Solmaz Altin, Allianz Asia’s Regional CEO, comments:
“It has been a solid start to the year for our operations in the region. Since taking on the chief executive role for Allianz Asia during this period I am delighted with the progress we continue to make in a competitive marketplace. Our healthy results are driven by continued performance across both business sectors and the ongoing support our teams have contributed to meet our shared strategy for the region.
During the first half, our Life & Health (L/H) business delivered strong results, driven by notable business growth and expense discipline in Taiwan, China and Thailand, which supported an operating profit increase of 42 per cent to EUR 205 million. Increased margin growth in our preferred product segments reflects an improved product mix, contributing towards an 18 per cent increase in new business value (NBV) to EUR 166 million. Significant contribution to NBV came from Indonesia, with improved volumes and margin in the agency channel. ANP reduced 5 per cent to EUR 484 million, in part due to reduced volumes through our bancassurance channels.
Total revenues in our Property & Casualty (P/C) business increased by 23 per cent to EUR 543 million, with solid organic growth and positive impact from transactions in China, Sri Lanka, and Thailand. Operating profit increased 3 per cent to EUR 40 million, with volume growth the primary driver. Due to growth in markets with higher expense ratios, Combined Ratio (CoR) has increased 1.4 percentage points to 97.8 per cent against prior year.
In the first half-year, we continued to increase our P/C footprint in Asia by completing the expansion of our strategic partnership in Thailand with Sri Ayudhya Capital PCL – an important milestone for Allianz’s growth ambitions in the country and the wider region. This transaction will ensure a stronger insurance franchise focused on meeting the diverse and growing protection needs of local customers in Thailand.
As ever, our commitment to China and serving its expanding, digital customer base is a key tenant of our regional growth strategy. With this in mind, AllianzJD, our new general insurance partnership, is servicing a growing base of online customers with digital insurance products in the country and we are pleased with its progress. Also in China, Allianz continues the preparation work towards establishing a wholly-owned holding company, the first for a foreign insurance business, with its development well on track.
In the first half of the year, we continued to strengthen our leadership team across the region, supporting our growth ambitions in Asia and positioning us for ongoing success. We look forward to making further inroads in our growth strategy for the remainder of the year and enhancing the Allianz proposition in the region.”
*Including India; subsequent financials exclude India