KUALA LUMPUR, Feb 27 — Allianz Malaysia Bhd recorded a higher net profit of RM492.48 million in the financial year ended December 31, 2019 (FY19) from RM377.02 million in the preceding year.
Revenue increased to RM5.53 billion from RM5.18 billion previously, mainly due to higher gross earned premiums and investment income by RM301.4 million and RM51.1 million, respectively.
In a filing to Bursa Malaysia today, Allianz Malaysia said the general insurance segment recorded a lower operating revenue to RM2.31 billion in FY19 from RM2.35 billion in FY18 due to a decrease in gross earned premiums by RM40.1 million but was offset by an increase in investment income by RM7 million.
The uptrend in investment income was due mainly to higher investment asset base.
Meanwhile, the life insurance segment recorded an increase in operating revenue to RM3.21 billion for FY19 versus RM2.82 billion in FY18 due to increase in gross earned premiums and investment income by RM341.5 million and RM43.3 million respectively.
The increase in gross earned premiums of the life insurance segment was mainly contributed by growth in agency, bancassurance and employee benefits channels.
As for the fourth quarter, net profit rose to RM133.08 million from RM100.04 million, while revenue appreciated to RM1.41 billion from RM1.30 billion in the same quarter in 2018.
Both the general insurance segment and the life insurance segment recorded higher operating revenue to RM585.2 million and RM817.2 million respectively.
Allianz Malaysia said growth for the general insurance industry is expected to remain challenging in the medium term amid moderation in both global and local economic growth and pending the next phase of liberalisation of Motor and Fire Tariffs.
Its general insurance segment remains focused on optimising business margins by exploring growth opportunities and shifting into profitable business segments, executing technical excellence in claims management, operating efficiently and prioritising customer needs.
Meanwhile, the life insurance segment is cautious on the impact of slower global growth arising from the Covid-19 outbreak. — Bernama