Allianz’s FY23 net profit of RM730.9mn came within expectations, accounting for 101.4% and 104.1% of ours and consensus’ full-year forecasts respectively. YTD dividend stood at 100.5sen per share (vs. 85.0sen per share in FY22).
FY23 net profit surged 19.1% to RM730.9mn, ahead of insurance revenue growth of 11.8% to RM4.9bn. We attribute the commendable performance to the absence of Cukai Makmur (tax rate: -6.1 pts to 23.6%) and higher contribution from both insurance segments. The general insurance delivered a stronger PBT of 7.9% to RM556.2mn, boosted by higher premium from motor business and higher investment income. Combined ratio increased by 0.7 pts to 85.7% due to higher claims ratio (+1.0 pts to 59.4%).
Meanwhile, the life insurance segment PBT rose to RM411.2mn (vs. RM377.6mn in FY22) on the back of higher net insurance and investment results. Gross written premiums (GWP) grew by 5.2% YoY, boosted by agency and employee benefit channels. More importantly, new business value stood at RM349.3mn (+16.3% YoY).
QoQ, PBT decreased 8.8% to RM239.4mn despite higher revenue of 0.3% to RM1.3bn. We attribute the weaker performance to higher claim experience from investment-linked protection business.
Impact
No change to our earnings estimates pending updates from analyst briefing.
Outlook
We are optimistic that Allianz’s growth will continue in FY24, driven by expansion of distribution channels, repricing activities and operational efficiency.
Valuation
Maintain Buy on Allianz with a target price of RM19.88/share based on SOP valuation.
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