Allianz Malaysia Bhd. · MYX:ALLIANZ

Allianz Malaysia Bhd — Shareholder Meeting (June 2021)

22 slides from Allianz Malaysia Bhd's shareholder meeting presentation, Jun 23, 2021

  1. Slide 1: Look Forward With Confidence - 47th Annual General Meeting

    LOOK FORWARD WITH CONFIDENCE 47TH ANNUAL GENERAL MEETING ALLIANZ MALAYSIA BERHAD (197201000819 (12428-W)) 23 JUNE 2021 © Copyright Allianz SE

  2. Slide 2: Group Performance

    GROUP PERFORMANCE 01 © Copyright Allianz SE 7

  3. Slide 3: Insurance industry outlook expected to remain challenging amidst COVID-19

    THE OUTLOOK FOR THE INSURANCE INDUSTRY IS EXPECTED TO REMAIN CHALLENGING AMIDST WEAK CONSUMER SENTIMENT AND UNCERTAIN ECONOMY RECOVERY ARISING FROM THE COVID-19 Malaysian Conventional Insurance Industry 21 1.2% 1 -0.6% -5.6% General insurers Insurance penetration GWP GROWTH 2020 GDP GROWTH 2020 (% o

  4. Slide 4: Sound fundamental business to overcome the challenges

    SOUND FUNDAMENTAL BUSINESS TO OVERCOME THE CHALLENGES FY 2020 RM 5.95bn RM 5.31bn RM 729.6mn + 7.4% (2019 +6.8%) + 7.8% (2019 +9.3%) +5.4% (2019 +33.4%) Operating revenue GWP Profit before tax ALIM RM 309mn - 9.4% AGIC RM 432mn +19.2% AMB RM (11mn) -1.8% RM 2.28 RM 0.58 RM 21.9bn +11.6% (2019 +21.4%

  5. Slide 5: Stable business growth despite the pandemic

    STABLE BUSINESS GROWTH DESPITE THE PANDEMIC Gross Written Premium (GWP) (RM’ mil) 5-yr CAGR +5.1% +7.8% 5,305 Allianz Life maintained its 4,923 4,505 top 5 position in ANP, with 4,133 4,183 4,285 Allianz Life 7.7% market share1 (2019 8.5%) 2,725 2,949 +8.2% y-o-y growth 1,952 2,150 2,384 2,100 Allia

  6. Slide 6: Resilient and diversified business portfolio to protect group's earnings

    RESILIENT AND DIVERSIFIED BUSINESS PORTFOLIO TO PROTECT GROUP'S EARNINGS Profit before Tax (RM’ mil) Maintain strong discipline in pricing & 5-yr CAGR prudent expense management +10.8% +5.4% 730 Deliver healthy and 692 sustainable margins. Achieved NBV of 519 298 Allianz Life 341 RM239mn in 2020 438

  7. Slide 7: Delivered higher core profit

    DELIVERED HIGHER CORE PROFIT. STRONG UNDERWRITING RESULTS FROM GENERAL INSURANCE SEGMENT AND PROFITABLE LIFE PROTECTION BUSINESS Profit before Tax (RM’ mil) Core profit excluding fair value and tax impact (RM’ mil) +5.4% +10.7% +10.7% 70 730 * 692 (3) (0) 691 (13) (16) 27 43 12 624 25 270 273 Allian

  8. Slide 8: Our solid track record

    OUR SOLID TRACK RECORD 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 C

  9. Slide 9: Maintain strong shareholders' dividend return

    MAINTAIN STRONG SHAREHOLDERS’ DIVIDEND RETURN 2018 2019 2020 Dividend Yield 3.1% 4.4% 4.3% Dividend Per Share (RM sen) Payout Ratio 40.3% 50.2% 42.4% Dividend policy of minimum payment ratio of 30% is subject to: Ordinary Share Preference Share 5-yr CAGR Meeting regulatory capital -10.8% +54.9% +62.

  10. Slide 10: General Business

    GENERAL BUSINESS 02 © Copyright Allianz SE 15

  11. Slide 11: Allianz General: maintaining market leadership

    ALLIANZ GENERAL: MAINTAINING MARKET LEADERSHIP KPIs ALLIANZ ALLIANZ Industry1 Takaful1 GENERAL GENERAL 12M 2020 12M 2020 12M 2020 12M 2019 GWP growth 7.2% 3.6% -0.6% 4.6% Commission ratio 13.1% 11.7% 9.9% 8.4% Claims ratio  Overall 55.5% 59.1% 52.9% 55.7%  Motor 59.6% 63.6% 62.5% 68.2% Expense rat

