Allianz Malaysia Bhd. · MYX:ALLIANZ

Allianz Malaysia Bhd — Q2 2022 Earnings Presentation

29 slides from Allianz Malaysia Bhd's earnings presentation, Aug 25, 2022

  1. Slide 1: Allianz Malaysia Berhad Q2 2022 Financial Results Analyst Briefing

    ALLIANZ MALAYSIA BERHAD (197201000819) Q2 2022 FINANCIAL RESULTS Analyst Briefing 25 August 2022 © 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 6M 2022

    FINANCIAL HIGHLIGHTS 6M 2022 Group General Insurance Life Insurance Investment Holding Operating Revenue (RM’mil) 3,362.2 (+5.9%) 1,332.3 (+2.6%) 2,023.4 (+8.2%) 6.5 (+8.3%) Gross Written Premium (RM’mil) 3,067.5 (+10.4%) 1,347.1 (+13.2%) 1,720.4 (+8.2%) Shareholders’ net income Combined ratio New b

  4. Slide 4: Resilient Earnings for First Half of 2022

    RESILIENT EARNINGS FOR FIRST HALF OF 2022 Comments Operating revenue Profitability • Group operating revenue of RM3.36 billion, an increase of • Group profit before tax of RM270.4 million, decreased by 5.9% compared to corresponding period of RM3.18 billion 1.2% (6M 2021: RM273.7 million) mainly due

  5. Slide 5: Financial Highlights 6M 2022: Operating Revenue

    FINANCIAL HIGHLIGHTS 6M 2022 Group General Insurance Operating Revenue (RM’mil) +5.9% +2.6% 1,332.3 1,298.4 3,362.2 3,175.2 1,707.7 1,654.5 1,606.6 1,568.6 6M 21 6M 22 Life Insurance +8.2% 2,023.4 1,870.8 1Q 21 2Q 21 1Q 22 2Q 22 6M 21 6M 22 © Copyright Allianz Malaysia Berhad 5

  6. Slide 6: Financial Highlights 6M 2022: Gross Written Premium

    FINANCIAL HIGHLIGHTS 6M 2022 Group General Insurance Gross Written Premium (“GWP”) (RM’mil) +10.4% +13.2% 1,347.1 3,067.5 1,189.6 2,779.7 1,622.5 1,482.0 1,445.0 1,297.7 6M 21 6M 22 Life Insurance +8.2% 1,720.4 1,590.1 1Q 21 2Q 21 1Q 22 2Q 22 6M 21 6M 22 © Copyright Allianz Malaysia Berhad 6

  7. Slide 7: Financial Highlights 6M 2022: Profit Before Tax

    FINANCIAL HIGHLIGHTS 6M 2022 Profit Before Tax (RM’mil) PBT drivers (RM’mil) -1.2% -1.2% +17.5%* 273.7 270.4 * 357.9 304.6 6M 21 General Life Investment 6M 22 Insurance Insurance Holding ∆ 6M 22/21 (26.3) (4.6) (68.6) 6M 2021 207.6 76.7 (10.6) 273.7 (18.9) 6M 2022 218.9 76.0 (24.5) 270.4 6M 21 6M 22

  8. Slide 8: Financial Highlights 6M 2022: Profit After Tax

    FINANCIAL HIGHLIGHTS 6M 2022 Profit After Tax (RM’mil) PAT drivers (RM’mil) -5.2% -5.2% +8.7%* * 208.7 197.9 23.0 10.9 243.5 224.1 6M 21 General Life Investment 6M 22 Insurance Insurance Holding ∆ 6M 22/21 6M 2021 155.7 65.5 (12.5) 208.7 (26.3) (68.6) 6M 2022 148.7 75.0 (25.8) 197.9 6M 21 6M 22 Chan

  9. Slide 9: Life: Higher Core PBT and PAT

    LIFE: HIGHER CORE PBT AND PAT PBT Drivers (RM’mil) PAT Drivers (RM’mil) -0.9% +14.5% +52.0%* +49.1%* 76.7 76.0 75.0 55.9 65.5 23.0 39.7 10.9 163.5 107.6 120.6 (42.3) (14.3) 80.9 12.1 (42.3) (26.3) (4.6) (68.6) (26.3) (18.9) (68.6) 6M 21 Profit Growth Fair value Tax Impact 6M 22 6M 21 Profit Growth F

