The Asian business of the global insurer and asset manager Allianz saw revenue increase by 24% to EUR6.0 billion (US$7.4 billion) in 2017, while operating profit rose by 22% to EUR273 million. However return on equity was stable at 11.4%, the company says in a release.
Mr George Sartorel, Regional CEO for Asia at Allianz, said: "We have finished 2017 on a high in Asia, delivering significant earnings growth across both insurance businesses. This solid performance reflects the strengths of our diversified portfolio across geographies, channels and products, the focused execution of our teams and our commitment to drive a high-quality, value-creating business in the region.
Life & Health
“The Life and Health business continued to accelerate growth in our preferred segments in 2017. The solid 33% rise in annualised new premiums was supported by steady inflows in both the agency and bancassurance channels. Besides widening our bank distribution footprint in the year, Allianz strengthened its proposition to both our agents and customers by extending the proprietary digital sales tool AZ Discover into Thailand and Malaysia. First developed and launched in Taiwan, AZ Discover facilitates a comprehensive customer experience within clicks, and sits at the heart of our Digital Agency strategy. Combined with the improvement in product mix, Allianz Asia has expanded new business value by 27% to EUR263 million, with strong margins particularly in Taiwan, China and the Philippines.”
Property & Casualty
He added: “We made substantial progress in our Property and Casualty (P/C) business, with operating profit rising 37%, while the combined ratio improved by 3.1 percentage points to 93.7%. Management actions to drive sales and stronger expense discipline delivered clear results in 2017, especially in China, Indonesia and Sri Lanka. On 2 February 2018, Allianz announced plans to acquire 100% of Janashakthi General Insurance, a subsidiary of Janashakthi Insurance. The transaction, which is subject to regulatory approval, will significantly expand Allianz's customer reach and position it as one of Sri Lanka's largest P&C insurers.”
He added: “As a region, Allianz is getting stronger. Given the strengths of our regional franchise, and our continued focus on driving long-term value creation in Asia, we look ahead with confidence."
The Allianz Group is one of the world's leading insurers and asset managers with more than 86 million retail and corporate customers. In 2017, over 140,000 employees in more than 70 countries achieved total revenues of EUR126 billion and an operating profit of EUR11 billion for the group.