Operating profit in the region increased 8 percent to EUR 63 million, mostly in Thailand and Malaysia, driven mainly by our overall technical excellence programs and operations, including an expanded digitalization strategy for our core channels. https://www.allianz-asiapacific.com/news/allianz-asia-pacific-announces-strong-half-year-performance-results-in-2021.html

There is almost 0 additional capital required for GI new business, due to short term nature, hence IRR is almost infinity.

But GI market in Malaysia is already saturated, there are just that many car or fire insurance that you can sell. For growth, GI typically aim to sell additional coverage for car insurance, or standalone health/CI insurance. But then, consumers in Malaysia typically prefer investment linked policies vs standalone health/CI.

For Allianz, its GI business is roughly there and the valuation wont change much. Life is the only possible catalyst to bump up its share price. Phase 2 reopen soon, and dine in allowed, more opportunities for Life side face-to-face sales.

Not to mention, Prudential recently announced Covid medical coverage (on reimbursement basis) for its policyholders, very likely all other big players will follow, and potentially can see a high sales in H2.

Allianz APE:
2019H1 : 285mil
2019H2 : 309mil
2020H1 : 213mil
2020H2 : 318mil
2021H1 : 335mil

Allianz is narrowing its gap with HLA (4th), based on NB APE.

the world now started to focus on value/energy stock, to prepare for inflation. https://www.stashaway.my/r/economy-inflationary-disinflationary-growth

They both already exist in Malaysia market for years, not new entrance. Currently we have 21 conventional P&C insurers, after 1 year, will consolidate to 19.

AmGeneral sold @ 1.4x book value, while AXA sold @ ~1x book value, and give away life business for free

https://www.theedgemarkets.com/article/ammbs-51owned-unit-sells-amgeneral-insurance-rm229b-cash-and-shares-deal-liberty-mutual?fbclid=IwAR13Qll8w0ha9SM8_PKXTFKFh6-IpDd3FfmIRzfQ0qFJe3AcI-_2gmZSdOU#.YPVcR9gWL6s.facebook

https://www.sinchew.com.my/content/content_2513273.html

First year premium < units allocation/creation + first year expenses + first year commission, thus will sell at a paper loss, in first year.

Branches don't have to open to sell new insurance policies. In fact, even to settle claims, branches dont have to open as well. I did visit insurance company branch a few times before, but mainly just to switch funds, change payment method etc.

whole market is down, just collect if got free cash

1 month or even one full year of bad sales will not change anything. There is almost zero capital required to write a new business and no cost of inventory etc. The sales in fact are mostly campaign driven, and not surprised to see one month of sales can be 3x of another month.

Q1 2019 117.5
Q2 2019 167.8
Q3 2019 132.8
Q4 2019 176.7
Q1 2020 122.6
Q2 2020 90.8
Q3 2020 150.7
Q4 2020 167.7
Q1 2021 171.3

Later new PM (whoever he is), mandatory waive all interest on late payment

https://paultan.org/2021/07/05/motor-insurance-claims-fraud-cost-rm1-billion-a-year-in-malaysia-fighting-corruption-is-a-lonely-road-allianz/

There are many secret undertable arrangement for AIA and Prudential.

AIA
https://www.insurancebusinessmag.com/asia/news/breaking-news/foreign-insurers-want-review-of-malaysias-ownership-rules-96114.aspx
http://lib.perdana.org.my/PLF/Digital_Content/Prominent_Leaders/Mahathir/News_1968-2004/1996-1998/1998aj/equity%20ear%20grace.pdf

Prudential
https://www.theedgemarkets.com/article/high-court-rules-favour-prudential-over-stake-malaysian-licensee

The foreign ownership thing being brought up again in 2017, so far only one company "negotiated" and "donated" to the government to get exemption. Many others did scramble up to find a local partner, as there are only a few with big enough size and good quality local partner. https://www.nst.com.my/business/2017/11/299822/epf-kwap-eye-foreign-insurers

Supposed someone upper level eventually stop the government to proceed with this, and now is silence again. The only victim so far, is that one company.

Recently, China, India and Indonesia all slowly open up to allow higher foreign ownership. It seems unlikely government will proceed with this anymore. There is this unique position for life insurance, which it is actually much better to allow for big MNC insurance, with good governance, to come in. Local insurance typically restricted with capability and with poorer governance, and hardly survive for a long time. Back then we did have a lot more local insurers (MAA, Uniasia, MCIS, Tahan), but now only HLA and Etiqa managed to sustain.
https://www.theedgemarkets.com/article/takeover-tahan-no-surprise-industry

Allianz is now number 1 in GI, number 4 in Life (conventional). There are only 2 local conventional life insurers, HLA and Etiqa, both with foreign minority shareholder. The only unfavorable law, at least recently, is the 70% cap on foreign ownership, but seems like is being postponed again indefinitely.

Last time work in office, 100 people 10 AC, now work from home, 100 people 50 AC. Then residential rates, they will pay the higher tariff >rm0.50 per kWh.

https://www.linkedin.com/posts/tonyfernandesairasia_ridehailing-activity-6815143075829157889-Iij9/

https://www.nst.com.my/news/nation/2021/06/703091/6-month-bank-loan-moratorium-individuals-micro-entrepreneurs

BAT now import and distribute only

https://www.kwongwah.com.my/?p=1014203

1h20m : Yes we are selling a lot of protection business which is actually very good under the 17 basis, the profit will emerge quite well.

AXA sold for 140mil euro (~690mil MYR) for 49% Life + GI, valuing AXA at ~1400mil MYR, vs Allianz MV of ~5000mil MYR (adjusted for ICPS)

https://www.channelnewsasia.com/news/business/france-s-axa-to-sell-malaysia-insurance-businesses-to-generali-15066432

It is mainly owned by Allianz clients, you can check it here. https://www.allianz.com.my/documents/144671/1080891/ENG+Allianz+Fund+Performance+Report+2020.pdf/f63c8a7e-7252-441b-9613-0778d0690609

that is sorted by holding%, EPF only hold 5.89% of Allianz now, cant make it to top 30

With inflation coming, value stock will rise to the moon

which headlines?

DRP will result in odd lots right?