Allianz Annual Report 2020

LOOK
FORWARD
WITH
CONFIDENCE
ANNUAL REPORT 2020

CONTENTS
01 Overview
02 Vision & Mission
02 Our Strategy
03 Our Five Core Values
03 2020 Key Financial Figures
04 Allianz at a Glance
06 Group Structure
06 Corporate Information
07 Nationwide Presence
02 Message from Our Leadership

12 Chairman's Statement
16 CEO's Message and Management Discussion & Analysis
03 Our Commitment to Sustainability

24 Sustainability Statement
04 Our Commitment to Good Corporate Governance

64 Board of Directors' Profile
73 Senior Management Team Profile
86 Corporate Governance Overview Statement
94 Audit Committee Report
LOOK FORWARD WITH CONFIDENCE 102 Statement on Risk Management and Internal Control
112 Additional Compliance Information
The COVID-19 pandemic disrupted lives and
impacted local and global markets in 2020. In 05 Our Financial Performance
such uncertain times, it is important that we live 123 Financial Statements
up to our brand promise to give our customers 124 Directors’ Report
the confidence that better times are ahead and 129 Statements of Financial Position
to assure them that Allianz will always be there to 130 Statements of Profit or Loss
secure their future. Achieving this ambition means 131 Statements of Profit or Loss and Other Comprehensive Income
being purpose-led, customer focused and being 132 Statements of Changes in Equity
commercially disciplined. 135 Statements of Cash Flows
138 Notes to the Financial Statements
269 Statement by Directors
With our investment in customer experience,
270 Statutory Declaration
simplicity and agility, we are well positioned for
271 Independent Auditors’ Report
the future. Our trusted brand, supply chain scale,
deep data assets and financial strength are key 06 AGM Information
attributes, providing competitive advantage. 277 Notice of Annual General Meeting
• Form of Proxy
Our Vision remains intact: To be the Most Reliable
Partner, Always Delivering in Moments of Truth. Navigation Icon In This Report
To realise this, we have reset our strategy to
Tells you where you can find more information in this
create a stronger, more resilient Allianz. We are Annual Report or online.
focused, adapt our business model and rely on
our strength to capitalise on trends that currently
shape the operating environment. Doing this
allows our stakeholders to look forward
with confidence.
Scan this QR code to read the digital version
of this Annual Report which is available on
our corporate website.
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01 Overview
02
03
04
05
06 VISION MISSION
To be the Most Reliable Partner, Insurance Solutions from A–Z
Always Delivering in Moments of Truth
OUR STRATEGY
WHY DO Purpose:
WE EXIST? We secure your future
Strategic Objectives:
WHAT DO Outperform our competitors, both old and new
WE DO? Transform our organisation to become simple, digital, and scalable
Rebalance our portfolio towards growth markets and new risk pools
Implementation Plan: Inclusive Digital

Meritocracy by
Renewal Agenda
Default
HOW DO WE True Customer

ACHIEVE IT? Centricity
Growth
Technical
Engines
Excellence
Our internal purpose is: We secure your future
Since 1890, all around the globe, we at Allianz have been working hard to secure people’s lives and to give courage to our
customers for what’s ahead.
We are actuaries, advisors and service agents; engineers, lawyers and technology experts; we are daughters and sons,
mothers and fathers, accountants, investors and entrepreneurs – and together we are shaping our industry.
Because we know how important it is to have a fair partner at your side who provides solid and sustainable solutions, we
strive to do it right – with passion, every day.
2 ANNUAL REPORT 2020

01
02
03
04
05
OUR FIVE 2020 06
CORE VALUES KEY FINANCIAL FIGURES

Our values are who we are. These are and will be
our guiding principles in achieving sustainable OPERATING GROSS
growth for our shareholders, customers, business REVENUE WRITTEN PREMIUM
partners, employees and society.
2020 2020
R M 5 ,9 4 5 .7 1 RM5, 305.17
Customer Focus Million Million
We create superior customer experience
through innovative solutions that
continuously exceed customers’
+7.4% +7.8%
expectations
TOTAL PROFIT
ASSETS BEFORE TAX
Integrity
We deliver promises whilst 2020 2020
maintaining highest ethical
standards, integrity and honesty R M 2 1 , 8 9 6 .74 R M 7 2 9. 6 3
in all aspects of our business Million Million
+11.1% +5.4%
High Performance Culture
We encourage, recognise and
SHAREHOLDERS’ MARKET
reward exceptional performance
FUND CAPITALISATION
2020 2020
Open Communication RM4,031.51 RM5,130.47
We practise and promote clear, Million Million
open and transparent communication
+9.7% -8.0%
Corporate Responsibility
We care and are committed to building BASIC EARNINGS DIVIDEND
the community through socially PER ORDINARY PER ORDINARY
responsible initiatives SHARE SHARE
2020 2020
2 2 7. 5 3 58.00
Sen Sen
+11.6% -10.8%
ANNUAL REPORT 2020 3

01 Overview
02
03
04
05 Allianz at a Glance
06
2020 2019 2018 2017 2016
Operating Revenue (RM million) 5,945.71 5,534.37 5,181.93 4,800.99 4,678.49
Gross Written Premium (RM million) 5,305.17 4,922.53 4,504.85 4,285.40 4,182.60
Profit Before Tax (RM million) 729.63 692.14 518.98 437.28 454.59
Total Assets (RM million) 21,896.74 19,710.07 17,404.59 16,596.68 14,912.38
Shareholders’ Fund (RM million) 4,031.51 3,673.57 3,361.70 3,135.51 2,879.52
Market Capitalisation (RM million)# 5,130.47 5,578.62 4,480.33 4,639.45 3,500.25
Interim Dividend per Share
- Ordinary Share (sen) 58.00 65.00 40.00 12.00 9.00
- Preference Share (sen) 69.60 78.00 48.00 14.40 10.80
Total Amount of Dividend to the Shareholders
- Ordinary Share (RM’000) 102,595.53 114,976.97 70,675.38 21,021.95 15,633.66
- Preference Share (RM’000) 117,844.59 132,068.15 81,368.33 24,627.29 18,629.83
Return on Equity^ 13.5% 14.0% 11.6% 9.6% 11.3%
Operating Revenue Growth 7.4% 6.8% 7.9% 2.6% 3.5%
Gross Written Premium Growth 7.8% 9.3% 5.1% 2.5% 1.2%
Basic Earnings per Ordinary Share (sen)* 227.53 203.87 167.90 151.19 171.39
Diluted Earnings per Ordinary Share (sen) 150.29 142.29 109.09 83.28 90.80
Net Asset Value per Ordinary Share (RM) 22.79 20.77 19.03 17.96 16.58
Diluted Net Asset Value per Ordinary Share (RM) 11.64 10.61 9.71 9.06 8.32
#
The market capitalisation is a combination of ordinary and preference share
^ The average of the opening (1 January) and closing (31 December) balances of Shareholders’ Fund have been used in the computation of Return
on Equity
* The calculation of basic earnings per ordinary share was based on the profit attributable to ordinary shareholders adjusted for preference
dividends

01
02
03
04
Allianz at a Glance 05
06
Operating Revenue Gross Written Premium

RM5,945.71 Million 7.4% RM5,305.17 Million 7.8%
Increase Increase
5,945.71 5,305.17
5,534.37 4,922.53
5,181.93 4,285.40 4,504.85
4,678.49 4,800.99 4,182.60
16' 17' 18' 19' 20' 16' 17' 18' 19' 20'
Profit Before Tax Total Assets

RM729.63 Million 5.4% RM21,896.74 Million 11.1%
Increase Increase
729.63 21,896.74
692.14
19,710.07
16,596.68 17,404.59
518.98 14,912.38
454.59 437.28
16' 17' 18' 19' 20' 16' 17' 18' 19' 20'
Shareholders’ Fund Market Capitalisation

RM4,031.51 Million 9.7% RM5,130.47 Million 8.0%
Increase Decrease
4,031.51 5,578.62
3,673.57 5,130.47
3,361.70 4,639.45 4,480.33
3,135.51
2,879.52
3,500.25
16' 17' 18' 19' 20' 16' 17' 18' 19' 20'
Basic earning per ordinary share Dividend per ordinary share

227.53 Sen 11.6% 58.00 Sen 10.8%
Increase Decrease
227.53 65.00
203.87 58.00
171.39 167.90
151.19 40.00
12.00
9.00
16' 17' 18' 19' 20' 16' 17' 18' 19' 20'

01 Overview
02
03
04
05 Group Structure
06
Allianz Malaysia Berhad

197201000819 (12428-W)
Allianz Life Insurance Allianz General Insurance

100% 100%
Malaysia Berhad Company (Malaysia) Berhad
198301008983 (104248-X) 200601015674 (735426-V)
Corporate Information
STOCK EXCHANGE LISTING COMPANY SECRETARY SHARE REGISTRAR
Main Market of Bursa Malaysia Ng Siew Gek Tricor Investor & Issuing House
Securities Berhad Email : [email protected] Services Sdn Bhd
Unit 32-01, Level 32, Tower A
CLASSES OF SHARE Vertical Business Suite
REGISTERED OFFICE Avenue 3, Bangsar South
No. 8, Jalan Kerinchi
Classes of Share Stock Code Level 29, Menara Allianz Sentral 59200 Kuala Lumpur
203, Jalan Tun Sambanthan Tel : 03 2783 9299
Ordinary Share 1163
Kuala Lumpur Sentral Fax : 03 2783 9222
50470 Kuala Lumpur Email : [email protected]
Irredeemable
Tel : 03 2264 1188 / 2264 0688
Convertible
1163PA Fax : 03 2264 1186
Preference
AUDITORS
Share
HEAD OFFICE PricewaterhouseCoopers PLT

Level 10, 1 Sentral
Level 29, Menara Allianz Sentral Jalan Rakyat, Kuala Lumpur Sentral
203, Jalan Tun Sambanthan P.O. Box 10192
Kuala Lumpur Sentral 50706 Kuala Lumpur
50470 Kuala Lumpur Tel : 03 2173 1188
Tel : 03 2264 1188 / 2264 0688 Fax : 03 2173 1288
Fax : 03 2264 1199
Website : allianz.com.my

01
02
03
04
Nationwide Presence 05
Nationwide Presence
Allianz General Insurance Company (Malaysia) Berhad 06
Allianz General Insurance Company (Malaysia) Berhad
Perlis
Kedah
Penang Terengganu
Kelantan Sabah
Perak
Pahang
Kuala Lumpur
Sarawak
Selangor Negeri Sembilan
Melaka Johor
Central Region Processing Hub Kajang

CENTRAL REGION
CUSTOMER CONTACT/ Level 10, Block 3A Plaza Sentral Unit No. C-67-1 & C-68-1
SERVICE CENTRE Jalan Stesen Sentral Jalan C180/1, Dataran C180
Kuala Lumpur Sentral 43200 Batu 11 Cheras
50470 Kuala Lumpur Selangor
Ground Floor, Block 2A Plaza Sentral Wilayah Persekutuan
Jalan Stesen Sentral 5 Seremban
Kuala Lumpur Sentral Sentral Branch No. 44, Jalan S2 B18
Level 13, Block 3A Plaza Sentral Biz Avenue Seremban 2
50470 Kuala Lumpur
Jalan Stesen Sentral 5 70300 Seremban
Wilayah Persekutuan Kuala Lumpur Sentral Negeri Sembilan Darul Khusus
50470 Kuala Lumpur
Wilayah Persekutuan
Ipoh
PERAK STATE
ONE ALLIANZ CALL CENTRE

Kuala Lumpur Unit No. A-G-1 & A-1-1
Level 10, Menara Allianz Sentral Wisma Allianz, No. 33, Jalan Gereja Ground & 1st Floor, Greentown Square
203, Jalan Tun Sambanthan 50100 Kuala Lumpur Jalan Dato’ Seri Ahmad Said
Kuala Lumpur Sentral Wilayah Persekutuan 30450 Ipoh
50470 Kuala Lumpur Perak Darul Ridzuan
Petaling Jaya
Wilayah Persekutuan
No. 15, Jalan 8/1D, Section 8 Teluk Intan
46050 Petaling Jaya Unit No. 25
Selangor Darul Ehsan 1st Floor, Pusat Komersial Sentral Intan
36000 Teluk Intan
Klang Perak Darul Ridzuan
No. 11, Jalan Tiara 2D/KU1
Bandar Baru Klang Taiping
41150 Klang No. 62, Ground Floor, Jalan Barrack
Selangor Darul Ehsan 34000 Taiping
Perak Darul Ridzuan

01 Overview
02
03
04
05
Nationwide Presence
06
Northern Region Processing Hub Kluang Kota Kinabalu

NORTHERN REGION
SABAH REGION
No. 6770, Ground & 2nd Floor No. 5, Jalan Persiaran Yayasan B-1-73, B-1-73a, B-1-75 & B-1-76
Jalan Kg. Gajah 86000 Kluang Riverson@Sembulan, Block B
12200 Butterworth Johor Darul Takzim First Level, Riverson Walk
Penang Unit No. R-6-01, R-06-02 & Part of Unit
Segamat No. R-6-05, Level 6, Riverson Suites
Northern Region Claims Hub Lot No. 27, Ground Floor Lorong Riverson@Sembulan
No. 6770, Ground & 2nd Floor Jalan Genuang Perdana Off Coastal Highway
Jalan Kg. Gajah Taman Genuang Perdana 88100 Kota Kinabalu
12200 Butterworth 85000 Segamat Sabah
Penang Johor Darul Takzim
Sandakan
Penang Batu Pahat 2nd Floor, Menara Rickoh
Ground, Mezzanine and 1st Floor No. 1-2, 1-2A, Ground & 1st Floor Indah Commercial Complex
No. 1 China Street Jalan Maju 1, Taman Maju Bandar Indah Mile 4
10200 Georgetown 83000 Batu Pahat North Road 90000 Sandakan
Penang Johor Darul Takzim Sabah
Bukit Mertajam Muar Tawau

No. 486, Ground, 1st & 3rd Floor No. 1, Ground Floor TB320, Ground, 1st & 2nd Floor
No. 487, Ground Floor Pusat Dagangan Bakri Block 38, Fajar Complex
Jalan Permatang Rawa Jalan Bakri Jalan St. Patrick, W.D.T. No. 33
Bandar Perda 84000 Muar 91009 Tawau
14000 Bukit Mertajam Johor Darul Takzim Sabah
Penang
Temerloh Sarawak Region Office
EAST COAST REGION
SARAWAK REGION
Alor Setar
No. 6, Pusat Komersil Temerloh Lot 3544, 2nd Floor
No. 300 & 301, Jalan Lumpur
Jalan Dato’ Bahaman 3 Lot 3545, Ground, 1st & 2nd Floor
05100 Alor Setar
28000 Temerloh Section 5, M.C.L.D Jalan Miri-Pujut
Kedah Darul Aman
Pahang Darul Makmur 98000 Miri
Sungai Petani Sarawak
Kuantan
No. 62B, 1st, 2nd & 3rd Floor
No. 4 & 4a, 6 & 6a (Construction Town) Miri
Jalan Pengkalan, Pekan Baru
Jalan Putra Square 6, Putra Square Lot 3544, 2nd Floor
08000 Sungai Petani
25200 Kuantan Lot 3545, Ground, 1st & 2nd Floor
Kedah Darul Aman
Pahang Darul Makmur Section 5, M.C.L.D Jalan Miri-Pujut
98000 Miri
Kuala Terengganu Sarawak
Southern Region Claims Hub
SOUTHERN REGION
PT 3357 P, Jalan Sultan Zainal Abidin

#04-05, Block C
20000 Kuala Terengganu Sibu
Komersil Southkey Mozek
Terengganu Darul Iman Lot 1725
Persiaran Southkey 1, Kota Southkey
80150 Johor Bahru Jalan Kampung Datu
Kota Bharu 96000 Sibu
Johor Darul Takzim
Lot 1184, Jalan Kebun Sultan Sarawak
15350 Kota Bharu
Melaka
Kelantan Darul Naim Kuching
No. 374, Jalan Melaka Raya 6
Taman Melaka Raya Sublot 3, 1st & 2nd Floor, Block 10
75000 Melaka East Malaysia Processing Hub Jalan Laksamana Cheng Ho
EAST MALAYSIA
Unit No. R-6-02 & Kuching Central Land District

Johor Bahru Part Of Unit No. R-6-05 93350 Kuching
#03-01, #03-03 & #03-05 Block C Level 6, Riverson@Sembulan Sarawak
#04-01 & #04-02, Block C Block B2, No. B2-6-05
Komersil Southkey Mozek Sarikei
Lorong Riverson@Sembulan
Persiaran Southkey 1, Kota Southkey No. 11, Ground and 1st Floor
Off Jalan Coastal
80150 Johor Bahru Jalan Nenas
88100 Kota Kinabalu
Johor Darul Takzim 96100 Sarikei
Sabah
Sarawak

01
02
03
04
Nationwide Presence 05
06
Ipoh Kota Kinabalu
SABAH REGION
Unit No. A-G-1 & A-2-1 B-1-73, B-1-73a, B-1-75 & B-1-76
CUSTOMER CONTACT/ Ground & 2nd Floor Riverson@Sembulan, Block B
SERVICE CENTRE Greentown Square First Level, Riverson Walk
Unit No. R-6-01, R-06-02 & Part of Unit
Jalan Dato’ Seri Ahmad Said
No. R-6-05, Level 6, Riverson Suites
30450 Ipoh Lorong Riverson@Sembulan
Ground Floor, Block 2A Plaza Sentral
Perak Darul Ridzuan Off Coastal Highway
Jalan Stesen Sentral 5
88100 Kota Kinabalu
Kuala Lumpur Sentral
Sabah
50470 Kuala Lumpur
SOUTHERN REGION Johor Bahru
Wilayah Persekutuan Sandakan
#03-01 & #03-02, Block C
#04-01, #04-02 & #04-03 Block C 2nd Floor, Menara Rickoh
Indah Commercial Complex
Komersil Southkey Mozek
Desa Jaya Bandar Indah Mile 4
CENTRAL REGION
Persiaran Southkey 1, Kota Southkey North Road 90000 Sandakan

Wisma Allianz Life 80150 Johor Bahru Sabah
No. 11-14, Jalan 53 Johor Darul Takzim
Desa Jaya Commercial Centre Tawau
Taman Desa Kluang TB320, Ground, 1st & 2nd Floor
52100 Kepong No. 5, Ground Floor Block 38, Fajar Complex
Selangor Darul Ehsan Jalan Persiaran Yayasan Jalan St. Patrick, W.D.T. No. 33
86000 Kluang 91009 Tawau
Klang Sabah
Johor Darul Takzim
No. 46, Jalan Tiara 2C
Bandar Baru Klang Batu Pahat
Kuching
SARAWAK REGION
41150 Klang No. 1-2 & 1-2B, Ground & 2nd Floor Sublot 3, Ground Floor, Block 10
Selangor Darul Ehsan Jalan Maju 1, Taman Maju Jalan Laksamana Cheng Ho
83000 Batu Pahat Kuching Central Land District
Seremban Johor Darul Takzim 93350 Kuching
No. 44, Ground Floor Sarawak
Jalan S2 B18, Biz Avenue, Seremban 2 Muar
70300 Seremban No. 1, Ground, 1st & 2nd Floor Miri
Negeri Sembilan Darul Khusus Pusat Dagangan Bakri Lot 3544, 1st Floor
Lot 3545, Ground Floor
Jalan Bakri
Section 5, M.C.L.D Jalan Miri-Pujut
84000 Muar 98000 Miri
Penang
NORTHERN REGION
Johor Darul Takzim Sarawak

Ground & 1st Floor
No.1 China Street Melaka Sibu
10200 Georgetown No. 374, Ground & 2nd Floor Lot 1726,
Penang Jalan Melaka Raya 6 1st & 2nd Floor
Taman Melaka Raya Jalan Kampung Datu
Bukit Mertajam 75000 Melaka 96000 Sibu
No. 487, Jalan Permatang Rawa Sarawak
Bandar Perda
14000 Bukit Mertajam Temerloh
EAST COAST REGION
Penang No. 6, Pusat Komersil Temerloh

Jalan Dato’ Bahaman 3
Alor Setar 28000 Temerloh
No. 301, Ground & 2nd Floor Pahang Darul Makmur
Jalan Lumpur
Kuantan
05100 Alor Setar No. 4 & 4a, 6 & 6a (Construction Town)
Kedah Darul Aman Jalan Putra Square 6, Putra Square
25200 Kuantan
Sungai Petani Pahang Darul Makmur
No. 62B, 1st Floor
Jalan Pengkalan, Pekan Baru Kota Bharu
08000 Sungai Petani Lot 1184, Jalan Kebun Sultan
Kedah Darul Aman 15350 Kota Bharu
Kelantan Darul Naim

BE
CONFIDENT
AND DO
MORE
Confidence comes from within. It is believing that we are capable
of doing much more. It allows us to overcome our fear of the
unknown and start pursuing our goals and dreams. At Allianz,
this is exactly what we aim to do for our customers, to give them
the confidence they need to fulfil their potential in life. With the
knowledge that Allianz will be with them at every step of the way.
02
03
04
05 Chairman’s Statement
06
Profit Before Tax

The COVID-19 pandemic triggered an
unprecedented global health crisis in 2020 RM729.6
and set forth a new era of changes. Malaysia’s Million
momentum in economic recovery was impacted by
the resurgence of COVID-19 cases and challenges ↑5.4% Operating
Revenue
brought about by movement restrictions put
in place to control infections. Despite RM5.95
everything that we had to contend with, Billion
I am pleased to report that Allianz ↑7.4%
Malaysia Berhad (“Company”)
and its subsidiaries (collectively
referred to as “Group”) Dear Shareholders,
delivered resilient results for
the financial year ended 31 I am proud to report that
December 2020 (“FY2020”). Allianz Malaysia Berhad GWP
delivered strong results for
The Group continued to
register top-line growth
the financial year ended RM5.31
31 December 2020 (“FY2020”). Billion
with an operating revenue of
RM5.95 billion, growing at 7.4 ↑7.8%
percent from RM5.53 billion in
2019. The Group recorded RM5.31
billion in Gross Written Premiums interim dividend of 58.00 sen per
for 2020, an increase of 7.8 percent from ordinary share (2019: interim and
RM4.92 billion in 2019. This is primarily attributed special dividend of 51.00 sen and 14.00
to higher premiums from the motor business for sen respectively) and a single-tier interim dividend of
the general insurance business and recurring 69.60 sen per irredeemable convertible preference
premiums from the life insurance business. share (2019: interim and special dividend of 61.20 sen
and 16.80 sen respectively) for FY2020.
Together with the solid top-line performance, the
Group’s profit before tax increased by 5.4 percent MAINTAINING EMPLOYEE LOYALTY AND TRUST
to RM729.6 million from RM692.1 million in 2019. IN TIMES OF UNCERTAINTY
Basic earnings per share stood at 227.53 sen as
compared to 203.87 sen in the previous year. The Despite the rapidly evolving and extraordinary scale
Group’s performance in 2020 is testimony to our of the pandemic, our people were our strength, one
continued commitment to our shareholders to of our key success factors in preserving business
focus on profitability, deliver sustainable share continuity. The Group took on a multi-faceted approach
value, protect investors’ capital, and provide good to stay resilient whilst also supporting the needs of our
dividends. customers, employees, and communities.
Amidst the simultaneous social and economic The management and our employees did a miraculous
disruptions, the Group is pleased to be in a job, delivering on their fortitude, agility, and adaptability
position to continue delivering dividends this year, when it mattered the most. The resilience of a committed
reflecting on our improved results against a very
difficult market. The Board declared a single-tier
TAN SRI DATUK (DR.) RAFIAH BINTI SALIM
Chairman – Independent Non-Executive Director

01
02
03
04
Chairman’s Statement 05
06
Amidst the simultaneous social and economic disruptions, the Group is pleased to be in
a position to continue delivering dividends this year, reflecting on our improved results
against a very difficult market.
workforce, coupled with the efforts of the senior management team in

formulating strategies to mitigate the impact of the pandemic as well
as the support and dedication showed by the middle management,
supported the Group well through such turbulent times.
The Group remained fully operational despite the most challenging

of circumstances, thanks to the swift adoption of its Work from Home
initiative. In equal effort, the employees collectively took on an adaptive
mindset in facilitating processes which enabled the Group to transition
rather seamlessly to the uncharted territory of working from home
whilst continuing to be of invaluable service to our customers and our
communities.
Such seamless transition, coupled with the remarkable commitment

and productivity of the employees can be ascribed to the two-way
relationship shared between the Group and its employees. The Group
has always advocated that its people are its most valuable asset.
In prioritising the safety and wellbeing of the employees, the Group
invested in acquiring the antibody rapid test kits (“RTK”) for employees
nationwide in the second half of 2020 as part of its Return to Office
(“RtO”) strategy following the Conditional Movement Control Order
announced on 1 May 2020, and subsequently acquiring antigen RTK
for employees who RtO starting 2021. The extra care shown towards
employees served as a positive reinforcement of the value they bring to
the organisation.
WE CARE AND WE BUILD RESILIENT COMMUNITIES
During times like these, every interaction with customers and partners
is an opportunity to demonstrate what the organisation places its
priorities on.
Putting customers and the community’s interests first, the

Group initiated the Allianz We Care Community which provides
complimentary COVID-19 relief and healthcare benefits that include
wellness and lifestyle rewards and more for customers and the public.

