Allianz's life and general businesses are two very complementary businesses that continue to see strong business growth. Both businesses continue to grow in-step and provide investors with exposure to the largest general insurer in the country by gross written premiums and one of the five largest life insurers in Malaysia. Maybank IB has kept its BUY call with an unchanged SOTP-driven target price of MYR24.85. Yields above 5% provide support.

Such complementary businesses
Allianz's life and general businesses have played very complementary roles over the years, both of which have grown relatively in-step with each other. Contributions are about equal, with Allianz Life accounting for 54% of group gross written premiums (GWP) and 43% of group pretax profit in FY23. Over the past 5 years, Allianz Life's GWP and pretax profit have grown at a CAGR of 8.3% and 15% respectively, while Allianz General's GWP and pretax profit have expanded at a CAGR of 7.2% and 12% respectively

Room for Allianz General to outperform
Given the prevailing trends in car sales and applications for auto, residential and non-residential property loans, Allianz General's GWP growth could moderate into 2H24, we think. Nevertheless, FY24 GWP growth could still outperform FY24E GWP growth forecast of 10%. Moreover, there is room for upside surprise, should its combined ratio normalise from an exceptionally high 90.1% in 2Q24.

Strong NBV growth at Allianz Life
Allianz Life's New Business Value (NBV) saw strong growth of 26.7% YoY in 1H24. Its VNB of MYR266m was 1.3x its Contractual Service Margin (CSM) release of MYR237m, which was 23.6% higher YoY in 1H24. As at 30 June 2024, Allianz Life's CSM was at MYR3.46b