Posted by Papayashot > 2021-03-15 22:34 | Report Abuse

Hi yuwei, from your opinion, why IFRS17 would trigger allianz to achieve its fair value?

Posted by limyuwei > 2021-03-16 09:24 | Report Abuse

Profit (on paper) will be higher for Allianz under IFRS17, potentially much higher, depends on their management decision, as it will be principal based. Analysts that solely rely on PE ratio, will feel that it will be a good buy, despite nothing fundamentally changed.

Posted by Pinky > 2021-03-16 09:34 | Report Abuse

Accounting standards for layman...

ABC Berhad receive RM50,000 from Mr John

The policy is to cover his life for 5 years

Layman see RM50,000 received, i.e. income of RM50,000 received today

Accountants see RM50,000 to be recognised as revenue over 5 years i.e. RM10,000 every year over 5 years

Posted by Papayashot > 2021-03-16 09:50 | Report Abuse

Hi suwei, wouldn't you think IFRS17 would affect the income reporting for the life segment of allianz, as the income is realized in longer term instead of Day 1?

Posted by limyuwei > 2021-03-16 10:12 | Report Abuse

Only MRTA is day 1 profit, ILP is not day 1 profit. Conventional insurer which heavily on ILP will benefit a lot, to see their profit shoot up, under IFRS17.

Company A sold life insurance, premium 2000 per year, for 40 years.
The policy is expected to generate NBV of 3000 over the lifetime (factor in possibility of surrender).
The NBV 3000 will be recognized as profit over 40 years (but not evenly, due to possibility of surrender), so profit recognition will be a lot higher in early years.
*NBV is on present value basis.

Posted by Papayashot > 2021-03-16 12:40 | Report Abuse

Hi yuwei, for example LPI, I think LPI provides MRTA to its client from the home loans of PBBANK? As such, it will be affected I guess? Based on your professional background, how the insurer would address the impact of IFRS17?

Posted by limyuwei > 2021-03-16 12:54 | Report Abuse

Some GI do write MRTA, but for LPI, it only has Mortgage Reducing Personal Accident. Public Bank's MRTA partner is AIA. LPI business is usually short term in nature and minimal impact under IFRS17.


The Group underwrites various general insurance contracts, which are mostly on an annual coverage and annual premium basis, with the exception of short-term policies such as Marine Cargo which covers the duration in which the cargo is being transported.
Some of the policies are guaranteed renewable, such as the Medical products which are subject to a pricing review once in every three or five years. The Group also underwrites some non-annual policies with coverage period more than one year such as Mortgage Reducing Personal Accident, Contractor’s All Risk and Engineering, Bonds and Workmen Compensation.

Posted by stteck > 2021-03-19 13:44 | Report Abuse

Cyber insurance to protect cloud users and cyber crime will be a trend moving forward.

Posted by Papayashot > 2021-03-19 17:39 | Report Abuse

allianz got give cyber insurance?

Posted by Papayashot > 2021-03-21 18:40 | Report Abuse

U guys see how KYY try to hard sell MNRB? Any comments?


https://klse.i3investor.com/blogs/koonyewyinblog/2021-03-19-story-h1542893890-MNRB_is_underrated_Koon_Yew_Yin.jsp

Posted by limyuwei > 2021-03-21 19:52 | Report Abuse

While MNRB is indeed undervalued, his article is quite bullshit.

Posted by Papayashot > 2021-03-21 22:10 | Report Abuse

Hi yuwei, MNRB profit sustainabiliy is no way as compared to Allianz I guess? Ya, his articles are mostly misleading.

Posted by untong > 2021-03-21 22:27 | Report Abuse

should look at MNRB 10 years+ chart. Its biz is quite cyclical. Their dividend is not as high though. At current price of 1.42 we are not sure which part of cycle it is in now. (similar to Hengyuan).

Btw i will KIV Allianz as i feel uncomfortable on life insurers as they are holding alot of government&corporate bonds. The bond market at current stage look risky to me. It may hurt their investment portfolio in near term.

Posted by kywoo > 2021-03-22 15:49 | Report Abuse

Attention Untong. I noticed you managed to get the minutes of the AGM of Allianz Malaysia for several years as per your posting on 9th of march. How do you go about getting them. Do you write to the secretary and the secretary is obliged to sent to you if you are a shareholder and has attended the meeting. hope you can advise.