02
03
04
05
Chairman’s Statement
06
The Group also contributed to the fight against COVID-19 through hinges very much on the full alignment of having the financial
its charitable initiatives. Recognising that we as a society need to means, awareness, understanding and access to insurance, and
take care of the most vulnerable amongst us, the Group focused the knowledge to make informed decisions.
its contributions on two groups, frontliners and the underserved
communities. The Group donated medical and hospital equipment, The Group is creative in its aim to reach out to the B40. During
food, and hygiene items to 32 medical facilities and 25 non-profit such times of uncertainties and hardship, it is imperative that the
organisations. These include ventilators, vital sign monitors, Group is able to provide the assurance of available and accessible
fingertip pulse oximeter units, COVID-19 test kits, over 530,000 protection. And our partnership with Pos Malaysia certainly ticked
units of Personal Protective Equipment (“PPE”), dry rations and that box.
monetary contributions to partner organisations in support of
their relief efforts. Additional relief was extended to flood-affected Through Pos Malaysia, we offered the B40 segment seamless
communities towards the end of the year. purchasing and fuss-free renewal of affordable products. This
includes Pos Rumahku which provides comprehensive protection
The Group also continued its support for education and for kampung or wooden houses and its household contents
empowerment. This year we renewed our sponsorship for Science against fire, flood, and windstorm risks for a premium of only RM75
of Life 24/7’s Academy of Innovation programme for the third annually as well as PosLife Care which offers coverage against
consecutive year, while four social organisations that participated death and total and permanent disability (“TPD”) benefits, with
in our first Capacity-building Programme concluded their additional benefits for accidental death or TPD, as well as death
mentorship. As insurers, this is an extension of our responsibility. due to dengue and COVID-19 infection.
To support the development of a resilient community through
our business and our contributions. We will continue to allocate STEADFAST LEADERSHIP AND VISION
a healthy budget toward projects championing sustainability
and society. COVID-19 was a litmus test of preparedness and resilience for many
organisations across industries globally. Despite the challenges at
ASSURANCE OF ACCESSIBILITY AND AVAILABILITY hand, the Group’s ability to successfully weather the storm can be
largely credited to the steadfast leadership of the Group’s Chief
In this current climate, where businesses are concerned with Executive Officers, Zakri Khir and Joseph Gross, which was very
customer optimism, it is pertinent to ensure our continued important to the business. There is no doubt that we will be looking
commitment to segments of society that need a little more to them once again, for their strength and vigour, to lead us through
assistance. Insurance penetration among the B40 segment remains the new challenges that lie ahead in 2021.
severely lacking and there is no single solution to this issue. Change
THE NATION’S HANDLING OF THE COVID-19 PANDEMIC
While the government has performed rather well in its overall management of the pandemic, we can always do better. I believe the
implementation of the various phases of the Movement Control Order has taken its toll on the Malaysian economy and the people,
but it was a necessary move. Nevertheless, the hope is that these measures will bring about a controlled number of infections as
the country rolls out its National COVID-19 Immunisation Plan. While the inoculation drive is expected to see at least 80 percent of
the population of 32 million people vaccinated within a year, it may take well up to five years before we see the country return to its
pre-COVID days.
Most importantly, credit must be given to our healthcare system’s capacity for health emergencies and disaster preparedness,
as well as the tireless services of our doctors, nurses, and frontliners during these times, which is a reflection of the high-quality care
that exists in the medical sector.

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Chairman’s Statement 05
06
THE LONG ROAD AHEAD ACKNOWLEDGEMENTS
What we have experienced in the past year with COVID-19 is merely Once again, on behalf of the Board, I thank the Group’s Chief
the tip of the iceberg. The effects of the pandemic are evident and Executive Officers , senior management, and employees for their
its profound consequences will be felt well beyond 2020. In 2021, we effort and dedication to their work throughout these past 12 months.
will need to come to terms with the repercussions of the pandemic
on the insurance industry and the business. We anticipate a tough The Board also conveys its sincere thanks and gratitude to Dato’
market for all involved. Dr. Thillainathan A/L Ramasamy who retired at the last Annual
General Meeting, for his immeasurable contributions towards the
For the Group, one of the most salient risks to the business at this success of the Company. At the same time, we welcome Goh Ching
time are the challenges we will face from people losing jobs. The Yin and Gerard Lim Kim Meng as the Company’s new Directors.
Department of Statistics Malaysia revealed the unemployment rate
to be at 4.8 percent in November 2020, with 764,400 out of jobs and The Board would also like to extend our appreciation to our
actively seeking employment. While the softer labour demand is shareholders, customers, agents, brokers, bank distribution partners,
expected to continue in 2021, Malaysians are likely to face continued and other business partners for their unwavering support. Lastly,
job losses and income reduction. The industry is expected to see a our gratitude as always to Bank Negara Malaysia, Bursa Malaysia
rise in mortgage claims, defaults in payments, and loss of certain Securities Berhad, and all other regulatory bodies and authorities for
employee benefits, leaving more Malaysians under-protected as a their guidance and advice.
result of this.
Thank you.
In spite of the unforeseen challenges ahead, the Group must
continue to remain resilient. It will be up to the creativity of our TAN SRI DATUK (DR.) RAFIAH BINTI SALIM
leadership and employees to respond to the uncertainties through Chairman
smart, innovative, and timely pivots that explore new opportunities
and marketplaces to stay relevant. 6 May 2021

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05 CEO’s Message and Management
06
Discussion & Analysis
Return on
The COVID-19 pandemic hit our shores in March 2020 Equity
and unleashed a host of economic and social
challenges that tested every aspect of the 13.5% Profit Before Tax
organisation.
As a result of its strong foundation,

Dear Shareholders, RM729.6
the Group was, to a very high Million
degree, able to withstand
these disruptions and deliver I am happy to share that
robust financial results. Allianz Malaysia Berhad and
While we remained resilient, its subsidiaries (collectively
the numbers do not reflect
referred to as “Group”) delivered
the degree of difficulty,
amount of challenges, and
outstanding results for the
the immeasurable human financial year ended 31 December
endeavour it took to navigate 2020 (“FY2020”) despite the
the restrictions of the Movement onslaught of COVID-19.
Control Order (“MCO”) and keep
the business intact. It masks the
efforts that went into ensuring the
safety of our employees and preserving
productivity levels, as we did our level best to
minimise disruptions to our business operations and
stay true to our customers.
During the year in review, the general insurance sector

generally remained weak with a decline in Gross
Written Premium (“GWP”) by 0.6 percent in 2020. The
life insurance industry also saw a 0.4 percent decline in
Annualised New Premiums (“ANP”). The performance
of the life insurance industry reflects the tumultuous
period and the challenges faced in dealing with the
repercussions of COVID-19.
As Malaysia continues to come to terms with the

effects of the pandemic, uncertainties prevail and the
economy is anticipated to grow at a slower pace in
2021. While the rollout of the vaccine from February
2021 is expected to facilitate the eventual resumption
of economic activity and lift consumer sentiments, on-
going political developments will hamper investment
decisions. A weak labour market and the potential
challenges that could arise from the immunisation
exercise and a resurgence in cases are likely to have
some impact on the country’s recovery plans.
ZAKRI BIN MOHD KHIR

Chief Executive Officer of Allianz Malaysia Berhad

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CEO’s Message and Management 05
Discussion & Analysis 06
While we remained resilient, the numbers do not reflect the degree of difficulty, amount of
challenges, and the immeasurable human endeavour it took to navigate the restrictions of
the Movement Control Order (“MCO”) and keep the business intact.
FINANCIAL RESULTS
The Group recorded an operating revenue of RM5.95 billion in FY2020 from RM5.53 billion in the financial year ended
31 December 2019 (“FY2019”). This followed an increase in gross earned premiums of RM384.8 million and an increase
in investment income of RM26.5 million. Our GWP rose 7.8 percent from RM4.92 billion in FY2019. The Group achieved
a consolidated profit before tax of RM729.6 million, a growth of 5.4 percent from RM692.1 million in the previous
year, backed by higher underwriting profit from the general business segment. Our financial performance for the year
allowed us to achieve earnings per share of 227.53 sen and deliver a return on equity of 13.5 percent, demonstrating the
continued value we provide to our shareholders.
CONSOLIDATED GROUP RESULTS
Key Figures: Group

2020 2019 Delta
Operating Revenue (RM’ million) 5,945.71 5,534.37 411.34
Profit Before Tax (RM’ million) 729.63 692.14 37.49
Return on Equity (%) 13.5% 14.0% (0.5)%
Basic Earnings per Ordinary Share (sen) 227.53 203.87 23.66
Diluted Earnings per Ordinary Share (sen) 150.29 142.29 8.00
The Group’s general insurance subsidiary, Allianz General Insurance Company (Malaysia) Berhad (“Allianz General”)
achieved a GWP of RM2.36 billion as compared to RM2.20 billion in FY2019. It achieved a profit before tax of
RM432.1 million, an increase of 19.2 percent from RM362.4 million in the previous year. Allianz General remains the
market leader in the general insurance segment with a market share of 13.3 percent.
Our life insurance subsidiary, Allianz Life Insurance Malaysia Berhad (“Allianz Life”), continued to grow during the
year in review, recording an 8.2 percent increase in GWP to RM2.95 billion from RM2.73 billion in FY2019. Allianz Life
continued to maintain its fifth position in the life insurance segment with a market share of 7.7 percent.
BALANCE SHEET REVIEW
The Group’s balance sheet and solvency positions for both insurance subsidiaries continued to stay strong in 2020.
Total assets increased by 11.1 percent to RM21.90 billion as compared to RM19.71 billion in 2019, as a result of
growth in our investment portfolio.
Our investment portfolio grew by 16.4 percent to RM18.73 billion as at 31 December 2020. The investment mix
remained relatively stable during the year, comprising government and government-related bonds, unquoted bonds
of corporations, quoted equities securities and unit trust, loans, and deposits with banks.

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CEO’s Message and Management
06 Discussion & Analysis
Insurance and more specifically life insurance is a business with long-term commitments. This is reflected in our investment strategy, with
government and government-related bonds representing 49.6 percent of our investment portfolio, which grew 21.5 percent to RM9.29
billion. This was followed by unquoted bonds of corporations which contributes 27.2 percent of the investment portfolio.
ASSET ALLOCATION REVIEW
2020 2019 Delta 2020 2019 Delta

Type of investment (RM’million) (RM’million) (RM’million) % % pts
Debt instruments; thereof:
Government and government-related bonds 9,290.54 7,649.57 1,640.97 49.6 47.6 2.0
Unquoted bonds of corporations 5,089.48 4,701.75 387.73 27.2 29.2 (2.0)
Quoted equities securities and unit trust 2,552.20 1,982.93 569.27 13.6 12.3 1.3
Loans 84.72 278.37 (193.65) 0.5 1.8 (1.3)
Cash 882.68 729.55 153.13 4.7 4.5 0.2
Others 829.98 743.18 86.80 4.4 4.6 (0.2)
Total 18,729.60 16,085.35 2,644.25 100.0 100.0 -
GENERAL INSURANCE LIFE INSURANCE
Key Figures Key Figures

2020 2019 Delta 2020 2019 Delta
GWP (RM’ million) 2,356.05 2,197.50 158.55 ANP (RM’ million) 531.80 594.80 (63.00)
Profit Before Tax GWP (RM’ million) 2,949.12 2,725.03 224.09
(RM’ million) 432.09 362.42 69.67 Profit Before Tax
Claims ratio (%) 55.5 59.1 3.6 pts (RM’ million) 308.72 340.70 (31.98)
Expense ratio (%) 32.9 31.9 (1.0 pts) New Business Value
Combined ratio (%) 88.4 91.0 2.6 pts (RM’ million) 239.00 258.80 (19.80)
Agency remained a key channel for the general insurance In 2020, Allianz Life delivered resilient results and maintained its
business, contributing 55.6 percent, or RM1.31 billion, of the total fifth position in the conventional life market with a market share of
GWP. Meanwhile, the Franchise channel grew to become more 7.7 percent in terms of ANP. Overall ANP declined by 10.6 percent
instrumental in Allianz General’s growth, recording 23.4 percent to RM531.8 million from RM594.8 million the year before. This was
growth over the previous year to contribute 28.7 percent, or primarily due to the pandemic and the various phases of MCO that
RM676.5 million, to GWP. Motor insurance is a significant segment were imposed by the government to contain the spread of COVID-19
of the general insurance industry and Allianz General is one of the which effectively limited face-to-face selling opportunities. Agency
top motor insurers in the country. The Motor portfolio made up channel contributed the largest share of the ANP with 74.6 percent,
66.4 percent, or RM1.56 billion of GWP, while the remaining amounting to RM396.6 million. This was a 12.6 percent decrease
RM791.4 million from Non-Motor is made up of Property, Health, from RM454.0 million the year before. Allianz Life continued to focus
Personal Accident, Liability, Marine, and others. For the year in review, on enhancing agent professionalism, creating end-to-end sales
Allianz General delivered a positive underwriting profit of RM235.6 process digitisation, and increasing agent productivity in spite of the
million, an increase of 41.3 percent from RM166.6 million in 2019. challenges faced. Investment-linked products made up 61.5 percent
The combined ratio remained healthy at 88.4 percent as compared
of the total agency new business production.
to 91.0 percent in 2019. This was a result of an improved claims
ratio of 55.5 percent in 2020, against 59.1 percent in 2019, driven by
savings in motor claims from less traffic during various phases of the
MCO. Correspondingly, profit before tax increased by 19.2 percent
to RM432.1 million from RM362.4 million the year before.

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DIVIDEND
The Board declared a single-tier interim dividend of 58.00 sen per ordinary share (2019: interim and special dividend of 51.00 sen and
14.00 sen respectively) and a single-tier interim dividend of 69.60 sen per irredeemable convertible preference share (2019: interim and
special dividend of 61.20 sen and 16.80 sen respectively) for FY2020.
OUR COVID-19 RESPONSE
The fundamental truth is, what the Group was able to achieve rapid testing (“RTK”) of employees in 2020 and antigen RTK
last year, in terms of our resilient response toward the challenges beginning 2021, which served as a prevalence surveillance
of COVID-19 is a testament to the capabilities and quality of method to assure employees were able to return to work in the
our people, a team of ordinary people that came together to safest possible working environment.
perform extraordinary feats.
Industry-wide, the general insurance, life insurance, and takaful
In dealing with the ripple effects of the pandemic and the businesses pledged RM8 million to a COVID-19 Test Fund,
imposed lockdowns, the Group had to adapt and pivot fairly a joint-initiative by Life Insurance Association of Malaysia
quickly towards new operational strategies in response to the ("LIAM"), Persatuan Insurans Am Malaysia (“PIAM”), and the
rapidly changing business environment. Malaysian Takaful Association to support the Ministry of Health's
efforts to conduct more COVID-19 testing for the benefit of
Before the announcement of the MCO, the Crisis Management medical insurance policyholders and takaful certificate holders.
team began its preparations to activate the Group’s Business
Continuity Planning (“BCP”), which included the upgrading of the Additionally, Allianz General partnered with Speedhome to
IT infrastructure to facilitate the work-from-home initiative such offer a complimentary, one-month home rental assistance for
as increasing internet bandwidth and Small Office Home Office medical frontliners who had to relocate to the Klang Valley at
(“SOHO”) network capacity as well as the setting up of alternate the beginning of the pandemic to serve at designated COVID-19
BCP office sites. In addition to that, the Information Technology centres. Allianz General also provided COVID-19 insurance
Department acquired SOHO licenses for heads of departments, coverage for more than 30,000 Foodpanda riders and 20,000
persons in charge, agents as well as employees. Additional new Pos Malaysia frontliners. Disinfection services were also offered
laptops were immediately secured to cater for this. to agency offices through our collaboration with Recommend.
my. Meanwhile, Allianz Life’s agency force also contributed
Embracing the COVID-19 crisis as part of our Occupational Safety RM252,000 which was then used to purchase personal protective
and Health Administration practice, the Group’s paramount equipment and was distributed across five hospitals. .
concern was the safety and wellbeing of our employees. Putting
the health and safety of our employees first, the Group hired The Group also carried out initiatives spearheaded by its
Dr. Hardeep Singh Kaulsay as the Group’s Medical Advisor and corporate responsibility arm, Allianz4Good, extending aid and
Health Officer in May last year. support to partner non-governmental organisations, public
medical facilities, and underserved communities. As insurers, it
Dr. Hardeep’s medical and technical expertise was was important that we continued to equalise opportunities for
consequential in the design and development of the Group’s the most vulnerable to create a more resilient community. The
health risk management plan and the implementation of our full extent of our COVID-19-related initiatives are detailed in the
new health and safety rules for employees. An immediate Sustainability Statement of this Annual Report.
measure taken was the Return-to-Office strategy and antibody

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CEO’s Message and Management
06 Discussion & Analysis
SERVING CUSTOMERS AND THE COMMUNITY IN TIMES OF Allianz Life

UNCERTAINTY
Allianz 1Cover AllianzBoleh Cover
The one-size-fits-all approach never resonates with insurance. There
is no “silver bullet” insurance product out there in the market that Providing financial security Protection without medical
ticks every box and addresses every concern. to young families at underwriting, also for
affordable premiums individuals with
While the fundamental needs of the customer do not change, medical conditions
the dynamics of how insurers trigger the need for insurance at every
milestone of life are different. To address the needs of the everyday
consumer, we continuously delivered a variety of products to meet Pos LifeCare MoneyBack
varying customer demands. Despite disruptions to our distribution
channels brought about by the pandemic, our general and life Coverage against death and A short-term commitment
insurance business continued to deliver products that were aimed at total and permanent disability product with death and
meeting the needs and concerns of consumers in such times. benefits, with additional twice the Accidental
benefits for accidental death Death benefit or maturity
With the COVID-19 crisis, customer trust and confidence were also or TPD, as well as death due benefit payout
put to the test. So in continuing to remain relevant to customers, to dengue and COVID-19
it was imperative that our products continued to be relatable to our infection
customers and for the brand to stay visible.
The Group also initiated the Allianz We Care Community in June
For the general insurance business, the focus was on delivering 2020, a platform that provides the community (customers and
a stream of products that addressed the immediate concerns non-customers) with free COVID-19 and healthcare benefits. This
of customers and businesses by offering the right protection for includes hospitalisation and death benefit due to COVID-19, as well
everyday risks. Allianz General launched an enhanced version of its as wellness and lifestyle benefits, with 350,000 as at 31 December
Smart Home Cover policy, Smart Retail Shield, and Allianz Lifestyle 2020. The community continues to grow in 2021 and garnered
Protect last year. For the life insurance business, products were approximately 700,000 members at the end of March 2021.
developed to meet the protection needs of consumers, especially
during a time when there was a heightened sense of a need for Furthermore, amid the rising unemployment rate in the country,
protection. There was a need to address the challenges faced by the Allianz Life launched its Allianz Career of Excellence and
distributors in not being able to meet customers face to face and Opportunity Programme, a comprehensive 24-month training
concerns from customers about having to go to hospitals or clinics programme aimed at developing high-quality insurance agents
for further underwriting medical check-ups. Products launched were as well as the Friends of Allianz referral programme (“FOA”) which
affordable, easy to understand, and market without the need for allows FOA members to earn an uncapped income based on referral
medical check-ups. fees that are 100 percent risk-free.
Allianz General
MOVING THE DIAL ON ENVIRONMENTAL, SOCIAL,
AND GOVERNANCE
Allianz Lifestyle Protect Smart Home Cover
Every crisis brings challenges and opportunities for transformation.
An all-in-one personal Enhanced coverage that
The pandemic shone a spotlight on the importance of managing
protection plan for includes quick home repair
emerging risks and non-financial matters, drawing parallels with
everyday risks or service, pest control, and
climate change in its global reach and impact. It is crucial that we
home disinfection service
are proactive in dealing with environmental, social and governance
(if a member of the
(“ESG”) topics, thus we are embarking on the next steps in our
household is diagnosed
Smart Retail Shield sustainability journey. The Group has established a Local ESG Board
with COVID-19)
consisting of top management to ensure that decisions are made at
Flexible, customisable the highest levels of the organisation and that ESG considerations
insurance for SMEs are embedded into our strategy, operations, and core business.
with Inconvenience We will leverage on our roles as an insurer, an employer, and a
Relief Benefit responsible corporate citizen to address the topics of climate change
and social inclusion as key levers to building a sustainable future.

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UNDETERRED IN THE PURSUIT OF GOVERNANCE

OVERCOMING CHALLENGES AND THE WAY FORWARD
An improved form of governance that is better adapted to the times is also
needed. Last year, to provide equal opportunity to repairers along with the The Malaysian economy is expected to make a K-shaped
prospect of uplifting the standards of service and the customer journey recovery which outlines a divergent economic future,
one where the economy rebounds unevenly, exposing
of Allianz Motor Comprehensive policyholders, Allianz General became
the hard truths of income and wealth inequality. Given
the first insurer to hold an open tender inviting car workshops under the
such fluidity in circumstances, the Group will continue to
PIAM Approved Repairers Scheme to join its panel of Allianz Authorised operate on a month-to-month or quarter-to-quarter basis
Repairers. While this move allowed for greater transparency concerning whilst applying strong, coherent strategies.
the selection process, there was no surprise that it was met with resistance
from repairers nationwide. While both the life and general business faced varying
challenges, the ramifications were amplified for the
Nevertheless, the Group remains undeterred in its pursuit of good life business, and there is a sense of urgency to regain
governance that is encouraged by principles of transparency, integrity, and the ground lost during the lockdown. The life insurance
accountability. penetration rate remains at 54 percent, and there needs
to be a paradigm shift of the products and services
Allianz Life can offer to its customers and the community
OUTLOOK ON THE INDUSTRY
at large to shift the needle. This includes adapting to an
alternative, more agile operating model, and leveraging
While the ‘vaccine-virus race’ takes precedence, the full impact on the on new value pools such as Pos Malaysia.
industry has not yet manifested and COVID-19 will continue to be a
conundrum facing the industry. The outlook for the general and life The general business will continue to prioritise growth,
insurance industry is expected to remain challenging as long as the especially in our Non-Motor business while the strategy
insecurities fueled by the pandemic looms over the economy. moving forward will include innovation, adjusting
to economic disruptions, and adopting more digital
Signs of major fundamental changes are evident including changing practices. This is to ensure the Group continues to offer
consumer behaviour. Consumption is crucial towards economic recovery, simple, affordable products that fit the needs of customers
however, there are already indications that Malaysians are not spending in this current environment.
enough, and the potential for consumption must be tempered by income.
ACKNOWLEDGEMENTS
In the current environment, those without financial capabilities to
purchase insurance will forgo protection, and those with extra to spare
On behalf of the management, I offer my sincere thanks and
would probably spend it elsewhere. This, coupled with pandemic-related
gratitude to our Board of Directors for their stewardship and
threats such as disruptions in the supply chain, low consumer confidence,
support in ensuring the Group continues to deliver value to all
high unemployment rates, and threats of job loss as well as low-income
our stakeholders.
levels and uncertainty will hinder consumption of insurance in the future.
A word of gratitude also goes to Bank Negara Malaysia, Bursa
COMMERCIAL INSURERS ROLE IN THE FIGHT AGAINST COVID-19
Malaysia Securities Berhad, and all regulatory bodies and
authorities for their guidance. I would also like to express my
Adjacent to that, while discussions are still ongoing, principally the
appreciation to our shareholders, customers, agents, brokers,
insurance industry and the Group is supportive of easing some of the
bancassurance partners, and business partners for their
financial burden faced by COVID-19 patients who are required to be
continued support.
treated in private hospitals. Allianz Life made allocations that allowed
policyholders affected by COVID-19 able to apply for a premium
The Group owes a debt of gratitude to our employees, for their
deferment programme. In addition to that, policyholders were provided
unwavering resolve to rise above adversity and solidarity in
with complimentary coverage under the Special COVID-19 Benefits
facing up to challenges together. We are stronger together.
Programme.
Thank you.
The fact remains that there is also a need for a greater understanding
of a pandemic as a risk that belongs to the sovereign nation and not
ZAKRI BIN MOHD KHIR
commercial insurers. This is a fundamental point on which the Group
Chief Executive Officer
will not acquiesce, as many facets of the management of such risks are
in the control of the government.
6 May 2021

SECURING
OUR FUTURE
At Allianz, we work hard to secure people's lives and to give courage

to our customers for what lies ahead. We are sons and daughters,
mothers and fathers, so we understand the importance of having a
reliable partner by our side that shares our concerns for a fair and
sustainable future. We care for tomorrow - and that drives us to do
the right thing - with passion, every day.
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05 Sustainability Statement
06
SCOPE
This Statement encompasses the management and performance of Allianz Malaysia Berhad (“AMB” or “Company”) and its subsidiary
companies, Allianz General Insurance Company (Malaysia) Berhad (“Allianz General”) and Allianz Life Insurance Malaysia Berhad (“Allianz
Life”) in 2020.
Data presented is from AMB and its subsidiaries - Allianz General, and Allianz Life, which are collectively referred to as “Allianz Malaysia” or
“Group”, unless stated otherwise in the course of reporting.
Allianz SE is the holding company of Allianz Malaysia. Allianz SE and its subsidiaries are referred to as “Allianz”.
REPORTING PERIOD
This Statement covers the period from 1 January 2020 to 31 December 2020, unless stated otherwise
REPORTING PRINCIPLES AND FRAMEWORK
Allianz Malaysia’s Sustainability Statement takes guidance from the following documents:
• Bursa Malaysia Securities Berhad (“Bursa Malaysia”)’s Sustainability Reporting Guide
• Global Reporting Initiative’s (“GRI”) Sustainability Reporting Standards
• International Integrated Reporting Council’s International Integrated Reporting Framework (<IR> Framework)
• Allianz SE’s Sustainability Report.