  12. Slide 12: Outperforming industry amidst subdued growth environment

    OUTPERFORMING INDUSTRY AMIDST SUBDUED GROWTH ENVIRONMENT Gross Written Premium (RM’ mil) Distribution Channel & Portfolio Mix 2020 GI Industry Growth -0.6% Telemaketing 2.4% +7.2% Agent 55.6% Broker 11.7% CIMB -143 CIMB -143 Banca 1.6% Franchise 28.7% Fire 14.5% 2,356 2,181 2,083 2,136 2,121 2,198 M

  13. Slide 13: General business: higher underwriting profit and investment income

    GENERAL BUSINESS: HIGHER UNDERWRITING PROFIT & INVESTMENT INCOME Profit Before Tax (RM’ mil) PBT Drivers (RM’ mil) (1) +19.2% 432 12M 19 UW result Investment Others 12M 20 362 12M 2019 167 195 1 362 12M 2020 236 197 0 432 Change 69 2 (1) 70 2019 2020 © Copyright Allianz SE 18

  14. Slide 14: 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% 88.4% 86.0% 85.4% 84.2% 18.4% 19.9% 20.5% 17.2% 20.2% 19.9% 17.6% 19.8% 24.5% 21.6% 61.1% 65.3%* 62.3% 58.7% 59.1% 54.5% 56.3% 55.5% 51.6% 49.0% 12.2% 12.0% 12.8% 9.9% 11.7% 1

  15. Slide 15: AGIC - Strategic overview for next 3-5 years

    AGIC - STRATEGIC OVERVIEW FOR NEXT 3 – 5 YEARS OUTPERFORM TRANSFORM REBALANCE into a simple, digital, and analytics driven our peers and maintain market leadership; our portfolio towards attractive segments organisation; RENEWAL AGENDA 2.0 CUSTOMER Transformation of business steering based on custom

  16. Slide 16: Life Business

    LIFE BUSINESS 03 © Copyright Allianz SE 21

  17. Slide 17: Life business: year-on-year growth driven by recurring premium

    LIFE BUSINESS: YEAR-ON-YEAR GROWTH DRIVEN BY RECURRING PREMIUM Gross Written Premiums (“GWP”) (RM’ mil) GWP Mix & Growth (%) (12M 2020) Mix Single Premium 17.3% +8.2% 2,949 2,725 Recurring Premium 2,236 2,439 82.7% Growth 489 510 9.1% 2019 2020 4.1% Single Premium Recurring Premium Single Recurring

  18. Slide 18: Life business: ANP growth affected by COVID-19 and MCO

    LIFE BUSINESS: ANP GROWTH AFFECTED BY COVID-19 AND PHASES OF MCO Annualised New Premiums (“ANP”) (RM’ mil) ANP Channel Mix (%) (12M 2020) Corporate -10.6% Alternative 595 5.2% Distribution/ 25 532 Bancassurance 0 116 28 20.2% 0 107 Agency 454 74.6% 397 2019 2020 Agency Bancassurance Direct Marketing

  19. Slide 19: Life business (agency): recovery of new business in second half

    LIFE BUSINESS (AGENCY): RECOVERY OF NEW BUSINESS IN SECOND HALF OF THE YEAR Agency Annualised New Premiums (RM’mil) Agency Product Mix (%) (12M 2020) By ANP By Policy Count -12.6% Traditional Traditional 454 38.5% 24.3% 397 122 Investment- Investment- 153 Linked Linked 61.5% 75.7% 332 Agency ANP Gro

  20. Slide 20: Life business delivered stable core profit

    LIFE BUSINESS DELIVERED STABLE CORE PROFIT Profit Before Tax (RM’ mil) +21.4% -9.4% • Focus on healthy and sustainable margins supported by disciplined 341 pricing methodologies and sound risk 309 management. 68 -1.0% 39 • Focus on writing more investment- linked protection products with 273 270 pro

  21. Slide 21: Digital transformation in life and health

    DIGITAL TRANSFORMATION IN LIFE AND HEALTH Aiming for the following objectives to enable Next-Gen business processes Simple and optimized processes Instant and real time decisions and communication Straight through “no touch” and instant rule based processing Paperless Input - Digital Submissions and

  22. Slide 22: Allianz We Care Community

    ALLIANZ WE CARE COMMUNITY Non-Customer, Complimentary Allianz Careline 20%, ~160K COVID-19 (Dedicated telehealth Coverage support) Total Valid Pharmacy e- Registration as Digital Health & Life Voucher at 30 May Coaching Programme 2021 ~860K Online Doctor Discounted Health Customer, 80%, ~700K Tele-c

Allianz Malaysia Berhad — Shareholder Meeting (June 2021) on 6ix