Allianz Malaysia Bhd. · MYX:ALLIANZ

Allianz Malaysia Bhd — Q1 2019 Earnings Presentation

27 slides from Allianz Malaysia Bhd's earnings presentation, May 24, 2019

  1. Slide 1: Allianz Malaysia Berhad Financial Results 1Q 2019 Analyst Briefing

    Allianz Malaysia Berhad (12428-W) Financial Results 1Q 2019 Analyst Briefing 24 May 2019

  2. Slide 2: AMB Group Results

    Allianz @i) AMB Group Results

  3. Slide 3: Profitable growth from Diversification in Two Strong Pillars of Businesses

    Allianz Malaysia Berhad (12428-W) Profitable growth from Diversification in Two Strong Pillars of Businesses Operating revenue  Group operating revenue of RM1.34 billion, an increase of 5.7% as compared to corresponding period of RM1.27 billion due to higher gross earned premiums and investment inc

  4. Slide 4: Financial Highlights 3M 2019: Operating Revenue

    Allianz Malaysia Berhad (12428-W) Financial Highlights 3M 2019 Operating Revenue (RM’mil) General Business (RM’mil) +5.7% -3.9% 594.8 571.4 3M 2018 3M 2019 1,344.3 Life Business (RM’mil) 1,271.4 +14.3% 769.3 673.1 3M 2018 3M 2019 3M 2018 3M 2019 4

  5. Slide 5: Financial Highlights 3M 2019: Gross Written Premiums

    Allianz Malaysia Berhad (12428-W) Financial Highlights 3M 2019 Gross Written Premiums (“GWP”) (RM’mil) General Business (RM’mil) +4.2% -6.4% 585.7 548.3 3M 2018 3M 2019 1,157.7 1,206.2 Life Business (RM’mil) +15.0% 657.9 572.0 3M 2018 3M 2019 3M 2018 3M 2019 5

  6. Slide 6: Financial Highlights 3M 2019: Profit Before Tax and PBT Drivers

    Allianz Malaysia Berhad (12428-W) Financial Highlights 3M 2019 Profit Before Tax (RM’mil) PBT Drivers (RM’mil) +18.5% +27.4 -1.1 151.2 127.6 -2.7 151.2 127.6 PBT General Life Investment PBT 3M 2018 Business Business Holdings 3M 2019 3M 2018 88.3 41.5 (2.2) 127.6 3M 2019 85.6 68.9 (3.3) 151.2 Change

  7. Slide 7: Financial Overview

    Allianz Malaysia Berhad (12428-W) Financial Overview 3 YEAR RM’mil 2016 2017 2018 3M 2018 3M 2019 CAGR Gross Written Premiums 4,182.6 4,285.4 4,504.8 2.9% 1,157.7 1,206.2 Management Expenses 513.2 603.8 554.9 6.1% 135.7 151.9 Expense Ratio (Non 17.4% 20.3% 18.4% (1.5) pts 16.7% 20.4% Life) Expense R

  8. Slide 8: Summary of unaudited Financial Results

    Allianz Malaysia Berhad (12428-W) Summary of unaudited Financial Results RM’mil 3M 2018 3M 2019 19/18 % Operating revenue 1,271.4 1,344.3 5.7% Gross earned premiums 1,123.0 1,183.4 5.4% Premiums ceded to reinsurers (97.2) (83.2) 14.4% Net earned premiums (“NEP”) 1,025.8 1,100.2 7.3% Net change in b

  9. Slide 9: General Business

    Allianz @i) General Business

  10. Slide 10: General Business

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business Gross written premiums  Gross written premium declined by 6.4% as compared to prior year. Profitability  Lower profit before tax due to lower underwriting profit. ✔ Net investment results  Stable growth in investment

  11. Slide 11: General Business: GWP is marginally below prior year

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business: GWP is marginally below prior year Gross Written Premiums (RM’mil) -6.4% Distribution Channel & Portfolio Mix Telemarketing 3.0% Agent 65.1% Broker Motor 8.7% 61.2% 585.7 548.3 Banca 1.3% Franchise 21.9% Fire Misc 15.6%

  12. Slide 12: 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) +6.2% Portfolio Mix and Investment Yield (Annualized) Portfolio Mix Investment Yield 46.2 Unquoted 43.5 unit trust Property 0.4 9