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Sustainability Highlights 05
06
ENVIRONMENTAL MANAGEMENT SUSTAINABLE SOLUTIONS
100% Over
of operations powered by renewable energy RM134 million

in Gross Written Premium contributed by
Sustainable Solutions
2
new electric vehicles as part of company fleet Sold over
890,000
75% Sustainable Solutions policies from
7 different products
reduction in carbon emissions
GOVERNANCE COMMUNITY CONTRIBUTION
Local ESG Board RM3.16 million

established to improve governance of ESG topics contributed for COVID-19 emergency relief
Recognised as Reached out to
ASEAN Asset Class PLC 80 organisations through community giving

in 2019 ASEAN Corporate Governance Scorecard Award and relief initiatives
Ranked fifth We Care

in MSWG’s Corporate Governance Awards for
Financial Services industry
Community initiative
launched to support and reassure Malaysians
PEOPLE CUSTOMER INNOVATION
60.6% 41%
women in management positions of Allianz Life policies issued within 5 minutes
Second Runner-Up Mobile windscreen repairs

in Malaysia's 100 Leading Graduate Employers launched in 2020
Awards (Insurance Category)
64%
8.8% increase in sign-ups on MyAllianz customer portal
attrition rate, down from 10.6% in 2019

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05 Sustainability Governance
06
Allianz Malaysia’s sustainability governance structure has been sustainability topics with the Board of Directors (“Board”), as indicated
revised to reflect the increasing importance of Environmental, Social, in Diagram 1.
and Governance ("ESG") matters to its strategy and operations.
The Local ESG Board is chaired by the Chief Executive Officer of AMB,
A Local ESG Board comprising top management (CEOs, CFO, COO) and decisions made at the Local ESG Board are cascaded to senior
is responsible for decision-making related to ESG matters and management for execution. This sustainability governance structure
driving these topics across the organisation, supported by the newly ensures that sustainability matters are discussed at the highest
established Sustainability department. Previously, the sustainability level, with topics integrated into and actions carried out across the
function was a subset of the Allianz4Good department in charge of organisation.
corporate responsibility. The Local ESG Board reports to and discusses
Local ESG Board Senior

Decision-making related Management
Board of
Directors to ESG matters, driving the Execution of decisions made
Strategic oversight and integration of ESG topics into at the Local ESG Board level
advice on ESG matters business considerations and and consideration of how
performance monitoring of they should be implemented
ESG targets
Sustainability Department
Monitoring and facilitation of ESG topics, supporting implementation of the ESG strategy, and responsibility
for reporting and disclosures
Diagram 1: Sustainability Governance Structure
Our Sustainability Approach

Allianz wants stakeholders to know it as a financially stable, responsible, and trustworthy company that embraces sustainable business as
good business. Allianz’s internal purpose – “We secure your future” – underpins the work and actions undertaken to be responsible stewards
and pursue a better world for future generations.
The Group’s sustainability approach is focused on three key areas:
Climate change and Social inclusion ESG business

decarbonisation integration
Using its roles as an insurer and The Group promotes social and The Group manages material
investor, the Group helps to manage financial inclusion through its roles as environmental, social, and governance
risks arising from climate change and an insurer, employer, and corporate risks and seizes opportunities.
encourage the transition to a citizen by providing accessible Good governance is embedded
low-carbon economy. insurance solutions, promoting into its operations – encompassing
fairness and diversity in the compliance, data protection and
workplace, and supporting various privacy, transparency, and ethical
community initiatives. business practices.

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Our Stakeholders 05
06
The Group’s decision-making is built upon the consideration of a diverse range of views. A stakeholder prioritisation exercise was last conducted
in 2019, where key internal and external stakeholders were identified based on each group’s level of influence and dependence on Allianz
Malaysia. This Stakeholder Prioritisation Matrix has been maintained for 2020 and is illustrated in Diagram 2 Stakeholder Prioritisation
Matrix.
Revisions to the naming convention of the stakeholders have been made, where Non-Governmental Organisations (“NGOs”) has been
renamed Social Organisations to reflect that it encompasses NGOs and social enterprises as well. Similarly, the category of Third Party
Administration (TPA) Service Providers has been renamed Service Providers, as this more accurately reflects the range of Allianz Malaysia’s
service partners.
In line with the re-evaluation of the sustainability strategy, the Group has taken a more introspective approach to this year’s stakeholder
engagement. A materiality survey was circulated to internal stakeholders, namely Directors, senior management, and employees. External
stakeholders’ concerns were garnered from desk research and informal, regular interactions via various touchpoints, as set out in Table 1
Stakeholder Engagement Channels. The Group aims to engage a wider range of stakeholders in the coming year.
High
Service Providers
Employees
Senior
Stakeholder Dependence on Allianz Malaysia
Management
Agents/Business Partners Customers
Medium
Contractors/Suppliers/Consultants Board of Directors

Shareholders/
Investors
Government
- Social Organisations Service Providers and Regulators
Social Community - Industry Associations (Panel Workshops & Panel Clinics)
- Analysts/Rating Agencies
Industry Peers - Media/Social Media
Low
Low Medium High
Stakeholder Influence on Allianz Malaysia
Diagram 2: Stakeholder Prioritisation Matrix

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Our Stakeholders
06
Table 1: Stakeholder Engagement Channels
Employees Employees are at the core of Allianz Malaysia and the Group constantly receives More information on
feedback and communicates through various channels, such as: how employee health
and wellbeing is
• Allianz Employee Survey prioritised, especially
• Materiality Survey 2020 in response to the
• Townhall meetings and internal communication channels pandemic, can be found
in Employer of Choice.
• Learning and development programmes and events
• Allianz Malaysia - Employee Community Facebook page
Agents Agents are, for many of the Group’s products and services, the face of Allianz to Initiatives taken to
its customers. The Group endeavours to improve collaboration and communication improve collaboration
with agents by
through various touchpoints, such as: harnessing digital
• Internal publications tools can be found in
• Townhall meetings, council meetings, recognition events Responsible Business.
• Training and development
• Feedback through agency surveys and the service request system
Service Providers Allianz Malaysia’s service providers include partners that help to deliver its service Service providers help
promise, including the Allianz Road Ranger fleet, vehicle workshops, and medical to provide continuity of
service, and the Group
assistance providers. Key touchpoints with them include: continues to invest in
• Vendor Integrity Screenings enabling technology,
• Invitation to open tender detailed in Responsible
Business.
Board of Directors The Board of Directors steers the Group through its strategic advice and oversight. The Board of Directors
Members of the Board are regularly engaged in: represents a diversity of
views and experiences.
• Board and Board Committee meetings Their profiles can be
• Learning and development programmes found in the Board of
• Materiality Survey 2020 Directors' Profile in this
Annual Report.
• Company initiatives and events
Business Partners The Group’s business partners are integral to its success as it continues to expand its The Group has
digital offerings and broaden its market reach. Interactions with partners include: expanded its breadth of
partnerships, particularly
• Collaboration on events and initiatives in terms of digital
• Joint development of products and services offerings, as set out in
Responsible Business.

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Our Stakeholders 05
06
Customers Allianz Malaysia innovates and adapts to customers’ changing needs, putting True The Group continues
Customer Centricity at the core of its strategy. The Group engages with and collects to grow its customer
footprint through
feedback from customers through: consistent engagement
• Customer satisfaction surveys such as Net Promoter Score and Voice of Customer and a diverse range of
rating offerings, as explained in
Responsible Business.
• Online and traditional platforms (e.g. Live Chat, social media, e-mail, contact
centre, and walk-in)
• We Care Community platform
Shareholders/Investors The Group’s shareholders consist of retail investors and fund houses, apart from its Shareholders are kept
holding company, Allianz. Shareholders/investors are engaged through channels apprised of pertinent
updates through the
such as: Group’s website. Allianz
• Annual General Meetings Malaysia is proud to be
• Analyst briefings acknowledged for its
corporate governance
• Reports (Quarterly Reports, Annual Reports, Fund Performance Reports) by the Minority
• Shareholders’ circulars Shareholders Watch
Group as detailed in the
Corporate Governance
Overview Statement.
Media Communication about Allianz Malaysia is delivered via various media channels such The Group uses its
as online, print, and broadcast. Despite lockdown conditions, media engagement media presence to
publicise new products
continued as usual, assisted by digitalisation, in the form of: and developments
• Virtual press conferences and events and educate the public
• Media releases on relevant topics, as
discussed in Responsible
• Virtual interviews Business.
• Streaming product launches via its social media pages
• Awareness initiatives (e.g. partnership with OrangKata.my)
Suppliers The Group deals with a number of suppliers and service providers as part of its daily Allianz Malaysia
operations. They are expected to adhere to minimum standards of conduct which is advocates for improved
ESG standards by
communicated through, for example: engaging with its
• Vendor Integrity Screenings suppliers, as set out in
• One-to-one meetings Responsible Business.
Social organisations The Group works with social organisations including non-governmental The Group’s corporate
organisations (“NGOs”) and social enterprises in carrying out its corporate responsibility initiatives
promote social inclusion
responsibility initiatives and also as a knowledge resource regarding the and aim to provide
communities they serve. Interactions with social organisations include: long-term impact. This is
• NGO Integrity Screenings detailed in Responsible
Corporate Citizen.
• Corporate giving and volunteering programmes
• Corporate responsibility initiatives (e.g. capacity-building programme)

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05 Our Material Matters
06
Key to Allianz Malaysia’s long-term success is the recognition and 2019 ASEAN Corporate Governance Scorecard Award, is testament
understanding of topics that affect it and the incorporation of these to its commitment to the highest standards of ethics and compliance.
matters into strategic decision-making. Materiality assessments
are carried out to identify the environmental, economic, social, and METHODOLOGY
governance issues that are perceived as being most important to its
stakeholders and business. A materiality survey was circulated amongst internal stakeholders
while the views of external stakeholders were collated through a
The list of material matters was revised to place greater focus combination of desk research and regular interaction, as highlighted
on emerging, non-financial issues rather than those related to in Table 1 Stakeholder Engagement Channels.
operational or compliance requirements. Topics that are considered
business-as-usual, pertaining to sound governance practices, The results of these rankings were then discussed at the Local ESG
are further detailed in the Statement on Risk Management Board and assessed for their link to the Group’s core business and
and Internal Control and the Corporate Governance Overview ability to influence the topic. The resulting Materiality Matrix and
Statement in this Report, as well as the Corporate Governance Top Ten Sustainability Matters were presented to the Board of
Report on Allianz Malaysia’s website. Allianz Malaysia’s recognition Directors for their endorsement and are illustrated in Diagram 3 and
as one of the top five financial services in the Minority Shareholder Table 2 respectively. This insight guides the Group in crafting
Watch Group’s (MSWG) Corporate Governance Awards , and as an appropriate responses to the risks and opportunities that these
ASEAN Asset Class PLC, scoring over 75% in the assessment for the matters present.
Please refer to www.allianz.com.my/corporate-profile for detailed information on the Corporate Governance Report.
Responsible products,
1
investments & underwriting
4 2 Customer innovation
Overall influence on stakeholder assessment and decisions
Climate change
3
Social & financial inclusion
1
High
4 Health
9 5 3 2
5 Environment
10 6
7 6 Employees and workplace
8
Natural disaster and
Medium
7
extreme weather
12 11
13 8 Demographic change
9 Cyber risks
15
10 Data privacy & protection
14
Low
11 Safety risk
12 Community support
13 Human rights
Low Medium High
Animal welfare standard/
14
animal testing
The Group's influence on trends and link to core business
15 Social & political unrest
Diagram 3: Materiality Matrix

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Our Material Matters 05
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Table 2: The Group’s Top Material Sustainability Matters 2020
Rank Sustainability Matter Scope of Sustainability Matter Themes
1 Responsible products, Products, investments, and underwriting that meet

investments, and underwriting environmental and social needs (e.g. green financing,
sustainable solutions, ESG criteria in business)
2 Customer innovation Harnessing and adapting to innovative processes,

mechanisms, channels, and technologies (e.g. digitalisation,
automation, new financing mechanisms)
3 Climate change Prevention, mitigation, and management of the impacts

of man-made climate change (e.g. transition to renewable
energy, carbon divestment)
3 Social and financial inclusion Addressing inequality and the inclusion of marginalised
groups (e.g. poverty, wealth disparity, food security, access
to insurance, unemployment)
5 Health Promote access to healthcare, disease prevention and

management, pandemics, and physical and mental health
and wellbeing
6 Environment Resource management and efficiency, environmental

protection, and carbon emission of own operations
7 Employees and workplace Work environment that promotes diversity, fair and
inclusive workplace, human capital management, health
and safety, and equality.
8 Natural disaster and extreme Extreme weather events and natural catastrophes such as
weather floods that affect people and property
9 Demographic change Responding to changes in society and population

(e.g. population growth, ageing society, urbanisation,
migration)
10 Cyber risks Security measures taken to protect data and operations

from cyber incidents (e.g. infrastructure attacks, phishing,
ransomware)
Legend:
Responsible Business Employer of Choice Responsible Corporate Citizen

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Our Material Matters
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DISCUSSION
The COVID-19 pandemic has had an amplifying effect on many taken to assure customers that Allianz is with them in their time
ESG matters – exacerbating inequalities and widening the divide of need. Additionally, contributions were also made towards the
between the have and have-nots in terms of wealth, digital literacy, protection of the most vulnerable through the Group's community
access, and infrastructure. Faced with this crisis, consumer and support initiatives.
investor sentiment shows a shift towards wanting not just to rebuild,
but to build back better1. In Malaysia, the growing investor interest With physical distancing requirements in place, digitalisation
was evident with the launch of a number of green and socially- became not just a means for companies to stand out, but integral
responsible investment products in the past year. to adaptation and survival. Allianz Malaysia embraces customer
innovation through its investment into becoming digital by default
The Group sees the development of responsible products, and development of solutions relevant to changing customer
investments, and underwriting as a key way to address ESG topics needs. However, with cyber-attacks on the rise, it is also cognisant
using its strength as a business. Systematically integrating ESG of the need to pre-empt and manage cyber risks and data privacy
criteria into investing and underwriting decision-making and considerations that are part and parcel of digital adoption.
developing solutions that create value beyond profit will contribute
towards a more resilient and secure future for all. In this way, other Climate change and social and financial inclusion, ranked joint third
material matters are also impacted. The establishment of the Local in the matrix respectively, are focal points in the Group’s sustainability
ESG Board as the core driver of ESG topics ensures integration of approach. Despite the tumult of the pandemic, ‘Climate Action
sustainability into the core business. Failure’ consistently ranks highly in the Global Risks Report - both
in terms of likelihood and impact. Our actions as a society in the
Understandably, health was a topic that ranked highly among next years determine the prosperity of future generations, and
stakeholders. In the World Economic Forum’s Global Risks Report2, Allianz is committed to managing its own environmental footprint
‘Infectious Diseases’ was rated the most impactful and greatest short while encouraging positive action towards delivering the 2015 Paris
term risk, and ‘Pandemic Outbreak’ was the second most important Climate Agreement.
business risk in AGCS’ Risk Barometer3. The Group prioritised the
health and wellbeing of employees in responding to the pandemic, Allianz Malaysia’s actions to address these material topics are
taking efforts to ensure that they could continue to perform in an discussed in the following pages, where its performance and
environment where they felt safe and comfortable. Overall public initiatives as a Responsible Business, Employer of Choice, and
health also impacts Allianz Malaysia’s business, and measures were Responsible Corporate Citizen are set out.
1
https://www.pwc.com/my/en/assets/publications/2020/rethinking-esg-in-a-post-covid-19-world.pdf
2
https://www.weforum.org/reports/the-global-risks-report-2021
3
https://www.agcs.allianz.com/news-and-insights/news/allianz-risk-barometer-2021.html

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Responsible Business 05
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Increased NPS scoring for

Over 890,000 Over 15,000
Allianz Life Allianz General Sustainable Solutions Friends of Allianz
↑9.0% ↑0.3% policies sold in 2020 registered in 2020
Our Insurance Footprint

Perlis
Kedah
↑ 26% WP Labuan
Sabah
Number of
Penang Kelantan Terengganu Customers
Perak
2020
2.9 million
Pahang
(2019: 2.3million)
Selangor
WP
Kuala Lumpur Negeri Sarawak
Sembilan
WP Putrajaya
Melaka Johor
>200k Customers insured 100k to 200k Customers insured <100k Customers insured
Diagram 4: Our Insurance Footprint
It is in the nature of insurance to protect people and businesses against risk. Allianz Malaysia recognises its responsibility in this role – to
constantly innovate so that its product offerings address changing societal needs while ensuring that customers remain at the centre of its
business decisions.
EMBEDDING ESG IN OUR BUSINESS
ESG considerations are embedded into Allianz’s insurance and investment decision-making as set out in the ESG Integration Framework. The
Allianz Standard for Reputational Risk Management defines the ESG Sensitive Business Guidelines, Sensitive Countries List, and ESG Referral
Process, which are integrated into business processes through policies and functional rules, namely the Allianz Standard for Underwriting and
the Allianz ESG Functional Rule for Investments. Insurance or investment transactions that concern thirteen sensitive business areas listed in
the Allianz Standard for Reputational Risk Management will trigger the ESG referral process, subjecting them to further assessment.
Please refer to www.allianz.com/content/dam/onemarketing/azcom/Allianz_com/sustainability/documents/Allianz_ESG_Integration_Framework.pdf

for detailed information on the ESG Integration Framework.

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Responsible Business
06
ESG Integration Framework
Allianz Standard for ESG Sensitive Sensitive ESG

defines
Reputational Risk Business Countries Referral
Management Guidelines List Process
ESG Business Integration
refer to
Allianz Allianz ESG

Standard for Functional Rule
Underwriting for Investments
Diagram 5: Key ESG Governance Processes at Allianz
Allianz is a signatory of the United Nations Environment Program Allianz is committed to the Principles for Responsible Investment,
Finance Initiative (UNEP FI) Principles for Sustainable Insurance - a which guides its approach to managing ESG risks within its
global framework for the insurance industry to address ESG risks investment portfolio. When considering potential investments, an
and opportunities and a global initiative to strengthen the insurance ESG Scoring Process is used to systematically evaluate and manage
industry’s contribution to building resilient, inclusive, and sustainable material ESG risks. For listed assets, the Group refers to the ESG
communities and economies. Locally, the Group’s exposure to risk is rating reports generated by MSCI ESG Research. Those that do not
largely indirect, through the risks carried for its insured clients. The meet a minimum rating threshold score are subjected to a thorough
identification, referral, assessment and management of such risks ESG risk screening and evaluation process for manual justification.
are systematically integrated into underwriting processes via the Investments into non-listed assets are subject to further scrutiny if
Allianz Risk Management Framework and the Allianz Standard for they relate to a sensitive business area, to ensure that ESG risks are
Underwriting. In line with Allianz’s climate commitments, the Group sufficiently managed.
does not offer insurance for coal-powered plants or mines, and aims
to fully phase out coal-based risks from its insurance portfolio by The Group’s outsourcing policy has been updated to incorporate
2040. ESG questions as part of the screening documents for all outsource
vendors during the procurement process. This builds on the existing
In 2020, ten of Allianz Malaysia’s insurance cases triggered the Vendor Integrity Screening process, providing assurance that
ESG Referral Process for further investigation, with eight cases relevant ethical standards are adhered to and highlighting gaps
subsequently approved at local level and two approved at Allianz in compliance. Understanding that this is a journey for all parties,
ESG Board level. No transactions were declined due to ESG risks. Allianz Malaysia takes an approach of continuous engagement to
advocate for improved ESG standards.

