KUALA LUMPUR (Aug 21): Allianz Malaysia Bhd (KL:ALLIANZ) recorded a modest increase in second-quarter net profit as higher insurance revenue from both its general and life insurance businesses supported earnings.

Net profit for the three months ended June 30, 2026 (2QFY2026) rose 2.2% to RM218.66 million from RM214.04 million a year earlier, according to the insurance group's Bursa Malaysia filing on Friday. Insurance revenue rose 7.2% to RM1.63 billion from RM1.52 billion over the same period.

General insurance revenue rose 4.5% to RM925.8 million, mainly on higher gross earned premiums from the motor business while life insurance revenue climbed 11% to RM703.8 million, driven by investment-linked protection and employee benefits.

However, profit before tax (PBT) from the general insurance segment fell 5.9% to RM144 million, mainly due to lower net insurance and investment results. On the other hand, life insurance PBT jumped 27.5% to RM166 million. 

For the first half, the general insurance segment recorded premium growth of 6.5%, outperforming the industry's 1.4% growth, driven by strong contributions from its agency and franchise channels. In contrast, annualised new business premiums in its life insurance business grew 8.7%, below the industry's 14% growth.

"Although industry growth was stronger during the period, the life insurance segment continued to build momentum, with annualised new business premium growth improving by 8.1 percentage points from 0.6% recorded in the corresponding period last year," the group said. 

Growth was supported by bancassurance and employee benefits, both of which recorded new business growth ahead of the market, it said.

No dividend was declared for the quarter.

For the six months ended June 30, 2026 (1HFY2026), Allianz Malaysia's net profit rose 4.4% to RM446 million, while insurance revenue increased 7% to RM3.26 billion, supported by higher contributions from both insurance segments. 

The general insurance business recorded insurance revenue of RM1.84 billion, up 5.5% from a year earlier, while its life insurance revenue rose 9% to RM1.42 billion.

"Looking ahead, the group remains focused on executing its strategic priorities and is well positioned to deliver sustainable and profitable growth," it said when commenting on its outlook. "The group will continue to strengthen its distribution capabilities, enhance productivity across its channels, and leverage its technical excellence in underwriting and claims management to support disciplined portfolio growth and customer value creation".

The insurer will also continue investing in digital initiatives to improve operational efficiency, strengthen resilience and enhance customer experience.

Shares of Allianz Malaysia closed unchanged at RM22.38 on Friday, valuing the group at RM4.11 billion. The stock has gained about 10% year to date.