Allianz Malaysia Bhd. · MYX:ALLIANZ

Allianz Malaysia Bhd — Q1 2017 Earnings Presentation

30 slides from Allianz Malaysia Bhd's earnings presentation, Jun 1, 2017

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

    Allianz Malaysia Berhad (12428-W) Financial Results 1Q 2017 Analyst Briefing 1 June 2017

  2. Slide 2: Allianz - Committed To Growth In Malaysia

    Allianz - Committed To Growth In Malaysia Strong GWP growth despite difficult Protecting Malaysians with a market sentiments range of insurance solutions 8.8% CAGR Life: 514,486 Total: 3,968 4,133 4,183 2.5mn 2,984 3,579 customers Non-life: 2012 2013 2014 2015 2016 2,033,276 Gross Written Premiums (

  3. Slide 3: Distribution Partnership with Standard Chartered Bank from 2017 onwards

    Distribution Partnership with Standard Chartered Bank from 2017 onwards • 15-Year bancassurance agreement to distribute general insurance products • In 5 Key markets - Malaysia, Hong Kong, Singapore, Indonesia and China • Product offerings include Travel, PA, Fire and Motor Insurance products to SCB

  4. Slide 4: Establish strong presence in the digital ecosystem

    Establish strong presence in the digital ecosystem Collaboration with government agencies and fintech communities to drive new acquisition of digital partners and adoption of innovation 1 Allianz x , &  Malaysian Digital Economy Corporation  Agency under Ministry of Communications & Multimedia Fin

  5. Slide 5: Malaysia as the Allianz Regional Centre of Competence

    Malaysia as the Allianz Regional Centre of Competence Established / establishing Planned General Centre of Competence • Leading General Operating Entity within Actuarial Centre of Competence the Asia Pacific Region • Set-up Life actuarial liability and asset modelling • Point of reference for Genera

  6. Slide 6: AMB Group Results

    Allianz @i) AMB Group Results

  7. Slide 7: Good start in 2017 despite the challenging operating environment

    Allianz Malaysia Berhad (12428-W) Good start in 2017 despite the challenging operating environment Operating revenue  Group operating revenue of RM1.21 billion, an increase of 3.6% as compared to corresponding period of RM1.17 billion due to higher gross earned premiums and investment income by RM2

  8. Slide 8: Financial Highlights 3M 2017: Group Operating Revenue

    Allianz Malaysia Berhad (12428-W) Financial Highlights 3M 2017 Group Operating Revenue (RM’mil) General Business (RM’mil) +3.6% +0.3% 563.7 565.3 3M 2016 3M 2017 1,167.3 1,209.0 Life Business (RM’mil) +6.6% 600.3 640.2 3M 2016 3M 2017 3M 2016 3M 2017 8 8

  9. Slide 9: Financial Highlights 3M 2017: Group Gross Written Premiums

    Allianz Malaysia Berhad (12428-W) Financial Highlights 3M 2017 Group Gross Written Premiums (“GWP”) (RM’mil) General Business (RM’mil) +4.1% +2.6% 547.0 561.0 3M 2016 3M 2017 1,072.5 1,116.0 Life Business (RM’mil) +5.6% 525.5 555.0 3M 2016 3M 2017 9 3M 2016 3M 2017 9

  10. Slide 10: Financial Highlights 3M 2017: Group Profit Before Tax

    Allianz Malaysia Berhad (12428-W) Financial Highlights 3M 2017 Group Profit Before Tax (RM’mil) PBT Drivers (RM’mil) -5.5% 115.0 +10.4 108.7 -16.5 -0.2 115.0 PBT General Life Investment PBT 108.7 3M 2016 Business Business Holdings 3M 2017 3M 2016 90.0 25.9 (0.9) 115.0 3M 2017 73.5 36.3 (1.1) 108.7 C

  11. Slide 11: Financial Overview

    Allianz Malaysia Berhad (12428-W) Financial Overview 3 YEAR RM’mil 2014 2015 2016 3M 2016 3M 2017 CAGR Gross Written Premiums 3,968.2 4,132.7 4,182.6 5.3% 1,072.5 1,116.0 Management Expenses 436.0 464.8 513.2 8.7% 113.3 148.1 Expense Ratio (Non 15.3% 20.3% 17.3% 16.9% 17.4% 0.5 pts Life) Expense Rat

  12. Slide 12: Summary of unaudited Financial Results

    Allianz Malaysia Berhad (12428-W) Summary of unaudited Financial Results RM’mil 3M 2016 3M 2017 17/16 % Operating revenue 1,167.3 1,209.0 3.6% Gross earned premiums 1,050.7 1,079.2 2.7% Premiums ceded to reinsurers (121.9) (122.4) (0.4%) Net earned premiums (“NEP”) 928.8 956.8 3.0% Net change in be

  13. Slide 13: General Business

    Allianz @i) General Business

  14. Slide 14: General Business

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business Gross written premiums  Gross written premium growth by 2.6% as compared to prior year. Combined ratio  Higher combined ratio due to higher expense ratio. ✔ Net investment results  Stable growth in investment income.

