Stock Name: ALLIANZ
Company Name: ALLIANZ MALAYSIA BHD
Company Name: ALLIANZ MALAYSIA BHD
| Research House: TA | Price Call: BUY | Target Price: 8.60 |
Showing posts with label ALLIANZ. Show all posts
Showing posts with label ALLIANZ. Show all posts
February 25, 2013
November 27, 2012
Healthy Earnings Momentum Envisaged
Stock Name: ALLIANZ
Company Name: ALLIANZ MALAYSIA BHD
Company Name: ALLIANZ MALAYSIA BHD
| Research House: TA | Price Call: HOLD | Target Price: 8.35 |
November 26, 2012
9M FY12 Results Surprise
Stock Name: ALLIANZ
Company Name: ALLIANZ MALAYSIA BHD
Company Name: ALLIANZ MALAYSIA BHD
| Research House: TA | Price Call: BUY | Target Price: 8.00 |
August 28, 2012
Healthy Earnings Momentum Envisaged
Stock Name: ALLIANZ
Company Name: ALLIANZ MALAYSIA BHD
Company Name: ALLIANZ MALAYSIA BHD
| Research House: TA | Price Call: BUY | Target Price: 8.00 |
August 22, 2012
1H FY12 Results Exceed Expectations
Stock Name: ALLIANZ
Company Name: ALLIANZ MALAYSIA BHD
Company Name: ALLIANZ MALAYSIA BHD
| Research House: TA | Price Call: BUY | Target Price: 6.40 |
February 27, 2012
FY11 Results Within Expectations
Stock Name: ALLIANZ
Company Name: ALLIANZ MALAYSIA BHD
Company Name: ALLIANZ MALAYSIA BHD
| Research House: TA | Price Call: BUY | Target Price: 5.75 |
ALLIANZ (FV RM6.97 - BUY) FY11 Results Review: Ending FY11 With a Bang
Stock Name: ALLIANZ
Company Name: ALLIANZ MALAYSIA BHD
Company Name: ALLIANZ MALAYSIA BHD
| Research House: OSK | Price Call: BUY | Target Price: 6.97 |
FY11 earnings came in within expectations, accounting for96.1% of our estimates largely due to higher gross earned premium and netinvestment income. Despite the strong competition and economic uncertainty, itwas able to retain its leading position in the general insurance industry,which reinforces our view that the company will remain profitable as it forgesahead. However, we are trimming our earnings forecast by 8.6% in anticipationof more MMIP losses and a slower 2012, but our FV is raised to RM6.97 as we roll-over our valuations to FY12. BUY.
In line despite MMIPlosses. Allianz recorded earningsthat were within our expectations, accounting for 96.1% of our estimates,despite its share of loss which amounted to RM10.0m arising from the MalaysianMotor Insurance Pool (MMIP) in 4QFY11. Both revenue and core net profit surgedby 9.7% and 18.1% y-o-y respectively, largely due to higher gross earnedpremium (+8.4% y-o-y) and net investment income which increased 18.2% y-o-y,buoyed by stronger coupon interest income (+25.6% y-oy) and dividend income(+40.1% y-o-y). The increase in gross earned premium was mainly contributed byits life insurance operations which expanded by 11.1% y-o-y and this was largely due to the premium growth from the agency distribution channel. Investmentincome was also mainly driven by the higher contribution from life insurance operationswhich surged by 28.9% y-o-y due to a higher investment asset base. The overall claims ratio remained steady at62.8% compared to 62.9% in the previous year.
General insurance. The higher PBT (+8.1% y-o-y) for its generalinsurance business was mainly underpinned by stronger gross written premium(+10.5% y-o-y), underwriting result (+20% y-o-y) and lower managementexpenses (FY11: 17.0% vs FY10: 18.4%), thoughthe group recorded a slight dip in its net investment income for this segment (-5.2%y-o-y). The group's general insurance portfolio mix remained healthy, withmotor and non-motor segments making up 52% and 48% of the total portfolio.
Life insurance. Surplus before tax surged 9.9% y-o-y on the back of higher gross written premium(+11.1% y-o-y) and stronger investment income (+18.5% y-o-y, due to realizedgains from the disposal of equities-linked securities). Surplus transfer fromlife fund to shareholders' fund increased by 20% y-o-y to RM18m, slightly belowour estimate of RM19.0m.
Maintain BUY withhigher FV of RM6.97. In anticipation of more potential losses from MMIP anda slower FY12, we are lowering our FY12 earnings forecast by 8.6%. Nonetheless,our fair value is raised from RM6.60 to RM6.97 as we rollover our valuations toFY12 based on the industry average PER of 15x for its general insurance andP/EV of 1x on an embedded value (EV) of RM580m for its life insurance.
