Allianz Malaysia Bhd’s first-quarter net profit fell 8.2% to RM67.17 million from RM73.18 million a year ago, on lower contribution from its general insurance operation due mainly to lower underwriting profit arising from investment in digital assets and the provision of impairment on insurance receivables.
Earnings per share dropped to 38.67 sen from 43.22 sen a year ago.
Quarterly revenue, however, rose 3.6% to RM1.21 billion in the three months ended March 31, 2017 (1QFY17) from RM1.17 billion in 1QFY16, due to higher gross earned premiums and investment income by RM28.5 million and RM13.1 million respectively.
In a filing with Bursa Malaysia today, Allianz Malaysia said its general insurance operation delivered a pre-tax profit of RM73.5 million in 1QFY17, an 18.3% decline from RM90 million in 1QFY16.
However, its life insurance operation recorded a higher pre-tax profit of RM36.3 million in 1QFY17, up 40.2% from RM25.9 million in 1QFY16 due mainly to higher contribution from protection business.
On prospects, Allianz Malaysia said it is confident of performing satisfactorily for the remaining year and to continue to deliver long-term value to its stakeholders.
"Motor will remain the major contributor to the general insurance business and it will continue monitoring its motor profitability via a comprehensive portfolio management.
"The general insurance subsidiary will also leverage on its strong base of motor customers to expand into other non-motor products," it added.
In terms of its life insurance subsidiary, the group will continue to strengthen its distribution capabilities in all channels and its portfolio management.
"It (the life insurance division) will remain focus on enlarging and building a professional and productive agency force. It will also focus on the sale of investment-linked regular premium products with rider attachments which provide higher margins," said Allianz Malaysia.
Allianz Malaysia shares closed down 8 sen or 0.63% at RM12.52 today, with 391,200 shares done, for a market capitalisation of RM2.18 billion.
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