Allianz Q2 earnings meet expectations, 'Buy' calls intact

KUALA LUMPUR: The research firms have retained their Buy ratings on Allianz Malaysia Bhd after reporting Q2 earnings that met expectations, driven by growth in insurance revenue from Allianz General (AGIC) and Allianz Life (ALIM). RHB Research lifted its price target for the stock to RM24.50 from RM23.90, following slight adjustments to the book values of AGIC and ALIM.

While AGIC's earnings were slightly impacted by lower net insurance and investment results, ALIM reported a strong quarter with higher insurance service and investment returns. Allianz reported a net profit of RM446 million for the first half of 2026 (1H FY26), covering 46% of RHB Research's earnings forecast for FY26 and 47% of consensus estimates.

The general insurance segment experienced a 5% year-on-year (YoY) increase in insurance revenue, while the life segment saw 17% and 11% YoY growth in operating and insurance revenue, respectively. TA Securities expects Allianz's medical claims ratio to stay below 85% in FY26 due to improved claims management and more stringent assessments.

The new medical insurance products with co-payment features should help maintain sustainable medical cost inflation in the long run. Given that most existing customers belong to the T20 and upper M40 groups, Allianz could benefit from the Base Medical and Health Insurance/Takaful Plan, which offers an affordable medical insurance option for individuals.

Allianz will continue to launch new products and promotional campaigns to meet changing consumer needs, and invest in digital capabilities to enhance technical excellence and customer experience. TA Securities kept its price target at RM24.35.