The past year has been good for Allianz in Asia, as the German insurance heavyweight saw its total operating profit for the region increase by 30% to €354 million (SG$542.5 million), while total revenues grew 12% to €6.7 billion (SG$10.3 billion).
In a media release, George Sartorel (pictured), Allianz Asia’s regional CEO, commented on the company’s results for the full year ending December 31, 2018.
According to Sartorel, the insurer’s life and health business turned in a good performance across all key metrics, with operating profit increasing by 43% to €275 million (SG$421.4 million). He credited strong sales from Taiwan, China, Malaysia, and the Philippines for a 12% increase in gross written premiums (GWP) to €5.8 billion (SG$8.9 billion).
Meanwhile, total revenue for Allianz’s Asian P&C business grew by 11% to €882 million (SG$1.35 billion). Operating profit dipped by 2% to €79 million (SG$121 million), adjusting for a one-off reserve item from an earlier period. However, underlying operating profit grew by 40% and combined ratio improved by 1.6 percentage points, which Sartorel attributed to improved underwriting results and expense discipline.
Sartorel also mentioned two new partnerships over the past year, first with technology firm FPT Group for a joint venture in the Vietnamese market, and second with Chinese e-commerce company JD.com to form a digital general insurance business in China.
“With this in mind, our recognition of China as a strategically important market for Allianz laid the groundwork towards the preparatory establishment of the country’s first wholly-owned foreign insurance holding company,” he said. “This is a significant milestone for us to expand our presence and enhance flexibility to increase investment in the fastest growing insurance market in the world.”