Robust momentum likely for Allianz


TA Research said that ongoing growth will be driven by strong agency and franchise distribution channels across the motor and non-motor segments.

PETALING JAYA: Allianz Malaysia Bhd can continue to post robust momentum across its core general insurance and life businesses, according to TA Research.

In the first half of 2026 (1H26), Allianz’s general insurance segment delivered gross written premium (GWP) growth of 6.5%, substantially higher than the industry’s 1.4% growth, thereby raising market share to 15.6% from 15.1% in 1H25.

According to TA Research, ongoing growth will be driven by strong agency and franchise distribution channels across the motor and non-motor segments.

“We forecast Allianz’s general insurance GWP to exceed RM4bil in the financial year 2026 (FY26), compared with RM3.68bil in FY25. Within the motor segment, we expect Allianz’s market share to edge closer to 25% from the current 24.2%, underpinned by its strong 40% market share in new car sales,” the research house noted in its latest report on the insurance group.

Allianz’s non-motor business is projected to expand by 6% to 8% in FY26, led primarily by fire insurance, helping offset softer premium growth in commercial, engineering and cargo lines.

The segment’s combined ratio is expected to stay stable at 88% in FY26, supported by technical expertise and disciplined cost management that counter rising motor parts costs and P-hailing (food and parcel delivery) claims. The FY26 management expense ratio is also expected to improve to 25.1% from 25.6% in FY25.

Allianz’s life insurance business growth prospects will depend on strengthening claims management and introducing co-payment features to manage medical cost inflation.

Despite healthcare cost pressures, the loss ratio for the investment-linked medical portfolio is expected to remain below 85%, with block persistence staying above 81%, the research house noted.

The rollout of the MediAsas base plan could provide the group a key to expand coverage into the underserved M40 and upper-B40 demographics.

TA Research has kept a “buy” recommendation on the stock with a target price of RM24.35 per share. It did not make any changes to the FY26 to FY28 earnings estimates for Allianz.

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