KUALA LUMPUR (May 27): Allianz Malaysia Bhd’s net profit dipped 0.62% to RM73.2 million or 43.22 sen per share for the first quarter ended March (1QFY16), compared with RM73.6 million or 43.87 sen per share a year ago, on lower interest rate in life insurance operation and lower management expenses in the investment holding segment.

In a filing with Bursa Malaysia today, Allianz said revenue rose 6.1% to RM1.16 billion, from RM1.1 billion a year ago, as a result of higher gross earned premiums and investment income by RM49 million and RM18.2 million, respectively.

Meanwhile, Allianz said the general insurance operation delivered a profit before tax of RM90 million for 1QFY16, up 7% or RM5.9 million compared with RM84 million last year, because of an increase in profit resulting from higher investment income of RM5.4 million.

The life insurance operation delivered a profit before tax of RM25.9 million in 1QFY16, down 14.8% compared with RM30.4 million a year ago, due to lower interest rate which resulted in higher insurance contract liabilities.

Allianz said the investment holding segment registered a loss before tax of RM900,000, compared with a loss of RM2.1 million in 1QFY15, due to lower management expenses.

Allianz said the insurance market is expected to be more competitive, driven by regulatory changes with Bank Negara Malaysia announcing detariffication of the motor and fire insurance beginning July that allows insurers to introduce and price new products.

It said in order to remain resilient in a liberalised market, Allianz is leveraging on the five strategic pillars to drive profitability and its next phase of growth.

“The board is confident it is able to execute its strategic initiatives to deal with current economic climate and [a] changing business environment, and to continue to deliver long term value to stakeholders,” it added.

Allianz’ share price closed one sen or 0.1% lower at RM9.92 today, for a market capitalisation of RM1.68 billion.