Posted by limyuwei > 2021-03-22 17:04 | Report Abuse

over here : https://www.allianz.com.my/investor-updates

Posted by limyuwei > 2021-03-22 18:07 | Report Abuse

https://www.thestar.com.my/business/business-news/2021/03/22/allianz-life-launches-new-insurance-plan-primecover

Posted by limyuwei > 2021-03-22 20:59 | Report Abuse

^ Allianz launched a new high net worth (HNW) life insurance, big 3 in Malaysia also have similar products. This HNW and also high sum assured products are very profitable, and are actually are very good products for consumers as well.

Posted by limyuwei > 2021-03-23 17:54 | Report Abuse

https://www.theedgemarkets.com/article/general-insurers-look-forward-working-bnm-anticipation-further-liberalisation

Posted by Papayashot > 2021-03-24 08:31 | Report Abuse

hi yuwei, HNW life insurance? Is it for those wealthy peoples? What is the prospect of this kind of insurance in Malaysia?

Posted by Alfonso > 2021-03-24 08:33 | Report Abuse

Allianz insurance agents all very lanci, once salary achieve above 10K sure want to buy mercedes or BMW to show wealth.

Posted by limyuwei > 2021-03-24 09:07 | Report Abuse

Well, despite branded as HNW product, 500k sum assured is not really a lot. Rule of thumb is 10x annual income, and 50k annual income is definitely nowhere close to high income.

But it does fill a particular protection gap that gone unnoticed for years.
Mass market ILP typically focus on rider attachment, and don't usually allow high sum assured.
This product is hot selling for big 3 players.
It is not anyhow expensive, you can get ILP with 50k SA + medical, or ILP with 500k SA, with almost the same price. Life expectancy is more predictable and hence the high margin.

Posted by Pinky > 2021-03-24 09:08 | Report Abuse

@Alfonso u mean NPG, that Norman Pang Group agents? XD

Posted by limyuwei > 2021-03-24 09:17 | Report Abuse

Sadly, insurance agents acting atas behavior is not unique to Malaysia.

Posted by Pinky > 2021-03-24 09:19 | Report Abuse

Agencies not only sell policies to potential clients

They also sell "lifestyle" and career to potential agents

Insurance agencies are in a way a pyramid scheme, downline agents earn for upline

That's how they work anyway

Posted by TakeProfits > 2021-03-26 13:21 | Report Abuse

Hi ALFONSO, how are you man !? You buy Allianz..Haha..This very good investment compared to Talam. Conned by Calvin... BAT also good...
What other stocks you have been.accimulatiing, brother?'
Cheers...

Posted by Pinky > 2021-04-01 10:11 | Report Abuse

Totally no volume hahahahaha

Really sleeper stock

Posted by limyuwei > 2021-04-01 12:07 | Report Abuse

Volume is on par with LPI and Takaful thou

Posted by Papayashot > 2021-04-01 17:24 | Report Abuse

hi all, any idea on the following announcement made by Allianz?

We refer to the various announcements in respect of the Decision by Malaysia Competition Commission (“MyCC”) against the Company’s general insurance subsidiary, Allianz General Insurance Company (Malaysia) Berhad (“AGIC”) dated 28 September 2020, 19 October 2020 and 28 October 2020, and the latest update in respect thereof via the Quarterly Report of the Company on 24 February 2021.



The Board of Directors of the Company wishes to announce that on 23 March 2021, Competition Appeal Tribunal (“CAT”) had granted a stay of MyCC’s Decision pending the disposal of AGIC’s appeal filed on 13 October 2020 with CAT.

Posted by Zackmeiser > 2021-04-02 17:01 | Report Abuse

Ya id love to know as well.

Posted by Pinky > 2021-04-06 09:28 | Report Abuse

Soooooooo difficult to make money with this stock haiz

Posted by limyuwei > 2021-04-06 10:36 | Report Abuse

wait 2023

Posted by Pinky > 2021-04-06 10:45 | Report Abuse

limyuwei why 2023? U foresee life insurance to take 2 years post-MCO to recover?

Posted by limyuwei > 2021-04-06 11:20 | Report Abuse

ifrs17

Posted by observatory > 2021-04-07 20:52 | Report Abuse

AmBank may dispose AmGeneral & AmMetLife to shore up its capital following the RM2.83 billion settlement on IMDB.

https://www.thestar.com.my/business/business-news/2020/04/16/ammb-insu...

Reports also mention Affin Bank may dispose Axa Affin General and Axa Affin Life. But this was not news as it was reported back in 2019.

https://www.theedgemarkets.com/article/possible-insurance-jv-disposal-...

Allianz was mentioned as a potential suitor. I hope it won’t overpay. Any view on the opportunity and the realignment of insurance business landscape?

