Allianz Malaysia posts higher net profit of RM520.32 mil in FY20

Allianz Malaysia posts higher net profit of RM520.32 mil in FY20
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KUALA LUMPUR (Feb 24): Allianz Malaysia Bhd’s net profit for the financial year ended Dec 31, 2020 (FY20) rose to RM520.32 million compared with RM492.48 million in FY19.

Revenue also increased to RM5.95 billion from RM5.53 billion previously, due mainly to higher gross earned premiums and investment income by RM384.80 million and RM26.5 million respectively.

In a filing with Bursa Malaysia today, the company said the general insurance segment recorded an operating revenue of RM2.47 billion for FY20 from RM2.31 billion previously, due mainly to increase in gross earned premiums by RM160.7 million, offset by a decrease in investment income by RM1.8 million.

The increase in gross earned premiums for the general insurance segment was attributable to higher premiums from motor business.

The life insurance segment recorded an operating revenue of RM3.46 billion in FY20 compared with RM3.21 billion in FY19 due to increase in gross earned premiums and investment income by RM224.1 million and RM30.7 million respectively.

The increase in gross earned premiums of the life insurance segment was mainly contributed by higher premiums from agency, bancassurance, and employee benefits channels, Allianz Malaysia said.

As for the fourth quarter ended Dec 31, 2020, net profit was higher at RM144.03 million compared with RM133.08 million, while revenue increased to RM1.53 billion from RM1.41 billion in the same quarter in 2019.

Outlook for both general insurance and life insurance industries are expected to remain challenging in the medium term amid weak consumer sentiment and subdued domestic economic activity arising from Covid-19.

The group will continue to enhance and accelerate digital capabilities, optimise product portfolio, and expand distribution capabilities to adapt to the current environment and better support its customers during the pandemic.