Allianz Malaysia Bhd. · MYX:ALLIANZ

Allianz Malaysia Bhd — Q4 2023 Earnings Presentation

29 slides from Allianz Malaysia Bhd's earnings presentation, Feb 27, 2024

  1. Slide 1: Allianz Malaysia Berhad Q4 2023 Financial Results Analyst Briefing

    ALLIANZ MALAYSIA BERHAD (197201000819) Q4 2023 FINANCIAL RESULTS MFRS 9/17 Analyst Briefing 27 February 2024 © Copyright Allianz Malaysia Berhad

  2. Slide 2: AMB Group Financial Results

    01 AMB GROUP FINANCIAL RESULTS © Copyright Allianz Malaysia Berhad 2

  3. Slide 3: Financial Highlights 12M 2023

    FINANCIAL HIGHLIGHTS 12M 2023 Group General Insurance Life Insurance Investment Holding Investment Holding Gross Written Premium (RM’mil) 6,546.5 (+8.7%) 3,003.5 (+13.1%) 3,543.0 (+5.2%) Insurance Revenue (RM’mil) 4,941.6 (+11.8%) 2,772.8 (+8.0%) 2,168.8 (+17.1%) Profit Before Tax (RM’mil) 956.9 (+9

  4. Slide 4: Strong Performance with Robust Top Line Growth and Resilient Earnings

    STRONG PERFORMANCE WITH ROBUST TOP LINE GROWTH AND RESILIENT EARNINGS Comments Insurance revenue Profitability • Group insurance revenue of RM4.94 billion, an increase of 11.8% • Group profit before tax of RM956.9 million, increased by 9.5% from RM4.42 billion in 2022 due to strong insurance revenue

  5. Slide 5: Financial Highlights 12M 2023: Gross Written Premium

    FINANCIAL HIGHLIGHTS 12M 2023 Group General Insurance Gross Written Premium (“GWP”) (RM’mil) +8.7% +13.1% 3,003.5 6,546.5 6,023.0 2,656.3 1,705.3 1,730.7 1,630.2 1,598.6 1,511.9 1,449.5 1,488.2 1,455.1 776.1 789.0 12M 22 12M 23 741.4 752.4 617.9 660.7 636.3 686.0 Life Insurance +5.2% 3,543.0 929.2 9

  6. Slide 6: Financial Highlights 12M 2023: Insurance Revenue

    FINANCIAL HIGHLIGHTS 12M 2023 Group General Insurance Insurance Revenue (RM’mil) +11.8% +8.0% 4,941.6 2,772.8 4,418.8 2,566.5 1,306.0 1,309.5 1,154.5 1,161.4 1,164.7 1,118.5 1,063.1 1,082.7 706.9 738.5 12M 22 12M 23 677.7 661.5 665.9 Life Insurance 612.1 624.2 652.5 +17.1% 2,168.8 1,852.3 599.1 571.

  7. Slide 7: Profit Before Tax and Profit After Tax Drivers

    FINANCIAL HIGHLIGHTS 12M 2023 Profit Before Tax drivers (RM’mil) Profit After Tax drivers (RM’mil) +9.5% +19.1% 12M 22 General Life Investment 12M 23 12M 22 General Life Investment 12M 23 Insurance Insurance Holding Insurance Insurance Holding ∆ 12M 23/22 ∆ 12M 23/22 12M 2022 515.3 377.6 (19.2) 873.

  8. Slide 8: Life Business: CSM Growth Good at 10.8%

    LIFE BUSINESS: CSM GROWTH GOOD AT 10.8% Contractual Service Margin (RM’mil) +10.8% 1 CSM (net) 2,115.3 Reinsurance 142.6 Non-attributable cost 322.3 Tax 668.0 CSM (gross) 3,248.2 3,248.2 2 VNB (12M 23) 349.3 + Non-attr. Cost 139.4 - Scope / other (11.2) = New business @ inception 477.5 Economic and

  9. Slide 9: Financial Overview MFRS 4 Basis and MFRS 9/17 Basis

    FINANCIAL OVERVIEW MFRS 4 BASIS MFRS 9/17 BASIS 3 YEAR RM’mil 2020 2021 2022 CAGR 12M 2022 12M 2023 (2019-2022) Gross Written Premiums 5,305.2 5,689.6 6,021.7 6.9% 6,023.0 6,546.5 CSM Release N/A N/A N/A N/A 368.6 433.1 Expense Ratio (Non Life)1 32.9% 31.2% 29.6% 2.3 pts 26.6% 26.3% Expense Ratio (L