Source: OSK188
November 22, 2011
On Track to Deliver Stronger FY11 Earnings
Stock Name: ALLIANZ
Company Name: ALLIANZ MALAYSIA BHD
Company Name: ALLIANZ MALAYSIA BHD
| Research House: TA | Price Call: BUY | Target Price: 5.60 |
November 21, 2011
9M FY11 Results Below Expectations
Stock Name: ALLIANZ
Company Name: ALLIANZ MALAYSIA BHD
Company Name: ALLIANZ MALAYSIA BHD
| Research House: TA | Price Call: BUY | Target Price: 5.80 |
August 22, 2011
On Track To Deliver Stronger Earnings
Stock Name: ALLIANZ
Company Name: ALLIANZ MALAYSIA BHD
Company Name: ALLIANZ MALAYSIA BHD
| Research House: TA | Price Call: BUY | Target Price: 5.80 |
August 17, 2011
Encouraging YoY Performance
Stock Name: ALLIANZ
Company Name: ALLIANZ MALAYSIA BHD
Company Name: ALLIANZ MALAYSIA BHD
| Research House: TA | Price Call: BUY | Target Price: 5.80 |
June 22, 2011
Insurance: More M&A likely
Stock Name: ALLIANZ
Company Name: ALLIANZ MALAYSIA BHD
Insurance
Maintain neutral: On June 20, MAA Holdings Bhd (MAAH) announced that MAAH and its subsidiary MAA Corp Sdn Bhd have entered into a conditional sale and purchase agreement with Zurich Insurance for the disposal of 100% equity interest in Malaysian Assurance Alliance Bhd (MAAB), Multioto Services Sdn Bhd, Malaysian Alliance Property Services Sdn Bhd (MAPS) and Maagnet Systems Sdn Bhd, for a total cash consideration of RM344 million.
Previously, Business Times had reported that Zurich Insurance was willing to pay RM1.2 billion for 70% of MAAB, which translates into an extremely high price-to-book value (P/BV) of 6.78 times.
Given the lower than expected selling price for MAAB, MAAH's share price dipped by 29.6% yesterday, from RM1.03 to 72.5 sen, the lowest level in three months.
Taking into account the unaudited net assets of the group's subsidiaries as at Sept 30, 2010, the sales consideration of RM344 million was arrived at on a 'willing buyer willing seller' basis. The insurance business that resides in MAAB is therefore valued at 1.36 times P/BV, which is relatively lower than that transacted in recent mergers and acquisitions (M&A) in the Malaysian insurance industry.
Jerneh Asia Bhd and PacificMas Bhd disposed of their insurance arms, Jerneh Insurance and Pacific Insurance, at 2.25 times and 1.71 times P/BV. In another instance, Berjaya Corp sold off its 40% stake in Berjaya Sompo Insurance (B-Sompo) at 3.35 times, which set a new benchmark pricing in the general insurance space.
Compared with these recently completed M&A, MAAB is being sold at a significantly lower price.
MAAB's valuation is lower for a reason. There have been concerns over its asset quality, which as at December 2010 had non-performing loans (NPL) amounting to RM305 million, accounting for 3.5% of the company's total assets.
In addition, MAAB has yet to meet the minimum supervisory capital adequacy ratio (CAR) of 130% required under the risk-based capital framework (RBC). Based on MAAB's audited financial statements as at Dec 31, 2010, MAAH needs to pump roughly RM436 million into MAAB to satisfy this requirement.
To fulfil a generally accepted CAR of 180%, MAAH would need to inject some RM667 million into MAAB. We believe that MAAB's lower than peer valuation is the exception rather than the rule and should not be a point of reference for future M&A in the insurance industry.
Moreover, if we take the injection of RM436 million, which will fulfil the minimum RBC framework requirement, into account, MAAB is actually valued at 3.1 times P/BV instead of 1.36 times.
We believe there will be more moves for consolidation in the insurance sector, which may lead to a re-rating of the whole industry.
Our top pick, Allianz Malaysia Bhd ('buy', fair value: RM6.60), is appealing as the stock is trading at only 1.3 times P/BV, which is still lower than the unfavourable valuation for MAAB's disposal at 1.36 times P/BV, not to mention the actual 3.1 times P/BV required for MAAB to meet minimum requirements. The company is also poised to benefit from the high-growth takaful industry should the deal with Takaful Ikhlas Sdn Bhd go through.
We maintain 'neutral' on Kurnia Asia Bhd (FV: 42 sen) due to its patchy financial performance and 'take profit' on LPI Capital Bhd (FV: RM12.30) for the stock's lofty valuation. ' OSK Research, June 22
This article appeared in The Edge Financial Daily, June 23, 2011.
