Despite the challenging financial situation PT Asuransi Allianz Utama Indonesia (“Allianz Utama”) and PT Asuransi Allianz Life Indonesia (“Allianz Life”) achieved a joint GWP of IDR 3.7 trillion in 2008, an increase from previous year’s GWP of IDR 3.4 trillion. Together, both companies are insuring more than 1 million customers and are supported by more than 12.000 agents nationwide.
“Allianz Indonesia has again grown profitably and is in a very solid financial condition. Our strong solvency ratio of 306% for Allianz Life and 162% for Allianz Utama and our robust profits (IDR 128.8 billion for Allianz Life and IDR 43.8 billion for Allianz Utama) prove that we are a financially solid and stable partner for our customers. We are a very committed partner and we are in a very good position to provide long-term protection to all our customers, also in more tough times,” said Jens Reisch, President Director of Allianz Life Indonesia.
Allianz Utama Indonesia: Strong Growth in Motor Business
In the general insurance business, Allianz Utama generated IDR 776 billion of Gross Written Premium (GWP) in 2008, an increase of 15% compared to the previous year.
“We are now facing more and more demanding environments in Indonesia’s general insurance industry. However, we are well on track and have met our premium targets for 2008,” explained Volker Miss, President Director of Allianz Utama.
The premiums were mainly collected through property insurance (36%) and motor vehicle insurance (30%), while the rest of the portfolio was gained from engineering insurance (14%), casualty insurance (12%), and Marine insurance (7%). “Our motor insurance business was our key premium driver with a 20% increase on a year on year basis. Our cooperation and partnerships with banks and financial institutions were very supportive,” Volker Miss added.
The company reported a profit before tax of IDR 43.8 billion, compared to IDR 67 billion in the previous year. The assets under management rose by 26% to IDR 801 billion. Allianz Utama's solvency ratio was reported strong at 162%. Total policies issued amounted to 137.000, compared to 106.000 in 2007.
“In 2008, we have experienced a number of bigger claims in the corporate & Small and Medium size Enterprises (SME) sector. However, with our business growth, underwriting discipline and proper reinsurance setup, we generated a positive IDR 43.8 billion profit before tax and maintained a strong RBC level at 162%,” Volker explained.
Allianz Life Indonesia: Leading Position in Group Insurance & Strong Agency Business
Allianz Life Indonesia reported a premium income of IDR 2.9 trillion in 2008, compared to IDR 2.7 trillion in 2007. Individual Life business contributed 60% of the total GWP, while group life insurance (including severance plan) and health insurance contributed 30% and 10% respectively. All business's showed higher premium growth, but the high single premiums in individual life from 2007 could not be repeated in 2008.
The corporate business, including Group Life insurance and Severance Plan almost grew 500% to IDR 868 billion of GWP, compared to only IDR 151 billion in 2007. A main contributor for this growth was the credit life business from various banking partners. Also its Health insurance business grew in 2008, achieving a GWP of IDR 288 billion, compared to IDR 240 billion in 2007.
“Our strong financial condition and brand as well as our nationwide network of service providers helped us to become one of the leaders for corporate business in Indonesia,” said Jens Reisch.
Allianz Life's Individual Life business reported IDR 829 billion GWP from regular premium business, a 46% increase compared to IDR 566 billion in 2007. However, the company could not repeat its record single-premium unit-linked business of IDR 1.8 trillion in 2007, achieving IDR 911 billion in 2008. This was mainly due to the uncertainty in the investment markets, especially in the last 4 months in 2008.
Around 60% of the company's individual life business was generated through the agency channel, around 40% from its bancassurance partnerships. More than 99% of the company's new individual life business is generated from unit linked policies.
“Our successful efforts in further strengthening and expanding our agency force paid off; our sales force grew by 45% to more than 11.000 agents and the New Business Annualized Premium from our agency channel grew to IDR 294 billion, an increase of 41% compared to 2007” said Jens Reisch.
“We understand that in difficult times, people are looking for a safe and secure partner for their income protection and financial planning. Allianz Life is very well positioned to service all customers and people all over Indonesia through our nation-wide agency network and through the many bank branches from our banking partners”, said Jens Reisch.
Allianz Life Indonesia reported a record profit before tax of IDR 128.8 billion, exceeded the previous year’s IDR 90.7 billion. The solvency ratio of 306% is far above the government minimum regulation of 120%.
Assets under Management of Allianz Life Indonesia were reported at IDR 5.6 trillion, compared to IDR 4.5 trillion in the previous year, which makes the company one of the largest asset managers in the insurance industry. Around IDR 2.9 trillion of assets are generated from the company's unit linked business, which has shown a positive investment inflow even in times when the investment climate was very difficult.
Allianz Indonesia targets IDR 4.4 Trillion Premium Income in 2009
Allianz Indonessia as a group (ie Allianz Utama and Allianz Life) has set an optimistic target of IDR 4.4 trillion of GWP for 2009. Both companies will further strengthen and align its sales and service capabilities and network, with the plan to establish more Allianz Centers, complementing the four Allianz Centers in Jakarta, Bandung, Surabaya and Denpasar, which were established in 2008
“We have successful increased our customer base in 2008 and we are ready for further growth of our customer and sales network in 2009. Even in a difficult economic environment our solid and strong financial position and our nation-wide sales and service network will make Allianz Indonesia a preferred partner for insurance solutions and financial planning. We are optimistic to reach our 2009 target of IDR 4.4 trillion GWP and to expand our agency to more than 16,000 by the end of 2009“, said Jens Reisch.