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PRODUCTS THAT MEET CUSTOMER NEEDS
Allianz Malaysia has various customer feedback mechanisms and is

constantly in dialogue with agents and intermediaries, receiving insight
from their interaction with customers and noting trends to feed into
product and service development. To promote closer collaboration,
Allianz Life set up a dedicated Agency Sales Experience Team, where
councils comprised of agents and employees meet regularly to discuss
improvement opportunities.
The pandemic highlighted the role of insurance as a way for people to

protect themselves and their families – both physically and financially.
The Group’s strategy of offering simple, relevant products and making
them easily accessible helps customers navigate the oftentimes complex
financial environment.
Allianz Life introduced two guaranteed issuance products, namely

Allianz 1Cover and Allianz BolehCover, to its product range, the hallmark
of which are low premiums and hassle-free enrolment. These products
are financially accessible, allay customer concerns of needing to go
for medical examinations during a pandemic, and are easy for agents
to explain, facilitating remote sales to abide by physical distancing
requirements. POS LifeCare, launched in early 2021 and distributed
exclusively by Pos Malaysia, is also affordably priced while providing
ample benefits, allowing Allianz Life to reach more customers through
Pos Malaysia’s branch network.
Allianz General launched Allianz Lifestyle Protect to serve as an all-in- Allianz 1Cover and Allianz BolehCover were launched as low-premium
and hassle-free products
one personal protection plan to manage everyday risks such as theft,
smart device protection, and online purchase protection. By providing
coverage addressing frequent occurrences like online shopping, Allianz
aims to change the perception of insurance as something that is rarely
applicable to one that brings daily peace of mind. POS Parcel Protection
and POS Bill Protection have the same intention - by providing small, yet
relevant protection for everyday needs.
The Group continually reviews and revises its existing products to

enhance benefits and services in order to cater to evolving needs. During
the pandemic, safety and protection emerged as a paramount concern.
• Modular home insurance enhancements were made to the HomeFix

component of Smart Home Cover by Allianz General, where
policyholders could seek services on platforms like Recommend.my
to carry out immediate fixes including plumbing works and air
conditioner servicing once a year. Additional coverage includes home
maintenance services such as pest control and home disinfection.
Smart Home Cover enhancements include additional services for the home

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• Seeing the impact of the pandemic on Small-Medium Enterprises Allianz Malaysia also strives to improve its processes and automate
(“SMEs”), Allianz General enhanced its Smart Retail Shield product where appropriate. The Group identifies, addresses, and eases
to include an optional Inconvenience Relief Benefit, providing ‘pain points’ while enhancing drivers of satisfaction in the customer
financial relief to SMEs whose premises face temporary closure as experience, such as:
instructed by the authorities.
• Allianz Life has taken a proactive approach in offering measures to • Cashless claims service with instant approval where repair or
alleviate some of the concerns of customers during this pandemic replacement of insured items or property is arranged directly
period. The measures range from extending grace periods for by Allianz General, removing the need for customers to submit
premium payments to offering bonus coverage in the event of claims for reimbursement. This includes on-site vehicle windscreen
death or diagnosis of COVID-19 for the customer or their family repair or replacement within three hours, as well as quick repair
members. These initiatives aimed to reduce the financial burden of service for homes and commercial buildings by Allianz General’s
existing customers in light of the impact of COVID-19 on their lives. preferred contractor. These two services have been rolled out in
Klang Valley in 2020, with planned expansion to major cities in
2021, followed by nationwide rollout.
Windscreen damage Notifies Allianz advises on available Makes appointment with

to insured vehicle Allianz Allianz panel workshops Allianz panel workshop
Claims Journey
Conventional
Collects repaired Workshop Sends vehicle

Returns Submits to workshop for
vehicle from calls to collect windscreen repair/
home documents
workshop vehicle replacement
Allianz Windscreen
Replacement
On-The-Go
Windscreen Allianz Repairer calls to Repair/

damage Notifies informs make appointment for replacement
completed at
to insured Allianz panel repair at customer's customer's
vehicle repairer preferred location preferred location
The Windscreen Replacement On-the-Go service reduces the number of steps and therefore the overall customer journey
• The Allianz Claims Caravan and Allianz-branded 4x4s were truck driver assigned to them and location updates of the tow
deployed to various flood-affected regions so that customers truck’s progress to the customer’s location. Thus, customers can
could easily submit claims and loss adjusters were on-hand to verify the identity of the serviceperson and also manage their
expedite the process. Allianz General strives to make either full or schedule accordingly.
interim payment within five days of the loss adjuster’s visit as a way
of speeding up customers’ return to normalcy.
• Continued improvement of the Allianz Road Rangers service with
Allianz Road Rangers has served over
the piloting of an online tracking system where, upon request for 300,000 customers
assistance, customers receive the contact information of the tow since 2017

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SUSTAINABLE SOLUTIONS
Allianz Malaysia uses its insurance offerings to advocate for environmental responsibility and serve as an equalising social force. Allianz has
rolled out a programme called ‘Sustainable Solutions’ to identify and promote the development of products and services that tackle issues
faced by socially disadvantaged groups or that contribute to positive environmental impact. Further details about the criteria for Sustainable
Solutions can be found in Allianz’s ESG Integration Framework.
Number of Policies GWP contribution

890,000 RM134,600
(2019: 331,000) (2019: RM51,500)
Allianz Malaysia offers seven Sustainable Solutions
Provides protection Promotes accessible Provides protection for Promotes accessible

against risks associated insurance for Persons with previously uninsured insurance for low-income
with adoption of Disabilities wooden kampung houses populations
renewable energy
• SolarPro All Risk PV • Allianz Ability Life • Allianz Kampungku/ • Allianz Kasih Hayat
Insurance • Allianz Individual PA Allianz POS Kampungku • BIMA Life
• Allianz Motorcycle Plus
Allianz General is a leading solar insurance provider in Allianz Kampungku

Malaysia, providing peace of mind to retail and commercial covers wooden kampung
customers that their solar photovoltaic (“PV”) systems houses, mainly located in
are protected from point of construction up to operation, rural areas. The product,
even including losses during system downtime. Allianz renamed Allianz POS
General worked in collaboration with Sustainable Energy Kampungku, saw an
Development Authority Malaysia and the Malaysia increase in uptake in 2020
Photovoltaic Industry Association to develop the SolarPro due to the addition of a
All Risk PV Insurance. new distribution channel
via POS Malaysia. The
In 2020, Allianz General and partner agency Anora Agency product is simple and easy
Sdn Bhd (“Anora”) entered into a number of Memorandums to access, in the hopes that
of Understanding to further the product footprint, for it will provide a positive first
example with OpenSys (M) Berhad to become the first experience of insurance for
insurance solutions provider on its buySolar platform the previously uninsured.
connecting solar PV users with relevant energy stakeholders,
and with Malaysia Debt Ventures such that Anora becomes
the fulfilment partner for their solar PV financing customers.

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STRIVING FOR SERVICE EXCELLENCE
Allianz Malaysia seeks to build a team of professionals that is fully

equipped to best serve its customers. This is achieved through
promoting relevant upskilling, training, and development to
72 agents
certified as Professional Estate
employees and intermediaries, and forming high calibre partnerships.
Planning Advisers in 2020
• Customer service employees undergo Training Needs Analysis
to identify opportunities for growth, such as through in-house • Allianz Life collaborated with RHB Trustees Berhad (“RHBT”)
certification or obtaining external qualifications offered by the to refer its customers to RHBT for their legacy planning services
Life Office Management Association (“LOMA”) and the Malaysian that complement Allianz Life’s insurance offerings. This aims
Insurance Institute (“MII”). This aims to build them as customer to give customers the assurance that the necessary financial
advocates and relationship managers that can provide advice arrangements for their next of kin will be well managed.
based on a holistic view of customers’ needs. • Allianz Life raises the bar for its incoming pipeline of insurance
• Allianz Life entered a training services agreement with the agents through the 24-month Career of Excellence and
Malaysia Financial Planning Council, enabling its agents to enrol Opportunity (C.E.O) programme, which has a strict selection
in the Professional Estate Planning Adviser Programme. Through criteria paired with rigorous, structured training and monitoring.
the programme, agents are able to gain in-depth knowledge on Programme participants are offered fast track growth and
how to integrate their services into effective financial or estate personal coaching and mentoring, as well as monthly financial
planning. assistance so they can focus on learning and development during
their training period.
Please refer to www.allianz.com.my/allianz-ceo-programme for detailed information on the Career of Excellence and Opportunity (C.E.O) programme.
The C.E.O programme provides a fast-tracked pathway with an emphasis on learning and growth

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Allianz Malaysia’s insurance intermediaries are guided by the Sales The repairers have an annual scorecard review to ensure that they
Standard and Sales Agent Code of Conduct and must comply with meet and maintain a minimum threshold.
the Code of Ethics and Conduct imposed by the respective insurance
associations. Allianz Life agents are also assessed according to Repairers’ performance is one of the areas monitored via the
criteria of the Key Performance Measures under the Balanced Voice of Customer feedback system, formerly referred to as the
Scorecard Framework ("BSC") – required by Bank Negara Malaysia 5-star rating, which measures customer satisfaction based on their
under the Life Insurance and Family Takaful Framework. Agents’ individual interactions with Allianz Malaysia. This feedback system
remunerations are tied to their BSC results, thus incentivising a high will be rolled out to encompass more customer journeys in 2021. By
level of ethical behaviour. More information on the governance receiving feedback specific to discrete interactions, the Group is able
structures in place to regulate intermediary behaviour can be found to pinpoint problems and target areas for improvement across the
in the Statement on Risk Management and Internal Control. entire customer journey.
A major exercise undertaken in 2020 was the review and revamp The Net Promoter Score is another means of receiving feedback
of Allianz General’s Authorised Repairers panel. An invitation was and measuring customer loyalty based on their willingness to
issued to all repairers listed in the PIAM Approved Repairers Scheme recommend the company. Both Allianz Life and Allianz General
(PARS) to apply, resulting in a panel consisting of 195 repairers saw an improvement in the annual Net Promoter Score (“NPS”),
nationwide, of which 40% were new to Allianz General. All repairers indicating that efforts in service improvement and a strategy of
are required to subscribe to the highest standards including the use consistent engagement has helped position Allianz as a trustworthy
of genuine parts, quality repair work within a stipulated turnaround and relevant brand.
time, and a warranty period of two years for parts and repairs.
Top Down NPS Performance Top Down NPS Performance Top Down NPS Performance
2018 2019 2020
Allianz General +0.9% -2.4% -2.1% ↑0.3%

(Market average = +2.4%) (Market average = -8.5%) (Market average = -6.1%)
Allianz Life +12.2% -7.1% 1.9% ↑9.0%

(Market average = -0.9%) (Market average = -8.1%) (Market average = -5.1%)
The Group launched a number of customer engagement initiatives during this unprecedented period to provide assurance and impart
useful information. This includes the “We Are With You Always” campaigns, as well as press articles with relevant consumer tips and safety
reminders, such as proper car maintenance during the Movement Control Order (“MCO”) and homecare tips after extended time spent at
home. Customers were kept informed of latest updates and service highlights via all possible engagement touchpoints.
Allianz Malaysia is committed to the highest standards of ethical customer service in accordance with Bank Negara Malaysia’s policy
document on Fair Treatment of Financial Consumers.
Customer Service Performance
Metric 2018 2019 2020

Number of compliments received 113 108 83
Number of resolved complaints 519 691 814
Percentage of complaints resolved at year end 91.90% 92.20% 96.10%
Average complaint processing time Allianz General: Allianz General: Allianz General:
10 calendar days 14 calendar days 13 calendar days
Allianz Life: Allianz Life: Allianz Life:
22 calendar days 26 calendar days 20 calendar days
More information on how ethical behaviour is embedded into all customer dealings can be found in the Allianz Service Charter on Allianz Malaysia’s corporate website,
www.allianz.com.my/service-charter

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COVID-19 presented a new and invisible threat and Allianz Malaysia Financial security and COVID-19’s impact on livelihood were major
took various precautions to minimise infection risk to its customers concerns of Malaysians during the pandemic. Allianz Malaysia
and business partners: recognises its role as more than just about providing protection. It
also serves to build community confidence, especially during times
• Allianz General was the first insurer to introduce disinfection of uncertainty.
services as part of the Standard Operating Procedures at vehicle
workshops, with vehicles disinfected upon receipt and before
• Allianz Malaysia launched the We Care Community initiative
release to customers. Customer waiting centres are also required
as an avenue to support the community and position itself as a
to be disinfected twice a day.
• Guidelines were rolled out to branch offices to limit agent and beacon of reassurance during the pandemic by promoting health
customer presence in branches and promote cashless and and positivity. Membership of the We Care Community is free and
contactless payments. Allianz Malaysia also subsidised disinfection open to all Malaysians aged 18 years and above, and members
services for agents’ premises where COVID-19 positive cases were receive complimentary COVID-19 relief as well as virtual lifestyle
detected. Digital tools and processes enabled agents to reduce benefits and wellness and lifestyle rewards. This is the first step of
the need for physical interaction, further described in Harnessing a long-term mission to form a healthcare ecosystem that provides
Digital Capabilities. end-to-end care solutions needed by Malaysians for their health
and wellness.
• In 2021, Allianz Malaysia will launch Vivy as a complementary app
for engagement on health, which will provide targeted offerings to
users and guide them through their unique health journeys. Core
features of the app include health content, quizzes, medication
plans, and health interventions like teleconsultations, e-pharmacy,
and second medical opinions. This is with the aim of offering real
and holistic support to policyholders - from preventive health all
the way to recovery. Vivy is just one of the global assets that can
be leveraged through the Allianz Customer Model, a change
programme to adapt and adopt simple, digital, scalable solutions
across Allianz’s global network.
Vehicle disinfection became part of the Standard Operating Procedure at vehicle

workshops
The We Care Community was launched to provide support and reassurance to the wider society

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ENCOURAGING FINANCIAL INCLUSION the agents’ own lives, to those of their direct employees, their
customers, and the wider community – as evidenced by the agents’
Insurance is one risk management tool that can help to improve charitable giving initiatives. Unable to carry out the annual Allianz
community resilience against financial shocks. The pandemic was a Life Charity Day due to the pandemic, the agents instead rallied to
stark reminder of Malaysia’s insurance protection gap, which a recent
raise funds for COVID-19 response, as detailed in the Responsible
Swiss Re study estimated at 74% of the country’s total protection
need4. Apart from developing simple, accessible products, Allianz Corporate Citizen section.
Malaysia also raises awareness on the importance of financial
protection and encourages financial security through providing A key way that Allianz Malaysia expands its reach and increases
opportunities for financial empowerment. insurance penetration is through building partnerships that allow
for new and innovative insurance solutions to be delivered through
• The Friends of Allianz programme kicked off in early 2020 where non-traditional channels.
members of the public could sign up to be paired with one of
the Group’s agents. These Friends of Allianz can then earn a
• Allianz Malaysia partners with Pos Malaysia to leverage on
supplementary income by referring potential customers to their
partner agent, as part of the commission for successful referrals would its extensive reach into rural areas. This is an opportunity to
go to them. A secondary outcome Allianz Malaysia hopes to achieve improve the financial inclusion of these communities through the
from this is improved insurance penetration, as the programme offer of simple, need-based, accessible products. For some Pos
encourages conversations around the need for protection. Malaysia customers, this may be their first exposure to certain
insurance products, so the Group aims to make the experience –
from purchase to claims - as seamless as possible to build their
Over 15,000 confidence in the need and benefit of financial protection.
Friends of Allianz enrolled in 2020,
Product offerings in Pos Malaysia
and their referrals contributed over
RM50 million in Annualised First Year Premiums. POS RumahKu POS Bill Protection
Flood and fire coverage for A low-cost personal accident
Find out more about the Friends of Allianz programme at
https://www.allianz.com.my/friends-of-allianz wooden kampung houses insurance that covers
important payments in the
• The Group also promotes awareness on insurance through its year- event misfortune occurs
long partnership with Orangkata.my, a Malay language online
media platform with the aim of sharing knowledge, current news, POS Parcel Protection POS LifeCare
and promoting critical thinking, especially amongst young people. Gives peace of mind by A low premium life insurance
Orangkata.my published articles, videos, and infographics related covering any damage or loss that includes COVID-19 and
to basic insurance knowledge, understanding of conventional during local parcel delivery dengue cover
insurance in comparison with Takaful, and specific information
about Allianz Malaysia’s offerings to its over 50,000 Facebook • Allianz General is working to improve its offerings to motorcycle
followers, as well as on its website and Instagram. owners as a vulnerable, yet underserved segment of road users.
In 2019, rider protection benefits were added to the Allianz Motorcycle
Find out more about Orangkata.my on their website, Facebook page and
Instagram Plus product at no additional cost. Amongst its upcoming initiatives,
https://orangkata.my Allianz General will set up a panel of specialised motorcycle repairers
www.facebook.com/orangkata.my/ and roadside assistance for motorcycles.
www.instagram.com/orangkata_my/?hl=en
• In recent years, Allianz Malaysia has formed various digital
• Allianz Life embeds the concept of empowerment through partnerships with players in the e-commerce, mobility, finance,
financial inclusion via the Allianz Life Changer programme, used retail, and property fields, amongst others. Recognising that the
as the overarching theme for recruitment. Agent growth and start-up ecosystem is ripe for innovation, it supported the NEXEA
development revolves around becoming enablers to ensure Multi Corporate Accelerator in 2020 as a means of keeping
that customers have adequate protection to fulfil their needs. abreast of developments and reaching out to the start-up network
This theme of changing lives is carried through from changing to identify potential collaborations or partnerships.
https://www.swissre.com/dam/jcr:6a844406-4898-4ffe-b45b-2e5696128624/SRI-Expertise-Publication-Closing-Asias-Mortality-Protection-Gap-July-2020.pdf
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HARNESSING DIGITAL CAPABILITIES • Adoption of fully digital tender process in sourcing and
procurement to remove the need for physical documents and
Consumer behaviour and preferences continue to change, as facilitate remote working during the pandemic. Part of this
technology makes different forms of interaction more appealing process is expected to remain digital in future.
and acceptable. Behaviour change due to altered routines during
the pandemic was also observed. The Group is monitoring a number
of behavioural trends to see if they are temporary or sustained, and Tender process to review applications
assessing various tools for adoption to match these changing trends.
for the Allianz General authorised
repairers panel was entirely digital to
• Customers are increasingly opting for non-voice interaction via social
media, chat, and e-mail at non-business hours. During the lockdown accommodate MCO conditions, with over
period, the number of e-mail interactions doubled from the same 1,000 applications screened.
time period in 2019. Allianz Malaysia will continue to monitor such
behavioural trends and incorporate more digital solutions to ensure
that it can reach out to customers quicker and in a more personalised Allianz Malaysia’s investment into its digital capabilities allowed for
manner, thus improving the customer experience. minimal disruption when pandemic conditions prompted an abrupt
• The MyAllianz Customer Portal was launched in early 2020 and hasty migration to remote working.
with an improved, mobile-friendly user interface and integrated
online assistance, giving customers easy access to their policy • Planned digitalisation was accelerated as 94% of the workforce
information and documents and enabling them to carry out basic worked remotely at the height of the lockdown. Substantial
policy maintenance. A simplified process helped to boost customer investments were made into technology such as additional
registration to the portal, with a 64% increase in sign-ups since the
laptops, remote access client licences, and staff phones with
launch.
secured mail access.
• The Group did not experience significant disruption to the sales
Allianz Malaysia harnesses technological advancements to optimise
process as systems were in place to be paperless from point of
processes and improve customer interactions. This includes:
quotation up to premium collection and payment. Agents did not
have to be physically present in branch offices as all transactions
• Digital and automated policy issuance process for agency channel
on the remote sales platform could be done virtually.
- from point of sales to issuance of e-policy - leading to a doubling
in the number of policies delivered in five minutes. • Additional investment is being made into leads management from
online enquiries, where customers will be assigned to the best
matching agent with the aim of connecting them to personalised
service in the shortest time.
41%
of Allianz Life policies issued by agency channel
Connectivity was emphasised, not just to maintain productivity, but
within 5 minutes, up from 23% in 2019.
to ensure that the links between agents, distributors, employees, and
customers did not break down at this time when people had many
questions and required assurance.
• Automated underwriting for Allianz General’s retail products, with
policies and policy-related communication issued in soft copy.
• 89% of Allianz Life’s policy-related communications sent • With the wider acceptance of virtual meetings, Allianz Malaysia
electronically while 90% of Allianz Life’s policyholders opted to has been able to increase its interactions with its agents and
receive digital policies in December 2020. employees, recording greater attendance during regular virtual
• Enhanced capacity for agents to perform digital self-service for town hall meetings in the absence of travel limitations. In previous
policy change requests from their customers via the respective years, Allianz encouraged virtual meetings as a way to reduce
agents’ portals of Allianz General and Allianz Life, and enhanced greenhouse gas emissions, and expects that this mode of operation
capacity for customers to perform self-service through Allianz will be maintained to some extent even once travel restrictions are
Malaysia’s corporate website, for example through digital claims lifted. Thus, investments have also been made into virtual meeting
submission. technology.

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• In supporting remote work, Allianz Malaysia is adopting a

number of cloud-based solutions. Precautions are taken to
ensure that data privacy and security is maintained, such as
conducting the necessary assessments at the outset including
Privacy Impact Assessments to ensure that any privacy-related
gaps identified are sufficiently mitigated before a solution is
implemented. Additionally, various stakeholders from IT, data
privacy, governance, and operations teams are involved from
the early stages of product and service development to
understand the way that data will be collected, used, and stored,
and to ensure that security considerations are built in from the
start , adopting the principle of secure by design.
Allianz’s Town Halls for the year were held virtually, with the support of a sign
• For data hosted on Allianz Malaysia’s own servers, artificial
language interpreter for hearing-impaired colleagues intelligence has been deployed for environmental monitoring to
immediately identify and raise concerns to the developer should
• The Group’s focus on digitalisation has enabled continuous there be any unusual behaviour. A holistic approach is taken
engagement with customers digitally through various channels where impacts on user experience are managed, rather than just
such as its corporate website, Facebook page, and Instagram. The silo components of the system.
consistent interaction allows the Group to provide customers with • The Group benefits from Allianz’s centralised IT security monitoring
timely updates and reassurance that Allianz is with them in their system that constantly scans for threats or breaches to cyber
time of need. defences. Additionally, a new artificial intelligence-based cyber
security system has been deployed which can recognise and flag
MANAGING CYBER RISK suspicious anomalies in user behaviour.
• In ensuring that data privacy standards are at the highest level, a
While building remote working capabilities, Allianz Malaysia is Privacy and Data Management task force meets monthly to go
mindful of the cyber risks that come along with it. The Group is guided through plans and issues related to the topic. Responsibility for
by Allianz policies and best practice concerning cyber security, compliance to data regulations has been moved to the first line
further bolstered by compliance with Bank Negara Malaysia’s Risk through the appointment of Data Privacy Champions in each
Management in Technology (“RMiT”) policy. department who undergo additional training and are tasked with
monitoring and ensuring that standard operating procedures in
• Allianz Malaysia is in the midst of its two year plan for full their departments are strictly adhered to.
compliance to the RMiT, which entails risk assessments on • General Data Protection Regulation (“GDPR”) training is one of
processes, infrastructure, and users. A cyber risk maturity the modules under Allianz’s Mandatory Annual E-Learning &
assessment will be conducted in 2021 as part of this planned E-declaration, which all employees are required to complete. As
roadmap to compliance. an entity of Allianz, it is important that employees have a working
• Continuous training and awareness programmes, including knowledge of the European Union GDPR, especially since these
certification of employees, are also carried out to strengthen regulations have extraterritorial jurisdiction. Agents are also
the Group’s first line of defence. Recognising a global trend of apprised of relevant data privacy regulations and best practices
increased cyber-attacks during the pandemic, Allianz Malaysia through training sessions held at Allianz Malaysia branch offices
placed emphasis on defending against threats such as phishing from time to time. Additionally, general data privacy training
e-mails in 2020. is built into onboarding sessions for new joiners to ensure that
• A Cyber Security Operations Team independent from the there is no gap in compliance. More information on data privacy
Information Technology (“IT”) department was set-up as a means and confidentiality training and compliance can be found in the
of providing independent reviews, checks and balances on the Statement on Risk Management and Internal Controls.
implementation of cyber risk controls.
The Allianz Privacy Standard, which details the Group’s approach and
commitment to compliance with GDPR and local privacy laws and regulations,
can be found on Allianz Malaysia’s corporate website at
www.allianz.com.my/privacy-statement.