Company Name: ALLIANZ MALAYSIA BHD
| Research House: OSK | Price Call: BUY | Target Price: 6.60 |
Insurance
Maintain neutral: On June 20, MAA Holdings Bhd (MAAH) announced that MAAH and its subsidiary MAA Corp Sdn Bhd have entered into a conditional sale and purchase agreement with Zurich Insurance for the disposal of 100% equity interest in Malaysian Assurance Alliance Bhd (MAAB), Multioto Services Sdn Bhd, Malaysian Alliance Property Services Sdn Bhd (MAPS) and Maagnet Systems Sdn Bhd, for a total cash consideration of RM344 million.
Previously, Business Times had reported that Zurich Insurance was willing to pay RM1.2 billion for 70% of MAAB, which translates into an extremely high price-to-book value (P/BV) of 6.78 times.
Given the lower than expected selling price for MAAB, MAAH's share price dipped by 29.6% yesterday, from RM1.03 to 72.5 sen, the lowest level in three months.
Taking into account the unaudited net assets of the group's subsidiaries as at Sept 30, 2010, the sales consideration of RM344 million was arrived at on a 'willing buyer willing seller' basis. The insurance business that resides in MAAB is therefore valued at 1.36 times P/BV, which is relatively lower than that transacted in recent mergers and acquisitions (M&A) in the Malaysian insurance industry.
Jerneh Asia Bhd and PacificMas Bhd disposed of their insurance arms, Jerneh Insurance and Pacific Insurance, at 2.25 times and 1.71 times P/BV. In another instance, Berjaya Corp sold off its 40% stake in Berjaya Sompo Insurance (B-Sompo) at 3.35 times, which set a new benchmark pricing in the general insurance space.
Compared with these recently completed M&A, MAAB is being sold at a significantly lower price.
MAAB's valuation is lower for a reason. There have been concerns over its asset quality, which as at December 2010 had non-performing loans (NPL) amounting to RM305 million, accounting for 3.5% of the company's total assets.
In addition, MAAB has yet to meet the minimum supervisory capital adequacy ratio (CAR) of 130% required under the risk-based capital framework (RBC). Based on MAAB's audited financial statements as at Dec 31, 2010, MAAH needs to pump roughly RM436 million into MAAB to satisfy this requirement.
To fulfil a generally accepted CAR of 180%, MAAH would need to inject some RM667 million into MAAB. We believe that MAAB's lower than peer valuation is the exception rather than the rule and should not be a point of reference for future M&A in the insurance industry.
Moreover, if we take the injection of RM436 million, which will fulfil the minimum RBC framework requirement, into account, MAAB is actually valued at 3.1 times P/BV instead of 1.36 times.
We believe there will be more moves for consolidation in the insurance sector, which may lead to a re-rating of the whole industry.
Our top pick, Allianz Malaysia Bhd ('buy', fair value: RM6.60), is appealing as the stock is trading at only 1.3 times P/BV, which is still lower than the unfavourable valuation for MAAB's disposal at 1.36 times P/BV, not to mention the actual 3.1 times P/BV required for MAAB to meet minimum requirements. The company is also poised to benefit from the high-growth takaful industry should the deal with Takaful Ikhlas Sdn Bhd go through.
We maintain 'neutral' on Kurnia Asia Bhd (FV: 42 sen) due to its patchy financial performance and 'take profit' on LPI Capital Bhd (FV: RM12.30) for the stock's lofty valuation. ' OSK Research, June 22
This article appeared in The Edge Financial Daily, June 23, 2011.
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.
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.
March 1, 2011
ALLIANZ - 2011 fundamentals intact for Alllianz
Stock Name: ALLIANZ
Company Name: ALLIANZ MALAYSIA BHD
Research House: RHB
Allianz Malaysia Bhd
(March 1, RM5.12)
Maintain market perform at RM5.05 with target price of RM5.34: Allianz is still in early stages of its planned acquisition of MNRB Holdings Bhd's Takaful Ikhlas arm. We understand that Allianz has not come to a decision with regards to the size of the stake that it is acquiring, much less the valuation. However, we expect a follow-up announcement within the next two months on the progress of the acquisition.
We maintain our view that assuming a deal does go through, it will be beneficial to both parties as Allianz could broaden its product offering with the inclusion of Takaful products, while MNRB could broaden its distribution channel for its Takaful Ikhlas products by leveraging on Allianz's agency force, which we understand numbers more than 8,000. As at Dec 31, 2010, the size of Takaful Ikhlas' family fund was RM850 million, while its general takaful fund was at RM85 million, with combined revenues of RM147 million as at 3QFY11.
Management confirmed the recent news in the media of the complete removal of motor tariffs although we understand that, as of now, there has been no confirmation of exactly how much the tariff will be reduced per year.
