9 and SR1 52. Citigroup Nominees (Asing) Sdn Bhd 1,895,700 ALL - - 53. Cartaban Nominees (Tempa

  14. Slide 14: Item 1: Receive Audited Financial Statements FYE 2018

    To receive the Audited Financial ITEM Statements for the financial year ended 31 December 2018 (“FYE 1 2018”) and the Directors’ and Auditors’ Reports thereon © Copyright Allianz 14

  15. Slide 15: Group Performance

    GROUP PERFORMANCE 01 © Copyright Allianz 15

  16. Slide 16: Malaysia Insurance Market Is Underpenetrated but Growth Remains Subdued

    MALAYSIA INSURANCE MARKET IS UNDERPENETRATED BUT GROWTH REMAIN SUBDUED Malaysian Conventional Insurance Industry 21 39,380 1 1.5% 2 RM550 +1.5% General insurers General agents Insurance penetration Insurance density GWP GROWTH 2018 (% of GDP) (GWP per capita) (2017 -0.1%) 14 78,716 1 2.8% 2 RM1,071

  17. Slide 17: Allianz General: Maintaining Market Leadership

    ALLIANZ GENERAL: MAINTAINING MARKET LEADERSHIP KPIs AGIC AGIC Industry1 Takaful2 12M 2018 12M 2017 12M 2018 12M 2018 GWP growth -0.7% +2.5% +1.5% +8.9% Commission ratio 12.3% 12.2% 9.9% 4.1% Claims ratio  Overall 62.1% 62.0% 58.2% 51.0%  Motor 67.3% 74.2% 70.3% 66.5% Expense ratio 18.4% 20.3% 23.5

  18. Slide 18: Allianz Life: Outperformed the Market

    ALLIANZ LIFE: OUTPERFORMED THE MARKET Annualised New Premiums 12M 2018 Growth 12M 2017 Growth 5-year CAGR (2013 – 2018) Distribution Channel ALIM Industry Market Market ALIM Industry ALIM Industry (% growth) (% growth) share rank (% growth) (% growth) (% growth) (% growth) Agency (Traditional) 60.0%

  19. Slide 19: Diversification in Two Strong Pillars of Businesses

    DIVERSIFICATION IN TWO STRONG PILLARS OF BUSINESSES TO OVERCOME CHALLENGES FY 2018 RM 5.2bn RM 4.5bn RM 519mn +7.9% (2017 +2.6%) +5.1% (2017 +2.5%) +18.7% (2017 -3.8%) Operating revenue Gross Written Profit before tax Premium ALIM RM204.4mn +18.2% AGIC RM320.6mn +20.1% Investment RM(6.0)mn >100% Hol

  20. Slide 20: Maintain Market Leadership in General Insurance & Fastest Growing in Life

    MAINTAIN MARKET LEADERSHIP IN GENERAL INSURANCE & FASTEST GROWING IN LIFE INSURANCE Gross Written Premium (GWP) (RM’ mil) 5-yr CAGR +4.7% +5.1% 4,285 4,505 Allianz Life maintained 4,133 4,183 3,968 3,578 Allianz Life top 5 position in ANP, with +10.9% y-o-y growth 8.4% market share1 (2017 7.4%) 1,95

  21. Slide 21: Diversified Business Portfolio & Strong Profit Emergence from Life Insurance

    DIVERSIFIED BUSINESS PORTFOLIO & STRONG PROFIT EMERGENCE FROM LIFE INSURANCE Managing the impact and challenges from de-tariffication and liberalization Maintain strong Profit before Tax (RM’ mil) discipline in pricing & prudent expense 5-yr CAGR management +8.9% +18.8% 519 Deliver healthy and 455 s

  22. Slide 22: We Promise to Strengthen Dividend Returns to Shareholders

    WE PROMISE TO STRENGTHEN DIVIDEND RETURNS TO SHAREHOLDERS Maintain capital requirement Achieved a record high dividend payout ratio of 40.3% for the Group Dividend Per Share (RM sen) To meet regulatory solvency Ordinary Share requirements to protect interest of policy holders Preference Share 5-yr C