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Inclusive Meritocracy Index

improvement to
Work Well Index
up 2% to
RM1.8 million
spent on training and
84% 77% development
The Allianz Code of Conduct sets out the values and principles that guide the actions of all Allianz employees in fulfilling the purpose –
“We secure your future”. The Code of Conduct reflects Allianz’s commitment to the principles of the United Nations Global Compact,
a voluntary initiative based on CEO commitments to implement ten universal sustainability principles in the fields of human rights, labour
standards, environmental protection, and anti-corruption.
Allianz Malaysia is committed to upholding its values and the relationships of trust that have been built with all stakeholders. Strong values
and principles will ensure that the Group does what is right for all its stakeholders – treating each one with respect, acting with integrity, being
transparent, building trust, and taking ownership and responsibility.
Please refer to www.allianz.com/en/about-us/strategy-values/compliance/verhaltenskodizes.html for detailed information on the Allianz Code of Conduct.
Our Employment Footprint
Perlis
Kedah
Sabah
Penang Kelantan Terengganu

Perak
Pahang
Selangor
WP
Kuala Lumpur Negeri Sarawak
Sembilan
Melaka Johor
>100 Employees 50 to 100 Employees <50 Employees
Diagram 6: Our Employment Footprint

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LISTENING TO OUR EMPLOYEES
The annual Allianz Employee Survey (“AES”) gathers feedback from employees to gauge their perspective on Allianz Malaysia’s performance
as an employer and workplace. 2020 saw a 98% participation rate amongst all employees. A number of internal indices have been set up that
track specific questions in the survey in order to monitor progress on priority areas. These are set out below:
Inclusive Meritocracy Index Work Well Index Employee Engagement Index
Measures the progress of the Measures the work-related psychosocial Measures the extent to which
organisation towards Inclusive stress level of employees based on employees are motivated to contribute
Meritocracy, a term used to describe a metrics covering demands, rewards, to organisational success and monitors
culture and work environment where control, support, and social capital. This the level of employee satisfaction,
performance and people matter. This score is scientifically-validated, and a loyalty, advocacy, and pride. A higher
index is derived from assessments on higher index score is associated with less index score reflects higher engagement,
leadership, performance, and corporate work-related stress. motivation, and pride.
culture.
2019 83% 2019 75% 2019 80%

↑1% ↑2% ↑4%
2020 84% 2020 77% 2020 84%
Despite the challenging year, Allianz Malaysia saw improvements in • In May 2020, Allianz Malaysia engaged a doctor as a Medical
all key indices, indicating that efforts to reach out to employees and Advisor and Health Officer to advise on the various aspects of the
ensure their interests were taken care of were well received. Group’s response. As part of the crisis team, the doctor contributed
his expertise to design and develop a health risk management
WORK WELL AT ALLIANZ plan for the workplace and assist in the implementation of safety
and health rules upon return to office.
The health and wellbeing of employees has always been a • When lockdown regulations were relaxed to allow for greater
priority for Allianz Malaysia. An Occupational Safety and Health presence in the workplace, all employees selected to Return-to-
Administration (“OSHA”) awareness training module forms part of Office (“RtO”) were required to undergo antibody/antigen rapid
the Mandatory Annual E-Learning & E-declaration for all employees testing to minimise the risk of bringing the virus into the workplace.
while a centrally-located OSHA committee oversees the safety and Further, employee presence in the office was capped at 30% of the
wellbeing of all employees, with larger branch offices establishing workforce during the RtO phase, with team rotation enforced.
their respective OSHA committees. • Allianz Malaysia adhered strictly to the Ministry of Health’s
guidelines, putting new Standard Operating Procedures in place
The COVID-19 pandemic was an unprecedented situation whereby and requiring testing and self-quarantining of close contacts and
safety precautions required the migration of 94% of the workforce to full sanitisation of premises should a COVID-19 positive case be
remote working basis at the peak of government-mandated MCO. detected. More information on how safety precautions were
Allianz Malaysia’s Business Continuity Plan was activated, with cascaded to intermediaries and business partners can be found in
a pandemic-specific team convened to ensure efficient decision- the Responsible Business section.
making. The pandemic was viewed from an occupational health and • Proactive and regular communication with employees was a key
safety perspective with the goal of ensuring a safe work environment element of Allianz Malaysia’s approach, including e-mails after
with minimal risk exposure to employees. pertinent government announcements relating to changes in the
MCO and live dialogue sessions with Allianz Malaysia’s in-house
medical consultant to field questions about medical aspects of
COVID-19.

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Apart from physical safety aspects, the Group was also cognisant for many years, with an average tenure of twelve years amongst
of the impact that the pandemic had on psychosocial wellbeing, managers, and ten years amongst other employees. Allianz Malaysia
especially in adjusting to working from home and reduced time in also recorded a lower attrition rate of 8.8% in 2020, down from 10.6%
the office. Various work-well initiatives, specially tailored for the in the previous year. In 2020, 150 Loyalty Awards were awarded to
different needs of the virtual environment, were rolled out: long-serving employees that reached certain milestones beginning
from a consecutive period of ten years’ service and greater.
• Mind Happiness Programme from SOLS Health
Employee assistance programme that provides employees
with emotional support from qualified counsellors and clinical
Profile of Employees by Age Group (%)
psychologists via online video / audio call where needed.
• Global Mental Health Day 55 years Below 25 years
A full-day programme focused on mental awareness, stress and above 4.4
5.8
management and relaxation including activities like mindfulness
45-54 years 25-34 years
practice, meditation, yoga, mental resilience, and stress 19.8 35.4
management.
• Building Resilience dialogue conducted via Facebook Live on 35-44 years
Allianz Malaysia - Employee Community 34.6
A talk by an experienced consultant, who is a certified clinical
psychologist and trained teacher of Mindful Self-Compassion
Profile of Employees by Gender (%)
from partner organisation SOLS Health, organised as part of the
Mind Happiness Programme. Employees could ask their questions
33.7
66.3
39.4
60.6
related to mental health after the talk.
Management by Gender
• Peace of Mind Helpline
Workforce by Gender
Created to offer personalised medical advice by Allianz Partners

Doctors to give support to all Allianz employees and ensure a
smooth transition back to office.
• Allianz Home Run challenge via the Adidas Runtastic Training Men
App Women
A mobile application packed with work-out videos, plans and
nutrition tips. Employees who signed up would receive a three- Diagram 7: Diversity at Allianz Malaysia
month premium membership as motivation to stay healthy and
active during the MCO. Allianz Malaysia’s hiring and employee development policies
reflect principles of non-discrimination, with consistently strong
With employees working remotely for most of the year, colleagues performance in the Inclusive Meritocracy Index demonstrating its
had fewer opportunities to interact with each other. The Allianz commitment to fair treatment and recognition. The Group's workforce
Malaysia - Employee Community Facebook page was created as represents diversity in age and gender, as illustrated in Diagram 7.
a channel for communication to connect employees at every level The Group also supports the inclusion of Persons with Disabilities
during and outside of business hours. Set up in May 2020, it currently ("PWDs"), such as through the deployment of assistive technology for
has over 1,200 members, approximately 63% of the workforce. the visually-impaired amongst the 22 PWDs in its workforce.
This platform allows for open communication, collaboration, and
knowledge-sharing beyond geographical boundaries. In 2020, Diversity is also reflected in the composition of the Group’s Board
recreational competitions such as the Dalgona Coffee contest and of Directors, headed by the Group’s first female Chairperson and
information on exclusive employee programmes and campaigns comprised of Directors of different ages, cultural backgrounds, and
were communicated through this channel. from different areas of expertise. The Group recently ranked fourth in
overall score in the inaugural Malaysia Board Diversity Index based
These various work-well initiatives have helped to foster a on a study conducted by the Institute of Corporate Directors Malaysia
welcoming culture where employees feel they belong. This in collaboration with Willis Towers Watson. The index is based on
contributes to a large number of employees staying with the Group Malaysia’s board diversity landscape as at 31 December 2019.

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The pandemic accelerated progress towards Allianz‘s New Work LEARNING AND DEVELOPMENT
Model - a corporate culture that embraces change and flexibility
across four dimensions. These are set out below: Allianz Malaysia promotes a culture of lifelong education by
offering multiple modes of learning as well as through sponsorships
for employees pursuing further professional development. Despite
Employees – empowered to adopt a hybrid-virtual work disruptions to training and development plans in 2020, 616
environment without sacrificing productivity. employees attended at least one training session. Additionally,
people leaders in the organisation were engaged in Allianz’s global
A bottom-up approach is taken to categorise employees and
leadership modules. Moving forward, Allianz Malaysia intends to
ensure that they have the right environment to thrive. This also
embed e-learning as a regular part of work by encouraging the
entails reviewing office space requirements and investing in
tools needed to support remote working, as detailed in the designation of an hour a week for virtual learning, with the aim of
Responsible Business section. garnering at least 40 learning hours a year.
RM 1.8 million
Customers – flexible interaction and faster service to respond to spent on learning and development in 2020
changing customer needs.
Enhanced use of digital technology and diversified channels for • Employees are encouraged to obtain professional qualifications,
communication to meet customer needs when and where they such as the Life Office Management Association (“LOMA”)
arise, as detailed in the Responsible Business section. accreditation, various certifications offered by the Malaysian
Insurance Institute (“MII”), and Allianz’s exclusive in-house
technical programme – the Professional Commercial Underwriters
Certification (“PCUC”). PCUC graduates are able to fast-track their
Resilience – increased resilience maturity that considers future
route towards an Associateship of the MII Level 1.
workforce needs and trends.
Existing job roles will inevitably change, and strategic workforce In 2020,
planning is in place to review current versus future skillsets to
meet the changing insurance landscape. This entails working
57 employees
achieved LOMA Awards
with individual department heads to understand how their
department’s needs will change in the coming years and how to
prepare for that – be it through training, upskilling, or external
recruitment.
23 employees
completed PCUC
• The #lead programme, developed by Allianz, was rolled out to

Organisation and Culture – flatter, faster, and more agile
all people managers in 2020 with the aim of building the right
organisation strengthened by continuous learning and right
leadership skills. The programme consists of digital learning to
leadership skills.
create alignment on global Allianz initiatives paired with virtual
Efforts to build collaborative leadership and foster a learning face-to-face module delivery in place of physical workshops.
mindset are described in more detail in the Learning and Participants are given a year to complete the required modules,
Development section. earning them their #lead passport, and must then maintain it by
completing 100 hours of learning within two years.

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• Many conventional classroom training sessions had to migrate programme was disrupted due to travel restrictions in 2020, once
to a virtual platform due to travel restrictions as a result of the air travel is feasible, it will continue to be an important milestone
pandemic. While some programmes had to be postponed, in preparing employees for leadership roles. Employees are also
different virtual learning ones were offered during the year, encouraged to pursue cross-functional development through
including the Business Development Certification Programme, project assignments involving areas outside their usual job scope,
Technical Certification Programme, PCUC, and #lead. This has as was undertaken by participants of the recently concluded
led to a reduction in overall training hours, both due to reduced Young Board Programme 2.0.
numbers of training sessions and to reduced training hours per • Allianz Malaysia nurtures young talent through hosting structured
session, to accommodate the limitations of virtual learning. internship programmes. In 2020, two such programmes were
implemented, targeting Actuarial and IT functions respectively. The
programmes aimed to recruit young and talented undergraduates
Over 9,860 into key functions of the organisation while promoting Allianz as
training hours in 2020, averaging at an employer of choice.
5.2 hours • Allianz Malaysia also supports talent growth outside of the Group
through participation as a corporate partner in the NEXEA Multi
per employee
Corporate Accelerator and through its NGO Capacity-Building
Programme with Ashoka, helping to develop local entrepreneurs
• Allianz employees are able to access a range of digital learning and civil society organisations.
options via LinkedIn Learning, an on-demand learning tool that
employees can access at their convenience. A new e-learning
platform, in partnership with Degreed, is also currently in Allianz Malaysia has been
development, to connect learning more closely to talent recognised as an attractive
development. employer by being voted the
2nd runner up in the Insurance
Allianz Malaysia contributes to local talent development by nurturing category in Malaysia’s
the growth of its employees as well as providing opportunities for 100 Leading Graduate
exposure to working with the wider global network. Employers Awards 2020.
The survey, organised by GTI
• The Allianz Centre of Competence, situated in Kuala Lumpur, Media, involved over 25,000
provides highly technical underwriting, actuarial, and audit students and graduates
expertise to seven Allianz entities in the region, exposing local from major local universities
talent to a multinational work setting. Allianz’s MidCorp Asia Hub and universities in the United
is also situated here, providing services in the areas of reinsurance Kingdom, United States, and
and Midcorp on behalf of Allianz SE Reinsurance Branch Asia Australia. This is the second
Pacific to its clients. This arrangement provides for the transfer of year that Allianz Malaysia is
technical expertise and skills to the Hub which comprises mainly receiving this award.
local employees.
• As part of their development pathway, high potential talents
are given the opportunity to gain international work experience
through placements in other Allianz entities. While this

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Allianz Malaysia’s
operations powered
75% RM3.16 million
100% reduction in CO2 emissions contributed for
by Renewable Energy compared to 2019 COVID-19 relief
in 2020
A GLOBAL COMMITMENT TO LIMITING CLIMATE CHANGE
Allianz Malaysia, as part of the Allianz network, is committed to helping deliver the goals of the 2015 Paris Climate Agreement. This entails
rapid decarbonisation of the global economy and climate change mitigation actions in order to limit global warming to 1.5°C above
pre-industrial times by 2050. Allianz’s approach to addressing this is set out in the Allianz Climate Change Strategy.
Please refer to www.allianz.com/en/sustainability/low-carbon-economy/climate-change/climate-strategy1.html for detailed information on the Allianz Climate

Change Strategy.
Allianz’s global climate commitments include:
• Founding member of the United Nations-convened Net-Zero Asset Owner Alliance, bringing together the world’s largest asset owners to
decarbonise investment portfolios to net-zero by 2050. An interim target was announced in 2020, namely a 25% reduction of greenhouse
gas emissions contained in selected asset classes in the portfolio of customer funds by 2025, compared to 2019 levels.
• Committed to the Science Based Targets initiative to set long-term climate goals for proprietary investments and business operations.
• Committed through the RE100 initiative to minimise environmental impacts of Allianz’s business operations by sourcing 100% renewable
energy for its operations.
As part of its commitment to decarbonise its investment portfolio, Allianz stopped investing in predominantly coal-based business models,
defined as mining companies that derive 30% or more of their revenues from mining thermal coal or electric utilities deriving 30% or more of
their generated electricity from thermal coal. As Allianz Malaysia continues to phase out such investments, it also actively seeks low-carbon
investments, such as in the renewable energy sector. Additionally, Allianz does not offer insurance for coal-power plants and aims to fully
phase out coal from its insurance portfolio by 2040.
ENVIRONMENTAL MANAGEMENT
In accordance with Allianz’s Climate Change Strategy, Allianz Malaysia monitors and also takes steps to reduce carbon emissions in its own
operations. Greenhouse gas emissions targets were revised in 2020 in line with Allianz’s commitment to the Science Based Targets initiative
and to align with a pathway to global warming that does not exceed 1.5°C by the end of the century. Allianz Malaysia contributes towards
the achievement of Allianz’s overall target - a 30% reduction in greenhouse gas emissions per employee compared to 2019 levels by 2025.
A Local Environment Officer coordinates efforts to manage Allianz Malaysia’s environmental footprint, supported by Allianz’s Global
Environment Team. Environmental data is monitored and reported using the Allianz environmental management system (“EMS”), which has
in its scope energy used to operate buildings and IT equipment, business travel, paper usage, water, and waste.
Due to the pandemic and the various MCO, Allianz Malaysia exceeded most of its environmental targets in 2020. While the year’s performance
is certainly anomalous, it gives an indication of the areas where the Group could promote behaviour change to maintain reductions.

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ENERGY
Energy
Energy consumption per employee (kWh) The sharp decrease in energy consumption can be attributed
to reduced staff presence in the office during the MCO period.
2,430
↓ 12.6% At its peak, only 6% of employees remained working in the head
2,124 office, while branch offices in red and yellow zones were closed.
Subsequently, a significant number of employees continued working
Energy consumption (kWh) from home with increased adoption of the New Work Model, as
discussed in the Employer of Choice section. Employees' energy
4,551,883
↓11.7% consumption while working from home is currently excluded.
4,017,143
Figures from 2019 have been revised to broaden the monitoring
2019 2020
scope, which now includes energy consumption from Allianz
Malaysia’s data centres. This amounted to an addition of
Diagram 8: Total Energy Consumption (kWh) and Energy Consumption (kWh) per
Employee
approximately 500,000 kWh to previous energy consumption figures.
Allianz Malaysia strives to reduce this amount through periodic
Paper refreshing of older storage technologies to be replaced with more
energy-efficient solutions. The Group also expects that the use of
Paper consumption per policy (grams)
cloud-based solutions will lead to more efficient energy use as server
34 space will only be purchased as required, thus minimising excess.
↓44.1%
19
PAPER
Paper consumption (kg)

Allianz Malaysia’s reduction in paper consumption can be attributed
122,760 to reduced staff presence in Allianz offices as well as the closing
↓31.7%
of branch offices, intermediaries’, and business partners’ premises
83,820
during the MCO leading to less printed forms and marketing
2019 2020 materials used. This was also a result of digitalisation initiatives
whereby various documents – policies, endorsements, and renewal
Diagram 9: Total Paper Consumption (kg) and Paper Consumption (grams) per Policy notices – are issued electronically.
Travel TRAVEL
Travel (km)
Worldwide travel restrictions and local MCO severely hampered
12.2
business travel, which was entirely prohibited for non-essential
↓62.3%
4.6 workers at the height of the lockdown. To cater to physical distancing
requirements, employees were encouraged to conduct their
Travel per employee (km) business engagements virtually. Necessity led to innovation - for
example, it is now possible to remotely initiate activities in the data
6,504
centre when activating backups when previously employees would
↓62.3%
2,449 have to be physically present at the off-site location. Employee
training, workshops, and meetings also migrated online, facilitated
2019 2020
by investments into virtual conferencing technology. As virtual
engagements become normalised, Allianz Malaysia expects to see
Diagram 10: Travel (km) and Travel (km) per Employee
sustained reductions in business travel.

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Allianz Malaysia has had electric vehicles (“EVs”) as part of its company vehicle fleet since 2016. In 2020, two new Nissan Leafs were
welcomed to the fleet, in place of the first three EVs. These new vehicles are able to travel up to 290 km in a single charge, enabling
them to be used for longer journeys.
With Allianz Malaysia procuring 100% of its electricity from renewable sources, the EVs are leading the charge in the Group’s journey
to decarbonisation.
The new electric vehicles in Allianz Malaysia’s fleet are capable of longer-distance journeys
WATER
Water
Water consumption per employee (m3) Allianz Malaysia’s water consumption in 2020 increased despite
reduced staff presence over the year. This was attributed to water
22
↑9.1% pipe leakages and water meter malfunction detected at eight
24 branch locations. The water consumption figures for 2019 were
also revised to include the consumption at head office buildings,
Water consumption (m3) previously out of scope as the amount is consolidated into building
maintenance charges and not available on individual billing basis.
42,000
↑8.3% Consumption at the head office has been extrapolated based on the
45,469 total office floor area for completeness of data. With this addition,
water consumption figures are more than double the previous figure,
2019 2020
indicating that greater efforts need to be made in this area. Allianz
Malaysia is currently exploring a number of modifications that aim
Diagram 11: Total Water Consumption (m3) and Water Consumption (m3) per
Employee
to reduce water consumption.

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Waste Total CO2 Emissions (kg)

Waste generation (kg)
5.8 million
Overall Waste ↓75%
79,800 1.4 million
Overall
Waste 2019 2020
2019 ↓69.3%
63,000 16,800 Diagram 14: Total Carbon Emissions (kg)
Overall Waste
24,463 Recycled CO2 emissions (kg) per employee
Waste
2020 ↑16.1%
↓76%
4,961 19,502
Landfill Waste Recycled Waste
CO2 emissions (kg)

4,000 3209
2901
3,000
Waste generation per employee (kg/employee)
2,000
Overall waste 762
1,000
43 0
↓69.8%
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
13
Recycled waste Diagram 15: Carbon Emissions (kg) per Employee

9
↑11.1%
10
CARBON EMISSIONS
2019 2020 Allianz Malaysia recorded a drastic reduction in CO2 emissions in
2020, amounting to a 75% decrease from 2019 levels. This was partly
Diagram 12: Total Waste Generation (kg) and Waste Generation (kg) per Employee due to the reduced workforce in the office and travel restrictions for
the better part of 2020 resulting from government-mandated MCO.
WASTE
Additionally, through the purchase of i-Renewable Energy Certificates
Significant reduction in waste generation was recorded, attributable (i-RECs) from national energy producer Tenaga Nasional Berhad,
to the reduced staff presence due to the MCO. At the same time, Allianz Malaysia achieved its RE100 target of 100% of operations
the amount of waste recycled increased as documents were sent powered using renewable energy - 2 years ahead of plan. The Group
for secure shredding and recycling as part of office relocation and has secured allocations of i-RECs up until 2023 and expects to also
scheduled document disposal. Allianz Malaysia has also revised see some CO2 emission reduction maintained as Allianz embraces
its waste calculation methodology to more accurately reflect
a hybrid work culture that is more attuned to the virtual workplace.
consumption patterns based on recent historical data. This has also
contributed to a reduction in the overall waste consumption figure,
and is thus not directly comparable to the 2019 figures. In 2021, Allianz Life will
install solar panels
Allocation of CO2 Emissions in 2020 in one of its branch offices, reducing reliance
Paper on energy from the national grid.
6%
Part of Allianz Malaysia’s efforts in carbon reduction entails building

Energy awareness and advocating behaviour change. In conjunction with
30% World Cleanup Day, the largest civic action against waste, three
Travel
64%
online sharing sessions were organised throughout the month of
September 2020 for Allianz Malaysia employees, covering the topics
of digital waste, living a zero waste lifestyle, and local solutions to
Diagram 13: Allocation of Carbon Emissions waste problems.

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COMMUNITY DEVELOPMENT
Allianz Malaysia’s effort towards community development is managed by its corporate responsibility arm, Allianz4Good. The Group’s
corporate responsibility strategy is shaped around impact-driven philanthropy as well as the incorporation of employee engagement,
such as through volunteering opportunities.
The outbreak of the COVID-19 pandemic in early 2020 posed various disruptions and hampered Allianz4Good’s efforts to deliver its planned
corporate responsibility programmes and initiatives. Instead, priorities shifted and funds were channelled towards emergency relief initiatives
supporting frontline workers as well as marginalised communities. Where possible, activities under Allianz4Good’s usual ambit were adapted
to be carried out virtually.
RAISING AWARENESS FOR A SUSTAINABLE FUTURE
Part of Allianz Malaysia’s efforts in social inclusion involves encouraging next generations to build a resilient and sustainable future. This
is driven through knowledge-sharing and building awareness of topics related to safety, financial literacy, civic responsibility, and the
environment. The Group was able to carry out only a handful of activities before having to move its activities to a digital platform.
Road Safety
Since 2011, Allianz Malaysia has collaborated with Jabatan

Keselamatan Jalan Raya (JKJR) to advocate for safe road
behaviour. In 2020, three road safety advocacy campaigns
were conducted in conjunction with the Chinese New Year
festive season. These were held in Penang, Kuala Lumpur, and
Kuantan.
Besides advocating road safety amongst current road users,

good road behaviour is also inculcated from a young age.
Allianz Malaysia’s education efforts target primary school-
aged children, in the hopes they become a positive influence
Road Safety Advocacy Campaigns are an opportunity to engage motorists to
in their families.
promote safe road behaviour
The Group conducted three sessions of its interactive road

safety education programme in two schools, where children
were guided through a miniature road circuit by employee
volunteers. By completing the circuit, they learn how to cross
safely at a zebra crossing, how to read traffic lights, the proper
way to wear a helmet, and how to buckle a seatbelt, including
whether or not they need to use a child seat.
Subsequent planned road safety campaigns and programmes

were cancelled due to MCO and physical distancing
precautions. Employee volunteers teach students about the proper way to wear a helmet,
amongst other road safety topics

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During the MCO period, when schools were closed, Allianz Malaysia Allianz Malaysia promotes inclusion through its support for NGOs
organised a number of knowledge-sharing sessions for employees’ serving marginalised communities backgrounds.
children. This helped to give parents respite from home schooling
and aimed to engage their children’s interest in the respective topics. • Contribution to the Malaysian Council for Rehabilitation (“MCR”)
to support the preparation of the Malaysian contingent to the
• In a session on financial literacy, children learned about 10th International Abilympics, a skill-based competition for PWDs,
differentiating between needs and wants, recognising tools used which will be held in Russia in 2021. The contribution also goes
in advertisements, and about the different buying criteria that towards supporting the MCR in their efforts to increase awareness
influence consumers’ decision-making. Use of an interactive quiz of the various abilities of PWDs and their potential to contribute to
application helped to simulate the classroom environment and society and the economy at large.
create a sense of competition.
• An online story-telling session based on the storybook ‘Leaf’
approached the topics of environmental stewardship and climate
change in an engaging way. In this interactive session where
children could ask the narrator questions, the children learned the
importance of caring for the planet and everything that lives in it.
Allianz Malaysia believes that unity lies at the core of a resilient

society. It has partnered with cultural organisation PUSAKA on
Projek Bina Bangsa, a public education project that aims to build
a historical understanding of the country in order to build social
cohesion. A series of ten books exploring the foundation of the nation
will be released as part of this initiative, including engagements with
all walks of society once physical distancing restrictions allow. This
project is an extension of the Group’s previous initiatives in support
of national unity.
Find out more about Projek Bina Bangsa on their website,

https://projekbinabangsa.com/
It is important that corporates, such as Allianz Malaysia,

play an active role in advocating diversity, unity, and
inclusivity in our engagements and initiatives. It is with a
Winners of the national Abilympics competition are selected to represent Malaysia at
full heart that we hope that the shared appreciation and
the International Abilympics competition
love of history be our guide towards progress and unity.
• Sponsorship of Persatuan Mobiliti Selangor dan Kuala Lumpur
(“MOBILITI”), an NGO providing transportation services for
– Zakri Khir
wheelchair-bound PWDs within the Klang Valley. The sponsorship
covers their operational expenses which include the maintenance
of four of their vans, fuel, toll costs, and staff salaries; as well as
The underlying principle of insurance is to serve as an equalising force comprehensive motor insurance coverage and Enhanced Road
by pooling the resources of the many to overcome the misfortunes of Warrior services.
the few. Similarly, Allianz Malaysia sees its corporate responsibility • Allianz Malaysia continues its support for Pertubuhan Tindakan
as a means of equalising the opportunities of the marginalised Wanita Islam (“PERTIWI”) by sponsoring the yearly maintenance
and underrepresented. The Group works alongside community of their Navara pickup truck, which the Group donated to
partners to drive social inclusion and impact-driven engagements PERTIWI Health Services in 2017. The truck serves as a mobile
with beneficiary groups identified as underserved, such as PWDs, clinic for use by their team of volunteer doctors to address medical
indigenous communities, refugees, and the B40 segment. concerns faced by the homeless and urban poor community.

