Insurance Asia News, 6/8/2020
Allianz’s operating profit in Asia for the first half of the year was down 4.3% to €249 million (US$296 million) with total revenues up 12.7% to €3.6 billion (US$4.27 billion). Life & health operating profit was down 9.1% to €191 million (US$227 million), with annualised new premiums decreasing 7.7% to €447 million (US$531 million). However, P&C revenues rose 21.3% to €659 million (US$782 million), with operating profit up 16% to €58 million (US$69 million). The L&H business reduced 9.1% to €191 million (US$227 million), primarily due to negative impacts in Taiwan from equity market volatility, which was partially offset by strong performance in Indonesia and Malaysia.
The P&C business saw a positive contribution from the majority of markets in the region, including particularly strong returns in China, Malaysia and Thailand. P&C operating profit was driven by higher profits in Malaysia, Sri Lanka and Thailand. Meanwhile the COR improved 0.5% to 97.3% compared with H1 2019, driven by improvements in both expense and loss ratios. Solmaz Altin, regional chief executive, Allianz Asia Pacific, commented: “The implications of local lockdowns and ongoing economic uncertainty depressed spending and unsettled consumer behaviour in the first half – this had a direct impact on the demand for goods and services.”
Altin added: “In March, Allianz entered into a life insurance joint venture with AEON Financial Service (AFS) to develop and market life insurance solutions to local customers in Japan. [And] recently, Allianz successfully secured a composite license to expand its presence in Singapore to better serve the local retail and SME market.”
He continued: “Prior to expanding into the life insurance arena, the business plans to first bring general insurance products to the market via various distribution channels including its bank partner, agents, financial advisers, brokers and partnerships.” Allianz Insurance Singapore is expected to be fully operational in the second half of the year.