Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 21): Allianz Malaysia Bhd saw a 5% on-year rise in its net profit to RM78.4 million for its third quarter ended Sept 30, 2014 (3QFY14) from RM74.2 million.

Revenue for the quarter rose 10% to RM1.06 billion from RM962.3 million a year earlier, the group’s filing to the local exchange today showed.

For the cumulative period, net profit rose 18% on-year to RM224.9 million from RM190.0 million, while revenue climbed 16% on-year to RM3.15 billion from RM2.72 billion.

Allianz attributed the better performance for the nine months to higher gross earned premiums and investment income during the period.

“General insurance operations continue to contribute major share of profit and delivered a profit before tax of RM247.8 million for the financial period ended Sept 30 2014; an increase of 18.3% or RM38.4 million as compared to the preceding financial period ended Sept 30 2013 of RM209.4 million,” it said.

Allianz added that the continued sales momentum from agency and franchise channels resulted in an increase in gross earned premiums of its general insurance operations.

Besides that, its life insurance operations posted higher profit before tax of RM74.1 million for 9MFY14, rising 18.4% from RM62.3 million in 9MFY13.

Meanwhile, its investment holding segment posted net profit of RM1.6 million compared to a loss before tax of RM1.1 million in the year before.

Looking ahead, the group is expecting a challenging environment ahead for its insurance sector, due to the tightening of credits and the impending liberalisation of the insurance market, which may lower motor car sales and demand for life savings products.

“The group has taken steps to diversify its business portfolio and continues to build on its multi distribution strategy to increase sales momentum in both general and life insurance businesses in order to strengthen its competitive positioning,” said Allianz.

It expects to maintain its growth trajectory in the remaining quarter of its financial year, and is optimistic that its insurance operations will deliver satisfactory results.

Allianz fell 2 sen or 0.17% today to RM12, bringing its market capitalisation to RM2.01 billion.

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