Allianz posts higher net profit in FY20

By BERNAMA / Pic TMR

ALLIANZ Malaysia Bhd’s net profit for the financial year ended Dec 31, 2020 (FY20), rose to RM520.32 million compared to RM492.48 million in FY19.

Revenue also increased to RM5.95 billion from RM5.53 billion previously, due mainly to higher gross earned premiums and investment income by RM384.8 million and RM26.5 million respectively.

In a filing to Bursa Malaysia yesterday, the company said the general insurance segment recorded an operating revenue of RM2.47 billion for FY20 from RM2.31 billion previously, due mainly to increase in gross earned premiums by RM160.7 million offset by a decrease in investment income by RM1.8 million.

The increase in gross earned premiums for the general insurance segment was attributable to higher premiums from its motor business.

The life insurance segment recorded an operating revenue of RM3.46 billion in FY20 compared to RM3.21 billion in FY19, due to increase in gross earned premiums and investment income by RM224.1 million and RM30.7 million respectively.

The increase in gross earned premiums of the life insurance segment was mainly contributed by higher premiums from agency, bancassurance and employee benefits channels, Allianz Malaysia said.

As for the fourth quarter ended Dec 31, 2020, net profit was higher at RM144.03 million compared to RM133.08 million, while revenue increased to RM1.53 billion from RM1.41 billion in the same quarter in 2019.

Outlook for both the general insurance and life insurance industries are expected to remain challenging in the medium term amid weak consumer sentiment and subdued domestic economic activity arising from the Covid-19 pandemic.

The group will continue to enhance and accelerate digital capabilities, optimise product portfolio, and expand distribution capabilities to adapt to the current environment and better support its customers during the pandemic.