  23. Slide 23: Financial Highlights 3M 2019

    FINANCIAL HIGHLIGHTS 3M 2019 Managing the impact of de-tariffication & expiry of Bancassurance in General Business. Strong Life GWP growth from Bancasurance business Gross Written Premiums (“GWP”) (RM’mil) General Business (RM’mil) -6.4% +4.2% 585.7 1,206.2 548.3 1,157.7 3M 2018 3M 2019 Life Busines

  24. Slide 24: Financial Highlights 3M 2019

    FINANCIAL HIGHLIGHTS 3M 2019 Despite the challenges, profitability were maintained in General Business. Life premium delivered a strong profit growth Profit Before Tax (RM ’mil) PBT Drivers (RM ’mil) +18.5% 151.2 127.6 3M 2018 General Life Investment 3M 2019 Business Business Holdings 3M 2018 88.3 4

  25. Slide 25: General Business

    GENERAL BUSINESS 02 © Copyright Allianz 25

  26. Slide 26: Managing Impact of De-tariffication and Expiry of CIMB Bancassurance Partnership

    MANAGING THE IMPACT OF DE-TARIFFICATION AND EXPIRY OF CIMB BANCASSURANCE PARTNERSHIP Gross Written Premium (RM’ mil) Distribution Channel & Portfolio Mix 2018 GI Industry Growth +1.5% Telemarketing Motor 2.7% 63.4% -0.7%* Agent 143* 59.7% Broker 15.4% Banca 2,181 ** 2,136 1,979 2,134 2,083 2,136 2,1

  27. Slide 27: General Business: Higher Underwriting Profit & Investment Income

    GENERAL BUSINESS: HIGHER UNDERWRITING PROFIT & INVESTMENT INCOME Profit Before Tax (RM’ mil) PBT Drivers (RM’ mil) +20.1% 320.6 266.9 12M 2017 UW Investment Others 12M 2018 Result Income 12M 2017 101.6 171.1 (5.8) 266.9 12M 2018 137.8 182.6 0.2 320.6 2017 2018 Change 36.2 11.5 6.0 53.7 © Copyright A

  28. Slide 28: General Business: Lower Combined Ratio Due to Lower Expense Ratio

    GENERAL BUSINESS: LOWER COMBINED RATIO DUE TO LOWER EXPENSE RATIO Combined Ratio 1.7 pts 92.6% 92.0% 98.6% 94.6% 94.5% 92.9% 93.8% 93.6% 92.8% 90.6% 1.3% 0.6% 3.1% 1.8% 2.0% 18.9%  Commission Ratio 19.7% 18.3% 18.5% 16.7% 17.9% 18.7% 20.0% 18.4% 17.3%  Claims Ratio 65.6%  Expense Ratio 59.7% 60.6

  29. Slide 29: Project Evolusi: Transformation of General Business

    PROJECT EVOLUSI: TRANSFORMATION OF GENERAL BUSINESS AGIC EVOLUSI Push For Profitable Underwriting & Claim Organizational Digital Portfolio Transformation Transformation Leadership 1 Shift to NM 5 Claims 7 Increase 10  E2E digital 2 Introduce new management corporate ecosystem to products 6 Und

  30. Slide 30: Life Business

    LIFE BUSINESS 03 © Copyright Allianz 30

  31. Slide 31: Life Business: Growth in Single and Recurring Premium

    LIFE BUSINESS: GROWTH IN BOTH SINGLE PREMIUM AND RECURRING PREMIUM Gross Written Premiums (“GWP”) (RM’ mil) GWP Mix & Growth (%) (12M 2018) Mix Single Premium 17.6% +10.9% 2,383.5 2,149.6 Recurring 1,963. Premium 1,795. 3 82.4% 1 Growth 354.5 420.2 +18.5% +9.4% 2017 2018 Recurring Premium Single Rec