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COVID-19 EMERGENCY RELIEF RESPONSE
As part of Allianz Malaysia’s COVID-19 emergency relief response, over RM3.16 million was utilised to supply frontline workers with Personal
Protective Equipment (“PPE”), medical equipment, and items to increase ward capacities in hospitals, as well as to contribute essential
provisions and hygiene items to underserved communities that were financially constrained due to the overall economic slowdown.
Breakdown of COVID-19 Contribution Beneficiaries of COVID-19 Relief
Daily essentials + hygiene

and sanitation items (for Hospital equipment Police
hospitals, clinics, prison 4% stations
facilities, and NGOs) Prisons
3%
4% 3%
Medical equipment
Monetary contribution to social RM3.16

48%
61
organisations (for distribution
million organisations
of food, daily essentials, and Hospitals
COVID Guard initiative) NGOs and Clinics
12% PPE (for hospitals, 41% 53%
clinics, and NGOs)
32%
Diagram 16: Breakdown of COVID-19 Contribution Diagram 17: Breakdown of Types of Beneficiaries of COVID-19 Relief
Allianz Malaysia's COVID-19 contributions include:
5
sets of ventilators
60 52
stand fans vital sign monitors
Over 14
Powered
534,000 Over 1,500 Air-Purifying
units of Personal 40 litres of hand sanitiser Respirators
Protective Equipment hospital beds and lockers
RM324,000
monetary contribution
5 Over 3,500
water heaters reusable face masks
60 3,600
fingertip pulse oximeters bars of antibacterial soap
RM46,000 worth of groceries 30 Close to

COVID-19 test kits
(6,000 tests) 3,200 meals
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Allianz Malaysia also worked with partner organisations to reach their established networks of beneficiaries, especially those located in more
remote areas, by providing monetary support for their initiatives. Over RM324,000 in direct monetary support was given.
Organisation Initiative Funded
Save Environment Save Ourselves (SESO) Food and hygiene pack distribution for homeless communities and homes in the Klang
Valley
Persatuan Pendidikan Kanak-Kanak Food pack distribution to vulnerable families of students from Matakana’s eleven schools
Matakana Sabah (“Matakana”) located in West Sabah, reaching approximately 2,000 beneficiaries
MERCY Malaysia 1,000 food packs distributed in 24 locations in Lahad Datu, Tawau, and Kunak
Cahaya Society Food pack distribution to 1,211 people in 26 locations across Sandakan
Borneo Komrad (Pertubuhan Kebajikan 640 food packs distributed to 160 families from 7 villages in Semporna, Sabah over the
Anak Impian Malaysia) course of a month (1 pack per week for 4 weeks)
Malaysia International Search and Rescue COVID Guard initiative to equip 50 schools nationwide with sanitation spray equipment
(MISAR) and contactless thermometers, estimated to reach over 19,800 students
Allianz Malaysia took the opportunity to support NGOs and social enterprises while responding to the COVID-19 pandemic, thus supporting
the livelihoods of individuals working there:
• Engaged KLOTH Malaysia and Sew x Dignity to produce reusable masks for employees and community beneficiaries. Tailors from both
organisations come from low-income backgrounds.
• Ordered lunch packs from four social organisations – deliCCia, Autism Café Project, Buku Jalanan Chow Kit, and PichaEats – for distribution
to 150 beneficiaries in three organisations – The Ronald Mcdonald House, Seeds Foundation, and Anjung Singgah. Lunch packs were
delivered once a week over a two month period.
• Supported PichaEats’ meal distribution initiative – The Zaza Movement, distributing 1,596 meals to four locations covering low-income
households and frontline medical workers.
Reusable masks sewn by Sew x Dignity were given to Matakana for distribution to Allianz Malaysia sponsored food packs that were prepared by refugee
underprivileged students communities and distributed by PichaEats to medical frontliners

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Apart from its own initiatives, Allianz Malaysia collaborated with its partners to offer immediate support when the pandemic first began to
affect the nation.
• Allianz Malaysia partnered with community platform Kitajagakita and digital partner Speedhome to offer emergency relief to frontline
medical workers by sponsoring one month’s accommodation for six out-of-state doctors who had to relocate from their resident hospitals
to COVID-19 centres in Klang Valley.
• In partnership with the Malaysian Medical Association, Allianz Malaysia offered free COVID-19 coverage for 700-800 doctors who recently
completed their housemanship, along with retired doctors who were recruited as frontliners in handling the pandemic.
• The Group contributed to a joint RM8 million COVID-19 test fund set up by the insurance and takaful industry as members of the Life
Insurance Association of Malaysia (LIAM) and Persatuan Insurans Am Malaysia (PIAM) respectively. The fund was used to reimburse the
COVID-19 testing costs for insurance policyholders and takaful certificate holders, thereby supporting the Ministry of Health’s efforts to
increase national testing rates.
1 2
1 Powered Air Purifying Respirators contributed

to Hospital Queen Elizabeth
2 Hospital beds and water heater units
contributed to Hospital Sungai Buloh
3 Personal Protective Equipment contributed to
the Sabah State Health Department
4 Personal Protective Equipment for Hospital
Labis, Johor
5 Vital Sign Monitor units contributed to
Hospital Kota Belud, Sabah
6 Groceries and hygiene items for Shalom
Education Centre
3 4
Contribution by Allianz Life Agents
Allianz Life launched a donation appeal

amongst its agents, raising RM250,000
for the purchase and distribution of PPE
to frontliners in five hospitals.
Numerous agencies also took their

own initiative to contribute to medical
facilities and needy communities.
5 6

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DISASTER RELIEF AND PREPAREDNESS Prior to the floods, virtual Flood Preparedness workshops were held
for 120 Allianz General agents living in flood-prone states, to share
Flooding has unfortunately become an annual occurrence; the insights and tips on how to prepare for a disaster. This included
impacts of which are anticipated to worsen as the pace of climate topics such as how to identify environmental hazards and how to
change continues to accelerate. Allianz Malaysia worked together prepare an emergency bag containing essential items for victims
with long-time partner Malaysia International Search and Rescue to survive through the first three days of a disaster. This knowledge-
(“MISAR”) to carry out disaster relief efforts in response to heavy sharing session aimed to prepare agents for a flood situation and
flooding towards the end of 2020. equip them with information that they could share with their friends,
family, and customers as well.
Allianz Malaysia contributed RM116,000 to support the distribution
of food and essential items to relief centres and affected communities BUILDING CAPACITY & EMPOWERMENT
by MISAR’s trained officers. The Group also diverted resources from
marketing events to support this initiative, thus the allocation of over Throughout its years of community support, Allianz Malaysia found
4,800 litres of drinking water for distribution to the community. This that it could multiply and sustain the impact of its initiatives by
initiative reached eight locations across five states, namely Negeri empowering beneficiaries to help themselves. Initiatives to ‘help the
Sembilan, Selangor, Melaka, Pahang, and Perak. helpers’ were embarked upon in an effort to build the capacity of
civil society that work directly with underserved communities.
In September 2019, Allianz Malaysia collaborated with Ashoka

- a global network of social entrepreneurs pursuing system-
change solutions to address societal issues - to roll out its pilot
Capacity-Building Programme. The programme aimed to enhance
the organisational capacity and sustainability of participating
social organisations and create systemic change to benefit their
respective causes.
Seven Allianz Malaysia employees were engaged as mentors for

the organisations to contribute their perspectives and help develop
innovative solutions to the challenges they faced.
MISAR officers distributed essential items to beneficiaries in flood-affected

communities
7
Allianz Malaysia employees engaged as mentors
Items distributed:
Dry food Plastic bags

4
participating social organisations
Drinking water Face masks
Floor mats Sanitary pads
Indoor tents Hygiene kits
Baby diapers Hand sanitiser Gem & Bread Special Needs
Persatuan Mobiliti Selangor
Support Group
Slippers Soap dan Kuala Lumpur
Kuala Lumpur and Selangor
Towels Handheld scanners
Flat sheets (for relief centres)
Havan Clothing deliCCia
Pails
The organisations’ beneficiaries include Persons with

Disabilities, shelter-home children, and B40 families.

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The eight-month programme culminated with an e-summit in July

2020, where the social organisations and mentors showcased their
journey together as well as the creative solutions conceived through
The capacity-building programme was extremely helpful
their collaboration.
for me as I started the NGO when I was very young and
inexperienced. I managed to get a greater outlook on the
At the end of the programme, participants reported:
foundations of running an NGO and for that I am extremely
grateful.
• increased confidence in leadership and attracting talent to the
organisation
• a clearer understanding of their purpose and vision within their – Sharanya Radhakrishnan, Co-Founder of Gem & Bread
respective ecosystems
• enhanced problem-solving abilities and productivity levels
Gem & Bread is one of twelve recipients of Allianz’s Social
• the ability to look beyond conventional fundraising methods and
Innovation Fund 2019, a global initiative with the aim of
to explore new strategies
enabling best-practice-exchange and the creation of
local lighthouse projects in social inclusion.
A €20,000 grant was awarded to Gem & Bread to fund

the development of a Creative Arts Toolkit for job centres
and other potential employment providers to support
inclusion of youth with special needs in the workplace.
Allianz Malaysia also offers continuous support to community

partners through its policy of prioritising social organisations for
its catering and procurement needs. This allows the organisations
to generate funding, which is then channelled back towards their
operations as well as their support for the beneficiaries they serve.
Participants of the Capacity-Building Programme attended in-person workshops at

Annually, a festive bazaar is held to provide community partners
the beginning of the programme but ended with a virtual summit due to the MCO
with a platform to promote their products to employees while
raising awareness of the cause that they are championing. In light of
the ‘new-normal’, the bazaar migrated online and the organisations
were provided with an opportunity to carry out their sharing and
Empowerment is a journey, and it requires planning and e-commerce sessions on the Allianz Malaysia – Employee Community
actions. We were glad to have a mentor to review our Facebook page. The inaugural e-Bazaar saw the participation of 15
milestones and journey with us as we strive to empower the NGOs and social enterprises.
women behind us!
– Icy Lee, Co-Founder of deliCCia

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SPONSORING EDUCATION
As part of the SOLS.ai engagement, Allianz Malaysia
In 2020, Allianz Malaysia renewed its sponsorship for Science of Life employee volunteers, including CEO Joseph Gross, carried out
24/7 (“SOLS 24/7”)’s Academy of Innovation (“SOLS.ai”) programme knowledge-sharing sessions with the students to equip them
for the third consecutive year. This covers tuition and living expenses with soft skills relevant for the working world.
for 35 out of 75 students in the 2020/2021 cohort, made up of young
people from underserved communities encompassing low-income
groups and indigenous families.
The 18-month education programme includes a work experience

phase, and aims to improve the students’ English competency and
equip them with knowledge and skills to enhance their employability.
They are prepared for career pathways in education, the solar
industry, and hardware refurbishment, amongst others.
Due to the MCO, instead of being housed centrally at SOLS.ai in

Segambut, two remote academy centres were set up in Kelantan,
where two of SOLS.ai’s indigenous teachers continued to teach.
2020/2021 cohort As an immediate response to the MCO, where schooling was halted
for many students, SOLS 24/7 launched the rollout of free classes
• 54 students completed the assessment for Foundation on the SOLS Online Education Platform, partially funded by Allianz
English for Youth (Level 1) Malaysia. This platform is open to the public, but promotion of the
• 38 students completed Digital Skills modules platform specifically targeted B40 households. Classes are run in
• 35 students completed certification for the Prince’s Trust real-time by experienced educators and class sizes are limited to
International Award ‘Planning for Personal Development’ ensure sufficient interaction between students and teachers.
and ‘Community Project’ modules
Allianz Malaysia had sponsored 33 out of 69 students from the

2019/2020 cohort, who were due to complete their programme
in mid-2020. However, due to the pandemic the programme was
temporarily put on hold as students returned to their respective
hometowns during the MCO. Learning has continued, albeit
remotely and at a slower pace, for those with access to the internet.
This group of students is expected to complete the programme by
June 2021, followed by participation in workshops to prepare for job
matching and a three-month internship programme. The SOLS Online Education Platform provided free teacher-led classes targeting B40
learners
Between October 2020 - January 2021 on the SOLS Online

Education Platform:
2,061 829 56
learners class classes
enrolled attendees offered

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CULTIVATING A CULTURE OF GIVING BACK
Allianz Malaysia strives to build a culture of caring and giving

back. While regular volunteering initiatives were hampered due to
physical distancing requirements necessitated by the pandemic, the
Group’s employees continued to provide their support for those in
need through other ways.
• 112 employees, agents, business partners, and customers

participated in Allianz Malaysia’s annual blood donation drive
held in conjunction with Malaysia Day. This year, in adhering with
safe distancing rules, employees were encouraged and given
time off from work to donate blood at their local blood donation
facility.
Employees were encouraged to donate blood at their closest blood donation centres
in the month of September
• Allianz Malaysia continued its yearly tradition in conjunction

Daily essential items contributed to underserved communities in conjunction with the
with Hari Raya of contributing festive goodies to underserved Hari Raya celebration
communities. Instead of the usual call for in-kind donations, a
digital fund collection was initiated so employees could send in • To provide some year-end cheer, Allianz Malaysia initiated a gift-
their contributions virtually. The funds collected from employees giving initiative where employees were invited to send gifts to 240
plus an allocation from the Group were used to support ten children and elderly persons from five non-profit organisations.
non-profit organisations across the Klang Valley, reaching 1,835 These gifts were requested by the recipients, and employees could
beneficiaries. This included the purchase of daily necessities, festive select which they would like to support by buying and sending the
goodies, and also covered the rental costs for one organisation. gift directly to them.

BE TRUE
TO WHO
YOU ARE
Our products are designed to protect people, their assets and lives.
We are a customer-focused organisation that is driven by values
such as Customer Focus, Integrity, High-Performance Culture,
Open Communication and Corporate Responsibility. We understand
that the future isn’t always as expected. That is why we predict risks
today, to give you confidence for tomorrow, so that you can be true
to who you are now.
02
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05 Board of Directors’ Profile
06 As at 12 April 2021
CHAIRMAN - INDEPENDENT NON-EXECUTIVE DIRECTOR
1 Malaysian
Age 73
Date of Appointment Length of Service Date of Last Re-election
Female 23 November 2012 8 years 4 months 30 May 2019
TAN SRI DATUK (DR.) RAFIAH

BINTI SALIM
Working Experience
Tan Sri Datuk (Dr.) Rafiah started her career as a lecturer at the Faculty of Law,
University of Malaya in 1974. In 1988, she ended her service with the University
as the Dean of the Faculty. She then moved on to become the Head of the Legal
Department of the Malayan Banking Berhad (“Maybank”). In 1991, she was
promoted to the post of General Manager of the Human Resource Department
at Maybank. She was then invited to serve in Bank Negara Malaysia as the
Assistant Governor for the Security Department, Legal Department and Property
and Service Department.
Tan Sri Datuk (Dr.) Rafiah’s international experience includes holding the
position of Assistant Secretary General for Human Resource Management,
United Nations, New York, from 1997 to 2002 and was the first Malaysian to
be appointed to such a high ranking post in the United Nations system. From
2003 to 2006, she was the Executive Director of the International Centre for
Leadership in Finance, now known as The ICLIF Leadership And Governance
Centre. In 2006, she was appointed as the Vice-Chancellor/President of the
University of Malaya. She was the Executive Director of NAM Institute for the
Empowerment of Women from 2009 to 2013.
Tan Sri Datuk (Dr.) Rafiah has been awarded the “Darjah Kebesaran Panglima
Jasa Negara” and the “Panglima Setia Mahkota ” from His Majesty The Yang
di-Pertuan Agong.
Membership of Board Committee
• Member of Audit Committee Present Directorships
• Member of Nomination and Remuneration Committee Listed entities:
• Chairman of Allianz Malaysia Berhad ("AMB" or "Company")
Qualifications • Chairman of Malaysian Genomics Resource Centre Berhad
• Bachelor of Laws from Queen’s University of Belfast, • Lotte Chemical Titan Holding Berhad
United Kingdom in 1971 • Minda Global Berhad
• Master of Laws from Queen’s University of Belfast,
United Kingdom in 1974 Other public company:
• Certificate of Legal Practice in 1987 • Chairman of Allianz General Insurance Company (Malaysia) Berhad
• Advocate & Solicitor of the High Court of Malaya in 1987 ("Allianz General")
• Honorary Doctorate from Queen’s University of Belfast,
United Kingdom in 2005
• Honorary Doctorate from University of Malaya in 2019
• Doctor of Laws from University of Malaya in 2019
Other Information
Tan Sri Datuk (Dr.) Rafiah does not have any family relationship with any Director and/or major shareholder of the Company nor any conflict of interest
with the Company. She has not been convicted of any offences within the past 5 years, other than traffic offences, and has not been imposed any penalties
by the relevant regulatory bodies during the financial year 2020.

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Board of Directors’ Profile 05
As at 12 April 2021
06
INDEPENDENT NON-EXECUTIVE DIRECTOR
2 Malaysian
Age 63
Male 1 July 2020 9 months Nil
GOH CHING YIN

Working Experience and setting up the Audit Oversight
Goh Ching Yin holds an MBA from Board in 2010 of which he was a
the Cranfield University, and has held founding Board Member. He was
various leadership and management also the Head of the Continuing
positions in capital market strategy, Professional Education Advisory
development and regulations; Group and represented the Securities
investment banking, regional business Commission of Malaysia on the
development, strategic consultancy, Audit Licensing Committee within
corporate recovery and insolvency; and the Accountant General’s office of
auditing. He started his professional the Ministry of Finance, and was
career with Peat Marwick Mitchell a member of the Cluster Working
(now known as KPMG PLT), and then Group on Funding Support for
moved on to consultancy at Price the Biotechnology Industry under
Waterhouse Associates in 1990. the Malaysian Biotechnology
Corporation (a Ministry of Finance
Goh Ching Yin commenced his foray incorporated company).
into the investment banking industry
when he was with RHB Sakura He was also a member of the National
Merchant Bankers Berhad as a General Cyber Security Advisory Committee,
Manager for Corporate Finance Ministry of Science, Technology
from 1995 to 2000. Subsequently, he and Innovation Malaysia, and the
assumed the roles as the Managing Intellectual Capital Development
Director of Corporate Finance with the Committee, Innovation Agency
BNP Paribas Group in Malaysia from Malaysia.
2000 to 2004, and as Chief Executive
Officer of Southern Investment Bank Goh Ching Yin was appointed by the
Membership of Board Committee of the Southern Bank Group from Government of Malaysia as a Director
• Member of Audit Committee 2005 to 2007. He then held positions of Khazanah Nasional Berhad in July
• Member of Risk Management Committee as Executive Director in the Chairman’s 2018.
• Member of Nomination and Remuneration Committee Office, Strategy and Development, and
Market Oversight Divisions during his Present Directorships
Qualification stint with the Securities Commission of Listed entities:
• Master of Business Administration from Cranfield Malaysia from 2007 to 2016. • AMB
School of Management, Cranfield University • Shangri-La Hotels (Malaysia)
At the Securities Commission of Berhad
Malaysia, Goh Ching Yin had led
projects on landmark initiatives such Other public companies:
as financial technology, sustainability • Chairman of Allianz Life Insurance
and inclusiveness, Trans Pacific Malaysia Berhad ("Allianz Life")
Partnership Agreement, the Capital • Maybank Investment Bank Berhad
Market Masterplan 2, the Corporate • Maybank Asset Management
Governance Blueprint and Code Group Berhad
of Corporate Governance 2012, • Khazanah Nasional Berhad
Other Information
Goh Ching Yin does not have any family relationship with any Director and/or major shareholder of the Company nor any conflict of interest with the
Company. He has not been convicted of any offences within the past 5 years, other than traffic offences, and has not been imposed any penalties by the
relevant regulatory bodies during the financial year 2020.