  10. Slide 10: Financial Overview

    FINANCIAL OVERVIEW 3 YEAR RM’mil 2019 2020 2021 CAGR 6M 2021 6M 2022 (2018-2021) Gross Written Premiums 4,922.5 5,305.2 5,689.6 8.1% 2,779.7 3,067.5 Management Expenses 618.0 641.4 683.8 7.2% 327.3 308.2 Expense Ratio (Non Life) 20.2% 19.8% 18.7% 0.5 pts 18.0% 14.7% Expense Ratio (Life)1 10.5% 9.4%

  11. Slide 11: Summary of Unaudited Financial Results

    SUMMARY OF UNAUDITED FINANCIAL RESULTS RM’mil 6M 2021 6M 2022 22/21 % Operating Revenue 3,175.2 3,362.2 5.9% Gross Earned Premium 2,798.1 2,959.2 5.8% Premiums ceded to reinsurers (194.1) (186.1) 4.1% Net earned premiums (“NEP”) 2,604.0 2,773.1 6.5% Net change in benefits and claims paid (“Claim”)

  12. Slide 12: General Business

    02 GENERAL BUSINESS © Copyright Allianz Malaysia Berhad 12

  13. Slide 13: General Business Comments

    GENERAL BUSINESS Comments Gross written premiums Combined ratio • Gross written premium increased by 13.2% as compared to • Lower combined ratio by 2.0 pts from lower claims ratio and prior year. expense ratio excluding impact of VSC adjustment (See Note 11 page 28 of Q2 2022 Quarter Announcement fo

  14. Slide 14: General Business: GWP Is 13.2% Higher Than Prior Year

    GENERAL BUSINESS: GWP IS 13.2% HIGHER THAN PRIOR YEAR Gross Written Premium (RM’mil) Distribution Channel & Portfolio Mix +13.2% Telemaketing 2.0% Agent 58.9% 1,347.1 1,189.6 Broker 8.1% Banca 1.7% Franchise 29.3% Fire 733.7 13.9% 656.4 613.4 Marine 533.2 2.8% PA & Health 9.1% Motor Misc 60.5% 1Q 21

  15. Slide 15: General Business: Stable Growth in Investment Income

    GENERAL BUSINESS: STABLE GROWTH IN INVESTMENT INCOME Net Investment Results/ Net Operating Expenses (RM’mil) Portfolio Mix and Investment Yield (Annualised) -3.4% Portfolio Mix Investment Yield * 87.8 84.8 Deposit Unquoted 5.4% Unit Trust 19.9% 44.6 44.9 43.5 42.1 Corp 3.3% 3.3% Bond 27.1% Govt (0.4

  16. Slide 16: General Business: Higher Profit Before Tax from Higher Underwriting Results

    GENERAL BUSINESS: HIGHER PROFIT BEFORE TAX FROM HIGHER UNDERWRITING RESULTS Profit Before Tax (RM’mil) PBT Drivers (RM’mil) +5.4% 218.9 207.6 115.0 116.7 102.2 92.6 6M 21 UW result Investment Others 6M 22 6M 2021 119.8 89.5 (1.7) 207.6 6M 2022 144.9 74.8 (0.8) 218.9 1Q 21 2Q 21 1Q 22 2Q 22 Change 25

  17. Slide 17: General Business: Lower Combined Ratio Due to Lower Expense Ratio

    GENERAL BUSINESS: LOWER COMBINED RATIO DUE TO LOWER EXPENSE RATIO Combined Ratio +2.0 pts 90.5% 88.9% 88.9% 87.2% 84.9% 86.9% 18.4% 18.0% 18.1% 11.5% 14.7% 17.5% 59.7% 58.1% 58.9% 57.6% 61.5% 59.6% 12.4% 11.6% 12.0% 13.2% 11.9% 12.6% 1Q 21 2Q 21 6M 21 1Q 22 2Q 22 6M 22 Commission Ratio Claims Ratio

  18. Slide 18: General Business: Unaudited Financial Results at a Glance

    GENERAL BUSINESS: UNAUDITED FINANCIAL RESULTS AT A GLANCE RM’mil 6M 2021 6M 2022 22/21 % Gross written premiums 1,189.6 1,347.1 13.2% Gross earned premiums 1,208.0 1,238.8 2.5% Net earned premiums 1,084.9 1,117.1 3.0% Net change in claims incurred (638.9) (666.0) (4.2%) Management expenses (196.5)

