Allianz sees lower growth amid challenging economic climate

Zakri says Allianz Malaysia revised its growth target due to the challenging economic climate.

KUALA LUMPUR: Allianz Malaysia Bhd has revised its growth target for gross written premiums (GWP) to a high single digit from the double, set earlier for 2015.

This is amid the current challenging economic climate, said chief executive officer Zakri Khir.

In 2014, Allianz Malaysia’s two insurance subsidiaries, Allianz General Insurance Co (M) Bhd and Allianz Life, registered GWPs of RM2.13bil and RM1.83bil respectively.

Speaking to reporters at the launch of the Allianz Pacer Run 2015 here on Thursday, Zakri said the group however, still expected satisfactory growth for the year.

“In the current scenario, the retail segment is most affected. Growth in this segment has been forecast to be around 4.0% from 5.0% to 6.0% in 2014.

“The segment contributed about 70% of our total business, as a majority of our clients are individuals.

“Consumers are hesitant to spend at present, not because they do not have money, but rather lack confidence in the economic situation following an overflow of negative sentiments,” he added.

On the ringgit’s depreciation, Zakri said for now, the direct impact was minimal.

“But, if prolonged, it will impact the economy and eventually the insurance industry as well,” he added.

Meanwhile, Zakri said the Allianz Pacer Run, to be held on Dec 6 in Putrajaya, was the company’s move to encourage a healthier lifestyle among Malaysians.

He said Allianz Malaysia believed the best assurance to a healthy life was to exercise and being active physically. - Bernama
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