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05
Board of Directors’ Profile
As at 12 April 2021
06
3 Malaysian
Age 38
Male 28 November 2014 6 years 4 months 30 June 2020
TUNKU ZAIN AL-‘ABIDIN IBNI

TUANKU MUHRIZ
Working Experience In 2006 he co-founded the Malaysia
Tunku Zain is Founding President Think Tank which evolved into IDEAS
of the Institute for Democracy and in 2010. Since 2008 he has maintained
Economic Affairs (“IDEAS”); a Trustee a newspaper column: firstly Abiding
of Yayasan Chow Kit, Yayasan Times in The Sun, then Roaming
Munarah, Jeffrey Cheah Foundation Beyond the Fence in the Star and
and Genovasi Foundation; an Sin Chew, and now Conservatively
Independent Non-Executive Director Speaking Freely in the Malay Mail,
of AMB, Allianz General and Omesti Borneo Post and Oriental Daily. From
Berhad, an advisor or patron to these articles three books have been
numerous educational and cultural compiled, the latest being nominated
organisations; a committee member for the Popular Readers’ Choice
of several societies and associations, Awards. Tunku Zain has also authored
including the Squash Racquets a coffee table book for the Installation
Association of Malaysia; a columnist in of the Eleventh Yang di-Pertuan Besar
three newspapers; and a Royal fellow of Negeri Sembilan and led a major
of the National University of Malaysia. project to revitalise the State Anthem.
Tunku Zain was educated at the An Eisenhower Fellow, he has been

Kuala Lumpur Alice Smith School, selected for various leadership
Marlborough College and the London programmes by the governments of
School of Economics and Political Australia, France and the European
Science, where he obtained his MSc in Union. Tunku Zain is often invited
Membership of Board Committee Comparative Politics. He then worked to speak on subjects ranging from
•
Chairman of Nomination and Remuneration in the UK Houses of Parliament nation building, public policy, history,
Committee before moving to Washington DC culture, law, business ethics and
to join the World Bank as a Public youth development.
Qualifications Sector Consultant. Upon returning
• Bachelor of Science Degree in Sociology and to Malaysia, Tunku Zain worked at Present Directorships
Government from London School of Economics and the United Nations Development Listed entities:
Political Science in 2003 Programme and the KRA Group • AMB
• Master of Science in Comparative Politics from London before becoming a Research Fellow • Omesti Berhad
School of Economics and Political Science in 2004 at the Lee Kuan Yew School of Public
Policy at the National University of Other public companies:
Singapore. • Allianz General
• IDEAS Policy Research Berhad
• Institute for Democracy and
Economic Affairs Berhad
Other Information
Tunku Zain does not have any family relationship with any Director and/or major shareholder of the Company nor any conflict of interest with the

01
02
03
04
As at 12 April 2021
06
4 Malaysian
Age 61
Male 1 October 2019 1 year 6 months 30 June 2020
PETER
HO KOK WAI
Working Experience
Peter forged his early career with Everett Pinto & Co., a central London Firm of
Chartered Accountants and qualified as a Chartered Accountant in 1984.
Subsequently, in 1987, Peter joined KPMG Kuala Lumpur where he progressed

to Head of Department in 1992. He was transferred to KPMG Ipoh in 1993 to
head the branch and was admitted as Partner in 1995. He was transferred back
to KPMG Kuala Lumpur in 2005, where he had, at various times, headed the
Technical Committee, Audit Function and Marketing Department.
Peter has more than 35 years of auditing experience in a wide range of

companies including public listed companies and multinationals, with particular
emphasis in manufacturing, distribution and financial services. Peter retired
from KPMG in December 2014.
Present Directorships
Listed entities:
• AMB
• Hong Leong Industries Berhad
• Hong Leong Capital Berhad
• Guocoland (Malaysia) Berhad
• HPMT Holdings Berhad
Membership of Board Committee Other public company:

• Chairman of Audit Committee • Allianz Life
• Member of Risk Management Committee
Qualifications
• Certified Public Accountant of the Malaysian Institute
of Certified Public Accountants in 2010
• Chartered Accountant of the Malaysian Institute of
Accountants in Malaysia in 1993
• Fellow of the Institute of Chartered Accountants in
England and Wales in 1984
Other Information
Peter Ho Kok Wai does not have any family relationship with any Director and/or major shareholder of the Company nor any conflict of interest with the

02
03
04
05
As at 12 April 2021
06
5 Malaysian
Age 50
Male 1 January 2021 3 months Nil
GERARD
LIM KIM MENG
Working Experience
Gerard Lim has over 28 years’ experience in the Technology, Media and
Telecommunications sector. He has a proven track record in leading and
building value for positive societal impact by bringing together a unique
blend of experiences involving entrepreneurship in start-ups, to turnaround
management, growing sustainable businesses into multi-million dollar ventures,
by delivering digital solutions for some of the world’s largest corporations and
even serving within the Malaysian Government’s machinery via its agency,
statutory body and government linked companies.
Gerard Lim has implemented specialised solutions in interactive digital media,

E-business solutions, converged IP communications, digital marketing, e- and
m-commerce, mobile applications, social media, cloud and edge computing,
internet of things, big data analytics, blockchain, artificial intelligence and
machine learning for private corporations, telecommunication operators,
conglomerates and multinationals around the world; creating intelligent
actionable insights that boost value creation and sustainability. Gerard Lim
has consulted and delivered award-winning solutions for Sony, Intel, Hewlett
Packard, Motorola University, General Electric, Petronas, Measat, Maxis, Digi,
Ministry of Education Singapore, Fraunhofer Institute Germany and DST Brunei.
Gerard Lim has worked at the Malaysia Digital Economy Corporation, Axiata
Digital, Telekom Malaysia, and his most recent role as Chief Digital Officer
Membership of Board Committee at the Malaysian Communications and Multimedia Commission. He is also a
Nil specialist writer and regular seminar speaker sharing his thought leadership on
the subject of digital directions, innovation and entrepreneurship for a better
Qualifications world.
• Executive MBA from Open University Malaysia in 2012
• Big Data Business Analytics from Harvard Business Present Directorships
School in 2017 Listed entities:
• AMB
• Country Heights Holdings Bhd
Other public company:

Nil
Other Information
Gerard Lim Kim Meng does not have any family relationship with any Director and/or major shareholder of the Company nor any conflict of interest with
the Company. He has not been convicted of any offences within the past 5 years, other than traffic offences, and has not been imposed any penalties by
the relevant regulatory bodies during the financial year 2020.

01
02
03
04
As at 12 April 2021
06
NON-INDEPENDENT NON-EXECUTIVE DIRECTOR
6 German
Age 47
Male 30 May 2018 2 years and 10 months 30 May 2019
SOLMAZ ALTIN
Working Experience
Solmaz is Allianz's Regional Chief Executive Officer (“CEO”) for Asia Pacific
effective 1 May 2019. He previously held the Deputy Regional CEO position
having assumed the role in June 2018. In addition, he is a Member of the Allianz
Asia Regional Executive Board, which is responsible for setting and executing
Allianz’s growth strategy in Asia.
Solmaz was the Chief Digital Officer of Allianz SE from January 2016 until May
2018. He managed Group Digital Transformation, which includes the Global
Direct business, the Global Big Data/Machine-Learning activities, all Venture
Capital investments of Allianz SE Group as well as the establishment of Global
Partnerships with major tech companies. Furthermore, he founded the Global
Digital Factory with the target to transform customer experience journeys
across major digital touchpoints in the Retail businesses.
Before the Chief Digital Officer role, Solmaz spent nearly three years, between
2013 and 2015, as the CEO of Allianz Turkey, where he oversaw the acquisition
and integration of Yapi Kredi Insurance entities. He also held the position of
Allianz Turkey's Chief Financial Officer for three years since first joining the
Allianz SE Group as Allianz Turkey's Chief Risk Officer in 2009.
Solmaz first began his career as a team leader within Dresdner Bank's Retail
Customer Care Center and then spent eight years in financial institutions
Membership of Board Committee advisory with PricewaterhouseCoopers and KPMG, rising to the level of Director.
Nil
Present Directorship
Qualification Listed entity:
• Degree in Business Administration and Economics from AMB
Gerhard-Mercator-University in Duisburg, Germany in
2001 Other public company:
Nil
Other Information
Solmaz Altin does not have any family relationship with any other Director and/or major shareholder of the Company except by virtue of being a nominee
Director of Allianz SE on the Board of the Company. He does not have any conflict of interest with the Company and has not been convicted of any
offences within the past 5 years, other than traffic offences, and has not been imposed any penalties by the relevant regulatory bodies during the financial
year 2020.

02
03
04
05
As at 12 April 2021
06
NON-INDEPENDENT NON-EXECUTIVE DIRECTOR
7 United States of America

Age 44
Female 30 June 2019 1 year 9 months 30 June 2020
CLAUDIA SALEM
Working Experience
Claudia is Allianz’s CEO, Property and Casualty (“P&C”) for Asia Pacific. She
is responsible for the profit and loss and functional development of Allianz’s
P&C business in the Asia Pacific region, including the long-term bancassurance
relationship with Standard Chartered Bank.
In addition, Claudia is a member of the Allianz Regional Executive Board, which

is responsible for setting and executing Allianz’s growth strategy in Asia. Claudia
joined Allianz SE Singapore Branch in March 2019. Prior to that, she served AIG
since 2003, where she was previously Singapore CEO and Head of Southeast
Asia.
In her 16-year career, she served in various leadership roles across operations
management, business development and customer solutions, with a track
record for driving large-scale change management, service delivery and bottom
line results. Prior to this role, Claudia has spearheaded global transformation
programs and led global operational teams with a focus on modernising
insurance through technology and new ways of working.
Present Directorship
Listed entity:
AMB
Membership of Board Committee Other public company:

Nil Nil
Qualifications
• Master of Business Administration in Finance and
Entrepreneurship from New York University, United
States of America.
• Bachelor Degree in Computer and Communications
Engineering from American University of Beirut,
Lebanon
Other Information
Claudia Salem does not have any family relationship with any other Director and/or major shareholder of the Company except by virtue of being a
nominee Director of Allianz SE on the Board of the Company. She does not have any conflict of interest with the Company and has not been convicted
of any offences within the past 5 years, other than traffic offences, and has not been imposed any penalties by the relevant regulatory bodies during the
financial year 2020.

01
02
03
04
Allianz Life Insurance Malaysia Berhad 05
Board Members 06
As at 12 April 2021
GOH CHING YIN
Chairman - Independent Non-Executive Director
Age: 63
Nationality: Malaysian
Gender: Male
PETER HO KOK WAI DATO’ DR. KANTHA A/L ANUSHA A/P THAVARAJAH
RASALINGAM
Independent Non-Executive Director Independent Non-Executive Director Executive Director
Age: 61 Age: 47 Age: 53
Nationality: Malaysian Nationality: Malaysian Nationality: Malaysian
Gender: Male Gender: Male Gender: Female

02
03
04
05 Allianz General Insurance Company (Malaysia) Berhad
06
Board Members
As at 12 April 2021
TAN SRI DATUK

(DR.) RAFIAH
BINTI SALIM
Chairman - Independent Non-Executive Director
Age: 73
Natianality: Malaysian
Gender: Female
TUNKU ZAIN DR. MUHAMMED BIN ABDUL KHALID ZAKRI BIN MOHD KHIR
AL-'ABIDIN IBNI TUANKU MUHRIZ
Independent Non-Executive Director Independent Non-Executive Director Executive Director/Chief Executive Officer
Age: 38 Age: 45 Age: 57
Nationality: Malaysian Nationality: Malaysian Nationality: Malaysian
Gender: Male Gender: Male Gender: Male

01
02
03
04
Senior Management Team Profile 05
As at 12 April 2021 06
Male
4
10
Length
Malaysian
Tenure
10
57
2 years below
2 years to 10 years
10 years & above
ZAKRI BIN MOHD KHIR

Chief Executive Officer (“CEO”) of Allianz Malaysia Berhad
4 (“AMB" or "Company”) and Allianz General Insurance Company
14
(Malaysia) Berhad (“Allianz General”)
Age Group Qualifications

1. Certificate of Insurance from the Institut Teknologi Mara
6 2. Fellow of the Malaysian Insurance Institute
Working Experience and Other Information

Zakri Bin Mohd Khir has over 30 years of experience in the insurance
industry. He joined the Company in 2000 as the Head of Industrial
30 years - 40 years Business and was subsequently appointed as the Head of Technical
Division in 2004. He was the Head of Operations Division of Allianz
41 years - 50 years
General before he assumed his current position as the CEO of Allianz
General in December 2010. He is also the CEO of the Company since
51 years and above
3 September 2014. Prior to his employment with the Company and its
subsidiaries (collectively referred to as "Group"), he was the General
Manager of The American Malaysian Insurance Berhad.
12
Male He has not been convicted of any offences within the past 5 years, other
than traffic offences, and has not been imposed any penalties by the
Save as disclosed below, Zakri Bin Mohd Khir does not have any family
relationship with any other Director and/or major shareholder of the
Company:
1. He is a nominee Director of Allianz SE on the Board of Allianz General.
Save for holding of 100 ordinary shares and 200 irredeemable
12
Female convertible preference shares in the Company, Zakri Bin Mohd Khir
does not have any other interest in the shares of the Company or its
subsidiaries.
He also does not have any conflict of interest with the Company.
Directorship in Public Company

Allianz General

02
03
04
05
Senior Management Team Profile
As at 12 April 2021
06
2 3
Male
Male
German
Malaysian
56
JOSEPH KUMAR GROSS 56 ONG ENG CHOW

CEO of Allianz Life Insurance Malaysia Berhad (“Allianz Chief Financial Officer (“CFO”) of AMB and Allianz Life
Life”)
Qualifications
Qualification 1. Bachelor of Commerce from the University of Canterbury,
Degree in Business Administration, Johann-Wolfgang- Goethe New Zealand
University, Frankfurt, Germany 2. Chartered Accountant of the Malaysian Institute of
Accountants
Working Experience and Other Information 3. Chartered Accountant of the Chartered Accountants
Joseph Kumar Gross has 29 years of work experience, of Australia and New Zealand
which more than 18 years have been in the insurance industry.
He joined Allianz SE in 2002 as the Senior Vice President Working Experience and Other Information
of Strategic Brand Management and was subsequently Ong Eng Chow has more than 32 years of work experience in
appointed as the Executive Director and Head of Group Market the financial services industry, of which 21 years have been in
Management before he assumed his current position as the the insurance industry. He joined Allianz Life on 1 June 1999 as
CEO of Allianz Life on 20 April 2016. He was appointed as the Financial Controller and was redesignated as CFO on 1 June
Executive Director of Allianz Life on 17 August 2017. He does 2005. He also assumed the position as CFO of the Company in
not have any family relationship with any other Director and/ 2008. Currently, he is the CFO of the Company and Allianz Life.
or major shareholder of Company, nor any conflict of interest Prior to his employment with the Group, he was the Financial
with the Company. He has not been convicted of any offences Controller of EON CMG Life Berhad. He does not have any
within the past 5 years, other than traffic offences, and has not family relationship with any Director and/or major shareholder
been imposed any penalties by the relevant regulatory bodies of the Company, nor any conflict of interest with the Company.
during the financial year 2020. He has not been convicted of any offences within the past 5
years, other than traffic offences, and has not been imposed
Directorship in Public Company any penalties by the relevant regulatory bodies during the
Nil financial year 2020.

Nil

01
02
03
04
As at 12 April 2021
06
4 5
Male
Female
Malaysian
Malaysian
51
56
RAFLIZ RIDZUAN LIM LI MENG
Chief Underwriting Officer of Allianz General Chief Sales Officer, Partnership Distribution and Corporate
Clients Solutions of Allianz Life
Qualifications
1. Certificate of Insurance from the Institute Teknologi Mara Qualifications
2. Fellow of the Malaysia Insurance Institute 1. Bachelor of Science (Honours)
2. Associate, Society of Actuaries, USA
Working Experience and Other Information 3. Fellow of Life Management Institute
Rafliz Ridzuan has 28 years of work experience, of which 28
years have been in the insurance industry. He joined Allianz Working Experience and Other Information
General on 2 October 2000 as Head of Corporate Business. Lim Li Meng has 31 years of work experience, of which 31
He was appointed Head of Sales in 2011 prior to his current years have been in the insurance industry. She joined Allianz
role as Chief Underwriting Officer which he assumed on Life on 9 June 2003 and has held several senior managerial
1 September 2014. He does not have any family relationship positions in various functions within Allianz Life which include
with any Director and/or major shareholder of the Company, Product Development, Operations with her last position being
nor any conflict of interest with the Company. He has not been Chief Market Management Officer of Allianz Life. Li Meng was
convicted of any offences within the past 5 years, other than appointed to her current position on 1 November 2012. She
traffic offences, and has not been imposed any penalties by does not have any family relationship with any Director and/or
the relevant regulatory bodies during the financial year 2020. major shareholder of the Company, nor any conflict of interest
with the Company. She has not been convicted of any offences
Directorship in Public Company within the past 5 years, other than traffic offences, and has not
Nil been imposed any penalties by the relevant regulatory bodies
during the financial year 2020.

Nil

02
03
04
05
As at 12 April 2021
06
6 7
Male
Male
German
Malaysian
57
48
WANG WEE KEONG HORST HERMANN HABBIG

Chief Operations Officer of AMB and Allianz General Chief Sales Officer of Allianz General
Qualification Qualification
Bachelor of Commerce and Management Advanced Industrial Training Programme (AFP), Germany
Working Experience and Other Information Working Experience and Other Information
Wang Wee Keong has 23 years of work experience, of which Horst Habbig has 38 years of work experience, of which 38
22 years have been in the insurance industry. He joined the years have been in the insurance industry. He joined the
Company on 17 May 2004 and has held various managerial Company in 1999 as Technical Advisor and was subsequently
positions in the Group. He assumed his current position on appointed as Chief Operating Officer in 2002. He was
1 January 2010. He does not have any family relationship with redesignated as the Head of Marketing Division in 2008
any Director and/or major shareholder of the Company, nor before he assumed his current position as Chief Sales Officer
any conflict of interest with the Company. He has not been on 1 April 2010. He does not have any family relationship with
convicted of any offences within the past 5 years, other than any Director and/or major shareholder of the Company, nor
traffic offences, and has not been imposed any penalties by any conflict of interest with the Company. He has not been
the relevant regulatory bodies during the financial year 2020. convicted of any offences within the past 5 years, other than
traffic offences, and has not been imposed any penalties by
Directorship in Public Company the relevant regulatory bodies during the financial year 2020.
Nil
Nil

01
02
03
04
As at 12 April 2021
06
8 9
Male
Female
Malaysian
Malaysian
47
58
RAYMOND CHEAH SIN BENG TAMIL SELVI SHANMUGAM
Chief Sales Officer-Agency Distribution of Allianz Life Group Head of Compliance of the Group
Qualification Qualifications
Sijil Tinggi Pelajaran Malaysia (STPM) 1. Bachelor in Accounting (Hon)
2. Registered Accountant (M)
Working Experience and Other Information 3. Associate in MII
Raymond has 26 years of work experience, of which 7 years
have been in the insurance industry. He joined Allianz Life on Working Experience and Other Information
15 July 2013 as Deputy Chief Sales Officer. He was appointed Tamil Selvi has 34 years of work experience, of which 24 years
as Chief Sales Officer on 1 January 2021. He does not have any have been the insurance industry. She joined the Company on
family relationship with any Director and/or major shareholder 2 February 1997 as the Chief Internal Auditor and assumed her
of the Company, nor any conflict of interest with the Company. current position on 2 February 2019. She does not have any
He has not been convicted of any offences within the past 5 family relationship with any Director and/or major shareholder
years, other than traffic offences, and has not been imposed of the Company, nor any conflict of interest with the Company.
any penalties by the relevant regulatory bodies during the She has not been convicted of any offences within the past 5
financial year 2020. years, other than traffic offences, and has not been imposed
any penalties by the relevant regulatory bodies during the
Directorship in Public Company financial year 2020.
Nil
Nil

02
03
04
05
As at 12 April 2021
06
10 11
Male
Female
Malaysian
Malaysian
60
55
NG SIEW GEK MOK KIAN TONG

Company Secretary and Head of Allianz4Good of the Group Chief Risk Officer of AMB and Allianz General
Chartered Secretary (Institute of Chartered Secretaries and Bachelor of Business in Business Administration
Administrators, UK)
Working Experience and Other Information Mok Kian Tong has 36 years of work experience, of which 36
Ng Siew Gek has 29 years of work experience, of which 19 years in the insurance industry. He joined the Company on
years have been in the insurance industry. She joined the 15 June 2001 and has held several managerial positions at
Company on 16 June 1997. She is the Secretary to the Board Head Office in several functions namely Finance, Compliance
Committees of AMB and Senior Management Committees and Risk Management. He was appointed as the Chief Risk
of Allianz Life and Allianz General. She is also the Head of Officer on 1 January 2011. He does not have any family
Allianz4Good Department, the corporate responsibility arm of relationship with any Director and/or major shareholder of
the Group since 1 January 2011. She does not have any family the Company, nor any conflict of interest with the Company.
relationship with any Director and/or major shareholder of the He has not been convicted of any offences within the past 5
Company, nor any conflict of interest with the Company. She years, other than traffic offences, and has not been imposed
has not been convicted of any offences within the past 5 years, any penalties by the relevant regulatory bodies during the
other than traffic offences, and has not been imposed any financial year 2020.
penalties by the relevant regulatory bodies during the financial
year 2020. Directorship in Public Company
Nil
Nil

01
02
03
04
As at 12 April 2021
06
12 13
Female
Female
Malaysian
Malaysian
52
60
WONG WOON MAN MANOGARI A/P MURUGIAH
Group Head of Human Resources of the Group Group Head of Legal of the Group
Qualification Qualifications
Bachelor of Science in Agribusiness 1. Bachelor of Laws, University of London
2. Certificate in Legal Practice
Wong Woon Man has 28 years of work experience, of which Working Experience and Other Information
18 years have been in the insurance industry. She joined Manogari A/P Murugiah has 40 years of work experience, of
Allianz Life on 15 August 2002 as Head of Learning and which 18 years have been in the insurance industry. She joined
Development. In 2006, she was appointed as Senior Manager, the Company on 2 January 2003 as Head of Legal. On 1 January
Human Resources. When the Human Resources function was 2011, she was appointed as Head of Legal & Compliance of the
synergised between Allianz Life and Allianz General, she was Group, assuming responsibility for both legal and compliance
appointed as Deputy Head of Human Resources. On 1 May matters of the Group. Effective 1 February 2019, the legal
2011, she assumed the role of Head of Human Resources of and compliance functions were segregated and she assumed
the Group. She does not have any family relationship with responsibility for the legal function. She does not have any
any Director and/or major shareholder of the Company, nor family relationship with any Director and/or major shareholder
any conflict of interest with the Company. She has not been of the Company, nor any conflict of interest with the Company.
convicted of any offences within the past 5 years, other than She has not been convicted of any offences within the past 5
traffic offences, and has not been imposed any penalties by years, other than traffic offences, and has not been imposed
the relevant regulatory bodies during the financial year 2020. any penalties by the relevant regulatory bodies during the
Nil Directorship in Public Company
Nil

02
03
04
05
As at 12 April 2021
06
14 15
Male
Female
German
Malaysian
49
54
LEE CHI KWAN STEFAN RITZ

Head of Finance of Allianz General Chief Operations Office of Allianz Life and
Chief Digital Officer of Allianz Malaysia Berhad
Qualifications
1. Fellow of The Association of Chartered Certified Qualification
Accountants (UK) Diploma in Business Computing
2. Chartered Accountant (Malaysia) of Malaysian Institute of
Accountants Working Experience and Other Information
Stefan Ritz has 24 years of work experience, of which 22
Working Experience and Other Information years have been in the insurance industry. He joined Allianz in
Lee Chi Kwan has 30 years of work experience, of which 28 Germany in 1998 as Information Technology consultant and
years have been in the insurance industry. She joined the was assigned to Allianz Life Korea from 2000 where he held
Company in 2005, and assumed her current position as Head various project lead and management roles. In April 2012,
of Finance of Allianz General on 1 November 2010. She does he joined ALIM as Head of Operations and was subsequently
not have any family relationship with any Director and/or appointed as Chief Operations Officer on 1 January 2013. He
major shareholder of the Company, nor any conflict of interest assumed his current position on 15 October 2016. He does not
with the Company. She has not been convicted of any offences have any family relationship with any Director and/or major
within the past 5 years, other than traffic offences, and has not shareholder of the Company, nor any conflict of interest with
been imposed any penalties by the relevant regulatory bodies the Company. He has not been convicted of any offences
during the financial year 2020. within the past 5 years, other than traffic offences, and has not
been imposed any penalties by the relevant regulatory bodies
Directorship in Public Company during the financial year 2020.
Nil
Nil

01
02
03
04
As at 12 April 2021
06
16 17
Female
Female
Malaysian
Malaysian
45
37
WONG SIEW LIN CORRINE YEO CHIN SAN
Chief Investment Officer of the Group Chief Risk Officer of Allianz Life
Qualifications Qualifications
1. Bachelor of Science in Business Administration 1. Bachelor of Science in Actuarial Science
2. Chartered Financial Analyst (CFA) 2. Fellow of the Institute and Faculty of Actuaries (IFoA)
3. Financial Risk Manager (FRM) 3. Fellow of Actuarial Society of Malaysia (FASM)
Wong Siew Lin has 23 years of work experience, of which Corrine Yeo has 15 years of work experience, of which 15 years
13 years have been in the insurance industry. She joined have been in the insurance industry She joined Allianz Life on
the Company on 1 August 2012 as Head of Investment 2 January 2018 as Chief Risk Officer. She does not have any
Management. She assumed her current position on 1 June family relationship with any Director and/or major shareholder
2018. She does not have any family relationship with any of the Company, nor any conflict of interest with the Company.
Director and/or major shareholder of the Company, nor She has not been convicted of any offences within the past 5
any conflict of interest with the Company. She has not been years, other than traffic offences, and has not been imposed
convicted of any offences within the past 5 years, other than any penalties by the relevant regulatory bodies during the
traffic offences, and has not been imposed any penalties by financial year 2020.
Directorship in Public Company Nil
Nil

02
03
04
05
As at 12 April 2021
06
18 19
Male
Female
German
Malaysian
51
42
LOKE SIEW PEI YORCK OLIVER AGO REUBER

Chief Market Management Officer of the Group Chief Information Technology Officer of the Group
Bachelor of Accounting Chief Engineering Degree (German Navy)
Loke Siew Pei has 19 years of work experience, of which Yorck Reuber has 31 years of work experience, of which 6 years
10 years have been in the insurance industry. She joined have been in the insurance industry. He joined the Company
the Group as the Chief Market Management Officer on on 22 June 2020 as Chief Information Technology Officer.
4 September 2017. She does not have any family relationship He does not have any family relationship with any Director
with any Director and/ or major shareholder of the Company, and/or major shareholder of the Company, nor any conflict of
nor any conflict of interest with the Company. She has not interest with the Company. He has not been convicted of any
been convicted of any offences within the past 5 years, other offences within the past 5 years, other than traffic offences, and
than traffic offences, and has not been imposed any penalties has not been imposed any penalties by the relevant regulatory
by the relevant regulatory bodies during the financial year bodies during the financial year 2020.
2020.
Nil

