Allianz in Asia-Pacific delivered a strong set of results in the first half of 2014. Total revenue was reported at 3.7 billion euros, compared to 3.8 billion euros in the same period last year. Operating profit amounted to 285 (289) million euros for the first six months and was notable in Life and Health business as well as Property and Casualty segment. Overall numbers in Asia-Pacific were impacted by unfavorable foreign exchange effects. Without the euro’s appreciation against Asian currencies, revenues would have increased by 6 percent, while operating profit would have grown by 13 percent with both segments contributing strongly to internal growth.
Commenting on the current numbers, Manuel Bauer, Allianz SE Board Member, responsible for Insurance Growth Markets, said, “Within its markets in Asia-Pacific, Allianz has continued to perform strongly in the first half of 2014. The results were driven by the resilience of our portfolios in life insurance operations across the entire region, as well as the healthy growth in Property and Casualty business, where we maintained a robust underwriting discipline. We are very satisfied with the results of the first six months, as the Asia-Pacific region emerges to be an important contributor to Allianz Group’s portfolio. Our trusted brand position, a deep-rooted set-up in numerous countries of the region, combined with financial discipline will enable us to grow and to continue delivering value to our customers and shareholders.”
Operating profit of Property and Casualty increased
Gross premiums written in Property and Casualty insurance in Asia-Pacific reached 688 (703) million euros and operating profit rose to 85 (82) million euros. Excluding foreign exchange effects, internal growth stood at 11 percent for gross premiums written and at 18 percent for operating profit.
Allianz in Malaysia maintained its leading position in the market for traditional Property and Casualty business. The company reached a total of 245 million euros in premiums and managed to achieve an increase of more than 8 percent, compared to the prior-year period. Operating profit climbed to 40 million euros, which is a rise of 24 percent on the previous year in terms of internal growth.
The company’s highlights over the first six months were shaped by the launch of innovative, tailor-made products for customers’ needs, like affordable house insurance for people living in rural areas or policy for superbikes, which was the first of its kind in the Property and Casualty business in the country.
India remains the largest Property and Casualty market for Allianz in Asia. In the first half 2014, premiums amounted to 313 (319) million euros, while operating profit in India increased to 43 (42) million euros, mostly driven by strong underwriting results. In addition to the positive financial performance, over the last months the company launched two new health care products offering its clients hospitalization treatments, including maternity and dental treatments. In the digital area, the company developed an innovative tablet-based Android app, which allows real time communication with its customers for police issuance and for faster claim settlement.
Solid results for Life and Health insurance segment in Asia
Total premium in the Life and Health business in Asia-Pacific reached 3,018 million euros compared to 3,128 million euros last year, with Taiwan and Korea as the largest contributors. Operating profit came in at 200 (207) million euros. In the first six months, the Southeast Asian markets especially continued being the profitable growth engine for Allianz in Asia-Pacific. Nonetheless, Northeast Asian entities also showed noteworthy results. As in the Property and Casualty area, Life and Health results were also affected by unfavorable foreign exchange effects in the first six months, with internal growth standing at 5 percent for premiums and at 11 percent for operating profit.
Allianz in Malaysia showed the strongest performance, with a significant increase in statutory premiums, which climbed to 202 (176) million euros. Growth was particularly driven by bancassurance and agency distribution channels. In addition, a new promising product called “Allianz RetirePlus” was launched at the beginning of the year.
Exclusive bancassurance partnership with HSBC with remarkable progress
Expanding the distribution network is one of Allianz’s strategic priorities. Consequently, Allianz signed an exclusive bancassurance partnership agreement with HSBC at the beginning of last year. So far, the joint business has been implemented in China, Indonesia, Malaysia and Taiwan and has borne fruit in the first six months as annualized new premiums increased by 26 percent.
“We are very pleased with the Asia-Pacific results of the first six months of 2014. Allianz is a highly respected brand in the region, and we are well-positioned to accelerate growth and further development. Asia is not one market, nor is it one culture, but a myriad of cultures. At the same time Asia is moving very fast. What took over 50 years to happen in Europe is happening over 10 years in Asia, for example Asia is leapfrogging in terms of technology. We intend to marry Asian energy and start-up mentality with the deep knowledge and experience of Allianz in Europe. To reach our goals, innovation will be a core element within our strategy,” George Sartorel, CEO of Allianz in Asia-Pacific, commented.
