Solmaz Altin, Regional CEO, Allianz Asia Pacific, comments: “Across the region, the first half-year has been dominated by the Covid-19 pandemic and the resulting impact on local communities. Throughout this period, Allianz has been very much focused on protecting its employees and their families, while continuing to provide the best service possible to its customers and business partners.
“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. The Allianz business in the region is resilient and strong, however it is not immune to the subsequent effects from the crisis. Despite the challenges, Allianz teams in several markets were able to maintain good results and increased total overall revenues for the region.
“I’m assured that Allianz’s response to the pandemic and long-term strategy in Asia has prepared the business to weather further challenges as local economies transition into a different phase. At the same time, Allianz will advance its efforts to double-down in the region, service its customers effectively and continue to develop the business through sustainable growth.”
Aaron Fryer, Regional CFO, Allianz Asia Pacific, shares further details on the business’s financial performance: “In challenging conditions, operating profit for the Life & Health (L/H) business reduced 9.1 per cent to EUR 191 million, primarily due to negative impacts in Taiwan from equity market volatility, which was partially offset by strong performance in Indonesia and Malaysia. New business value fell 13.3 per cent to EUR 144 million, mainly driven by volume reductions across markets due to the impact of Covid-19, with annualized new premiums decreasing 7.7 per cent to EUR 447 million and new business margin decreasing 0.7ppts due to lowering of interest rates.
“Total revenues in the Property & Casualty (P/C) business rose by 21.3 per cent to EUR 659 million, with positive contribution from the majority of markets in the region, including particularly strong returns in China, Thailand and Malaysia. P/C operating profit in the region increased 16 per cent to EUR 58 million, driven by higher profits in Malaysia, Thailand and Sri Lanka. Combined ratio improved 0.5 per cent to 97.3 per cent versus previous year, driven by improvements in both expense and loss ratios.”
Solmaz Altin, adds: “Allianz continued to push ahead in the first half-year to enhance its business proposition and meet the strategic priorities set for the region. In January, Allianz (China) Insurance Holding Company, the first-ever 100 per cent foreign-owned insurance investment holding business in China, became fully operational. We are confident it provides a strong platform to scale up in the country - the fastest growing insurance market in the world.
“In March, Allianz entered into a life insurance joint venture (JV) with AEON Financial Service (AFS) to develop and market life insurance solutions to local customers in Japan. This strategic partnership in the world’s third largest economy allows the Allianz business to leverage the capabilities of a strong local partner with extensive retail presence and position the JV for future growth.
“Just recently, Allianz successfully secured a composite license to expand its presence in Singapore to better serve the local retail and SME market. 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. We anticipate Allianz Insurance Singapore to be fully operational in the second half of the year.
“In 2020, local Allianz teams across the region took a number of actions to support local communities – we hope this support provided comfort during a very difficult period. We will continue to work alongside local communities and increase education around the importance of insurance protection. In difficult times, insurance protection services can be a vital tool to help local communities come out the other side and the business is committed to that effort.
“Allianz is a well-diversified global business and its regional franchise is resilient and strong. In Asia, its long-term philosophy and clear regional strategy ensures Allianz is here for the long-run and I am positive about the future for the business in the region.”