KUALA LUMPUR (May 29): Allianz Malaysia Bhd has posted a 14.8% increase in its net profit for the first quarter ended March 31, 2023 (1QFY2023) to RM172.7 million from RM150.5 million a year ago, driven by higher profit contribution from its general insurance segment.

The group’s earnings per share rose to 97.03 sen, compared to 84.68 sen a year earlier. Allianz Malaysia proposed a dividend amounting to 31.5 sen per share, with entitlement and payment dates to be announced later.

According to its Bursa Malaysia filing on Monday (May 29), Allianz Malaysia said the higher profit in its general insurance segment was contributed by higher insurance service results and positive fair value movement from investment.

“Combined ratio improved by 4.2 percentage points as compared to the preceding year corresponding quarter mainly contributed by lower claims and expenses,” it elaborated.

Meanwhile, the group added that its life insurance segment experienced a lower profit due to higher insurance finance expenses and lower claim experience from investment-linked protection business in preceding year corresponding quarter.

Revenue for the quarter under review was higher by 9.2% to RM1.16 billion from RM1.06 billion in 1QFY2022. Allianz Malaysia credited the improved revenue to higher insurance revenue from both general insurance segment and life insurance segment.

“The general insurance segment recorded an insurance revenue of RM661.5 million for 1QFY2023, an increase of 8.1% or RM49.4 million as compared to 1QFY2022 of RM612.1 million, due mainly to increase in gross earned premiums,” the group wrote in its bourse filing on Monday (May 29).

“The life insurance segment recorded an insurance revenue of RM499.9 million for 1QFY2023, an increase of 10.8% or RM48.9 million as compared to 1QFY2022 of RM451.0 million. This increase was mainly attributed to higher insurance revenue from investment-linked protection business.”

Moving forward, Allianz Malaysia said the normalisation of economic activity in 2023 bodes well for the group as it expects the insurance businesses to grow in tandem with the growth in the economy.

“The group will consistently seek to capture growth opportunities for our business and to create growth opportunities. The group aims to continue to carry out outstanding delivery of products and services that address the needs of our customers and make it a trusted partner,” it said.

“Focus will also be [on] restoring growth on the back of our strong distribution channels and innovative products. The group will need to continue to be profitable and efficient, and will continue to improve on productivity while seeking growth in high margin segments with ongoing transformation to be more digital and scalable.”

Allianz Malaysia added that the group's financial strength, diversified distributions and product offerings as well as strong focus on execution of its strategic initiatives will continue to position it to deliver sustainable growth in 2023.

On Monday, Allianz Malaysia's share price closed 0.57% or eight sen higher at RM14, valuing the group at RM2.49 billion.