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Allianz Malaysia Berhad (AMB) has just released its unaudited quarterly results for the financial period ended 31 March 2025, and the numbers paint a picture of solid growth amidst a dynamic market. As a leading insurer in Malaysia, AMB’s performance in the first quarter offers valuable insights into its operational resilience and strategic direction. While the Group has demonstrated impressive top-line and bottom-line growth, it also navigates specific industry challenges and continues to focus on long-term sustainability.
Let’s dive into the key highlights from this latest report, examining how AMB is faring and what it means for its future trajectory.
Q1 2025: A Strong Start to the Year
Allianz Malaysia kicked off 2025 with robust financial performance, showcasing significant growth across its core metrics when compared to the same period last year. This indicates a strong operational foundation and effective market penetration strategies.
Q1 2025 Performance
Insurance Revenue: RM1,528.7 million
Profit Before Tax: RM283.7 million
Profit After Tax: RM211.7 million
Basic Earnings Per Share: 117.79 sen
Diluted Earnings Per Share: 61.26 sen
Compared to Q1 2024
Insurance Revenue: RM1,336.9 million (+14.3%)
Profit Before Tax: RM251.0 million (+13.0%)
Profit After Tax: RM189.8 million (+11.5%)
Basic Earnings Per Share: 106.66 sen
Diluted Earnings Per Share: 54.83 sen
The Group’s insurance revenue surged by 14.3%, reaching RM1.53 billion, primarily driven by strong contributions from both its General and Life insurance segments. This impressive top-line growth translated into a 13.0% increase in Profit Before Tax, hitting RM283.7 million, and an 11.5% rise in Profit After Tax to RM211.7 million. These figures underscore the effectiveness of their business strategies and operational efficiency.
Segmental Deep Dive: General Insurance Leading the Charge
A closer look at the individual business units reveals nuanced performances, with the General Insurance segment showing particularly strong momentum.
General Insurance Segment
The General Insurance segment delivered an outstanding performance, with its insurance revenue increasing by 14.3% to RM862.5 million (compared to RM754.8 million in Q1 2024). This growth was largely attributed to higher gross earned premiums from both Motor and Commercial businesses. The segment’s Profit Before Tax also saw a significant jump of 20.7% to RM159.7 million (from RM132.3 million in Q1 2024), propelled by improved net insurance and investment results.
Operational efficiency was also a highlight, with the claims ratio improving by 1.1 percentage points to 53.9% (from 55.0% in Q1 2024) and the expense ratio decreasing by 1.3 percentage points to 22.8% (from 24.1% in Q1 2024). These improvements collectively led to a healthier combined ratio of 85.8%, a 1.2 percentage point improvement from 87.0% in the same period last year, indicating better underwriting profitability.
Life Insurance Segment
The Life Insurance segment also contributed positively, recording an insurance revenue of RM666.2 million, a 14.4% increase from RM582.1 million in Q1 2024. This growth was mainly due to higher insurance revenue from investment-linked protection and savings businesses. The segment’s Profit Before Tax rose by 3.8% to RM126.9 million (from RM122.3 million in Q1 2024), driven by higher net insurance and investment results, though partially offset by lower other operating income from investment-linked protection and employee benefit businesses.
However, the Annualised New Premium (ANP) for the life insurance segment saw a decline of 9.1% to RM213.5 million (from RM234.8 million in Q1 2024). This was attributed to the introduction of regulatory interim measures during the period, which temporarily impacted new business and product launches.
Investment Holding Segment
The Investment Holding segment reported a reduced loss before tax of RM2.9 million (compared to RM3.6 million loss in Q1 2024), mainly due to lower expenses in the current quarter.
Financial Position: Strengthening the Balance Sheet
Allianz Malaysia’s financial health remains robust, with a strengthening balance sheet as of 31 March 2025.
| Financial Metric | 31 March 2025 (RM’million) | 31 December 2024 (RM’million) | Change (RM’million) | Change (%) |
|---|---|---|---|---|
| Total Assets | 28,586.1 | 28,488.4 | 97.7 | 0.3% |
| Total Liabilities | 22,511.2 | 22,660.3 | (149.1) | (0.7%) |
| Total Equity | 6,074.9 | 5,828.1 | 246.8 | 4.2% |
| Net Asset Per Ordinary Share (RM) | 33.68 | 32.46 | 1.22 | 3.76% |
Total assets increased by RM97.7 million to RM28.59 billion, driven by an increase in investments. Total liabilities decreased by RM149.1 million to RM22.51 billion, mainly due to a decrease in insurance contract liabilities and other liabilities. Consequently, total equity attributable to owners of the Company grew by 4.2% to RM6.07 billion, primarily due to the net profit generated for the period.
