Allianz Malaysia quarter one 2023 results were above expectations primarily due to higher-than-expected investment income. What surprised positively was the declaration of a maiden quarter one interim dividend per share of 31.5sen, and it does look like this is the start of quarterly dividend payments.
“We maintain our forecasts for now and trading price of RM16.75. BUY – yields of more than 6% provide support,” said Maybank Investment Bank Bhd (Maybank IB) in a recent report.
Allianz reported a quarter one 2023 net profit of RM173 million which was above Maybank IB’s expectations at 35% of their full-year forecast, driven primarily by higher investment returns, which jumped 115% year-on-year on mark to market investment gains.
MTM is an accounting method used to determine the value of an asset or security based on its current market price. With the adoption of Malaysia Financial Reporting Standard (MFRS17), the financials are not entirely comparable to historical data.
“We maintain our forecasts for now,” said Maybank IB.
Allianz General saw its quarter one 2023 gross written premium rise 4.7% year-on-year, while its combined ratio improved to 84.2% from 88.4% in quarter one 2022, driven by both lower claims and expense ratios. Coupled with a 50% year-on-year jump in investment returns, its group pretax profit jumped 50% year-on-year.
Allianz Life saw its gross written premium improve 4.5% year-on-year in quarter one 2023. Annualised new premiums rose 11% year-on-year and its market share increased to 10% from 9.5% in 2022.
Pretax profit, however, declined 27% year-on-year due to a normalised claims experience from its investment-linked protection business. Its Value of New Business declined 9.7% due to increased acquisition costs. Its Contractual Service Margin stood at RM2.97 billion as at end-Mar 2023.