One brokerage report has quoted an average PB of 1.9X and 3.0X PB for local general and life insurer M&A. Another report uses a different set of multiples at 1.6X and 1.9X. Does anyone has past M&A PB multiples that we can use to value Allianz?

As of 2020Q4, Allianz has a book value of RM4,032 million Any idea what’s the split between general and life? I note that during FY2020 life has contributed higher gross written premium, but general has contributed higher PBT.

Posted by limyuwei > 2021-04-08 11:40 | Report Abuse

even the lowest PB of 1.6x for GI alone > current Allianz market cap.
https://klse.i3investor.com/servlets/staticfile/416102.jsp

Posted by observatory > 2021-04-08 20:13 | Report Abuse

Hi Yu Wei, thanks for your input. The Am Invest report quoted PB of 0.6x, which has ignore the full convertibility of ICPS.

Including ICPS, the diluted net asset per share is RM11.64. PB on diluted basis = RM13.50/ RM11.64 = 1.16x.

But I agree it's still lower than all the M&A figures reported.

Any view on the AmBank and Affin Bank disposal?

Posted by limyuwei > 2021-04-08 21:47 | Report Abuse

Q3 2020, Allianz GI book value 2400mil, OS share including ICPS = 346 mil.
Assume lowest of 1.6x PB for GI, Allianz GI is worth 11 per share.
Assume 1.9x PB for GI, Allianz GI is worth 13 per share.

So yea, current valuation for Allianz completely ignore the Allianz life business, which should worth much more than Allianz GI.

Posted by observatory > 2021-04-08 23:18 | Report Abuse

I agree with you.

However, an acquirer normally pay a premium for controlling stake during M&A. The acquirer either believe they can turn around the acquisition target or there is synergy to be unlocked. Retail investors may not adopt this M&A mentality in valuation. Typical retail investors have shorter investment horizon. They want to see fast result and make quick bucks.

Fortunately, Allianz has increased the dividend payout since 2019 which makes long-term holding bearable. But on the flip side, does it mean the management returns excess capital to shareholders because they see less room for growth?

Posted by observatory > 2021-04-08 23:31 | Report Abuse

BTW did you get the 2020 Q3 GI book value by subtracting segment assets from segment liabilities? I refer to Note A14. The result is 7,141.964 - 4.498,799 = RM2,643 million.

Working in this way, the value of life insurance = 13,817.214 - 12,674.509 = RM1,143 million is actually smaller (though life insurance is valued at higher multiples in M&A)

Posted by limyuwei > 2021-04-13 17:40 | Report Abuse

Bigpay launched insurance, partner with Allianz. https://www.bigpayme.com/post/bigpay-all-in-one-lifestyle-insurance

Posted by limyuwei > 2021-04-14 09:02 | Report Abuse

https://www.theedgemarkets.com/article/generali-talks-buy-axa-assets-malaysia-sources-say

Posted by Zackmeiser > 2021-04-15 21:45 | Report Abuse

Anything related to allianz? @limyuwei

Posted by Pinky > 2021-04-19 17:55 | Report Abuse

So damn hard to see this stock go up haiz

Posted by Papayashot > 2021-04-19 18:10 | Report Abuse

wondering y no buyers for allianz although the profit is good? Insurance sector seems lagging behind le...

Posted by Flybythenite > 2021-04-19 18:11 | Report Abuse

Apasal insuran turun?

Posted by Pinky > 2021-04-19 18:49 | Report Abuse

Revenue and profits growing

Dividends also growing

But Mr Market just doesn't appreciate this stock huhuhu

Posted by Papayashot > 2021-04-19 19:57 | Report Abuse

Mr Market now focus on "goreng"-related/theme-like stocks.. As long as got good story/theme surrounding the stock, Mr Market will go for it. And most of the Mr market are retailers who might know nothing about investment.

Posted by StockisntFun > 2021-04-19 20:07 | Report Abuse

Epf is accumulating everyday, they will communicate with allianz company and get a “discount” price then buy in huge amount of share. Like MYEG, epf kill buying like mad but stock price dropping. So, this half year is a best chance to slowly accumulate this stock, as no one will care about it ;)

Posted by limyuwei > 2021-04-19 20:30 | Report Abuse

Well, not many people know insurance, and many that do, are not those that invest in stock market.

The current IFRS4 alone, almost no analysts can truly understand it, let alone the upcoming IFRS17. Insurance in Malaysia (e.g. Allianz) is rather unique, as it is heavily on ILP, whereas other listed life insurance in HK or SG are not.

Posted by Papayashot > 2021-04-19 22:38 | Report Abuse

yuwei, from your experience, what would be the best way to do valuation for an insurance company?