Risks and Prospects: Navigating the Landscape
The Malaysian economy expanded by 4.4% in the first quarter of 2025, supported by steady domestic demand, a positive labour market, and income-related policy measures. This positive economic backdrop provides a conducive environment for the insurance sector.
Outlook and Strategic Focus
Allianz Malaysia’s General Insurance segment continues to outperform the industry, indicating effective strategies in a competitive market. While the Life Insurance segment faced a temporary dip in new business due to regulatory adjustments, the Group remains committed to adapting and expanding.
AMB’s forward-looking strategies include:
- Expanding Distribution Channels: Driving agency transformation, focusing on high-quality recruitment, agent productivity, and retention.
- Optimizing Product Mix: Steering its portfolio towards a more profitable product mix to accelerate sustainable growth and enhance return on equity.
- Operational Efficiency: Strengthening claims management and enforcing disciplined expense management.
- Digital Transformation: Continued investment in digital platforms to streamline operations, enhance customer experience, and strengthen competitive positioning.
These initiatives underscore AMB’s commitment to delivering sustainable and profitable growth to all stakeholders in 2025 and beyond.
Contingent Liabilities: The MyCC Case
An important ongoing matter for Allianz Malaysia is the legal case involving its general insurance subsidiary, Allianz General Insurance Company (Malaysia) Berhad (AGIC), and the Malaysia Competition Commission (MyCC). This relates to an alleged infringement of the Competition Act 2010 concerning trade discount rates and labour hourly rates agreed upon between PIAM and FAWOAM.
While the Competition Appeal Tribunal (CAT) had previously allowed AGIC’s appeal, setting aside MyCC’s decision, MyCC subsequently filed for Judicial Review against CAT’s decision at the High Court. The latest update indicates that the Court of Appeal has adjourned MyCC’s Leave Appeal hearing, with a new case management fixed for May 29, 2025. This ongoing legal process represents a contingent liability and a point to monitor, although the company has been actively defending its position.
Dividend Announcement
The Board of Directors has proposed a final dividend under a single-tier system for the financial year ended 31 December 2024. This proposed dividend amounts to 63.0 sen per ordinary share and 75.6 sen per Irredeemable Convertible Preference Share (ICPS). This dividend is subject to shareholders’ approval at the Company’s 51st Annual General Meeting scheduled for 25 June 2025, and if approved, will be paid on 16 July 2025.
It is important to note that no dividend was paid for the financial period ended 31 March 2025 itself, as this proposed dividend pertains to the full financial year 2024.
Summary and
Allianz Malaysia Berhad’s Q1 2025 results demonstrate a strong operational start to the year, marked by impressive revenue and profit growth across both its General and Life insurance segments. The General Insurance unit, in particular, showcased robust performance with improved efficiency ratios and premium growth exceeding industry averages. While the Life Insurance segment faced headwinds from regulatory changes impacting new business, its overall revenue and profit contribution remained positive.
The Group’s balance sheet has also strengthened, reflecting effective asset and liability management. Management’s focus on expanding distribution channels, optimizing product mix, enhancing operational efficiency, and investing in digital transformation are key strategic pillars that could drive future sustainable growth.
However, investors should remain aware of the ongoing MyCC legal case, which represents a key contingent liability, even as the company continues to vigorously defend its position. The proposed dividend for FY2024, if approved, signals a commitment to shareholder returns.
Key points to consider for the future:
- The company’s ability to maintain the strong growth momentum in its General Insurance segment.
- The impact and adaptation strategies for the Life Insurance segment in response to regulatory changes and its ability to rebound new business growth.
- The resolution and potential financial implications of the ongoing MyCC legal proceedings.
- The effectiveness of digital transformation initiatives in enhancing customer experience and competitive positioning.
Overall, Allianz Malaysia appears to be on a steady path, leveraging its strengths to navigate market complexities. Do you think Allianz Malaysia can maintain this growth momentum and overcome the challenges in the Malaysian insurance landscape in the coming quarters? Share your thoughts in the comments below!
For more in-depth analyses of Malaysian companies, check out our other articles on [Related Article 1] and [Related Article 2].
