KUALA LUMPUR: Allianz Malaysia Bhd's net profit fell 13.3 per cent to RM145.4 million in the second quarter (Q2) ended June 30, 2021 from RM167.7 million a year earlier.
Its revenue grew 11.7 per cent to RM1.6 billion from RM1.4 billion a year ago due to the higher gross earned premiums and investment income by RM158.7 million and RM5.9 million respectively.
Allianz Malaysia said its general insurance segment recorded an operating revenue of RM666.9 million in Q2, an increase of 11.5 per cent from RM598.2 million last year due to an increase in gross earned premiums by RM70.3 million but was offset by a decrease in investment income by RM1.6 million.
The increase in gross earned premiums was attributable to higher premiums from motor business.
In Q2 2021, the company's life insurance segment registered an operating revenue of RM898.7 million, an increase of 11.9 per cent from RM803.1 million previously, due to increase in gross earned premiums and investment income by RM88.4 million and RM7.2 million respectively.
The life insurance segment was buoyed by higher premiums from agency and bancassurance channels.
For the first half, Allianz Malaysia's net profit fell 15.6 per cent to RM208.7 million, from RM247.2 million a year earlier.
The company's revenue edged up 9.9 per cent to RM3.2 billion from RM2.9 billion.
Allianz Malaysia chief executive officer Zakri Khir said the company remained conscious of the fluidity of the current business environment and would continue to employ short-term strategies to move in tandem with uncertainties and challenges that may come our way.
The company will also continue to execute its strategic initiatives of expanding distribution channels, strengthen its agency force and focus on product profitability.
"The strong and diversified distribution channels and portfolio mix have provided a solid base to deliver resilience and profitable growth in the first half of 2021 despite the challenging and uncertain environment.
"The company will focus on accelerating digital capabilities, investment into IT infrastructure and continue to offer excellent customer service even with working remotely. In these unprecedented times, the company remains cautious that by pursuing its strategic initiatives, Allianz will strive to maintain profitability to its shareholders in 2021," Zakri said.
