KUALA LUMPUR, June 25 — RHB Investment Bank has upgraded Allianz Malaysia Bhd’s call to ‘buy’ from ‘neutral’ on the group’s current strong position to benefit from an upward climb in the general insurance underwriting cycle.

It said Allianz’s general insurance subsidiary Allianz General Insurance Co has superior underwriting margins of 15.9 per cent despite not having a larger exposure to more profitable segments like fire premiums.

“The company is determined to solidify its already strong market position prior to industry detariffication and may shell out higher expenses to enhance its 6,000-strong agency force while still maintaining margins as a priority,” it said in a research note today.

The research firm said that Allianz is also investing heavily to boost the distribution might of its life insurance segment, which should bode well for its income diversification moving forward. – Bernama