Allianz sees fall in Q3 net profit

PETALING JAYA: Allianz Malaysia Bhd saw its net profit for the third quarter ended September 30 fall 7.10 % to RM67.53 million from RM72.68 million a year ago, mainly due to lower underwriting profit.
Revenue for the period increased slightly however, by 3.14%, to RM1.19 billion from RM1.15 billion attributable to higher gross earned premiums and investment income.
The group’s board of directors said in a Bursa Malaysia filing that it will continue with the strategy to diversify and manage its profitability while also continuing to leverage on its diversified insurance portfolio.
“To remain ahead of competition, the group continues to drive productivity by going digital. This include strengthening sales management capabilities of its distribution channels through the use of digital platform for sales processes, digital communication and digital partnerships,” the board added.
Despite short-term challenges, the board remains confident in the group’s long-term prospect and its ability to deliver sustainable value to its stakeholders,” he added.
The group’s net profit for the first nine months of the year fell 9.44% to RM201.18 million from RM222.15 million, due to lower underwriting profit contributed by higher management expenses. The higher management expenses stemmed from investment in digital assets and provision for impairment on insurance receivables.
Revenue on the other hand rose 3.55% to RM3.60 billion from RM3.47 billion on the back of higher gross earned premiums and investment income.
Allianz share price rose 1.74% to RM14.00 with some 900 shares done.