Allianz Malaysia reports over 100% increase in pre-tax profit in Q1

Both life and non-life segments saw an increase in gross written premiums in 2022.

Allianz Malaysia Berhad (Allianz Malaysia) Group, citing a good first quarter, has reported an over 100% increase in its pre-tax profits to $34.57m from $15.35m in 2021.

The group recorded a total gross written premiums of $370m, a 9.5% increase from $340m from the Q1 of the previous year. Total assets also grew by 10.2% to $5.45b in the first three months of 2022 as compared to $4.94b from a year before.

Going by business lines, Allianz Malaysia’s general insurance subsidiary, Allianz General Insurance Company (Malaysia) Berhad recorded the best performance for the quarter. It reported $167.08m in GWP, an increase of 11.8% from last year. Underwriting profits also rose by 21.5% to $13.38m whilst pre-tax profits increased by 10.4% to $23.26m in Q1.

According to Sean Wang, CEO of Allianz Malaysia as well as CEO of Allianz General, the start of 2022 has been positive so far as car sales improved by about 7.8% due to the relaxation of COVID-19 measures resulting in increased economic activity across all sectors which Allianz General leveraged, driving higher underwriting profits for the year.

Meanwhile, in Allianz Malaysia’s life subsidiary Allianz Life Insurance Malaysia Berhad, the firm registered a GWP increase of $202.32m in Q1, a 7.7% increase from $187.94m in 2021. Annualised New Business Premiums (ANP) however, dipped 14.1% to $33.49m in the first three months of 2022 from $38.99m in 2021 mainly due to weak market sentiments.

According to Charles Ong, Allianz Life CEO, the dip in ANP was in tandem with life insurance industry’s ANP negative growth rate of 15.7%

“The Company’s increase in profit before tax was a result of lower fair value losses on investment and higher contribution from protection business, whilst consecutively, the investment holding segment registered a loss before tax of $4.12m for the three quarter of 2022 as compared to a loss before tax of $1.14 in 2021 mainly due to higher expenses,” Ong said.

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