Allianz Life Indonesia books strong premium growth in Q1

first_imgThroughout 2019, the company recorded a net premium income of Rp 12.47 trillion, a 49 percent year-on-year increase.“Allianz Life Indonesia had a tremendous year in 2019. It continues to outperform the market, supported by our multi-distribution channels,” said Joos.Allianz Life Indonesia chief financial officer Cui Cui reported that, throughout last year, the company saw a 33 percent yoy growth via its agency distribution channel, while sales through the bancassurance channel grew by 20.2 percent. That growth continued throughout this year’s first quarter, as the company booked 26 percent and 55 percent yoy growth in its agency and bancassurance channels, respectively.Read also: COVID-19 exposes flaws in Indonesia’s health insurance program“In terms of investment, we are always very prudent. We have a strong risk management culture,” Cui said during the press conference. The company’s total investment funds, known as assets under management (AUM), amounted to Rp 34.23 trillion in 2019, an 8 percent increase from Rp 31.73 trillion in 2018. Meanwhile, this year, its AUM fell by 8 percent to Rp 27.21 trillion from Rp 29.67 trillion in last year’s first quarter. Its total assets recorded a similar trend. In 2019, they grew by 9 percent to Rp 38.35 trillion from Rp 35.27 trillion. However, during this year’s first quarter, the asset value declined by 5 percent to Rp 32.25 trillion from Rp 33.88 trillion in the equivalent period of last year. The insurance claims and benefit payouts rose by 14 percent to Rp 7.84 trillion in 2019 from Rp 6.86 trillion in 2018. This year, they climbed by 4 percent to Rp 702.12 billion by the end of the first quarter, up from Rp 675.98 billion in 2019’s first quarter. Allianz Life Indonesia still managed to show ample creditworthiness based on its solvency ratio, a metric used to measure a company’s ability to pay its debt obligations. By the end of 2019, it stood at 340 percent. Meanwhile, by the end of 2020’s first quarter, it was at 327.63 percent, well above the mandatory minimum of 120 percent. Read also: Prudential led Indonesian market in 2019 with premium income of Rp 25 trillionThe company’s chief marketing officer, Karin Zulkarnaen, explained during the webinar that the Alliancz tried to maintain communication with its customers as part of its business strategy during the pandemic, including through online channels. Throughout 2019, 92 percent of policies were submitted electronically, while 15 to 20 percent of issuance policies were delivered within five minutes, down from policy issuance of seven to nine days prior. Aside from that, the share of e-policies had reached 46 percent. Today, customers were able to submit claims digitally. Karin added that, insurance and benefits expenses related to COVID-19 amounted to Rp 900 billion in the first three months of the year from total claims and benefit expenses of Rp 2.06 trillion.Topics : In the first quarter of this year, Allianz Life Indonesia’s net premium income amounted to Rp 3.37 trillion, a 42 percent jump from Rp 2.36 trillion during the same period last year. Net profit reached Rp 449.4 billion in the January-March period this year, a 98 percent surge from the same period last year.“Allianz sees there will be a shift to more health products and protection,” Joos said during the company’s livestreamed press conference on Tuesday. “Ultimately, in the medium to longer term, the need for protection will only increase because of this pandemic.”[RA::Allianz Indonesia expands digital services as more people stay home::]Joos noted that the growth of the company was fueled by its two main distribution channels: agency and bancassurance. Allianz Life Indonesia partners with Maybank in delivering life and health insurance products to consumers. Insurance provider Allianz Life Indonesia sees growth potential this year after its net premium income was up 42 percent year-on-year in this year’s first quarter as people shift to health products and protection.Allianz Life Indonesia country manager and president director Joos Louwerier said the company saw potential for growth this year as Indonesia still had low insurance penetration.This was despite the fact that the impact of COVID-19 on the company’s business would be prominent in this year’s second quarter, he added, as Indonesia implemented large-scale social restrictions (PSBB). The PSBB had limited people’s mobility and disrupted business operations.last_img read more

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