Allianz’s 1QFY24 net profit of RM189.8mn came within expectations, accounting for 24.6% and 25.5% of our and consensus full-year forecasts, respectively. YTD dividend stood at 26.5sen per share (vs. 31.5sen per share in FY23).
1Q24 PBT improved 8.0% to RM251.0mn while revenue grew by 15.1% to RM1.3bn. The commendable performance was driven by higher profit contributions from the life insurance segment. The life insurance business posted a higher PBT of 26.7% YoY to RM122.3mn, boosted by investmentlinked protection business and higher investment income. All key distribution channels grew strongly. Agency ANP increased by 31.2%, Bancassurance surged by 79.5%, and Employee Benefits increased by 9.6%.
Meanwhile, the general business PBT declined 5.4% to RM132.3mn due to extraordinarily low claims in 1Q23 and lower fair value gain of investment assets. As a result, the combined ratio increased by 2.8 pts to 87%. Positively, GWP grew 14.0% to RM884.6mn on the back of higher premium stemming from motor business (+20.9% YoY).
QoQ, PBT increased 4.9% to RM251.0mn on the back of higher revenue (+2.1%) contribution from both insurance segments due to higher premiums from the motor business and investment-linked protection business portfolio.
Impact
No change to our earnings projections pending updates from analyst briefing.
Outlook
We remain confident that Allianz will continue outperforming the industry growth in 2024, driven by the expansion of distribution channels and market segments.
Valuation
We place our target price (RM22.15) and Buy recommendation under review pending management guidance at today’s analyst briefing.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....