PETALING JAYA: Allianz Malaysia Bhd
’s first-quarter 2026 (1Q26) results have come in within expectations, underpinned by stronger insurance revenue from both Allianz General (Agic) and Allianz Life (Alim).
RHB Research said the general insurance segment posted a 6% year-on-year (y-o-y) growth, driven by the motor business.
The life insurance segment saw a robust growth of 56% y-o-y – supported by steady underwriting performance and higher insurance revenue recognition – with investment-linked protection and employee benefit businesses continuing to be the key growth drivers.
“Encouragingly, new business value rose 37% yearly on better sales from the medical conversion campaign alongside ongoing expense-saving efforts,” it noted in a report.
According to RHB Research, the group’s 1Q26 net profit of RM227mil accounted for 24% of consensus’ full-year estimates.
“Insurance revenue was stronger, but was partly offset by higher insurance service expenses.
“Net investment return also weighed on 1Q26 profit after tax and minority interest due to substantial marked-to-market losses, albeit showing a moderation from a year ago,” it said.
With that, RHB Research said it will make no changes to its earnings forecast, maintaining a target price (TP) of RM23.90.
During the quarter, Allianz declared an interim dividend per share of 35.5 sen.
Meanwhile, TA Research has a positive trajectory lined up for Allianz.
TA Research expects the group to continue strengthening its leadership position within the general insurance market through its targeted business opportunities and expansion across the motor and retail segments.
The research house said for the life insurance segment, Allianz will leverage its Kingmaker programme for recruiting, while broadening cross-selling opportunities and enhancing its value proposition for HSBC Premier customers.
“These initiatives are expected to drive higher agent productivity and further support Allianz’s growth trajectory,” the research house said in a report.
According to TA Research, the group’s life business was solid, supported by stronger contributions from investment-linked protection and employee benefit business.
“The group’s strategic focus on repricing initiatives, promotion of new medical products with co-payment features and investment-linked products protection bundles, continue to yield positive results. Allianz annualised new premiums rose 23.2%, outpacing an industry growth of 5.5%,” it further noted.
TA Research said it will reiterate a “buy” call on the stock with an unchanged TP of RM24.35, leaving its FY26 to FY28 earnings estimates intact.
MBSB Research said it will also maintain a “buy” call on Allianz, with an unchanged TP of RM23.74.
“Agic will maintain its aggressive growth, capitalising on economies of scale and market-leading position,” it pointed out.
“Having already reached its overall market share targets, Agic’s focus is now more targeted in capturing non-motor market share.”
For Alim, it added the group has been managing healthcare inflation very well, with its health loss ratios showing considerable improvement from last year.
Key downside risks include an economic slowdown leading to weakened growth, higher than expected claims, as well as more regulatory hurdles.
