Allianz Malaysia Bhd recorded an operating revenue of RM1.48 billion for the first quarter (Q1) ended March 31,2020, an increase of 10.4 per cent or RM140.4 million from last year.
The earnings increase was mainly due to higher gross earned premiums and investment income by RM122.7 million and RM17.7 million respectively.
However, net profit fell 19.6 per cent to RM79.500 million for Q1 from RM 98.917 million a year earlier.
In its filing with Bursa Malaysia today, Allianz Malaysia said the general insurance segment revenue increased 5.8 per cent to RM604.6 million in Q1 compared to the RM571.4 million previously, due to the increase in gross earned premiums and investment income by RM32.1 million and RM1.1 million respectively.
“The increase in gross earned premiums of the general insurance segment was attributable to higher premiums from motor business,” it said.
Meanwhile, the life insurance segment revenue increased 14.0 per cent to RM876.8 million in Q1 from RM769.2 million a year ago due to increase in gross earned premiums and investment income by RM90.6 million and RM17.0 million respectively.
“The increase in gross earned premiums of the life insurance segment was mainly contributed by growth in all key distribution channels.
“Whilst the group recorded growth in gross earned revenue during the quarter under review, the imposition of the Movement Control Order (MCO) arising from the Covid-19 pandemic has impacted business from mid March 2020,” it said.
Allianz Malaysia chief executive officer Zakri Khir said for Q1, the company has managed to stay resilient.
“We saw an increased top line in gross written premium (GWP), thanks to our higher gross earned premiums and investment income while profit before tax dipped due to lower profits from our general and life insurance segments.
“It goes without saying that businesses have been impacted mid-March onwards by the Covid-19 pandemic and subsequent imposition of the MCO,” said Zakri.
However, Zakri said the group cannot be distracted by challenges, given the fluidity of the situation its focus is on applying short-term strategies and to continue to push for business agility.
“The market will be very challenging and our end goal, as always, is to do better than last year,” he said.
He also said while the Covid-19 downturn is expected to weigh heavily on profitability, through weak customer sentiments and contracting premium growth, insurers have yet to see the overall impact.
“Despite the challenging operating environment and economic slowdown, our resolve is to remain positive.
“While we continue to emphasise on solid premium growth, profitability and service, we will also monitor market forces and be vigilant in our decisions,” he added.