KUALA LUMPUR: Shares in Allianz Malaysia Bhd edged down in early trade after reporting a 20.4% lower net profit for its first quarter ended March 31, 2021 (1Q21).
The insurer fell 20 sen, or 1.52% to RM12.96, making it the top loser on Bursa Malaysia. The counter has fallen 8.6% so far this year.
Allianz net profit fell 20.4% to RM63.26mil in 1Q21 from RM79.50mil last year, while revenue increased 8.2% to RM1.60bil from RM1.48bil.
It recorded an 8.8% increase in gross written premiums (GWP) to RM1.48bil in 1Q21 from RM1.36bil a year ago.
Of the RM1.48bil, its general insurance subsidiary Allianz General Insurance Company (Malaysia) Bhd accounted for RM656.40mil GWP.
Its life insurance subsidiary Allianz Life Insurance Malaysia Bhd registered a GWP of RM825.60mil.
Allianz said its total assets grew 12.3% to RM21.71bil in 1Q from RM19.33bil last year.
“Allianz 1QFY21 net profit of RM63.3mil came in below expectations, accounting for 11.5% and 12.3% of ours and consensus full-year forecast, “ TA Securities said.
It added that the variance was mainly due to losses in the life insurance segment.
“We expect 2021 to remain challenging for the general and life insurance businesses due to the recent surge in Covid-19 cases in Malaysia.
“We maintain our target price of RM17.73 per share based on SOP valuation. Reiterate Buy on the stock,” TA Securities said.