KUALA LUMPUR: Allianz Malaysia Bhd’s net profit jumped 35.2 per cent to RM89.87 million in the second quarter (Q2) ended June 30, 2018 from RM66.48 million a year ago.
Its revenue increased 9.5 per cent to RM1.31 billion from RM1.19 billion.
In a filing to Bursa Malaysia, Allianz said the higher revenue was mainly due to higher gross earned premiums and investment income by RM95.4 million and RM17.6 million respectively.
For the six months, Allianz’s net profit increased 32.5 per cent to RM177.1 million from RM133.65 million, while revenue jumped 7.3 per cent to RM2.58 billion from RM2.4 billion.
Allianz expects some volatility in the market given the change in political landscape and economic policies in the short term.
It said in addition, intensifying competition with the ongoing liberalisation of motor and fire tariffs was expected to put some pressure on the industry’s revenue and profits.
However, it said the general insurance segment would continue to prioritise offering innovative products and services and further expansion of its multi-distribution model to maintain its market leading position.
Allianz said the life insurance segment had recorded a strong new business growth of 11.8 per cent in Q2 2018 as compared to last year.
“In line with the objectives of the Life Framework, the life insurance segment will remain focused on strengthening its multi distribution channels through professionalisation and expansion of its agency force, improving end-to-end sales process digitisation and increasing the productivity of the agency force,” it said.
It said in 2018, the life business will prepare for the implementation of Minimum Allocation Rate (MAR) for investment linked products and Balanced Scorecard (BSC) for Bancassurance channel which are currently slated to be implemented beginning 2019.
Allianz said it remains confident in its long-term prospects and ability to continue delivering value to its shareholders in 2018.