Allianz Malaysia Berhad (AMB) Group today reported earnings for the financial year 2019. The Group ended 2019 with a 9.3 percent growth in Gross Written Premiums (GWP) to RM4.92 billion as compared to RM4.50 billion from the year before. Profit Before Tax surged 33.4 percent to RM692.1 million in 2019 as compared to RM519.0 million in 2018. The Group’s Total Assets jumped 13.2 percent to RM19.71 billion in 2019 as compared to RM17.40 billion in 2018.
AMB Chief Executive Officer, Zakri Khir said, “Last year was not a great year for the Malaysian economy and we had to contend with a shrinking insurance industry which resulted in low industry GWP growth. That said, Allianz Malaysia was able to find a good balance thanks to our life business as the Group grew 9.3 percent in GWP, largely contributed by Allianz Life. As we look towards the rest of 2020, our collective goal remains unchanged. In staying financially resilient, we hope that Allianz General will outperform the market in a difficult environment and for Allianz Life to continue being a profitable business.”
Allianz General rallies back; earns RM2.20 billion in GWP
AMB’s general insurance subsidiary; Allianz General Insurance Company (Malaysia) Berhad (Allianz General)’s GWP took in RM2.20 billion in 2019 as compared to RM2.12 billion in 2018, an increase of 3.6 percent. Underwriting Profit grew by 20.9 percent to RM166.6 million in 2019 from RM137.8 million in 2018. Profit Before Tax jumped 13.0 percent in 2019 to RM362.4 million from RM320.6 million the previous year. Total Assets increased by 6.7 percent to RM6.46 billion in 2019 from RM6.05 billion in 2018 while the Combined Ratio in 2019 improved to 91.0 percent as compared to 92.8 percent in 2018.
“The general insurance industry has not been growing for a long time, yet we remain encouraged that Allianz General was able to post growth in 2019. The past year presented its fair amount of challenges and it was only until the fourth quarter we were able to rally back to achieve RM2.20 billion in GWP. In terms of profit, we were able to overcome the impairment of insurance receivables in the first quarter and a large claim in the third quarter to post a 13.0 percent profit growth. This was a result of higher reinsurance profit commission income and lower claims in the fourth quarter which also contributed to a 20.9 percent gain in underwriting profit for the year. And given the year we have had, I would say a combined ratio of 91.0 percent is fair result. Our strategy is to lower expenses, become the strongest non-life brand and capitalise as much business as we can. This is the pulse of an insurance company,” said Zakri, who is also the Chief Executive Officer of Allianz General.
Allianz Life full-year profit surges to RM340.7 million
The life insurance subsidiary of the Group; Allianz Life Insurance Malaysia Berhad (Allianz Life) ended 2019 with an impressive performance, recording a 14.3 percent growth in GWP to RM2.73 billion in 2019 from RM2.38 billion in 2018. Its New Business Premiums (ANP) rose by 16.0 percent in 2019 to RM594.8 million from RM512.8 million in 2018. Profit Before Tax grew by 66.7 percent in 2019 to RM340.7 million compared to RM204.4 million the previous year backed by business growth and fair value gains. Total Assets increased 17.1 percent to RM12.64 billion in 2019 from RM10.79 billion in 2018. Allianz Life holds the fifth position among the life insurance segment, registering an improved 8.5 percent market share in 2019 from 8.4 percent in 2018.
“Last year, the life insurance industry profitability was all about fair value gain and changing interest rates and Allianz Life rode that wave. We are very pleased to end the year with RM2.73 billion in GWP which significantly contributed to the Group’s total top-line growth in 2019. Our New Business Premiums improved by 16.0 percent and our Profit Before Tax have soared to RM340.7 million. Fair value gains can come and go and we are fully aware that the market can turn. Our focus moving forward is very much on working for our customers. We will continue to emphasise quality, simplicity and digital initiatives in everything we do. You will find the right answer when you stop thinking as an insurer with all its complexities and start thinking and talking like a customer,” said Joseph Gross, Chief Executive Officer for Allianz Life.
Allianz Life recognised as a brand icon
Allianz Life Insurance Malaysia Berhad took home The BrandLaureate’s Iconic Brands of the Decade Award 2019 for Life Insurance on 17 December 2019.
The award celebrated and recognised Allianz Life for its brand leadership and standard of excellence achieved in the life insurance industry.
“Insurers are hardly spoken about in the same breath as the Apples, Amazons and Googles of the world when it comes to brand recognition. So winning awards like the The BrandLaureate’s Iconic Brands of the Decade Award is akin to getting an extra cherry on the cake. It serves as a great reminder to continue to put our customers and value creation first and to always deliver our promise. We want Allianz Life to be a company that makes real impact,” said Gross.