Allianz Malaysia sees decent single-digit revenue growth this year

KUALA LUMPUR, June 30 — Allianz Malaysia Bhd, which recently reported a 10.4 per cent increase in revenue for its first quarter (Q1) ended March 31, 2020, is expecting a decent single-digit top-line growth in this financial year.

Chief executive officer Zakri Khir said the group managed to record an increase in top-line figure in Q1 despite the implementation of the Movement Control Order (MCO) imposed to curb Covid-19. 

“However, there was pressure during the MCO period where, for example, life agents could not meet customers to sell products. So, there was a bit of drop-off (in new business) then but now it’s starting to pick up again,” he said during a virtual press conference today.

Asked on the bottom-line, he said the bottom-line was expected to be better this year.

Allianz Malaysia announced earlier this month that it recorded a 19.6 per cent year-on-year decline in unaudited net profit to RM79.50 million in Q1.

According to its filing with Bursa Malaysia, the group recorded growth in gross earned revenue during the quarter but the imposition of the MCO had impacted business from mid-March.

Regarding insurance claims, Zakri said Allianz General registered less claims during the MCO and was getting back to the normal frequency seen prior to the restriction period.

However, he said there was pressure in terms of cost of claims amid rising prices of treatment due to the usage of personal protective equipment by healthcare personnel and many others following the implementation of the standard operating procedures aimed at curbing the spread of COVID-19.

Asked if the company planned to acquire a digital financial services business, Allianz Life chief executive officer Joseph Gross said there was no plan for that at present.

Last week, Singapore-based insurer Great Eastern Holdings Ltd acquired a 21.87 per cent stake in Boost Holdings Sdn Bhd from Axiata Group Bhd for US$70 million (RM299.36 million).

In 2019, Allianz Malaysia recorded a higher net profit of RM492.48 million from RM377.02 million in the preceding year.

Revenue increased 6.8 per cent 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. — Bernama

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