PETALING JAYA: Analysts expect Allianz Malaysia Bhd
to sustain its strong momentum after beating expectations in its first half ended June 30, 2025 (1H25) results.
TA Research noted that Allianz’s combined ratio in 1H25 improved by 1.5 percentage points to 86.9%.
“We believe Allianz will sustain its market-leading position by delivering innovative product offerings, service differentiation and an enhanced distribution network,” it said.
“Consequently, we project the combined ratio to remain robust at 88.1% for its financial year ending Dec 31, 2025 (FY25).”
For 1H25, Allianz’s revenue rose 12.6% to RM3.05bil from RM2.71bil in 1H24, while net profit increased 19.7% to RM427.1mil from RM356.9mil.
This accounted for 53.3% and 53.9% of both TA Research’s and consensus full-year forecasts, respectively.
Looking ahead, the research house expects the life insurance segment to remain resilient in 2H25 as Allianz expands its multi-channel distribution, maximises agent productivity and optimises expenses through new technologies.
MBSB Research described Allianz’s 1H25 results as “much better than expected” with “insurance expenses so far well controlled”.
While acknowledging that the sector faces “serious headwinds,” it said Allianz’s “cheap price point, attractive dividend yields, aggressive market share take-up and encouraging progress in working against one of its major overhangs (healthcare inflation)” make it a very attractive pick.
The research house said Allianz’s current price-to-book value of 0.59 times is “inexpensive”, compared with the five-year mean of 0.71 times.
MBSB Research noted that while investment returns were softer than expected in 1H25, insurance and net insurance finance expenses came in lower.
“Encouragingly enough, gross written premiums and annualised new premiums growth remained exceptionally strong,” it said.
It added that Allianz’s general insurance segment continues to aggressively grow its market share, while its life insurance segment appears to be tackling the healthcare issue “well”.
Following the results, MBSB Research revised its FY25, FY26 and FY27 core net profit forecasts up by 5%, 2% and 2%, respectively, to reflect stronger insurance revenues, lower expenses and softer investment income.
It maintained a “buy” call with a higher target price of RM23.12 a share, from RM21.59 previously.
On the downside, MBSB Research cautioned that healthcare inflation and related issues remain a prominent overhang and could continue to weigh on Allianz’s business.
Meanwhile, TA Research kept its earnings estimates unchanged and placed its call and target price under review, pending further guidance from management.
