KUALA LUMPUR (Nov 22): Allianz Malaysia Bhd (KL:ALLIANZ), which provides both life and general insurance, saw its net profit dip 7.4% for the third quarter ended Sept 30, 2024 (3QFY2024), despite higher revenue, as certain expenses jumped while it recorded a drop in dividend income and lower fair value gains from investments.

Net profit for the quarter dropped to RM183.2 million from RM197.9 million in the same quarter last year (3QFY2023), its bourse filing showed on Friday. No dividend was declared for the quarter under review.

Revenue grew 10.3% to RM1.44 billion from RM1.31 billion, with its general insurance business registering a turnover of RM826.9 million, up 17% from RM706.9 million, driven by higher gross earned premiums from the motor business, while revenue from its life insurance segment inched up 2.4% to RM613.6 million from RM599.1 million.

However, insurance service expenses rose RM140 million to RM1.17 billion while net expenses from reinsurance contracts held climbed RM31.2 million to RM93.28 million, and other operating expenses jumped RM91.93 million to RM115.14 million. These were partly offset by a decline in finance expenses from insurance contracts issued, which dropped RM106.64 million to RM123.36 million.

Net gains on its investments held at fair value fell RM13.12 million to RM127.71 million, while dividend income dropped some RM7.18 million to RM49.96 million.

For the nine months ended Sept 30 (9MFY2024), Allianz Malaysia's net profit was little changed at RM540 million versus RM537.2 million in 9MFY2023, though revenue climbed 14.2% to RM4.15 billion from RM3.63 billion.

The group said it will continue with its agency transformation journey to enlarge its distribution network to uplift productivity, and to seek ways to improve customer experience and operational efficiency by investing in digital capabilities.

“The group will continue to steer towards driving profitable product mix and maintain strict discipline in areas of underwriting and claims management,” it said.

Allianz Malaysia’s share price rose four sen to close at RM20.50 on Friday, valuing the company at RM3.68 billion. Year to date, the stock has gained 11.17%.