Allianz has seen a robust performance in its two growth regions Asia Pacific and Middle East and North Africa (MENA) in 2008. Both regions jointly reported 8.1 billion Euros in gross written premiums, an increase of 1 percent. 1) Property and casualty business (P&C) was strong, growing at double-digit pace in many markets. Total premiums amounted to 2.5 billion Euros. Some life insurance markets suffered from the turmoil on financial markets. As a result, life insurance premiums from both regions fell slightly to 5.6 billion Euros. Allianz has more than 21 million customers in Asia Pacific and MENA today.
“The P&C business in Asia, the Middle East and North Africa remains a growth driver for Allianz“, commented Werner Zedelius, Member of Board of Allianz SE responsible for Growth Markets. “In life insurance, some markets fared well, others were not immune to the economic downturn. Against this background, I am satisfied with our overall performance in Asia Pacific and MENA in 2008.”
Asia Pacific – P&C remains growth driver, unique opportunities to strengthen distribution
Property and casualty business in Asia Pacific has shown a good performance in 2008. 2)
Results are dominated by Allianz Australia, which recorded premiums of 1.5 billion Euros, up 2.1 percent from last year. Combined ratio in Australia was at 97.1 percent.
Asia (excl. Australia) contributed 0.5 billion Euros, strongly up by 18 percent compared to 2007. In Malaysia, premiums even increased by 28 percent and reached 220 million Euros. This is testimony to the very successful integration of Commerce Assurance Berhad, which was acquired in 2007. China, Laos, Indonesia, and Hong Kong were all firmly growing above 10 percent. Growth in Thailand and Japan was only slightly lower. The combined ratio improved to 96.9 percent (from 98.6 percent), as a result of disciplined underwriting and, in particular, successful cost control. Total premiums in life insurance in Asia were 3.8 billion Euros. Allianz Indonesia grew by 8.5 percent and is the fourth biggest life insurer in the country. Malaysia posted a record premium of 141 million Euros and raised its market share in new business to 7 percent. Allianz Life Japan started selling life insurance policies in April 2008 and generated revenues ahead of expectations.
Total premiums in life insurance in Asia were 3.8 billion Euros. Allianz Indonesia grew by 8.5 percent and is the fourth biggest life insurer in the country. Malaysia posted a record premium of 141 million Euros and raised its market share in new business to 7 percent. Allianz Life Japan started selling life insurance policies in April 2008 and generated revenues ahead of expectations.
Other companies were affected by the financial crisis and the resulting decline of demand for unit-linked products. Premiums of Allianz China Life fell by 20 percent, but the company did better than the market and climbed to no. 4 among international joint ventures. While premiums fell by roughly 40 percent, Allianz Taiwan Life maintained its no. 1 position in unit-linked business and improved its solvency, against market trend. South Korea reported 1.6 billion Euros premiums (down 10 percent), and remains the fifth largest life market for Allianz.
On the investment side, Allianz started reducing its equity exposure in late 2007. At the end of 2008, equities accounted for 1 percent of Allianz' investment assets in Asia. In 2009, Allianz will remain cautious on equities, but will selectively invest if market conditions appear to be favourable.
“I am glad about the very robust P&C business. In life, we have to be content considering the very difficult market conditions in the second half of the year”, Bruce Bowers, CEO of Allianz Asia Pacific commented. “We have weathered the storm so far and invested our clients' money prudently. We see unique opportunities to grow our business, and we will seize them. I remain confident for 2009.”
Allianz has two strategic priorities in Asia Pacific in 2009. First, as part of its two global initiatives 'Customer Focus' and 'Target Operating Model', Allianz will push forward to make processes, products and services even more customer focused. The objective is to become loyalty leader in all chosen markets. Second, Allianz will further strengthen its sales channels with a special focus on recruiting, training, and developing tied agents. “We see a 'flight to quality' among agents”, Bowers explains. “Take Taiwan, for example. Allianz is a very coveted partner for agents nowadays. This is a unique chance for us to strengthen agency and to grow our business. We are committed to taking this opportunity, in Taiwan and elsewhere in Asia.”