All OP figures include India & holding costs; results exclude global lines
Solmaz Altin, Regional CEO, Allianz Asia Pacific, comments: “2020 will forever be remembered as one dominated by the Covid-19 pandemic. Our priority throughout remained ensuring the health of our employees, while continuing to serve our customers and grow our business in the region. I’m proud to report we did both successfully. Specifically, our entities in Asia were able to support an increase in total overall revenues for the region, alongside other positive financials across our life & health and property & casualty divisions – a great result.
“We expect the first half of this year to remain challenging, but I am confident our Allianz Asia franchise is resilient and well-placed to build on last year’s success and press on.”
Aaron Fryer, Regional CFO, Allianz Asia Pacific, shares further details on the business’s financial performance: “Despite the uncertainty of last year, our Life & Health (L/H) business delivered excellent results, with operating profits increasing 11.4 percent to EUR 431 million, driven mostly by strong performance in Malaysia and Indonesia. New business margin remained at a strong 5.7 percent and new business value (NBV) increased 2.5 percent to EUR 342 million, mainly driven by higher volumes from Indonesia and the Philippines, with our agency channel the largest contributor to NBV in the region.
“Total revenues in our Property & Casualty (P/C) business rose by 12.5 percent to EUR 1.3 billion. Nearly all markets contributed positively in the region, with particularly strong growth in China and Malaysia. P/C operating profit in the region increased 32.6 percent to EUR 120 million, driven by good performance in Malaysia, Sri Lanka, China, Thailand, and notwithstanding our investment in a new Singapore entity. Combined ratio improved 3.1 ppts to 97.2 percent versus previous year, driven by improvements in admin expense and loss ratio.”
Solmaz Altin, adds: “Allianz Asia remained resolute in 2020 and achieved many of the strategic priorities laid out at the start of the year.
“We launched the Allianz (China) Insurance Holding Company one year ago and have now received approval under the holding entity for the preparatory establishment of Allianz Insurance Asset Management Company. In addition, we’ve recently agreed for Allianz to acquire the 49 per cent outstanding Allianz China Life shares from CITIC Trust, allowing our life business in China to become a wholly-owned subsidiary of the Allianz holding company, pending regulatory approval. With China on track to become the largest insurance market globally, both strategic announcements have strengthened Allianz’s local proposition, positioned us to maximize new business opportunities and will allow Allianz to better serve our customers’ financial service needs.
“Back in March we entered into a life insurance joint venture with AEON Financial Service to develop and market life insurance solutions to local customers in Japan. This joint venture allows Allianz to leverage our partner’s capabilities to ensure long-term sustainable growth in the world’s third largest economy.
“Our new entity Allianz Insurance Singapore became fully operational in the second half of the year, helping us better serve the local retail and SME market in the city state. To date, we’ve delivered a range of general insurance products to the market via our business partner, agents, financial advisers, brokers and partnerships. We’re excited about the growth prospects of the business.
“The best barometer for success is always feedback from our customers, particularly if they would consider referring us to family and friends. We are pleased that in 2020 the share of Allianz businesses whose Net Promoter Score1 outperformed their respective markets reached 73 per cent - including six of our operating entities attaining Loyalty Leadership, an increase on the previous year.
“I’m proud of the tremendous commitment from our teams in the region to ensure the success of Allianz Asia. 2020 threw up many challenges, but we doubled-down and delivered on our promises. Our employees showed compassion and resilience to secure the future of our customers in a time of great uncertainty. This is, and always will be, what makes Allianz distinct in a competitive marketplace, and will prove the fuel for the ongoing success of our business in Asia.”
1Net promotor score – a key metric used by Allianz to measure customer sentiment globally