Petaling Jaya, 8 April 2026 – Allianz Malaysia Bhd is expected to continue outperforming the domestic insurance sector, supported by steady premium growth, strong market positioning, and resilient operational performance, according to TA Research.
The research house projects Allianz Malaysia’s gross written premiums to expand by 7.4% in 2026, reinforcing its leadership in the general insurance segment. This growth is expected to lift its market share to approximately 15.5%, up from 15.2% in 2025.
Strong Core Drivers Across Segments
The outlook is underpinned by multiple structural drivers, particularly:
- Pricing adjustments, supporting higher premium income
- Strong presence in the motor insurance segment, especially new car coverage
- Continued expansion across agency, bancassurance, and corporate channels
Allianz General Insurance (Malaysia) Bhd remains a key contributor, holding a dominant 40% market share in the new car segment, which continues to anchor earnings visibility.
Stable Underwriting and Cost Discipline
TA Research expects Allianz Malaysia’s underwriting performance to remain stable, with a projected combined ratio of around 88% in FY2026, largely unchanged from the previous year.
The group is also expected to maintain disciplined cost management while enhancing operational resilience through:
- Adoption of artificial intelligence and data-driven capabilities
- Use of geocoding and flood-mapping tools for improved risk assessment
- Ongoing digital transformation initiatives
These efforts are aimed at improving claims efficiency and supporting long-term profitability.
Life Insurance Segment Outperforming Industry
In the life insurance segment, Allianz Malaysia continues to outperform industry peers.
Annualised new premiums (ANP) grew 6% in 2025, significantly ahead of the broader industry growth of just 0.7%, highlighting the group’s strong distribution network and product positioning.
TA Research also expects Allianz to maintain a healthy loss ratio of around 84% for investment-linked policies, well below the industry average of approximately 97%.
Managing Policy Changes and Affordability Pressures
The introduction of the Medical and Health Insurance/Takaful (MHIT) Basic Plan under Bank Negara Malaysia’s Reset Strategy is expected to have a manageable impact on Allianz Malaysia.
While some policyholders may shift to lower-cost plans, analysts believe this could be offset by:
- New customer acquisition
- Retention of existing policyholders who prefer higher coverage limits
The initiative aims to address affordability concerns in the insurance market, following a notable rise in policy cancellations due to premium increases.
Positive Investment Outlook
TA Research has maintained a “buy” call on Allianz Malaysia, with a target price of RM24.35, reflecting confidence in the group’s earnings trajectory and market leadership.
The optimism is supported by Allianz Malaysia’s strong financial performance in FY2025, where:
- Net profit rose 24.4% year-on-year to RM958.78 million
- Revenue increased 10.4% to RM6.24 billion
Strategic Outlook
For investors, Allianz Malaysia represents a key beneficiary of structural trends within the insurance sector:
- Rising insurance penetration in Malaysia
- Increased demand for health and protection products
- Digital transformation enhancing operational efficiency
The group’s ability to balance growth, cost discipline, and risk management positions it well to outperform peers in a competitive landscape.
As Malaysia’s insurance sector evolves, Allianz Malaysia’s strong distribution network, technological capabilities, and market leadership are expected to remain key differentiators driving sustained growth.