  32. Slide 32: Life Business: Growth in ANP by Channel

    LIFE BUSINESS: GROWTH IN ANP DRIVEN BY AGENCY, BANCASSURANCE AND EMPLOYEE BENEFITS CHANNELS Annualised New Premiums (“ANP”) (RM’ mil) ANP Channel Mix (%) (12M 2018) +13.3% Alternative Corporate 20.7 4.0% Distribution/ 1.8 Bancassurance 17.3 85.8 17.1% 80.6 2.5 404.5 352.1 Agency 78.9% 2017 2018 Agen

  33. Slide 33: Life Business: Agency Focus on Investment-Linked Products

    LIFE BUSINESS: AGENCY CONTINUES TO FOCUS ON PROFITABLE REGULAR INVESTMENT-LINKED PRODUCTS & LONG TERM SAVING BUSINESS Agency Annualised New Premiums (RM’mil) Agency Product Mix (%) (12M 2018) By Policy Count +14.9% By ANP Traditional Traditional 26.6% 15.4% 404.5 352.1 Investment- Investment- 107.7

  34. Slide 34: Life Business: Delivered Sustainable Profitable Growth

    LIFE BUSINESS: DELIVERED SUSTAINABLE PROFITABLE GROWTH Profit Before Tax (RM’ mil) 5-yr CAGR • Focus on healthy and sustainable +20% margins supported by disciplined pricing methodologies and sound risk +18% management • Focus on writing more investment- linked protection products 204 173 138 • Deli

  35. Slide 35: ALIM Baru – Operation Transformation Objectives

    ALIM BARU – OPERATION TRANSFORMATION OBJECTIVES Change Customer and Distributor Experience and drive end-to-end Automation : “True Straight Through Processing” Key Principles: ALIM Baru program has started to bring this change. Its based on three pillars: • Instant e-policy issuance Customer • Paper

  36. Slide 36: Renewal Agenda 2.0

    RENEWAL AGENDA 2.0 04 © Copyright Allianz 36

  37. Slide 37: Renewal Agenda 1.0 (2016 - 2018)

    RENEWAL AGENDA 1.0 (2016 - 2018) ok good aspiration Where we stand in Malaysia? CUSTOMER • ALIM – NPS above market • AGIC – NPS at market CENTRICITY • Customer Satisfaction Index – among top industry players • AGIC – over 9,000 digital customers to date DIGITALBY – 4 digital products launched (Motor

  38. Slide 38: Renewal Agenda 2.0 (2019): Next Steps Towards Great

    RENEWAL AGENDA 2.0 (2019). NEXT STEPS TOWARDS “GREAT” ok good aspiration From Renewal Agenda 1.0 … to2.0 CUSTOMER Simple, Art digital & voice of customer at all toScience CENTRICITY touch points DIGITALBY DEFAULT Tools toTransformation API architecture to enable platforms TECHNICAL EXCELLENCE Electi

  39. Slide 39: Renewal Agenda 2.0: Outperform, Transform, Rebalance

    RENEWAL AGENDA 2.0 IMPERATIVES Look outwards Be ready Stay relevant STRATEGIC OBJECTIVES OUTPERFORM TRANSFORM REBALANCE …our competitors, both …our organisation to become …our portfolio towards old and new simple, digital and scalable the most attractive geographies and business segments © Copyright

  40. Slide 40: Question and Answer Session

    QUESTION AND ANSWER SESSION © Copyright Allianz 40

  41. Slide 41: Item 2(a): Directors' Fees

    ORDINARY RESOLUTION 1 ITEM To approve the payment of Directors’ fees of RM2,280,575 to Non-Executive Directors 2 (a) of the Company and its insurance subsidiaries, excluding the Nominee Directors of Allianz SE, for the FYE 2018 © Copyright Allianz 41

