Allianz’s net profit declines 13% in 2Q21

by S BIRRUNTHA / pic by TMR FILE

ALLIANZ Malaysia Bhd’s net profit for the second quarter ended June 30, 2021 (2Q21), fell to RM145.41 million from RM 167.73 million a year ago.

Revenue for the period grew to RM1.57 billion from RM1.4 billion a year ago, due to higher gross earned premiums and investment income by RM158.7 million and RM5.9 million respectively.

Earnings per share for the period declined to 82.17 sen from a loss per share of 94.82 sen a year ago, according to its filing to Bursa Malaysia yesterday.

The insurer said the general insurance segment recorded an operating revenue of RM666.9 million, an increase of 11.5% or RM68.7 million compared to the preceding year’s quarter of RM598.2 million.

“This was due to an increase in gross earned premiums by RM70.3 million offset by a decrease in investment income by RM1.6 million.

“The increase in gross earned premiums was attributable to higher premiums from motor business,” it said in a statement accompanying its financial results.

The company’s life insurance segment registered an operating revenue of RM898.7 million in 2Q21, an increase of 11.9% from RM803.1 million previously, due to increase in gross earned premiums and investment income by RM88.4 million and RM7.2 million respectively.

The life insurance segment was buoyed by higher premiums from agency and bancassurance channels.

For the first half of 2021 (1H21), Allianz’s net profit fell to RM208.7 million, while revenue rose 9.9% to RM3.2 billion.

Allianz also recorded a total of RM2.78 billion in gross written premiums in 1H21, an 8.6% increase compared to RM2.56 billion in 1H20.

Its CEO Zakri Khir said the company remained conscious of the fluidity of the current business environment and would continue to employ short-term strategies to move in tandem with uncertainties and challenges that may come its way.

He added that despite the challenging market conditions, Allianz has managed to deliver resilient results for 1H21.

Moving forward, the company will continue to execute its strategic initiatives of expanding distribution channels, strengthening its agency force and focus on product profitability.

It noted that the strong and diversified distribution channels and portfolio mix have provided a solid base to deliver resilience and profitable growth in 1H21 despite the challenging and uncertain environment.

“The group will focus on accelerating digital capabilities, investment into IT infrastructure and continue to offer excellent customer service even with working remotely.

“In these unprecedented times, the group remains cautious by pursuing its strategic initiatives, and will strive to maintain profitability to its shareholders in 2021,” it added.

Allianz share price closed unchanged at RM12.66 yesterday, for a market capitalisation of RM2.25 billion.