March 4, 2011

ALLIANZ - OSK Research initiates Buy on Allianz, TP RM5.68

Stock Name: ALLIANZ
Company Name: ALLIANZ MALAYSIA BHD
Research House: OSK

KUALA LUMPUR: OSK Research has initiated coverage of Allianz Malaysia with a BUY, at a target price of RM5.68, derived from a sum of parts valuation.

It said on Friday, March 4 that riding on potentially strong growth in the life insurance industry and a re-rating of motor insurance, Allianz as the biggest general insurance player is poised to benefit from the encouraging industry outlook.

'The company is also seeking to establish a foothold in the fast growing takaful industry to diversify its business,' the research house said.

OSK Research said apart from being the No. 1 one player in Malaysia's general insurance industry with gross written premiums (GWP) totaling RM1.3bn in FY10, Allianz's life insurance business is no less a consistent performer, chalking up RM1bn in GWP on the back of a robust double digit growth of 18.5% in FY10.

Allianz is seeking opportunities to venture into the high-growth takaful industry as Malaysia aims to become the region's Islamic banking hub.

In December 2009, it began negotiating with MNRB HOLDINGS BHD [] on the proposed acquisition of equity interest in the latter's wholly-owned Takaful Ikhlas Sdn Bhd.

'We believe that if the deal goes through, it would certainly be a big plus for Allianz,' it said.

No comments:

Post a Comment