  42. Slide 42: Item 2(b): Directors' Remuneration

    ORDINARY RESOLUTION 2 To approve the payment of Directors’ ITEM remuneration (excluding Directors’ fees) to the Non-Executive Directors of the 2 (b) Company and its insurance subsidiaries, excluding Nominee Directors of Allianz SE, up to an amount of RM1,127,635 from 31 May 2019 until the next AGM o

  43. Slide 43: Item 3: Re-election of Director

    ORDINARY RESOLUTION 3 ITEM To re-elect Y. Bhg. Tan Sri Datuk (Dr.) Rafiah Binti Salim, who retires by rotation 3 in accordance with Article 96 of the Articles of Association (Constitution) of the Company © Copyright Allianz 43

  44. Slide 44: Item 4(a): Re-election of Marzida Binti Mohd Noor

    ORDINARY RESOLUTION 4 ITEM To re-elect Ms. Marzida Binti Mohd Noor, who was appointed to the Board on 30 4 (a) May 2018 and retires in accordance with Article 102 of the Articles of Association of the Company (Constitution) © Copyright Allianz 44

  45. Slide 45: Item 4(b): Re-election of Solmaz Altin

    ORDINARY RESOLUTION 5 ITEM To re-elect Mr. Solmaz Altin, who was appointed to the Board on 30 May 2018 4 (b) and retires in accordance with Article 102 of the Articles of Association of the Company (Constitution) © Copyright Allianz 45

  46. Slide 46: Item 4(c): Re-election of Renate Wagner

    ORDINARY RESOLUTION 6 ITEM To re-elect Madam Renate Wagner, who was appointed to the Board on 30 May 4 (c) 2018 and retires in accordance with Article 102 of the Articles of Association of the Company (Constitution) © Copyright Allianz 46

  47. Slide 47: Item 5: Re-appointment of Auditors

    ORDINARY RESOLUTION 7 To re-appoint Messrs ITEM PricewaterhouseCoopers PLT as auditors of the Company for the financial year 5 ending 31 December 2019 and to authorise the Directors to fix their remuneration © Copyright Allianz 47

  48. Slide 48: Item 6: Shareholders' Mandate for Related Party Transactions with Allianz SE Group

    ORDINARY RESOLUTION 8 ITEM Proposed Shareholders’ Mandate for 6 Recurrent Related Party Transactions with Allianz SE Group © Copyright Allianz 48

  49. Slide 49: Item 7: Shareholders' Mandate for Related Party Transactions with Rapidpro

    ORDINARY RESOLUTION 9 ITEM Proposed Shareholders’ Mandate for Recurrent Related Party Transactions with 7 Rapidpro Consulting Sdn Bhd © Copyright Allianz 49

  50. Slide 50: Special Resolution: Adoption of New Constitution

    SPECIAL RESOLUTION 1 ITEM Proposed Adoption of the 8 New Constitution of the Company © Copyright Allianz 50

  51. Slide 51: Any Other Business

    ANY OTHER BUSINESS © Copyright Allianz 51

  52. Slide 52: Briefing on Electronic Voting

    BRIEFING ON ELECTRONIC VOTING © Copyright Allianz 52

  53. Slide 53: Meeting Adjourned for Poll Voting Count

    MEETING ADJOURNED FOR POLL VOTING COUNT © Copyright Allianz 53

  54. Slide 54: Further Questions: Enquiry Box at Registration Counter

    IF YOU HAVE ANY FURTHER QUESTION, PLEASE DROP YOUR QUESTION INTO THE ENQUIRY BOX AT THE REGISTRATION COUNTER. WE WILL ENDEAVOR TO REPLY YOU WITHIN 7 WORKING DAYS. © Copyright Allianz 54

  55. Slide 55: Thank You

    THANK YOU © Copyright Allianz 55

Allianz Malaysia Berhad — Shareholder Meeting (May 2019) on 6ix