KUALA LUMPUR (Nov 20): Allianz Malaysia Bhd saw its net profit rise by a marginal 0.11% to RM78.51 million for the third quarter ended Sep 30, 2015 (3QFY15) from RM78.42 million a year ago, thanks to better performance of its life insurance operation.

However, earnings per share (EPS) slipped to 46.87 sen from 48.68 sen.

In a filing with Bursa Malaysia today, Allianz said its life insurance operation experienced increases in gross earned premiums and investment income due to higher renewal premiums from agency channel.

The improved performance was also helped by the scaling back of unprofitable direct marketing business, it said.

Revenue grew 7.29% to RM1.14 billion in 3QFY15 from RM1.06 billion in 3QFY14.

For the cumulative nine months period (9MFY15), the group’s net profit however fell by a marginal 1% to RM222.61 million or 132.1 sen a share from RM224.85 million or 136.1 sen a share in 9MFY14, due mainly to lower underwriting profit from its general insurance operation.

This was despite a 6.3% increase in revenue to RM3.35 billion from RM3.15 billion a year ago, due to higher gross earned premiums and investment income by RM157.9 million and RM40 million respectively.

Moving forward, Allianz acknowledged that Malaysia consumer sentiments remain soft and would dampen demand for insurance products.

“The insurance sector growth has been subdued for the first half of the year with the general insurance industry registering a marginal premium growth of 2.3% against 6.4% for the same period last year and new business premium growth for the life insurance industry recorded at 1.5% against same period last year of 7.7%,” it noted.

Despite a challenging operating environment, the group pledged to remain committed in delivering sustainable growth.

“Growth in the general insurance operation will be driven by sales contribution from the retail and commercial segment while growth in the life insurance operation segment will continue to be driven by expansion and diversification of distribution channels and launching of new and competitive products,” it said.

Amid a weaker domestic and global outlook, Allianz’s board of directors expects results of the group for FY15 to be moderate.

Allianz shares closed two sen or 0.19% lower at RM10.52 today, giving it a market capitalisation of RM1.78 billion.

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