Allianz Malaysia Berhad (AMB) Group announced its results for the first quarter of 2020. The Group recorded a total Gross Written Premiums (GWP) of RM1.36 billion for the first quarter this year, a 12.9 percent increase from RM1.21 billion in the first quarter of last year.
The Group’s Total Assets grew 7.1 percent to RM19.33 billion as at 31 March 2020 as
compared to RM18.05 billion last year, while the Profit Before Tax dipped by 39.2
percent to RM91.9 million in the first quarter of 2020 as compared to RM151.2
million in the first quarter of 2019.
This is mainly due to the volatile financial markets which resulted in lower valuation of investment and changes in insurance contract liability arising from interest rate movements.
Excluding the above, the core Profit Before Tax remained strong at RM116.3 million as
compared to RM129.5 million in the first quarter of 2019.
AMB Chief Executive Officer, Zakri Khir said, “For the first quarter of the year, Allianz Malaysia has managed to stay resilient. We saw increased top line in 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 Movement Control Order. However, we cannot be distracted by challenges.
Given the fluidity of the situation, our 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.”
As for the life insurance arm, Allianz Life Insurance Malaysia Berhad (Allianz Life) registered a GWP of RM748.5 million in the first quarter of 2020, a 13.8 percent increase from RM657.9 million it achieved in the first quarter of 2019.
Annualised New Business Premiums (ANP) grew by 4.3 percent to a total of RM122.6 million in the first quarter of 2020 from RM117.5 million in the first quarter of 2019 driven by growth in Bancassurance and Employee Benefits channels.
Profit Before Tax dipped 65.9 percent to RM23.5 million in first quarter of 2020 as compared to RM68.9 million achieved in first quarter of 2019. Total Assets rose 7.6 percent to RM12.28 billion as at 31 March 2020 as compared to RM11.41 billion in 2019.
Based on Life Insurance Association of Malaysia (LIAM) statistics for January to March 2020, Allianz Life holds the fifth position among the life insurance industry, capturing an increased 8.2 percent market share compared to 8.0 percent in 2019.
“Our decline in Profit Before Tax was largely a result of the volatile financial market. This resulted from lower valuation on investment and changes in insurance contract liabilities arising from interest rate movement from the currently volatile financial markets,” said Allianz Life Chief Executive Officer, Joseph Gross.