Allianz Malaysia Bhd. · MYX:ALLIANZ

Allianz Malaysia Bhd — Q3 2023 Earnings Presentation

27 slides from Allianz Malaysia Bhd's earnings presentation, Nov 24, 2023

  1. Slide 1: Allianz Malaysia Berhad Q3 2023 Financial Results Analyst Briefing

    ALLIANZ MALAYSIA BERHAD (197201000819) Q3 2023 FINANCIAL RESULTS MFRS 9/17 Analyst Briefing 24 November 2023 © 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 9M 2023

    FINANCIAL HIGHLIGHTS 9M 2023 Group General Insurance Life Insurance Gross Written Premium (RM’mil) 4,947.9 (+8.3%) 2,251.1 (+11.4%) 2,696.8 (+5.8%) Insurance Revenue (RM’mil) 3,632.1 (+11.3%) 2,034.3 (+7.7%) 1,597.8 (+16.2%) Profit Before Tax (RM’mil) 717.5 (+13.7%) 405.0 (+18.8%) 320.0 (+4.0%) Shar

  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 Earnings per ordinary share • Group insurance revenue of RM3.63 billion, an increase of 11.3% • Basic earnings per ordinary share at 266.13 sen (9M 2022: 229.30 from RM3.26 billion in 2022 due to strong

  5. Slide 5: Financial Highlights 9M 2023: Gross Written Premium

    FINANCIAL HIGHLIGHTS 9M 2023 Group General Insurance Gross Written Premium (“GWP”) (RM’mil) +8.3% +11.4% 2,251.1 2,020.0 4,947.9 4,567.9 1,705.3 1,730.7 1,630.2 1,488.2 1,511.9 1,449.5 9M 22 9M 23 Life Insurance +5.8% 2,696.8 2,547.9 1Q 22 2Q 22 3Q 22 1Q 23 2Q 23 3Q 23 9M 22 9M 23 © Copyright Allian

  6. Slide 6: Financial Highlights 9M 2023: PBT and PAT Drivers

    FINANCIAL HIGHLIGHTS 9M 2023 Profit Before Tax drivers (RM’mil) Profit After Tax drivers (RM’mil) +13.7% +22.0% 9M 22 General Life Investment 9M 23 9M 22 General Life Investment 9M 23 Insurance Insurance Holding Insurance Insurance Holding ∆ 9M 23/22 ∆ 9M 23/22 9M 2022 340.8 307.8 (17.7) 630.9 9M 20

  7. Slide 7: Life Business: CSM Growth Good at 7.7%

    LIFE BUSINESS: CSM GROWTH GOOD AT 7.7% Contractual Service Margin (RM’mil) +7.7% 1 CSM (net) 2,055.8 Reinsurance 139.0 Non-attributable cost 311.6 Tax 649.2 CSM (gross) 3,155.6 3,155.6 2 VNB (9M 23) 235.8 + Non-attr. Cost 91.8 - Scope / other (14.6) = New business @ inception 313.0 Economic and non-

  8. Slide 8: Financial Overview

    FINANCIAL OVERVIEW MFRS 4 BASIS MFRS 9/17 BASIS 3 YEAR RM’mil 2020 2021 2022 CAGR 9M 2022 9M 2023 12M 2022 (2019-2022) Gross Written Premiums 5,305.2 5,689.6 6,021.7 6.9% 4,567.9 4,947.9 6,023.0 CSM Release N/A N/A N/A N/A 274.5 321.4 368.6 Expense Ratio (Non 32.9% 31.2% 29.6% 2.3 pts 27.1% 26.3% 26

  9. Slide 9: Summary of Unaudited Financial Results

    SUMMARY OF UNAUDITED FINANCIAL RESULTS RM’mil 9M 2022 9M 2023 23/22 % Insurance revenue 3,264.4 3,632.1 11.3% Claims and benefits (1,689.6) (1,899.2) 12.4% Acquisition and administrative expenses (net) (806.0) (920.0) 14.1% Reversal of losses on onerous contracts 8.6 26.0 >100% Insurance service ex

  10. Slide 10: General Business

    02 GENERAL BUSINESS © Copyright Allianz Malaysia Berhad 10

  11. Slide 11: General Business

    GENERAL BUSINESS Comments Gross written premiums Combined ratio • Continued growth momentum in the third quarter with gross • Lower combined ratio by 0.6 pts contributed by lower expense written premium increased by 11.4% as compared to prior ratio driven by lower administrative expenses. year. Mark

  12. Slide 12: 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 +11.4% Telemaketing 2.0% 2,251.1 Agent 55.3% 2,020.0 Broker 10.1% Banca 1.9% Franchise 30.7% 776.1 789.0 Fire 741.4 14.4% 660.7 686.0 617.9 Marine 2.1% PA & Health 5

  13. Slide 13: General Business: Investment Income Continued to Grow

    GENERAL BUSINESS: INVESTMENT INCOME CONTINUED TO GROW IN LINE WITH HIGHER YIELD AND INVESTMENT ASSETS Investment Return/ Net (re-)insurance finance expenses Portfolio Mix and Investment Yield (Annualised) (RM’mil) +31.3% Portfolio Mix Investment Yield * 118.3 90.1 6.5 4.0 1.9 Deposit Unquoted 4.6 8.

