3 Things Investors Should Know About Malaysian Insurer Allianz Malaysia Bhd

Allianz Malaysia Bhd (KLSE: 1163.KL) is a Malaysia-listed life and general insurance company. Its operations are mainly in Malaysia.

Unlike one of its peers, LPI Capital Berhad (KLSE: LPI), which focuses mainly on general insurance, Allianz Malaysia’s insurance business covers a wider area .

Investors in Singapore who are interested in insurance companies – our local stock market has insurers such as Great Eastern Holding Limited (SGX: G07) and United Overseas Insurance Limited (SGX: U13) – may want to learn more about Allianz Malaysia too.

Here are three useful pieces of information about the company:

1. Growth of gross written premiums

The gross written premium is the insurance premium written by an insurance company. It can be seen as a proxy for an insurance company’s revenue.

From 2006 to 2015, Allianz Malaysia’s gross written premium has grown from RM1 billion to RM4.1 billion. That’s a compound annual growth rate of 17%.

2. The combined ratio

The combined ratio measures what an insurer pays out to its policy holders as a percentage of its premiums earned.

In other words, it is the cost of running an insurance business. In general, the lower the combined ratio is, the better it could be.

In 2015, Allianz Malaysia’s general insurance business reported a combined ratio of 89.0%. This is an increase from 87.0% in 2014.

3. Market share

When it comes to market share numbers, the bigger it is, the more dominant a company is within its market.

In Allianz Malaysia’s case, the company reported in 2015 that it held a top five position in Malaysia’s life insurance market with a 7.3% share. As for general insurance, Allianz Malaysia is a market leader with its 12.4% market share.

In other words, Allianz Malaysia is a significant player in Malaysia’ insurance industry.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.