Property and Casualty as well as the Life and Health segments contributed to the very solid growth. Total revenues increase 4.9 percent to 3.8 billion euros, from 3.7 billion euros compared to the same time last year. Operating profit booked a 34 percent rise to 289 million euros from 215 million euros over the period.
Commenting on this performance Manuel Bauer, member of the Board of Management of Allianz SE, responsible for Insurance Growth Markets said: “The consistently good results reflect a combined impact of our global strength and local expertise. Our employees have demonstrated dedication and commitment to keeping our customers’ needs paramount. The strong performance for the past six months was built upon the results we achieved last year. We continued to witness growth in our core markets and are growing profitably and sustainably in the region.”
“Half way through 2013, the economic climate remains challenging. We have been agile to respond quickly to the dynamic environment so that we can deliver sustainable results for the long-term benefit of all stakeholders,” Manuel Bauer added.
Property and Casualty develops strongly
The Property and Casualty business achieved strong growth. The segment recorded an increase in gross premiums written of 9 percent to 703 million euros, and operating profit improved to 82 million euros.
Allianz in Malaysia maintained its position as market leader, collecting 251 million euros in premiums, an increase of 19 percent compared to the same time last year. Its operating profit climbed by 23 percent to 36 million euros.
India is the largest property and casualty market for Allianz in Asia. For the first six months in 2013, operating profit in India rose to 42 million euros due to an improved underwriting result, especially with the dismantling of the Indian Motor Third Party Insurance pool, and favorable investment income.
“Pursuing growth in personal lines with a focus on motor business proved to be a successful strategy for us. We will accelerate the distribution growth in focus markets including Indonesia, Thailand and China. Meanwhile, ourflagship operations in Malaysia and India serve as centers of competence,” commented Rangam Bir, Regional General Manager of Allianz Asia-Pacific.
Life and Health insurance delivers a solid result
Despite strong competition and persistent lowinterest rates, Allianz life business in Asia delivered a solid half year result. Total premiums rose 7 percent to 3,128 million euros from 2,983 million euros at the end of June 2012. Operating profit remained stable at 207 million euros.“Our key to success is to balance profitability and risk while maintaining market position,” commented Rangam Bir.
South East Asiamarkets continued to be a major contributor to Allianz Asia business. Operating profit in Indonesia surged 55 percent to 38 million euros due to a successful product mix and higher investment income. Malaysia also showed a strong performance, with operating profit surging 23 percent to 10 million euros. In Thailand statutory premiums were up 12 percent and amounted to 289 million euros while operating profit was up 8 percent to 41 million euros. A similar positive development was also seen in other markets including Taiwan and China.
Allianz achieved robust growth in Taiwan, as statutory premiums increased by 102 percent to 1,006 million euros. This growth was largely contributed to by strong sales momentum across bancassurance, agency and broker channels and a successful start to Allianz’s partnership with HSBC bank in Taiwan.
In China statutory premiums surged 60 percent to 147 million euros due to strong performance from the bancassurance channel and an increased demand for unit-linked and annuity products.
Operating profit in India rose 18 percent to 105 million euros while statutory premiums decreased by 12 percent to 482 million euros mainly due to adverse market conditions for unit-linked products and uncertainty in local regulations.
Exclusive bancassurance partnership with HSBC in Asia launched
Strengthening the distribution network is one of Allianz’s strategic priorities. Last year, Allianz signed a new 10-year exclusive bancassurance partnership with HSBC in Asia which was successfully launched on January 1, 2013. Rangam Bir commented on the partnership: “We will continue to innovate and expand the product range in accordance to HSBC’s customers’ needs.”
Despite the disparity among economies in Asia and the uncertain global economic outlook, Allianz sees the strategic importance of the Asia region.
Manuel Bauer added: “We see further profitable growth potential in Asia. This is based on increasing wealth, rapidly aging populations and the widening gap in old-age provision. In addition to this, the insurance penetration remains low in the region. We are strongly positioned to capture these opportunities. Allianz has already established a competitive footprint in Asia. To meet customer needs, we will continue to invest in our product offerings, and expand channel capacity.”