Allianz Malaysia's 2Q24 financial results aligned with expectations, showing resilience amid market challenges. The company's net profit for the quarter was RM167 million, unchanged year-on-year but down 12% from the previous quarter. For the first half of 2024, the bank reported a net profit of RM357 million, marking a 5% increase from the same period last year and accounting for 44% of the full-year forecast. Despite the slower first half, a stronger second half is anticipated, supported by Allianz's continued strong performance in both Allianz General and Allianz Life segments.
In light of the recent share price correction, Allianz Malaysia has been upgraded to a BUY. The SOTP (Sum-of-the-Parts) valuation remains at RM25.76, reflecting solid growth prospects and robust dividend yields. Allianz General saw a 15% year-on-year increase in gross written premiums (GWP) for 2Q24, led by a 20.1% rise in its motor business. Although the pretax profit for Allianz General fell 6% due to a higher combined ratio, the company maintained its leading market share in the new car market.
Allianz Life also demonstrated strong performance with a 9.4% growth in GWP and a 38.9% rise in annualised new premiums (ANP), significantly outpacing industry growth. The new business value (NBV) increased by 26.7%, driven by high-margin production and improved investment income, leading to a 17.5% increase in pretax profit.
The company's forecasts remain unchanged, with a focus on maintaining its strong market position and achieving better returns.