  15. Slide 15: General Business: GWP is 2.6% above prior year

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business: GWP is 2.6% above prior year Gross Written Premiums (RM’mil) Distribution Channel & Portfolio Mix +2.6% Telemarketing 2.8% Agent 63.6% Motor 60.9% Broker 6.3% 561.0 Banca 547.0 7.3% Franchise 20.0% Misc 9.1% Fire 19.3%

  16. Slide 16: 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) +1.0% Portfolio Mix and Investment Yield (Annualized) Portfolio Mix Investment Yield 39.9 40.3 Deposit Property 10.7% 0.6% 41.4 C

  17. Slide 17: General Business: Lower PBT due to lower underwriting profit

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business: Lower PBT due to lower underwriting profit Profit Before Tax (RM’mil) -18.3% PBT Drivers (RM’mil) 0.2 0.2 73.5 90.0 (16.9) 90.0 73.5 PBT UW Investment Others PBT 3M 2016 result income 3M 2017 3M 2016 50.1 41.2 (1.3) 90.

  18. Slide 18: 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 50.1 (7.8)  Malaysian Motor Insurance Pool (“MMIP”) - Release of MMIP claims (9.1) 33.2 reserve for Q4 2015 boo

  19. Slide 19: 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 -4.0 pts 92.6% 88.6% 15.3% 20.3% 61.1% 59.7% 12.2% 12.6% 3M 2016 3M 2017  Commission Ratio  Claims Ratio  Expense Ratio

  20. Slide 20: 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 2016 3M 2017 17/16 % Gross written premiums 547.0 561.0 2.6% Gross earned premiums 525.2 524.2 (0.2%) Net earned premiums 438.8 446.5 1.8% Net change in claims incurred

  21. Slide 21: Life Business

    Allianz @i) Life Business

  22. Slide 22: Life Business

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business Gross written premiums  Gross written premiums grew by 5.6%. Distribution  Remain focus on building professional and productive agency force.  Bancassurance recorded a growth of 13.3%.  Product mix  Focus on sales of investment-lin

  23. Slide 23: Life Business: Growth in GWP from all key distribution channels

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: Growth in GWP from all key distribution channels Gross Written Premiums (“GWP”) (RM’mil) +5.6% GWP Mix & Growth (%) (3M 2017) Mix Single 555.0 Premium 525.5 22.8% 403.3 428.5 Recurring Recurring Premium Premium Growth 77.2% Single 6.2%

  24. Slide 24: Life Business: New business sales outperform market

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: New business sales outperform market Annualised New Premiums (“ANP”) (RM’mil) ANP Channel Mix (%) +27.4% (3M 2017) 110.2 Corporate 7.2 Alternative 6.5% 1.0 Distribution/ 86.5 Bancassurance 20.7 19.7% 6.7 0.8 10.2 Agency 73.8% 81.3 68.8

  25. Slide 25: Life Business: Continue focus on profitable regular Investment-Linked products

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: Continue focus on profitable regular Investment- Linked products Agency Annualised New Premiums (RM’mil) Agency Product Mix (%) (3M 2017) +18.3% By ANP Traditional 81.4 23.2% By Policy Count 68.8 Traditional Investment- 14.9% Linked 76

  26. Slide 26: Life Business: Investment-Linked sales continue to perform well

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: Investment-Linked sales continue to perform well Annualised New Premiums (RM’mil) Gross Written Premiums (RM’mil) +25.0% +17.6% 248.0 62.5 210.9 50.0 3M 2016 3M 2017 3M 2016 3M 2017 26

  27. Slide 27: 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) -28.7% Portfolio Mix and Investment Yield (LF+SHF) (%) (Annualized) Portfolio Mix Investment Yie

  28. Slide 28: 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 2016 3M 2017 17/16 % Gross written premiums 525.5 555.0 5.6% Premiums ceded to reinsurers (35.5) (44.7) (25.9%) Net earned premiums 490.0 510.3 4.1% Net change in benefits and claims p

  29. Slide 29: Thank You for Your Attention

    Thank You for Your Attention Allianz @)

  30. Slide 30: 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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