PETALING JAYA: Allianz Malaysia Bhd
, the Malaysian unit of German insurer Allianz SE, is expected to continue outperforming the domestic insurance industry, according to TA Research.
The research house has forecast Allianz Malaysia’s gross written premium to grow by about 7.4% in 2026, further strengthening its leadership in the general insurance segment.
This is expected to lift its market share to around 15.5%, compared with 15.2% in 2025.
Key growth drivers, according to TA Research, include higher premium income from pricing adjustments and Allianz General Insurance Co (Malaysia) Bhd’s strong 40% market share in the new car segment.
In terms of underwriting performance, TA Research projects the combined ratio for the financial year of 2026 (FY26) to remain flattish at 88%, compared with 87.9% in FY25.
The group is expected to remain prudent in managing expenses while enhancing operational resilience through the adoption of technology, artificial intelligence solutions and data-driven capabilities.
It would continue to leverage tariff liberalisation under Phase 2B, while expanding the use of geocoding and flood-mapping tools to improve risk assessment.
As for the life insurance segment, annualised new premium grew by 6% in 2025, significantly outperforming the industry growth of 0.7%.
Looking ahead, TA Research remains optimistic that Allianz Malaysia’s growth momentum will remain intact, particularly across its key distribution channels, including agency, bancassurance and corporate.
“Overall, we expect Allianz Malaysia to maintain a healthy loss ratio of around 84% for its investment-linked policies in 2026, better than the industry average of approximately 97%.
“This outlook is supported by a growing share of the portfolio transitioning to co-payment features, disciplined cost-containment initiatives, strong technical capabilities and optimisation of its co-pilot system, all of which contribute to more efficient claims management.”
Commenting on the base medical and health insurance/takaful (MHIT) plan, a key initiative under Bank Negara Malaysia’s Reset Strategy, TA Research opined that the impact on Allianz Malaysia should be manageable.
The majority of the insurer’s policyholders are likely to maintain their existing plans due to their more comprehensive coverage and significantly higher medical limits, according to the research house.
While some customers may downgrade to the basic plan, this potential shift could be offset by the acquisition of new customers entering the market.
According to the White Paper on MHIT policies, more than 340,000 policies were cancelled or surrendered by policyholders between January 2024 and June 2025, largely due to rising premium costs.
In response, the government – through the Reset Strategy, is developing the MHIT Basic Plan to address affordability concerns.
The plan is aimed at individuals who currently do not have MHIT coverage, as well as those seeking more affordable alternatives.
A pilot launch is scheduled for the second half of financial year 2026, with a full nationwide rollout planned for early 2027.
The MHIT Basic Plan is expected to provide annual coverage of RM100,000, with indicative monthly premiums ranging from about RM80 to RM120.
TA Research has a “buy” call on the Allianz Malaysia stock, with a target price of RM24.35. It has kept its earnings forecasts for FY26 to FY28 unchanged.
In FY25, Allianz Malaysia’s net profit increased by 24.4% year-on-year to RM958.78mil, while revenue rose by 10.4% to RM6.24bil.
