PETALING JAYA: Allianz Malaysia Bhd’s net profit slipped 19.6% to RM79.5 million in the first quarter ended March 31, from RM98.92 million reported in the same quarter of the previous year, mainly due to lower contributions from general and life insurance segments.
Revenue for the period rose 10.4% to RM1.48 billion from RM1.34 billion reported previously.
According to the group’s Bursa Malaysia disclosure, its general insurance segment’s profit before tax (PBT) for the quarter declined by 13% to RM74.5 million from RM85.6 million, reported previously, attributed to higher claims.
Its life insurance segment recorded a 65.9% decrease in PBT to RM45.4 million from RM68.9 million, due mainly to the volatile financial market which has resulted in lower valuation on investment and changes in insurance contract liabilities arising from interest rate movement from the currently volatile financial markets.
In regard to its outlook for the year ahead, Allianz stated the life and general insurance industries are expected to remain challenging in the medium term amid weak consumer sentiment and subdued domestic economic activity due to the Covid-19 pandemic.
The group explained that the domestic growth prospects are expected to improve in the latter part of the year and subsequently in 2021, in line with the projected recovery in global demand and continued support from government policy measures but downside risks from a prolonged pandemic and its impact on the global and domestic economy remains.
“The group will continue to execute its strategic initiatives and adapt its strategy to operate to the new normal by leveraging on the strengths of the Allianz brand. The group’s aim is to become a simple, digital, and scalable organisation that is fully customer-centric,” it said.
source https://www.thesundaily.my/business/allianz-malaysia-q1-revenue-rises-but-net-profit-falls-HC2589922
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