Published on August 28th, 2020 | by Amirul Mukminin0
Allianz Malaysia Record RM2.56b in GWP in 1H 2020
Allianz Malaysia Berhad (AMB) Group announced its results for the first half of 2020. The Group recorded a total of RM2.56 billion in Gross Written Premiums (GWP) in the first six months of 2020, a 7.3 percent increase as compared to RM2.38 billion it achieved in the same corresponding period in 2019. The Group’s Total Assets grew by 8.9 percent to RM20.51 billion as at June 2020 as compared to RM18.83 billion amassed last year. Profit Before Tax improved by 3.5 percent to RM340.5 million in the first half of this year, as compared to RM329.0 million that was achieved in the same corresponding period last year.
AMB Chief Executive Officer, Zakri Khir said: “Allianz Malaysia has always held onto the belief of staying resilient in the face of adversity and this could not be any more true in light of the current global uncertainties. While the Group’s results in the second quarter of the year is a reflection of how our businesses continued to be impacted by COVID-19, the Movement Control Order (MCO) and Conditional MCO, our general insurance arm and our life insurance business rallying to deliver RM2.56 billion in GWP is proof of our continued push for business agility on both fronts as we continue to navigate the COVID-19 and the next normal. In staying resilient, we are not just holding onto optimism that things can and will get better, but to also be a force of good in balancing the protection needs of our customers, shareholders, and the broader Malaysian public.”
Allianz General charts improved results in GWP, underwriting result, and profit
AMB’s general insurance subsidiary; Allianz General Insurance Company (Malaysia) Berhad’s (Allianz General) GWP registered in RM1.14 billion in the first half of 2020, an increase of 6.3 percent from RM1.07 billion in 2019. Underwriting Result rose 17.0 percent to RM98.3 million in the first half of this year from RM84.0 million in the first half of last year while Profit Before Tax improved by 9.4 percent to RM193.9 million in the first six months of 2020 from RM177.2 million in the previous year. Total Assets improved by 7.7 percent to RM6.89 billion as at June 2020 from RM6.40 billion in the previous year. Allianz General’s Combined Ratio stood at 90.1 percent in the first half of 2020 as compared to 90.8 percent in the same corresponding period in 2019. According to the ISM Insurance Services Malaysia Berhad (ISM) market performance, Allianz General is ranked first among the general insurance industry, capturing a 12.9 percent market share in the first quarter of 2020. “At the end of our first quarter, there was every indication that Allianz General would bounce back and we did. The Company was able to ride the growth momentum to chalk up GWP earnings of RM1.14 billion and chart a 17 percent improvement in Underwriting Result, which was mainly driven by lower motor claims ratio during MCO period. Leveraging on the market demands, we were able to launch our new product SME-focused product (Smart Retail Shield), introduce added services at panel workshops (disinfecting services), as well as on-the-go windscreen replacement and quick repairs for homes and commercial buildings between April and June. The unpredictable nature of the situation we are in simply means that we must remain prudent in decision-making and fluid in our strategies. There will always be good time and bad times, and Allianz General will have to make provisions and the necessary adjustments to stay ahead of the curve,” said Zakri, who is also Chief Executive Officer of Allianz General.
Allianz Life stays resilient to deliver RM1.42 billion in GWP
The life insurance subsidiary of the Group; Allianz Life Insurance Malaysia Berhad (Allianz Life) continues to charts positive growth, recording a 8.2 percent jump in GWP to RM1.42 billion in the first half of 2020 from RM1.32 billion in 2019. Its Annualised New Premiums (ANP) contracted by 25.2 percent to a total of RM213.4 million in the first half of 2020 from RM285.3 million in 2019 while Profit Before Tax saw a 1.6 percent dip to RM155.1 million in the first six months of this year as compared to RM157.6 million achieved in 2019. Total Assets improved by 9.9 percent to RM13.22 billion as at June 2020 as compared to RM12.03 billion in 2019. Based on Life Insurance Association of Malaysia (LIAM) statistics for January to June 2020, Allianz Life holds the fifth position among the life insurance industry and captured an 8.0 percent market share.
Allianz Life Chief Executive Officer, Joseph Gross, said: “In truth, we expected the full effects of the COVID-19 pandemic to manifest in our second quarter performance, and it was a mixed bag of results. COVID-19 threw a spanner in the works, in terms of our plans, and while we were able to deliver positive growth in GWP during that stretch, we faced some tough challenges. COVID-19, coupled with the enforcement of the MCO and CMCO, which came into full effect in the second quarter of the year, adversely impacted our push for ANP as our agents faced an uphill task in the acquisition of new business. Additionally, the marginal dip in our Profit Before Tax was a result of lower valuation in equity investment mainly due to the volatile market.”
Building resilient communities through Allianz We Care Community
To support and reassure Malaysians in times of uncertainty, during and beyond the COVID-19 pandemic, Allianz Malaysia launched the Allianz We Care Community programme in June to provide complimentary COVID-19 benefit including access to a medical enquiry hotline to everyday Malaysians.
Through the initiative, Malaysians aged 18 and above (customers and non-customers of Allianz Malaysia) will be entitled for three types of complimentary COVID-19 benefit valid from 1 June to 31 December 2020. Each benefit category (Standard, Advanced, and Premium) will include cash relief upon diagnosis of COVID-19, and hospitalisation and death benefit due to COVID-19.
“Our role as insurers is more than just about providing protection. It is about fostering and building inclusive and resilient communities that are able to respond to adverse situations together. As everyone gets back on their feet, health and financial security would be of their utmost concern. The purpose of Allianz We Care Community is about providing real value and addressing the real concerns of fellow Malaysians during times of uncertainty. And through this initiative, we hope to assure them that Allianz is a trusted brand that is providing value and that we will be with them when they need us the most,” said Gross.