Allianz Malaysia Berhad

$ALLIANZ / 1163 (ALLIANZ MALAYSIA BERHAD)
Research by MAYBANK

$ALLIANZ / 1163 (ALLIANZ MALAYSIA BERHAD)
Research Report by TA

$ALLIANZ / 1163 (ALLIANZ MALAYSIA BERHAD)
Research Report by RHB

$ALLIANZ / 1163 (ALLIANZ MALAYSIA BERHAD)
Research by RHB

$ALLIANZ / 1163 (ALLIANZ MALAYSIA BERHAD)
Research by Maybank

$ALLIANZ / 1163 (ALLIANZ MALAYSIA BERHAD)
Research by Maybank

$ALLIANZ / 1163 (ALLIANZ MALAYSIA BERHAD)
Research by TA
HOLD – TP RM21.30

"FY24 Growth Intact”

Allianz's general business reported a lower PBT of 5.8% to RM248.5mn in 1H24, despite a higher gross written premium (GWP) of 15.2% to RM1.7bn. We gathered that the lower PBT was mainly due to higher claims from the fire and engineering (about six large cases) segment. As such, the claims ratio increased to 64.1% in 1H24 compared to 59.8% in 1H23. Generally, fire insurance is more profitable with a lower claims ratio. However, the claims experience is more volatile than that of motor businesses due to the propensity to significant losses and natural catastrophic events. Overall, Allianz's market share rose to 14.1% (vs. 13.4% in 6M23) as the group's GWP growth outperformed the industry by 5.7 pts.

Analyst:
Tan Kong Jin
kjtan@ta.com.my

$ALLIANZ / 1163 (ALLIANZ MALAYSIA BERHAD)
Research by MIDF
BUY – TP RM25.76

" 2QFY24 Results: General Combined Ratio Normalises”

• 6MFY24’s Core NP of RM357m was Within/Within our/street forecasts: 47%/47% of full-year forecasts
• Core themes: (a) Normalising Investment returns, (b) Mediocre General result, (c) Mediocre Life result
• Forecasts unchanged
• Maintain BUY | Unchanged TP of RM25.76 | based on SOTP using (1) FY25F P/BV of 1.6x, (2) FY25F P/EV of 1.0x

Analyst:
Samuel Woo
samuel.woo@midf.com.my

$ALLIANZ / 1163 (ALLIANZ MALAYSIA BERHAD)
Research by Maybank
BUY – TP RM 20.22

" 2Q24 results within expectations”

Allianz’s 2Q24 results were within expectations and our forecasts are maintained, as is our SOTP valuation of MYR24.85. Both Allianz General and Allianz Life continue to see strong topline growth and market share gains. With the recent correction in share price, we upgrade the stock to BUY.

Analyst:
Desmond Ch'ng, BFP, FCA
desmond.chng@maybank-ib.com

$ALLIANZ / 1163 (ALLIANZ MALAYSIA BERHAD)
Research by RHB
Neutral – TP RM 21.70

"A Moderation In General Insurance; Stay NEUTRAL”

Maintain NEUTRAL and MYR21.70 TP, 7% upside with c.6% FY25F yield. Allianz Malaysia’s 1H24 results are in line with our and Street expectations. Both the general and life insurance segments posted strong revenue and investment return gains YoY, but elevated claims continued to weigh on their bottomlines. Our NEUTRAL call is premised on a moderation in earnings growth in FY24F which, at the halfway point, is materialising nicely.

Analyst:
Nabil Thoo
nabil.thoo@rhbgroup.com
David Chong, CFA
david.chongvc@rhbgroup.com

$ALLIANZ / 1163 (ALLIANZ MALAYSIA BERHAD)
Research by TA
Under Review – TP RM23.00

"2Q24 Within Expectations”

We value the stock at RM23.00/share based on SOP valuation. We place our Hold recommendation under review pending management guidance at today’s analyst briefing.

Analyst:
Tan Kong Jin
kjtan@ta.com.my

Continuing the list here (part 2):

$UCHITEC / 7100 (UCHI TECHNOLOGIES BERHAD) (MC: RM1.7bil) - Consistently delivered in its commitment to distribute at least 70% of net profit as dividend since 2003
$ALLIANZ / 1163 (ALLIANZ MALAYSIA BERHAD) (MC: RM 3.6bil) - Dividend policy is to maintain a minimum dividend payout ratio at 30%.
$UOADEV / 5200 (UOA DEVELOPMENT BHD) (MC: RM4.96bil) - Dividend policy of paying 30% - 50% of realised PATAMI
$SCIENTX / 4731 (SCIENTEX BERHAD) (MC: 6.2bil) - maintaining its commitment to distribute at least 30% of annual net profit
$TIMECOM / 5031 (TIME DOTCOM BERHAD) (MC: RM9.24bil) - Dividend payout policy of up to 50% of Normalised PAT

MC: Approximate Market Cap

**Note: the dividend payout is subjected to cash flow, valuation gain/loss of properties, etc. (for details please read their respective annual reports)

Recently BNM has announced that with effect from Sept 1, 2024, insurers and takaful operators (ITOs) must offer consumers an option to purchase medical and health insurance and takaful (MHIT) with a co-payment feature. The existing, current policies can be as per usual but in the future all new MHIT products must have co-payment features,

So, what is a co-payment feature?