However, the company stresses that it will be gradual and Bank Negara Malaysia will most likely consider the financial impact on the man in the street before making any drastic decisions. Thus, any significant improvements in claims ratio will not be seen immediately in 2012, in our view.
Furthermore, management did not rule out the possibility of a de-tariffing exercise for the fire business, which in contrast to the motor business, is highly profitable due to its low claims ratio of 20% to 30% (motor average industry claims ratio is more than 100%).
If this were to happen, we believe overall industry claims ratio will be roughly similar to current levels of 65% to 80%. We are nonetheless keeping our claims ratio assumption at 60% for FY11 to FY13, pending further clarification on the matter. Also note that this will mean that the previous proposal by Bank Negara is no longer applicable.
In 2010, Allianz's general insurance gross written premiums grew 10.1% year-on-year (y-o-y) in line with our estimate of 10%. Almost half of the gross premiums (49%) came from motor policies, followed by fire (20%) and the rest was fragmented among other businesses.
Life insurance gross written premiums (GWP) grew by 18.5% y-o-y to RM1.03 billion in 2010 against RM870 million in 2009, mainly helped by recurring premiums which include long-term and retirement business. Single-premium business, which made up 14.4% of total GWP, actually declined y-o-y by 0.6%.
The risks to Allianz's performance include lower than expected premium growth, jump in claims ratios, intense competition from insurance sector liberalisation and a change in Bank negara policy that will require Allianz to increase its internal capital adequacy ratio in compliance with risk-based capital requirements.
We are leaving our forecasts and assumptions unchanged. We are also maintaining our 'market perform' call on the stock, and our sum-of-parts-derived fair value is unchanged at RM5.34 a share. ' RHB Research, March 1
This article appeared in The Edge Financial Daily, March 2, 2011.
Company Name: ALLIANZ MALAYSIA BHD
Research House: RHB
Allianz Malaysia Bhd
(March 1, RM5.12)
Maintain market perform at RM5.05 with target price of RM5.34: Allianz is still in early stages of its planned acquisition of MNRB Holdings Bhd's Takaful Ikhlas arm. We understand that Allianz has not come to a decision with regards to the size of the stake that it is acquiring, much less the valuation. However, we expect a follow-up announcement within the next two months on the progress of the acquisition.
We maintain our view that assuming a deal does go through, it will be beneficial to both parties as Allianz could broaden its product offering with the inclusion of Takaful products, while MNRB could broaden its distribution channel for its Takaful Ikhlas products by leveraging on Allianz's agency force, which we understand numbers more than 8,000. As at Dec 31, 2010, the size of Takaful Ikhlas' family fund was RM850 million, while its general takaful fund was at RM85 million, with combined revenues of RM147 million as at 3QFY11.
Management confirmed the recent news in the media of the complete removal of motor tariffs although we understand that, as of now, there has been no confirmation of exactly how much the tariff will be reduced per year.
However, the company stresses that it will be gradual and Bank Negara Malaysia will most likely consider the financial impact on the man in the street before making any drastic decisions. Thus, any significant improvements in claims ratio will not be seen immediately in 2012, in our view.
Furthermore, management did not rule out the possibility of a de-tariffing exercise for the fire business, which in contrast to the motor business, is highly profitable due to its low claims ratio of 20% to 30% (motor average industry claims ratio is more than 100%).
If this were to happen, we believe overall industry claims ratio will be roughly similar to current levels of 65% to 80%. We are nonetheless keeping our claims ratio assumption at 60% for FY11 to FY13, pending further clarification on the matter. Also note that this will mean that the previous proposal by Bank Negara is no longer applicable.
In 2010, Allianz's general insurance gross written premiums grew 10.1% year-on-year (y-o-y) in line with our estimate of 10%. Almost half of the gross premiums (49%) came from motor policies, followed by fire (20%) and the rest was fragmented among other businesses.
Life insurance gross written premiums (GWP) grew by 18.5% y-o-y to RM1.03 billion in 2010 against RM870 million in 2009, mainly helped by recurring premiums which include long-term and retirement business. Single-premium business, which made up 14.4% of total GWP, actually declined y-o-y by 0.6%.
The risks to Allianz's performance include lower than expected premium growth, jump in claims ratios, intense competition from insurance sector liberalisation and a change in Bank negara policy that will require Allianz to increase its internal capital adequacy ratio in compliance with risk-based capital requirements.
We are leaving our forecasts and assumptions unchanged. We are also maintaining our 'market perform' call on the stock, and our sum-of-parts-derived fair value is unchanged at RM5.34 a share. ' RHB Research, March 1
This article appeared in The Edge Financial Daily, March 2, 2011.
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