  14. Slide 14: General Business: Stronger PBT with Higher Contribution

    GENERAL BUSINESS: STRONGER PBT WITH HIGHER CONTRIBUTION FROM BOTH INSURANCE SERVICE RESULTS AND INVESTMENT INCOME Profit Before Tax (RM’mil) PBT Drivers (RM’mil) +18.8% 405.0 340.8 139.8 141.2 130.7 124.0 117.1 93.0 9M 22 Insurance Investment Others 9M 23 service return results 9M 2022 299.2 124.5 (

  15. Slide 15: General Business: Lower Combined Ratio Due to Lower Expense Ratio

    GENERAL BUSINESS: LOWER COMBINED RATIO DUE TO LOWER EXPENSE RATIO Combined Ratio -0.6 pts Discounting impact -2.1% Discounting impact -2.5% 88.4% 88.5% 86.3% 86.6% 86.2% 85.7% 81.9% 84.2% 27.7% 27.6% 27.1% 26.4% 27.4% 26.3% 24.8% 25.9% 60.7% 56.0% 60.9% 59.2%* 59.4% 60.2% 58.8% 59.4% * 1Q 22 2Q 22 3

  16. Slide 16: General Business: Financial Results at a Glance

    GENERAL BUSINESS: FINANCIAL RESULTS AT A GLANCE RM’mil 9M 2022 9M 2023 23/22 % Insurance revenue 1,888.8 2,034.3 7.7% Claims (989.5) (1,010.0) 2.1% Acquisition and administrative expenses (net) (471.0) (492.7) 4.6% Reversal of losses on onerous contracts 4.9 31.1 >100% Reinsurance result (134.0) (2

  17. Slide 17: General Business: Performance Compared to Industry (Jan-Sep 2023)

    GENERAL BUSINESS: PERFORMANCE COMPARED TO INDUSTRY (JAN-SEP 2023) AGIC 1 Industry 1 Takaful 1 KPIs 9M 2023 9M 2023 9M 2023 GWP growth 11.2% * 7.7% 18.9% Market Share (9M 2023) 2 13.7% Market Ranking (6M 2023) 3 No. 1 Notes: 1) Source: ISM Market PerformanceReport Jan-Sep 2023 (General Insurance & Ge

  18. Slide 18: Life Business

    03 LIFE BUSINESS © Copyright Allianz Malaysia Berhad 18

  19. Slide 19: Life Business

    LIFE BUSINESS Comments Product mix Gross written premiums • Remain focused on sales of investment-linked products with • Gross written premiums grew by 5.8% with growth from Agency protection rider which provides higher margins but to also cater for and Employee Benefit. demand for saving products.

  20. Slide 20: Life Business: Strong First Year Premium and Inforce Premium

    LIFE BUSINESS: STRONG FIRST YEAR PREMIUM AND INFORCE PREMIUM Gross Written Premiums (“GWP”) (RM’mil) GWP Mix & Growth (%) (9M 2023) +5.8% Mix Single Premium 17.6% 2,696.8 2,547.9 929.2 941.7 Total 888.8 2,696.8 831.6 827.5 825.9 Recurring Premium 82.4% 703.7 Growth 679.5 802.2 682.3 685.1 715.4 8.5%

  21. Slide 21: 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 (%) (9M 2023) +18.5% 552.8 466.5 231.6 Bancassurance/Direct 8.0 Marketing 26.8% 50.8 Growth +11.3% 163.5 163.4 157.8 155.9 147.1 7.7 18.9 7.9 7.4 13.4 Total 39.8 52.0 46.2 55

  22. Slide 22: 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 (%) (9M 2023) +21.3% Q1 +1.1% Q2 -4.6% By ANP By Policy Count 370.0 Q3 +66.5% 172.8 Traditional Traditional 39.7% 15.9% 305

  23. Slide 23: 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) +8.5% +5.1% 1,560.1 277.9 1,484.3 256.2 539.5 99.4 100.0 509.8 510.8 91.8 499.3 83.0 86.1 494.3 490.7 73.8 1Q 22 2Q 22 3Q 22 1Q 23 2Q 23 3Q 23 1Q 22 2Q 22 3Q 2

  24. Slide 24: Life Business: Higher Investment Income Driven by Higher Yield

    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 0.3% 0.0% 6.0% 619.7 Equities Govt Bonds 108.5 8.4% 57.5%

  25. Slide 25: Life Business: Financial Results at a Glance

    LIFE BUSINESS: FINANCIAL RESULTS AT A GLANCE RM’mil 9M 2022 9M 2023 23/22 % Insurance revenue 1,375.6 1,597.8 16.2% - Release contractual service margin 274.5 321.4 17.1% - Release of expected cash flows, risk adjustments and others 1,101.1 1,276.4 15.9% Claims and benefits (695.5) (888.8) 27.8% Ac

  26. Slide 26: Thank You for Your Attention

    THANK YOU FOR YOUR ATTENTION © Copyright Allianz Malaysia Berhad

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

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