Allianz announced better than expected results for 1Q2009

Allianz has just announced its results for 1Q2009 ended 31/3/2009. Its net profit increased by 14.5% y-o-y but declined 1.2% q-o-q to RM20.2 million. Turnover has increased by 24.2% y-o-y or 1.2% y-o-y to RM495 million. The jump in turnover fro 1Q2009 vis-a-vis 1Q2008 was due to 29%-increase in general insurance gross premium & 19%-increase in life insurance gross premium. At the same time, net profit increased due mainly to underwriting surplus from the general insurance, as a result of premium growth.



Allianz (closed at RM3.60 at the end of the morning session) is now trading at a trailing PE of 7.5 times. At this multiple, Allianz is deemed very attractive.

Allianz has rebounded after making a low of RM2.50 in October last year. With the 10-week SMA crossing above the 30-week SMA, one may conclude that the stock is about to embark on its upleg soon. Good support (& entry level) is at RM3.20-30.


Chart: Allianz's weekly chart as at 20090520 (Source: Quickcharts)

Based on improving financial performance, attractive valuation & positive technical outlook, Allianz is a good stock for long-term investment.