  19. Slide 19: General Business: Performance Compared to Industry (Jan-Jun 2022)

    GENERAL BUSINESS: PERFORMANCE COMPARED TO INDUSTRY (JAN-JUN 2022) KPIs AGIC Industry 1 Takaful 1 6M 2022 6M 2022 6M 2022 GWP growth 13.2% 9.6% 19.7% Commission ratio 12.6% 10.9% 10.3% Claims ratio • Overall 59.6% 53.2% 60.0% • Motor 54.8% 61.4% 74.2% Expense ratio 14.7% 23.9% 33.5% Combined ratio 86

  20. Slide 20: Life Business

    03 LIFE BUSINESS © Copyright Allianz Malaysia Berhad 20

  21. Slide 21: Life Business Comments

    LIFE BUSINESS Comments Gross written premiums Product mix • Gross written premiums grew by 8.2% from all key • Remain focused on sales of investment-linked products with distribution channels. protection rider which provides higher margins but to also cater for demand for saving products. Market Gro

  22. Slide 22: Life Business: Y-O-Y Growth Driven by Single and Recurring Premium

    LIFE BUSINESS: Y-O-Y GROWTH DRIVEN BY SINGLE PREMIUM AND RECURRING PREMIUM Gross Written Premiums (“GWP”) (RM’mil) GWP Mix & Growth (%) (6M 2022) +8.2% Mix Single Premium 19.2% 1,720.4 1,590.1 888.8 825.6 831.6 764.5 Recurring Premium 80.8% 689.7 Growth 642.1 701.2 652.5 11.5% 199.1 7.4% 183.5 112.0

  23. Slide 23: Life Business: Lower Contribution from Agency Channel

    LIFE BUSINESS: LOWER CONTRIBUTION FROM AGENCY CHANNEL Annualised New Premiums (“ANP”) (RM’mil) ANP Channel Mix (%) (6M 2022) -6.3% Alternative 323.3 Distribution/ 303.0 Bancassurance 171.3 26.7% 12.1 152.0 155.9 0.0 147.1 7.4 Growth +24.0% 6.2 0.1 0.1 32.6 13.4 32.6 0.0 39.7 41.2 Corporate Agency 6.

  24. Slide 24: Life Business (Agency): Lower Sales Momentum in Line with Industry

    LIFE BUSINESS (AGENCY): LOWER SALES MOMENTUM FROM AGENCY IN LINE WITH INDUSTRY Agency Annualised New Premiums (RM’mil) Agency Product Mix (%) (6M 2022) -16.1% Q1 -26.9% Traditional Q2 -3.9% By ANP 39.7% By Policy Count 239.7 Traditional 201.2 39.3% 126.6 113.1 108.7 92.2 92.5 Investment Investment 9

  25. Slide 25: Life Business: Protection Business (Investment-Linked) Continues to Grow

    LIFE BUSINESS: PROTECTION BUSINESS (INVESTMENT-LINKED) CONTINUES TO GROW Annualised New Premiums (RM’mil) Gross Written Premiums (RM’mil) +3.4% +12.8% 156.8 985.0 151.7 873.5 83.0 490.7 494.3 79.5 72.2 73.8 429.9 443.6 1Q 21 2Q 21 1Q 22 2Q 22 1Q 21 2Q 21 1Q 22 2Q 22 © Copyright Allianz Malaysia Berh

  26. Slide 26: Life Business: Investment Results Impacted by Fair Value Losses

    LIFE BUSINESS: INVESTMENT RESULTS IMPACTED BY FAIR VALUE LOSSES AS INTEREST RATE GOES UP Investment Results by funds Investment Results Portfolio Mix and Investment Yield (LF+SHF) (%) (Annualised) (RM’mil) (RM’mil) Portfolio Mix Investment Yield >100% >100% Others Cash Loans 8.0% 0.4% (56.7) (56.7)

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

    LIFE BUSINESS: UNAUDITED FINANCIAL RESULTS AT A GLANCE RM’mil 6M 2021 6M 2022 22/21 % Gross written premiums 1,590.1 1,720.4 8.2% Premiums ceded to reinsurers (71.0) (64.4) 9.3% Net earned premiums 1,519.1 1,656.0 9.0% Net change in benefits and claims paid (571.2) (764.5) (33.8%) Net change in con

  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 — Q2 2022 Earnings Presentation on 6ix