  10. Slide 10: Summary of Audited Financial Results

    SUMMARY OF AUDITED FINANCIAL RESULTS RM’mil 12M 2022 12M 2023 23/22 % Insurance revenue 4,418.8 4,941.6 11.8% Claims and benefits (2,296.2) (2,675.6) 16.5% Acquisition and administrative expenses (net) (1,071.0) (1,252.0) 16.9% Reversal of losses on onerous contracts 19.5 31.0 59.0% Insurance servi

  11. Slide 11: General Business

    02 GENERAL BUSINESS © Copyright Allianz Malaysia Berhad 11

  12. Slide 12: General Business

    GENERAL BUSINESS Comments Gross written premiums Combined ratio • Continued growth momentum in the fourth quarter with gross • Higher combined ratio by 0.7 pts contributed by higher claims written premium increased by 13.1% as compared to prior ratio. year. Higher premium stemming from motor busines

  13. Slide 13: General Business: Good Sales Momentum with Double Digit GWP Growth

    GENERAL BUSINESS: GOOD SALES MOMENTUM WITH DOUBLE DIGIT GWP GROWTH Gross Written Premium (RM’mil) Distribution Channel & Portfolio Mix +13.1% Telemaketing 1.9% 3,003.5 Agent 54.4% 2,656.3 Broker 12.4% Banca 1.7% Franchise 29.6% Fire 776.1 789.0 752.4 13.9% 741.4 660.7 636.3 686.0 Marine 617.9 1.9% P

  14. Slide 14: General Business: Investment Income Continued to Grow

    GENERAL BUSINESS: INVESTMENT INCOME CONTINUED TO GROW IN LINE WITH HIGHER YIELD AND INVESTMENT ASSETS Net investment income/ Net (re-)insurance finance expenses Portfolio Mix and Investment Yield (Annualised) (RM’mil) +19.8% Portfolio Mix Investment Yield * 171.6 143.2 4.8 9.7 7.1 4.6 2.5 Deposit Un

  15. Slide 15: General Business: Stronger PBT with Higher Insurance Service and Investment Income

    GENERAL BUSINESS: STRONGER PBT WITH HIGHER CONTRIBUTION FROM BOTH INSURANCE SERVICE RESULTS AND INVESTMENT INCOME Profit Before Tax (RM’mil) PBT Drivers (RM’mil) +7.9% 556.2 515.3 174.5 151.2 139.8 141.2 130.7 124.0 117.1 93.0 12M 22 Insurance Net Others 12M 23 service investment results income 12M

  16. Slide 16: General Business: Higher Combined Ratio Due to Higher Claims Ratio

    GENERAL BUSINESS: HIGHER COMBINED RATIO DUE TO HIGHER CLAIMS RATIO Combined Ratio +0.7 pts Discounting impact -2.3% Discounting impact -2.8% 88.4% 88.5% 86.6% 86.2% 85.0% 84.2% 85.7% 85.7% 81.9% 81.4% 27.7% 27.6% 26.4% 27.4% 26.6% 26.3% 26.6% 24.8% 25.9% 25.1% * 60.7% 56.0% 60.9% 56.3% 58.4% 59.4% 6

  17. Slide 17: General Business: Financial Results at a Glance

    GENERAL BUSINESS: FINANCIAL RESULTS AT A GLANCE RM’mil 12M 2022 12M 2023 23/22 % Insurance revenue 2,566.5 2,772.8 8.0% Claims (1,259.0) (1,395.8) 10.9% Acquisition and administrative expenses (net) (623.1) (671.9) 7.8% Reversal of losses on onerous contracts 10.9 35.0 >100% Net expenses from reins

  18. Slide 18: General Business: Performance Compared to Industry (Jan-Dec 2023)

    GENERAL BUSINESS: PERFORMANCE COMPARED TO INDUSTRY (JAN-DEC 2023) AGIC 1 Industry 1 Takaful 1 KPIs 12M 2023 12M 2023 12M 2023 GWP growth 13.0%* 7.8% 17.4% Market Share (12M 2023) 2 14.0% Market Ranking (9M 2023) 3 No. 1 Notes: 1) Source: ISM Market Performance Report Jan-Dec 2023 (General Insurance

