KUALA LUMPUR (May 25): Allianz Malaysia Bhd’s (KL:ALLIANZ) net profit rose 6.72% in the first quarter driven by improved performance across both its general and life insurance segments.

Net profit for the quarter ended March 31, 2026 (1QFY2026) increased to RM227.35 million, from RM213.04 million a year earlier, according to the insurer's Bursa Malaysia filing on Monday.

Revenue grew 6.71% to RM1.63 billion from RM1.53 billion, driven by increased contributions from the motor business under the general insurance segment, as well as investment-linked protection and employee benefits businesses within the life insurance segment.

The group's surging net investment income, combined with a reduced tax expense, effectively offset a sharp reversal to a loss in net insurance finance.

Allianz declared an interim dividend of 35.5 sen per share, and 42.6 sen per share for irredeemable convertible preference share (ICPS), both payable on June 10.

Looking ahead, the group said it will maintain a disciplined strategic focus on expanding distribution channels, pivoting toward higher-margin protection products, and optimising cost management to drive operational efficiency.

"The group remains focused on delivering sustainable growth amid a more challenging and evolving market environment marked by increasing competition, rising costs and changing consumer needs," Allianz noted.

Shares of Allianz closed 18 sen or 0.86% lower at RM20.80 on Monday, giving a market capitalisation of RM3.83 billion. Year to date, the stock has gained 2.97%.

Prior to the release of the results, five of the six analysts covering the stock had issued 'buy' calls while the remaining one had a 'hold' recommendation, according to Bloomberg data. The average 12-month target price is RM24.80.