El-Erian, the chief economic adviser to Allianz: "Think of sterling as facing a double whammy with no strong anchor."
KUALA LUMPUR: Allianz Malaysia Bhd
posted earnings of RM67.17mil in the first quarter ended March 31, 2017 due to slower growth in the general insurance segment despite firmer contribution from the life insurance business.
It said on Tuesday the earnings fell 8.2% to RM67.17mil from RM73.18mil a year ago. Earnings per share were 38.67 sen compared with 43.22 sen.
However, revenue rose 3.6% to RM1.21bil from RM1.16bil due to higher gross earned premiums and investment income by RM28.5million and RM13.1million respectively.
Revenue
The general insurance operation recorded an operating revenue of RM565.3mil, up 0.3% from RM563.7mil mainly due to the increase in investment income by RM2.6mil and offset by the decrease in gross earned premiums by RM1mil.
The increase in investment income was due mainly to higher investment asset base.
The life insurance operation recorded an operating revenue of RM640.2mil for the three months ended 31 March 2017, an increase of 6.6% or RM39.9mil versus RM600.3mil a year ago due to the increase in gross earned premiums and investment income by RM29.5mil and RM10.4mil respectively.
The increase in gross earned premiums of the life insurance operation was attributable to higher premium from all key distribution channels.
Profit before tax
Its general insurance operation delivered a profit before tax of RM73.5mil,down 18.3% from the RM90mil a yerar ago.
The decrease was due mainly to lower underwriting profit arising from investment in digital assets and the provision of impairment on insurance receivables.
The life insurance operation recorded a higher profit before tax of RM36.3mil, up 40.2% from RM25.9mil a year ago due mainly to higher contribution from protection business.
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