  19. Slide 19: Life Business

    03 LIFE BUSINESS © Copyright Allianz Malaysia Berhad 19

  20. Slide 20: Life Business

    LIFE BUSINESS Comments Gross written premiums Product mix • Gross written premiums grew by 5.2% with growth from Agency • Remain focused on sales of investment-linked products with (+ 6.1%) and Employee Benefit (+ 21.1%). protection rider which provides higher margins but to also cater for demand fo

  21. Slide 21: Life Business: Strong First Year Premium and In-Force Premium

    LIFE BUSINESS: STRONG FIRST YEAR PREMIUM AND IN-FORCE PREMIUM Gross Written Premiums (“GWP”) (RM’mil) GWP Mix & Growth (%) (12M 2023) +5.2% Mix Single Premium 3,543.0 16.0% 3,366.7 929.2 941.7 888.8 Total 831.6 827.5 825.9 846.2 818.8 3,543.0 Recurring Premium 84.0% 679.5 703.7 Growth 802.2 682.3 68

  22. Slide 22: Life Business: Growth in ANP Driven by All Key Distribution Channels

    LIFE BUSINESS: GROWTH IN ANP DRIVEN BY ALL KEY DISTRIBUTION CHANNELS Annualised New Premiums (“ANP”) (RM’mil) ANP Channel Mix (%) (12M 2023) +14.6% 757.6 661.0 231.6 Bancassurance/Direct Marketing 8.0 25.4% 204.8 194.5 5.0 4.0 50.8 Growth +5.2% 163.5 163.4 45.1 155.9 50.6 157.8 147.1 7.7 18.9 7.9 7.

  23. Slide 23: Life Business: Growth in ANP Driven by All Key Distribution Channels

    LIFE BUSINESS: GROWTH IN ANP DRIVEN BY ALL KEY DISTRIBUTION CHANNELS Source: LIAM NB Statistics (2023 & 2022) © Copyright Allianz Malaysia Berhad 23

  24. Slide 24: Life Business (Agency): Focus on Regular Investment-Linked Products

    LIFE BUSINESS (AGENCY): CONTINUE FOCUS ON PREFERRED SEGMENT OF REGULAR INVESTMENT-LINKED PRODUCTS WITH BETTER MARGINS Agency Annualised New Premiums (RM’mil) Agency Product Mix (%) (12M 2023) +18.0% Q1 +1.1% Q2 -4.6% By ANP By Policy Count 524.8 Q3 +66.5% Traditional 32.6% Traditional Q4 +10.7% 14.0

  25. Slide 25: Life Business: Investment-Linked with Protection Features Continues to Grow

    LIFE BUSINESS: INVESTMENT-LINKED WITH PROTECTION FEATURES CONTINUES TO GROW Annualised New Premiums (RM’mil) Gross Written Premiums (RM’mil) +9.1% +5.8% 2,126.4 414.1 2,010.4 379.5 566.3 136.2 123.3 539.5 526.1 99.4 100.0 509.8 510.8 91.8 499.3 83.0 86.1 490.7 494.3 73.8 1Q 22 2Q 22 3Q 22 4Q 22 1Q 2

  26. Slide 26: Life Business: Higher Investment Income Driven by Higher Yield and Asset Base

    LIFE BUSINESS: HIGHER INVESTMENT INCOME DRIVEN BY HIGHER YIELD AND INVESTMENT ASSETS BASE Investment Income by funds Portfolio Mix and Investment Yield (LF+SHF) (%) (RM’mil) Investment Yield Portfolio Mix >100% (Annualised) Cash Others Loans 0.4% 907.7 6.9% 0.0% Equities Govt Bonds 155.0 8.3% 57.3%

  27. Slide 27: Life Business: Financial Results at a Glance

    LIFE BUSINESS: FINANCIAL RESULTS AT A GLANCE RM’mil 12M 2022 12M 2023 23/22 % Insurance revenue 1,852.3 2,168.8 17.1% - Release contractual service margin 368.6 433.1 17.5% - Release of expected cash flows, risk adjustments and others 1,483.7 1,735.7 17.0% Claims and benefits (1,031.6) (1,279.4) 24

  28. Slide 28: Thank You for Your Attention

    THANK YOU FOR YOUR ATTENTION © Copyright Allianz Malaysia Berhad

  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 expectations and Union, (xi) changes in the policies of central banks and/or foreign government

Allianz Malaysia Berhad — Q4 2023 Earnings Presentation on 6ix