Allianz Malaysia Bhd chief executive officer Sean Wang
KUALA LUMPUR: Allianz Malaysia Bhd
said the second half of 2022 will likely be challenging for both the general and life insurance segments with the ongoing global uncertainties that posed challenges to Malaysia’s economic outlook.
“The higher inflation may impact claim costs while lower disposable income impact consumers' purchasing power and spending on longer-term commitments such as insurance products,” the insurer said in a filing with Bursa Malaysia.
Allianz said to remain competitive, the group will continue to execute its strategic initiatives of expanding its distribution channel.
It will also focus on accelerating digital capabilities to ensure scalability as the business grows and to create timely customer-focused solutions.
Allianz’s net profit in the second quarter ended June 30 (2Q) fell 33.5% to RM96.62mil from RM145.41mil a year earlier.
Revenue, however, rose to RM1.65bil in 2Q from RM1.57bil last year while earnings per share rose fell to 36.16 sen against 82.17 sen previously.
For the quarter under review, the general insurance segment recorded a higher profit before tax (PBT) of RM116.7mil, an increase of 1.5% or RM1.7mil as compared to RM115mil last year.
The life insurance segment recorded a lower profit before tax of RM8.3mil, a decrease of 91.4% or RM88.6mil as compared to a profit before tax of the preceding year quarter ended June 30, 2021, of RM96.9mil due mainly to higher claims and fair value losses on investment in the current quarter.
In the first half to June 30, Allianz posted a net profit of RM197.93mil on revenue of RM3.36bil.
The insurer recorded a total of RM3.07bil in gross written premiums (GWP) in the first six months of 2022, a 10.4% increase as compared to the RM2.78bil it achieved in the same corresponding period in 2021.
The group’s total assets grew by 6.5% to RM23.73bil as at June 2022 as compared to RM22.29bil amassed last year.
Chief executive officer Sean Wang said the group’s general and life insurance arm continued to outperform the market, recording steady growth in GWP despite the difficult market conditions.
“While the Malaysian economy is set to continue an upward trajectory, external headwinds could spell a challenging business environment for the next six months.
“Nevertheless, the group remains focused on ensuring sufficient social protection for lower-income groups through its product offerings under the government’s Perlindungan Tenang Programme as well as employing strategies that will allow us to anticipate trends and capitalise on opportunities to capture growth and continue to outperform the market,” he added.
