KUALA LUMPUR: Allianz Malaysia Bhd’s net profit for the third quarter ended Sept 30, 2019 jumped 43% to RM142.81 million from RM99.88 million in the corresponding quarter last year, thanks to higher contribution from the life insurance segment.
Its revenue went up 9% to RM1.42 billion from RM1.3 billion.
For the quarter under review, the life insurance segment registered an operating revenue of RM840.4 million, an increase of 18.2% due to an increase in gross earned premiums and investment income by RM118.5 million and RM10.7 million respectively.
However, the general insurance segment’s operating revenue declined 2.2% to RM574 million on the back of a decrease in gross earned premiums by RM14.8 million, mitigated by an increase in investment income by RM1.8 million.
For the nine-month period, the insurer’s net profit rose 29.8% to RM359.4 million from RM276.98 million a year ago, with revenue expanding 6.4% to RM4.13 billion against RM3.88 million previously.
On its prospects, Allianz said the general insurance industry growth remains weak and reported a decline in gross written premium by 1% for the first three quarters of 2019 mainly due to decline in health and miscellaneous non-motor business.
“The general insurance industry growth is expected to remain challenging in the medium term. The general insurance segment remains focused on optimising business margins by shifting into profitable business segments, executing technical excellence in claims management, operating efficiently and prioritising customer needs.”
The life insurance industry reported a moderated growth of 13.9% in annualised new premium for the first three quarters of 2019, compared with 16% in the first two quarters of 2019.
“Nonetheless, the life insurance segment is anticipating the growth rate to soften for the last quarter of 2019 amidst the ongoing liberalisation of the industry. The life insurance segment will continue its growth momentum by enhancing its distribution capabilities and product portfolio,“ Allianz said.
