Despite the challenging times in the first semester 2009, PT Asuransi Allianz Utama Indonesia (“Allianz Utama”) and PT Asuransi Allianz Life Indonesia (“Allianz Life”) have shown a strong financial performance by reporting a combined total local profit (unaudited) of IDR 114 billion; this is an increase of more than 170 percent compared to the first semester 2008 figure of IDR 41 billion.
Both companies also reported strong growth in total assets shaping the figure of IDR 7.5 trillion for the combined total assets. Solvency ratios were also confirmed at the secure level of 444 percent (Allianz Life) and 125 percent (Allianz Utama).
“Both the Allianz companies in Indonesia realize that our financial performance is the key factor that we should maintain for the sake of our customers. Hence it backed up with Allianz Group’s financial strength and favourable international ratings, which will enable us to deliver our promises especially these in challenging times,” said Jens Reisch, CEO of Allianz Life Indonesia.
For the sales figures, a lower single premium unit-linked life insurance business affected Allianz Indonesia’s combined total gross written premium figure to IDR 1.58 trillion, compared to the previous year’s first semester sales figure of IDR 1.68 trillion
On the other hand, Allianz Financial Planner Network (AFPN), a solid network of agency forces which supported sales performance for both companies has also grown significantly to more than 13.000 agents.
General insurance business
In the general insurance business, Allianz Utama generated IDR 517 billion of Gross Written Premium (GWP). This is an increase of nearly 20 percent compared to the same period last year.
“We are now facing a more and more challenging environment in the non-life Indonesian insurance industry. However, we are still able to maintain our business growing significantly,” explained Volker Miss, CEO of Allianz Utama.
Allianz Utama’s GWP performance is mainly generated from motor vehicle insurance (29 percent) and property insurance (31 percent), while the rest of the portfolio was gained from casualty insurance (16 percent), engineering insurance (16 percent), and Marine insurance (8 percent). The main growth driver was the engineering business, which grew by more than 80 percent, while other lines of businesses grew by 11 percent on average.
The company also reported a 35 percent increment of its total Assets, amounted to IDR 876 billion and a solid solvency level at 125 percent by end of June 2009.
“This year, we have been experiencing higher number of claims in our motor business. However, with our business growth, underwriting discipline and proper reinsurance setup, we generated IDR 9 billion profit before tax by the end of June 2009,” Volker explained.
Life, Health and Group businesses
In life, health and Group insurance business, Allianz Life Indonesia reported of nearly IDR 1.06 trillion of GWP, compared to the first semester 2008 figure of IDR 1.2 trillion.
Individual life insurance business reported a gross written premium income of IDR 746.2 billion compared to IDR 1 trillion in the same period last year. A lower single premium unit-linked products sales figure has affected lower premiums income of its individual life insurance business. However, the regular premium products sales figures grew significantly by 31.3 percent to IDR 512.53 billion compared to IDR 390.21 billion in the first semester 2008. Individual life business remains the main contributor of the Allianz Life Indonesia’s GWP (70 percent).
The group and health insurance businesses reported strong GWP growth. The group insurance business, which contributed 16 percent of the GWP, has reported a significant GWP growth of 73 percent to IDR 171.4 billion compared to IDR 98.9 billion in last year’s first semester. Health insurance contributed 14 percent of the total GWP with 14 percent growth in premium income to IDR 145.7 billion within the first semester 2009 compared to IDR 127 billion in the same period last year.
“In the first semester 2009, we have experienced strong growths in our group insurance schemes, including pension plans, regular premium individual life insurance products and health insurance business. However, we had a smaller number of transactions in our single-premium individual life products since people in general are still holding their investment decision.” said Jens Reisch.
Allianz Life Indonesia reported a strong local profit before tax of IDR 105 billion for the first semester 2009, a huge 184 percent growth compared to IDR 37 billion of the same period last year. The total assets grew by 36 percent to IDR 6.5 trillion while the solvency ratio stood at a stellar 444 percent.
“At the end of the day, it is our solid financial condition that will ensure Allianz Indonesia’s position as the best partners for our customers and business partners in any important moments in their life. That is what we are keeping while also creating more added values on the services and products side,” said Jens Reisch.