  13. Slide 13: 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) PBT Drivers (RM’mil) -3.1% 88.3 (5.4) 2.0 0.7 85.6 88.3 85.6 PBT UW Investment Others PBT 3M 2018 result income 3M 2019 3M 2018 44.8 43.8 (0.3) 88.3

  14. Slide 14: 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 -0.7pts 90.6% 91.3% 16.7% 20.4% 61.1% 58.7% 12.8% 12.2% 3M 2018 3M 2019  Commission Ratio  Claims Ratio  Expense Ratio

  15. Slide 15: 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 2018 3M 2019 19/18 % Gross written premiums 585.7 548.3 (6.4%) Gross earned premiums 551.0 525.5 (4.6%) Net earned premiums 479.2 458.1 (4.4%) Net change in claims incu

  16. Slide 16: General Business: Performance compared to Industry (Jan-Mar 2019)

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) General Business: Performance compared to Industry (Jan-Mar 2019) AGIC Industry 1 Takaful 2 KPIs 3M 2019 3M 2019 3M 2019 GWP growth -6.4% -7.6% 16.5% Commission ratio 12.2% 10.4% 16.6% Claims ratio • Overall 58.7% 57.9% 51.7% • Motor 68.

  17. Slide 17: Life Business

    Allianz General Insurance Company (Malaysia) Berhad (735426-V) 3 Life Business 17

  18. Slide 18: Life Business

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business Gross written premiums  Gross written premiums grew by 15.0%. Distribution  Total Company ANP grew by 8.4%.  Agency ANP was soft in Q1 2019 and declined by 1.6%. Remain focus on building professional and productive agency force.  Ba

  19. Slide 19: Life Business: Growth in both Single Premium and Recurring Premium

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: Growth in both Single Premium and Recurring Premium Gross Written Premiums (“GWP”) (RM’mil) +15.0% GWP Mix & Growth (%) (3M 2019) 657.9 Mix Single 572.0 Premium 24.3% 498.0 Recurring 451.7 Recurring Premium Premium 75.7% Growth 32.9% S

  20. Slide 20: Life Business: Growth in ANP driven by Bancassurance and Employee Benefits channels

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: Growth in ANP driven by Bancassurance and Employee Benefits channels Annualised New Premiums (“ANP”) (RM’mil) ANP Channel Mix (%) +8.4% (3M 2019) Corporate 7.6% 117.5 Alternative Distribution/ 108.4 8.9 Bancassurance 0.0 23.2% 7.6 0.0

  21. Slide 21: Life Business (Agency): Continue focus on profitable regular Investment-Linked products

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business (Agency): Continue focus on profitable regular Investment-Linked products Agency Annualised New Premiums (RM’mil) Agency Product Mix (%) (3M 2019) -1.6% By ANP Traditional 18.7% By Policy Count 82.6 81.3 Traditional 13.0% Investment- In

  22. Slide 22: Life Business: Protection Business (Investment-Linked) continues to grow

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: Protection Business (Investment-Linked) continues to grow Annualised New Premiums (RM’mil) Gross Written Premiums (RM’mil) +1.4% +13.1% 331.1 65.2 66.1 292.8 3M 2018 3M 2019 3M 2018 3M 2019 22

  23. Slide 23: Life Business: Higher net investment results due to fair value gains

    Allianz Life Insurance Malaysia Berhad (104248-X) Life Business: Higher net investment results due to fair value gains Investment Results by Investment Results funds (RM’mil) (RM’mil) 134.4% 134.4% Portfolio Mix and Investment Yield (LF+SHF) (%) (Annualized) 278.5 278.5 Portfolio Mix Investment Yiel

  24. Slide 24: 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 2018 3M 2019 19/18 % Gross written premiums 572.0 657.9 15.0% Premiums ceded to reinsurers (25.4) (15.8) 37.8% Net earned premiums 546.6 642.1 17.5% Net change in benefits and claims p

  25. Slide 25: Allianz Life: Outperformance against market led by Bancassurance and Employee Benefits channel

    Allianz Life Insurance Malaysia Berhad (104248-X) Allianz Life: Outperformance against market led by Bancassurance and Employee Benefits channel Market growth analysis (3M 2019) Annualised New Business 5-year CAGR 3M 2019 Growth 12M 2018 Growth (2013-2018) ALIM Industry Market Market ALIM Industry D

  26. Slide 26: Thank You for Your Attention

    Thank You for Your Attention Allianz @)

  27. Slide 27: 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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