PETALING JAYA: Allianz Malaysia Bhd’s net profit for the third quarter ended Sept 30 rose 47.91% to RM99.88 million from RM67.53 million a year ago, driven by the general insurance and life insurance segments.
During the quarter, the general insurance segment’s pre-tax profit rose 52.3% to RM77.2 million from RM50.7 million a year ago, contributed by higher underwriting profit from motor business.
“The better underwriting profit was due to lower claims and lower management expenses,” the group said in a filing with Bursa Malaysia.
The life insurance segment’s pre-tax profit rose 55.1% to RM72.1 million from RM46.5 million a year ago due to higher contribution from protection business.
However, the investment holding segment registered a pre-tax loss of RM1.6 million due to higher agency commission being paid from the shareholder’s fund during the quarter.
Revenue for the quarter rose 9.52% to RM1.3 billion from RM1.19 billion a year ago mainly due to higher gross earned premiums and investment income by RM90.5 million and RM22.7 million respectively.
For the nine months ended Sept 30, net profit rose 37.68% to RM276.98 million from RM201.18 million a year ago while revenue rose 8.04% to RM3.88 billion from RM3.59 billion a year ago.
As at Sept 30, the group’s total assets rose to RM17.5 billion from RM16.6 billion as at Dec 31, 2017, mainly due to increase in financial investments for the period under review while total liabilities during the same period rose to RM14.09 billion from RM13.46 billion due to increase in insurance contract liabilities from both insurance segments.
Total equity rose 8.9% to RM3.42 billion as at Sept 30 from RM3.14 billion in 2017, mainly due to net profit generated for the period.
Moving forward, the group remains confident to deliver satisfactory results for the rest of the financial year ending Dec 31.
For the general insurance segment, it expects industry growth to be subdued due to economic policies uncertainty and intensifying competition with the ongoing liberalisation of motor and fire tariffs, which is expected to put further pressure on the industry’s revenue and profits.
“However, the general insurance segment will continue to offer innovative products and services, and further expand its multi-distribution model to maintain its market leadership,” it said.
For the life insurance segment, the group will continue leveraging on the strength of its multi-distribution channels, increase productivity across distribution channels to generate growth and invest into digital initiatives to support growth and adapt in an increasingly competitive market.