Co-payments – which are out-of-pocket payments paid by the insured patient at the time of a claim – were set by the central bank at a minimum 5% of claimable expenses, while ITOs are allowed to determine the cap.

The co-payments will not apply to emergencies, outpatient treatment for critical illnesses, or visits to public hospitals and clinics.

This move is deemed to address medical cost inflation across the healthcare value chain, especially when in 2023, Malaysia recorded medical cost inflation of 12.6%, which is significantly higher than the global average of 5.6%.

One thing is that the co-payment feature could discourage medical insurance uptake, as people might not have the means to afford the additional upfront out-of-pocket costs. On the other hand, some consumers may see lower premiums in the short term hence being able to afford cheaper or lower-cost medical insurance, leading to increased sign-ups. So, how many consumers would actually opt to switch remains to be seen.

Insurance players that are big in this space, such as $ALLIANZ / 1163 (ALLIANZ MALAYSIA BERHAD) $TAKAFUL / 6139 (SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD) $MANULFE / 1058 (MANULIFE HOLDINGS BERHAD) would be affected... the question is whether it'll be a boon or a bane.

Source: https://cutt.ly/9egE7VT8

Change in Risk Committee - MADAM LIM FEN NEE

Change in Risk Committee - DR MUHAMMED BIN ABDUL KHALID

Additional Listing Announcement /Subdivision of Shares

PETALING JAYA: Allianz Malaysia Berhad once again hosted the fourth edition Allianz Media Badminton 2024 Tournament at TT Sport Centre recently.

© New Straits Times Press (M) Bhd

General Meetings: Outcome of Meeting

Quarterly rpt on consolidated results for the financial period ended 31/03/2024 (Amended Announcement)

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - ALLIANZ EUROPE B.V.

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - ALLIANZ SE

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - ALLIANZ ASIA HOLDING PTE. LTD.

$ALLIANZ / 1163 (ALLIANZ MALAYSIA BERHAD)
Research by TA
Hold – TP RM23.27

“Business to Remain Solid"

Given that Allianz’s share has risen steeply, we downgrade the stock to HOLD (previously Buy) with a TP of RM23.27/share based on SOP valuation.

Analyst:
Tan Kong Jin
kjtan@ta.com.my

$ALLIANZ / 1163 (ALLIANZ MALAYSIA BERHAD)
Research by RHB
Neutral (from Buy) – TP RM21.70

“Moderation Year Ahead? D/G To NEUTRAL"

Downgrade to NEUTRAL from Buy with unchanged MYR21.70 TP, 6% downside, c.5% FY24F yield. Allianz Malaysia’s 1Q24 net profit came in line with expectations as higher insurance service expenses YoY was mitigated by a resounding investment performance. We downgrade ALLZ as there is no longer any upside to our TP, while forecasting the earnings growth to moderate in FY24.

Analysts:
Nabil Thoo
nabil.thoo@rhbgroup.com
David Chong CFA
david.chongvc@rhbgroup.com

$ALLIANZ / 1163 (ALLIANZ MALAYSIA BERHAD)
Research by MIDF
Buy - TP RM25.76

"1QFY24 Results: Bolstered by Strong Investment Income"

• 3MFY24’s Core NP of RM190m was Within/Within our/street forecasts: 25%/25% of full-year forecasts
• Core themes: (a) Excellent investment returns, (b) Mediocre General result, (c) Strong Life result
• Forecasts unchanged
• Maintain BUY | Revised TP of RM25.76 | based on SOTP using (1) FY25F P/BV of 1.7x, (2) FY25F P/EV of 1.0x

Analyst:
Samuel Woo
samuel.woo@midf.com.my

$ALLIANZ / 1163 (ALLIANZ MALAYSIA BERHAD)
Research by TA
Under Review – TP RM22.15

“Resilient 1Q24"

We place our target price (RM22.15) and Buy recommendation under review pending management guidance at today’s analyst briefing.

Analyst:
Tan Kong Jin
kjtan@ta.com.my

$ALLIANZ / 1163 (ALLIANZ MALAYSIA BERHAD)
Research by Maybank
Hold – TP RM24.85

“1Q24 results above expectations"

Allianz’s 1Q24 results were above expectations and we upgrade our FY24/25/26E forecasts by 16%/18%/22% respectively. Correspondingly, our valuation matrix is rolled forward and we raise our SOP-derived TP to MYR24.85 from MYR20.00. HOLD maintained – prospective dividend yields of about 4.7% for FY24E provide support to share price.

Analyst:
Desmond Ch'ng, BFP, FCA
desmond.chng@maybank-ib.com

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

ALLIANZ - Notice of Book Closure

First Interim Dividend