KUALA LUMPUR (May 19): Allianz Malaysia Bhd’s net profit for the first quarter ended March 31, 2021 (1QFY21) fell 20.43% to RM63.26 million, from RM79.5 million a year ago, due mainly to lower profit contribution from the life insurance segment.
Quarter revenue, however, grew 8.21% to RM1.61 billion from RM1.48 billion a year ago, due mainly to higher gross earned premiums and investment income, its filing to Bursa Malaysia showed.
The insurer did not declare any dividend for the quarter under review.
The group said its life insurance segment recorded a loss before tax of RM20.2 million for 1QFY21, compared with a profit before tax of RM23.5 million for the previous year, mainly due to higher fair value losses on investments arising from higher interest rate.
Meanwhile, its general insurance segment delivered a profit before tax of RM92.6 million for 1QFY21, an increase of 24.3% or RM18.1 million compared to RM74.5 million for the previous year, mainly driven by lower expenses and savings from motor claims from less traffic during the movement restriction imposed in the first quarter.
On a quarter-on-quarter basis, the group’s net profit dropped by almost 57% from RM144.03 million, while its revenue grew 5.27% from RM1.53 billion.
The decline in earnings was due to higher investment fair value losses in the life insurance segment, and higher claims in the general insurance segment.
The group said 2021 is expected to be another challenging year for the general and life insurance industries as Covid-19 remains a significant variable and any sound economic recovery will need to be underpinned by an effective vaccination programme.
The group will continue with its strategic initiatives to expand its distribution channel, strengthen its agency force and build a diversified product portfolio. It will also invest in digital infrastructure for its distribution channels to allow for remote sales and be able to digitally connect to its customers, according to the financial result announcement.
“In these unprecedented times, the group remains cautious that by pursuing its strategic initiatives, the group will be able to continue to deliver profitable results to its shareholders in 2021,” it said.
Allianz Malaysia dropped two sen to close at RM13.16 today, valuing the group at RM2.34 billion.
