Allianz Malaysia Bhd’s first-quarter net profit dropped by 8.2% to MYR67.17 million (US$15.7 million) from MYR73.18 million in the same period last year. The insurer attributed the decline to weaker returns from its general insurance business.
Lower underwriting profit due to investment in digital assets and the provision of impairment on insurance receivables were also cited for the lower bottom line.
However, quarterly revenue rose by 3.6% to MYR1.21 billion (US$282.7 million) for the quarter due to higher gross premiums and investment income.
In a stock exchange filing, Allianz Malaysia said that its general insurance business’s pre-tax profit decreased by 18.3% to MYR73.5 million (US$17.17 million). This was offset by higher profit in the life insurance segment, with a 40.2% year-on-year growth, reaching MYR25.9 million (US$6.05 million).
The insurer remained confident in its future prospects, saying that the general insurance business is expected to rebound.
“Motor will remain the major contributor to the general insurance business and it will continue monitoring its motor profitability via a comprehensive portfolio management,” Allianz said in the filing.
“The general insurance subsidiary will also leverage on its strong base of motor customers to expand into other non-motor products,” it added.
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