Allianz likely to take pole position by year-end

 

The group has been achieving double-digit profit growth of 10-11 per cent since 2004; four years ago the group's market share was about 4.8 per cent

WHILE being the number one general insurance provider was never its official target, Allianz Malaysia Bhd is positive that the position will be in its hand by the year-end.

With a 10 per cent market share in the general insurance sector presently, coupled with "very encouraging" third-quarter results, the group sees itself heading towards the highest podium position soon.

The group, with more than 8,000 general and life insurance agents and about 1.4 million policyholders, is the second largest general insurance and the seventh largest life insurance provider in the country.

Modest though about the group's strong performance over the last four years, Allianz Malaysia's chief executive officer Alexander Ankel said it was not the group's target to become number one but to be among the top three insurance providers in the countries in which Allianz operate.

"Becoming number one is not giving us the kicks, but if we achieve that position then it will be the proof of our efforts that we have put into our work to achieve that position in this country," he told Business Times at the opening of the group's seventh branch in Ipoh last Wednesday.

"We started as the fifth largest general insurance provider in 2004 and it looks like we will become number one by the end of this year," he added.

Allianz Malaysia, formerly known as Allianz General Insurance Malaysia Bhd, now has three units under the group namely Allianz Life Insurance Malaysia Bhd, Allianz General Insurance Co (M) Bhd and Commerce Assurance.

Ankel said the group had been achieving double-digit profit growth of 10-11 per cent since 2004, adding that four years ago the group's market share was about 4.8 per cent.

While declining to reveal the group's market share target by year-end, he said the third-quarter results have given a positive indication that Allianz Malaysia would be able to meet its forecast.

He also said despite the present turmoil in the global macro-economic environment, the group has a strong standing in the country.

"Our balance sheet remains strong ... The rule of thumb for Allianz is that we always want to grow two per cent ahead of the economy. We have achieved this in the past and so, I have no reason to assume that we can't do this in the future," he added.

Ankel said smarter ways of customer segmentation, product development and pricing would be key strategies to ensure its long-term sustainable profitability and that it outperform the industry's growth.

To enhance its customer service delivery, the group is working to provide one interface for its customers by co-locating life branches close to or in the same branches as its general unit.

Ankel said this is part of the group's strategy to focus on its distribution capabilities and customer service, adding that the group plans to transform all its 24 general insurance offices nationwide into synergised branches by the end of next year.

Globally, the Allianz Group has presence in over 70 countries with more than 80 million customers.