01
02
03
04
As at 12 April 2021
06
20 21
Female
Female
Malaysian
Malaysian
37
51
CHIN XIAO WEI JANNY NG SIEW LENG
Chief Actuary and Appointed Actuary of Allianz General Group Head of Internal Audit of the Group
Qualifications Qualification
1. Fellow of Institute and Faculty of Actuaries (IFoA, UK) Chartered Institute of Management Accountant
2. Fellow of Actuarial Society of Malaysia
3. Master of Science in Actuarial Management Working Experience and Other Information
Janny Ng has 29 years of work experience, of which 25 years
Working Experience and Other Information have been in the insurance industry. She joined the Company
Chin Xiao Wei has 13 years of work experience, of which 13 on 16 June 1995 as Internal Audit Executive. She assumed her
years have been in the insurance industry. She joined Allianz current position on 1 January 2014. She does not have any
General on 1 November 2020 as the Chief Actuary and family relationship with any Director and/or major shareholder
Appointed Actuary. She does not have any family relationship of the Company, nor any conflict of interest with the Company.
with any Director and/ or major shareholder of the Company, She has not been convicted of any offences within the past 5
nor any conflict of interest with the Company. She has not been years, other than traffic offences, and has not been imposed
convicted of any offences within the past 5 years, other than any penalties by the relevant regulatory bodies during the
traffic offences, and has not been imposed any penalties by financial year 2020.
Nil

02
03
04
05
As at 12 April 2021
06
22 23
Male
Male
Malaysian
Malaysian
39
OOI HAW YUN 36 LEE CHEE SIN

Chief Product Officer of Allianz Life Appointed Actuary / Chief Actuary of Allianz Life
Qualifications Qualifications
1. Bachelor of Science in Actuarial Science 1. Bachelor of Commerce (Majoring in Actuarial)
2. Associate of Society of Actuaries (ASA) 2. Fellow of Society of Actuaries (FSA)
3. Fellow of Actuarial Society of Malaysia (FASM)
Working Experience and Other Information 4. Fellow of Life Management Institute, LOMA
Ooi Haw Yun has 15 years of work experience, of which 15
years have been in the insurance industry. He joined Allianz Life Working Experience and Other Information
in 2013 as Head of Actuarial Modelling and was subsequently Lee Chee Sin has 13 years of work experience, of which 13
appointed as Head of Pricing on 1 September 2014. He was years have been in the insurance industry. He joined Allianz Life
appointed as Chief Product Officer on 1 January 2020. He on 17 April 2017 as Head of Corporate Actuarial. He assumed
does not have any family relationship with any Director and/or his current position on 9 July 2018. He does not have any family
major shareholder of the Company, nor any conflict of interest relationship with any Director and/or major shareholder of
with the Company. He has not been convicted of any offences the Company, nor any conflict of interest with the Company.
within the past 5 years, other than traffic offences, and has not He has not been convicted of any offences within the past 5
been imposed any penalties by the relevant regulatory bodies years, other than traffic offences, and has not been imposed
during the financial year 2020. any penalties by the relevant regulatory bodies during the
Nil Directorship in Public Company
Nil

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As at 12 April 2021
06
24
Female
Malaysian
50
SHAMALA GOPALAN
Group Head of Corporate Communications of the Group
Qualification
Bachelor of Arts

Shamala Gopalan has 26 years of work experience, of which
18 years have been in the insurance industry. She joined the
Company on 20 September 2010 as Assistant Manager in
AMB. She assumed her current position on 17 May 2018. She
does not have any family relationship with any Director and/or
major shareholder of the Company, nor any conflict of interest
with the Company. She has not been convicted of any offences
within the past 5 years, other than traffic offences, and has not
been imposed any penalties by the relevant regulatory bodies
during the financial year 2020.

Nil

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05 Corporate Governance
06
Overview Statement
The Board of Directors constantly strives to inculcate good corporate governance values in
the Company towards building a sustainable business despite the challenging operating
environment.
This Statement is prepared in compliance with the Main Market Listing Requirements (“Listing Requirements”) of Bursa Malaysia Securities
Berhad ("Bursa Malaysia") and with guidance from the key corporate governance (“CG”) principles as set out in the Malaysian Code on
Corporate Governance (“Code”). This Statement is to be read together with the CG Report of Allianz Malaysia Berhad (“Company”) for
financial year ended 31 December 2020 (“FY 2020”), available on the Company’s website at allianz.com.my/corporate-profile (under the
CG section).
The corporate governance culture in Allianz
The Board of Directors (“Board”) and the Management are During the FY 2020, the Company has the pleasure to receive the
cognisant that CG is a continuous journey and it could only be ASEAN Asset Class Award presented by the ASEAN Capital Markets
implemented effectively with the full commitment and support Forum as recognition of the Company’s achievement in the 2019
from all levels of employees in the Company and its insurance ASEAN CG Scorecard Assessment. In addition, the Company also
subsidiaries (collectively referred to as “Group”). With this in mind, received an Industry Excellence Award under the financial services
constant review and awareness building on the Group’s CG industry from MSWG-ASEAN CG Award 2019.
practices are undertaken to ensure that such practices remain robust
and relevant to the Group’s business at all times, which ultimately The Company is also pleased to receive the recognition for being
foster long-term sustainability of the Group. ranked fourth on overall score of the inaugural Malaysia Board
Diversity Index amongst 312 companies listed on Bursa Malaysia.
The Malaysia Board Diversity study was conducted by the Institute
of Corporate Directors Malaysia in collaboration with Willis Towers
Watson which aims to provide a snapshot of Malaysia’s board
diversity landscape as at 31 December 2019.
As at 31 December 2020, the Company applied the principles and

adopted the step up practices as prescribed under the Code, except
for the following:-
(a) Practice 7.3 – Step Up

Companies are encouraged to fully disclose the detailed
remuneration of each member of senior management on a
named basis.
(b) Practice 11.21

Large companies are encouraged to adopt integrated
reporting based on a globally recognised framework.
A summary of the Company’s CG practices as well as the Board’s key

focus areas in relation to the CG Practices are as described below,
under each CG principle.
The Group has embarked on a 3-year journey to fully adopt integrated reporting.
1
Further information can be found in the CG Report 2020.

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Corporate Governance 05
Overview Statement 06
Principle A: Board Leadership and Effectiveness
I. Board Responsibilities
The Board is responsible for overseeing the overall affairs of the Company. In order to ensure effective discharge of its functions and
responsibilities, distinction must be maintained between the Management's functions and the overall responsibility of the Board.
The following chart illustrates the CG framework adopted by the Group:-
Shareholders and
Other Stakeholders
Board of Directors
Chief
Executive Officer
Company
Secretary
Local
ESG Board
Risk Management Audit Nomination and Senior Management

Committee Committee Remuneration Committees
Committee
Risk Management Integrity Management
Working Committee Committee Committees
Internal Governance and

Corporate Risk
Audit Control Committee
Due Diligence Working

Compliance
Group – Related Party
Transactions
External
Auditors

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05
06 Overview Statement
The Board is accountable to the shareholders and therefore should use its best efforts to ensure that the Company is properly managed
and constantly improved so as to protect and enhance shareholders’ value and to meet the Company’s obligations to all parties that
the Company interacts with. The Board acts in good faith, exercises discretion and proper power in discharging its fiduciary duties and
leadership functions with reasonable care, skill and diligence.
In addition, the Board and Board Committees of the Group discharged their roles and responsibilities in accordance with the Board
Charter and Terms of Reference respectively. The record of attendance for the respective Board and Board Committee Meetings held
in FY 2020 is detailed as follows:-
Board Board Committee

Company AC RMC NRC
Independent Non-Executive Directors (“INEDs”)
Tan Sri Datuk (Dr.) Rafiah Binti Salim 5/5 6/6 5/5
Tunku Zain Al-‘Abidin Ibni Tuanku Muhriz 5/5 5/5
Peter Ho Kok Wai [1]
5/5 6/6 4/4
Goh Ching Yin [2]
2/2 3/3 4/4 2/2
Dr. Muhammed Bin Abdul Khalid [3]
-
Dato’ Dr. Thillainathan A/L Ramasamy [4]
3/3 3/3 2/2 3/3
Marzida Binti Mohd Noor [5] 1/1 1/1
Datuk Gnanachandran A/L S Ayadurai [6] 4/4
Non-Independent Non-Executive Directors ("NINED")
Solmaz Altin 5/5
Claudia Salem 4/5
Notes:
AC : Audit Committee
RMC : Risk Management Committee
NRC : Nomination and Remuneration Committee
: Chairman
: Member
: Non-Member
[1] : Appointed as AC Chairman on 1 July 2020.

[2] : Appointed as INED of the Board, AC member and NRC member on 1 July 2020.
[3] : INED of Allianz General Insurance Company (Malaysia) Berhad ("Allianz General") Board. Appointed as the Chairman of RMC
on 10 December 2020. No meeting held after his appointment as the Chairman of RMC.
[4] : Retired as INED of the Board , Chairman of AC, RMC member and NRC member on 30 June 2020.
[5] : Resigned as INED of the Board and RMC member on 1 March 2020.
[6] : INED of Allianz Life Insurance Malaysia Berhad (“Allianz Life”) Board and Allianz General Board. Appointed as Member and
Chairman of RMC on 1 January 2020 and 1 July 2020 respectively. He resigned as INED of Allianz Life and Allianz General
Boards and RMC Chairman on 10 December 2020.

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The Board plays an active role in the Group’s strategic The Board and Board Committee Meetings are conducted
direction and planning, either in long term growth or delivering in accordance with a structured agenda approved by the
short term business goals. The strategic planning of the respective Chairmen. The agenda and meeting papers are
Group is forward looking and encompasses a 3-year action sent electronically to the Directors at least one week prior to
plan to address short term business goals and long-term the meetings in order to accord sufficient time for the Directors
economic value creation including strategies on economic, to review and consider issues to be discussed at the meetings.
environmental stewardship and social considerations. In order to ensure the efficient flow of information between
the Board and Management, the decisions made at the
The Board deliberated on a 3-year business plan for 2021 Board and Board Committee Meetings are circulated to the
Directors, CEO and the relevant project owners within one
to 2023 with detailed strategies, financial projection, key
day after the conclusion of the Board and Board Committee
performance indicators, its execution and challenges faced
Meetings.
by the insurance subsidiaries (“Business Plan”), which might
have impact on the dividend income of the Company, and
In view of the COVID-19 pandemic and for safety
approved the Business Plan in November 2020. On a quarterly
consideration, the Directors were encouraged to participate
basis, the Board reviews the status of the Business Plan and its
the Board and Board Committee Meetings virtually. In this
deliveries.
regard, conference call and video conferencing facilities have
been put in place to enable Directors to attend the respective
The Board has established a Board Charter which meetings virtually.
encompasses, among others, the Board’s role, duties,
responsibilities, powers, code of conduct, division of The Board is supported by the Company Secretary, who
responsibilities and powers between the Board and the is qualified pursuant to Section 235 of the Companies Act
Management and between the Chairman and the Chief 2016. The Company Secretary plays an advisory role to the
Executive Officer (“CEO”), the Terms of Reference of the Board in relation to the Company’s Constitution, policies and
Board Committees, the performance evaluation process for procedures, and compliance with the relevant regulatory
the Directors and Board Committees, to serve as a guide or requirements, guidance and legislations as well as the
key reference points for the Directors and the stakeholders. principle of best CG practices.
The Board Charter is reviewed on an annual basis and updated Details of the Board Charter, COC and Whistleblowing Policy
from time to time to ensure that it is in line with internal and and Procedures are available for reference in the Company’s
regulatory requirements as well as governance best practices. website at allianz.com.my/corporate-profile (under the CG
section).
The Board formulated the Code of Ethics for Directors with the
aims to enhance the standard of CG and corporate behaviours. II. Board Composition
While the Allianz Group Code of Conduct (“COC”) sets the
The Board composition of the Group is structured to encourage
value and principles that guide the actions of all employees
objective and independent deliberation, review and decision
and reflects the Group’s commitment to running its business
making. The Board of the Company comprised purely Non-
sustainably and with integrity. Following the latest revision on
Executive Directors with a majority of INEDs as at FY 2020.
the COC, the Board had in February 2021 adopted the COC as
the code of conduct for the Directors.
The respective Boards recognise the importance of having
a diverse Board in terms of experience, skills, competence,
The Group has also established a whistleblowing mechanism
ethnicity, gender, culture and age. The size and composition
to enable anonymous and non-anonymous reporting of any
of the respective Boards shall be appropriate and well
breach of the COC, any laws, regulations, orders or internal balanced to cater for the interest of the majority and minority
rules. All whistleblowing incidences in the Group are reviewed shareholders as well as the business of the Company.
by the Integrity Committee and the findings are reported to Membership of the Board will be drawn from various fields
the AC. as may be determined by the Board from time to time with a
balance of skills and experiences appropriate to the business
of the Company.

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The Board fully endorsed that female candidates should be included in the evaluation process for appointment of new Directors to
the Board. In the effort to promote Board gender diversity, the NRC has taken steps to ensure that female candidates are sought and
considered in its recruitment exercise for appointment of new Directors to the Board. The Board achieved 33% of female Directors as at
FY 2020 which was made up by 2 female Directors, out of a total of 6 Directors on the Board.
The Board’s information as at 31 December 2020 is presented in the charts below:-
2 2 1 2
1 1
Board Length of
Gender Age Group
Composition Service
4 4 2 2 3
INED Male 30 - 40 61 - 70 Less than 1 - 4 years

NINED Female 41 - 50 71 and 1 year 5 - 9 years
above
Board Experience and Expertise
Finance, Accounting Human Resource and

Banking and Insurance Governance
and Audit Development
Information Technology Legal and Regulatory Leadership Risk Management
The profile of the Directors is set out in the Board of Directors' Profile in this Annual Report.
The Group has adopted the policy on the tenure of INEDs which is set for a maximum period of 9 years.
The Group has in place the evaluation process and procedures for appointment and re-appointment of Directors. Nomination of
candidate for appointment as Director will be evaluated by the NRC. The NRC in making its recommendation on candidates for
directorship, considers among others, the candidate’s skill, knowledge, professionalism, integrity contribution, performance and diversity
of the Board. The Group also takes into consideration the common directors requirement of Bank Negara Malaysia (“BNM”) guidelines
when determining the composition of the Board.
The NRC conducts an annual assessment of the performance and effectiveness of the Board, Board Committees and the contribution
by each Director to the effectiveness of the Board and Board Committees. The observations from the NRC are presented to the Board
for deliberation.
In addition, the Board agreed that the Board evaluation shall be facilitated by a professional and independent party at least once in
every 3 years. In FY 2020, the Board approved the engagement of an independent consultant, KPMG Management & Risk Consulting
Sdn Bhd (“KPMG”) to perform the Board Effectiveness Evaluation (“BEE”) and Board Remuneration Review (“BRR”) for the Group.

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The BEE was conducted by KPMG in the second quarter on 7 December 2015. The then Remuneration Committee
of the FY 2020 by way of questionnaire/assessment forms recommended a 3-year step-up plan (financial years 2016 to
and interview with the Directors as well as relevant Senior 2018) for Directors’ remuneration.
Management. The questionnaire/assessments covers the
following assessment topics:- A review on the Directors’ fees shall be carried out once in every
3 years. Therefore, the Board had in March 2020 engaged
a Board of Directors’ Assessment KPMG to assist the Board in establishing a transparent and
b Fit and Proper robust remuneration framework for the Directors, taking
into account the demands, complexities and performance
c Directors’ Self and Peer Assessment
of the Group as well as the skills and experience required of
d Independent Directors’ Self-Assessment the Directors, including undertake a benchmarking analysis
e AC against peer companies and Malaysian listed companies and
f RMC recommend appropriate remuneration for the Directors.
g NRC
The BRR was comprehensively deliberated by the NRC and
The overall results of the BEE were positive and the positive respective Boards of the Group in October 2020.
highlights identified were categorised into 4 categories namely
Board configuration and gravitas, working relationship with Arising from the BRR, the NRC reviewed and deliberated
Management, downstream and upstream governance and the proposed remuneration for Directors and in February
regulatory consciousness. 2021, NRC recommended the following to the Board for
consideration:-
Apart from the positive highlights, KPMG has submitted its
recommendations on areas for improvement and action (a) Directors’ fees be revised for financial year 2021 with a
plan has been established. The NRC had in November 2020 standard retainer or fixed fee to be applied across the
reviewed and endorsed the said action plan. The said action Board and the fee for Board Committee Chairmen and
plan was presented to the respective Boards of the Group and Members to be streamlined, with retrospective effect on
adopted by the respective Boards for implementation. 1 January 2021:-
The details on the activities of the NRC are described in the CG

Fee per annum (RM)
Report 2020. It embraces Principle A of the Code in relation to
the Board composition. Board AC RMC NRC
Chairman/ Chairman/ Chairman/ Chairman/
III. Remuneration Member Member Member Member
120,000 48,000 36,000 24,000

The Board has in place a remuneration policy for Directors.
The remuneration of the Board is reviewed by the NRC based
on the remuneration policy approved by the Board. (b) Payment of the Directors’ fees be made on a monthly
basis instead of in arrears after every AGM:-
The Directors’ fees, allowances and benefits payable to the Annually Monthly
Chairman and Non-Executive Directors (excluding Nominee Fee (RM) (RM)
Directors of Allianz SE) of the Company and its insurance
Director’s Fee 120,000 10,000
subsidiaries will be tabled for the shareholders’ approval at
the 47th Annual General Meeting (“AGM”) of the Company. AC Fee 48,000 4,000
RMC Fee 36,000 3,000

The Directors’ remuneration was last reviewed in 2016,
following the issuance of the Directors’ Remuneration Report NRC Fee 24,000 2,000
2015 by the Financial Institutions Directors’ Education Forum

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(c) Revised meeting allowance to take effect after the 47th engagement with the Company to be appointed as a member
AGM:- of AC. In this respect, none of the Directors are former key audit
partners.
Meeting Allowance per meeting (RM)
The AC conducts annual assessment on the external auditors
Chairman 3,500
based on the criteria as prescribed under Paragraph 15.21
Member 3,000 of the Listing Requirements as well as the BNM’s guidelines
on appointment of external auditors. The AC also evaluates
(d) Premium to be accorded to the Chairmen of the Board and recommends to the Board on the proposed appointment
and the Board Committees in recognition of their of the engagement partner and the concurring partner, and
heightened responsibility assumed will be reflected ensures that there is a rotation on the said partners at least
in the monthly allowance (for Board Chairman) and once in every 5 years.
meeting allowance. Nevertheless, the NRC proposed no
change to the Chairman monthly fixed allowance. In ensuring the independence of the external auditors,
significant attention is directed toward the appropriateness of
(e) The revised remuneration should be applicable until the external auditors to perform services other than statutory/
financial year 2023. financial audit. The Group has in place the Policy on Audit and
Non-Audit Services Provided by External Auditors to ascertain
The Board had in February 2021 approved the revised that the suitability, independence and objectivity of the
remuneration, subject to the shareholders’ approval at the external auditors are not compromised.
47th AGM.
The Board has reviewed the performance evaluation of AC
Further details of the revised Directors’ remuneration which was facilitated by KPMG. The AC scored 93% out of
are disclosed in the Notice of 47th AGM in the Annual 100% in the performance evaluation assessment. Further
Report 2020. disclosure on the performance evaluation of AC is detailed in
the AC Report of this Annual Report.
The Group has adopted the Allianz Group Policy for
Remuneration (“Remuneration Policy”) for the employees, Details for the roles and responsibilities of the AC are attached
which is in line with the Group’s business and risk management to the Board Charter, and the Policy on Audit and Non-Audit
strategy, its risk profile, objectives, risk management Services Provided by External Auditors are published under
practices and the long-term interests and performance. the CG section of the Company’s website.
The Remuneration Policy forms a key component of the
governance and incentive structure through which the II. Risk Management and Internal Control Framework
respective Boards and Senior Managements of Group drive
performance, convey acceptable risk taking behaviour and The Board is fully committed to ensure that effective risk
reinforce the Group’s corporate and risk culture. management and internal control systems are in place within
the Group and continuous reviews are undertaken to ensure
Details for the roles and responsibilities of the NRC are adequacy and integrity of these systems. In this regard, the
attached to the Board Charter, and the Remuneration Policy Board entrusted the AC and RMC with responsibilities on
are published under the CG section of the Company’s website. the risk management and internal control function of the
Group. Similar to the composition of AC, the RMC comprised
Principle B: Effective Audit and Risk Management solely of INEDs during FY 2020. The RMC was chaired by Dr.
Muhammed bin Abdul Khalid.
I. Audit Committee
The RMC drives the risk management framework of the
During FY 2020, the AC composed wholly of INEDs and was Group and reports quarterly to the respective Boards of the
chaired by Peter Ho Kok Wai. Group on its recommendations and/or decisions. The Risk
Management Working Committee (“RMWC”) is established at
The Board observes the cooling-off period of at least 2 years the management level of the respective insurance subsidiaries
for a former key audit partner who is directly involved in the

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and serves as a platform for two way communications between where the key findings on current state of sustainability
the Management and the RMC on matters relating to risk considerations and the proposed IR roadmap for the Company
strategy and management. Through the quarterly reporting were presented to the Management. A milestone plan will be
from RMWC, the RMC consolidates the status of the risks of set up to formalise the IR.
the respective companies and reports to the respective Boards
for consideration. II. Conduct of General Meetings
The Group has in place a Risk Management Framework The Notice of the 46th AGM was despatched to shareholders
Manual (“RMFM”) which outlines the guiding principles of the on 1 June 2020 with 28 clear days prior to date of the AGM held
risk management approach, structure, roles, responsibilities, on 30 June 2020, to provide sufficient time for the shareholders
accountabilities, reporting requirements as well as the risk to review the Group’s financial and operational performance
identification, evaluation and monitoring process. The RMFM is and to evaluate the resolutions tabled at the AGM, as well as to
in compliance with the relevant requirements of the guidelines enable the shareholders to make the necessary arrangement
and/or policies issued by BNM and Allianz SE Group. to attend the AGM.
The Board is of the view that the system of internal control As part of the Company’s effort in facilitating effective
and risk management of the Group is sound and sufficient communication, the Notice of 46th AGM, circular to
to safeguard shareholders’ investments, the Group’s assets, shareholders, proxy form and administrative details for the
the interest of customers, regulators, employees and other 46th AGM were published in the Company’s website under
stakeholders. the Investor Updates section.
Further information in regard to the risk management and The 46th AGM of the Company was conducted fully virtual
internal control framework is presented in the Statement on from the broadcast venue on 30 June 2020 via Remote
Risk Management and Internal Control in this Annual Report. Participation and Voting facilities (“RPV”), which were
available at Tricor Investor & Issuing House Services Sdn Bhd
Details for the roles and responsibilities of the RMC are (“Tricor”)’s TIIH Online website at https://tiih.online.
attached to the Board Charter which is published in the
Company’s website. In consideration of the COVID-19 pandemic, the shareholders
and proxies (“Participants”) were not allowed to attend
Principle C: Integrity in Corporate Reporting and Meaningful the 46th AGM in person at the broadcast venue on the day
Relationship with Stakeholders of the Meeting. Nevertheless, the Participants were given
opportunities to raise questions to the Company prior to
I. Communication with Stakeholders the day of 46th AGM via submission of questions to TIIH
Online website, or email to the Investor Relations Team of
The Board is mindful that timely and easy accessibility to the Company. Alternatively, the Participants could take the
information are crucial for the shareholders and stakeholders opportunity to submit their questions through RPV during the
to make informed decisions. The Company has leveraged on 46th AGM.
information technology to disseminate information where all
levels of stakeholders are able to access information more The 46th AGM poll results were validated by Mega Corporate
effectively and conveniently. The information is disseminated Services Sdn Bhd, the independent scrutineer appointed by
through publication of quarterly report, annual report, the Company. Upon the completion of poll results validation,
corporate announcement through Bursa LINK, Investor the Chairman of 46th AGM declared that all resolutions were
Relations, press releases, corporate website and social carried. The 46th AGM was the first AGM that was conducted
platforms. virtually, a post mortem plan was established to address areas
for improvement, moving forward.
In the journey to adopt integrated reporting (“IR”), an IR
framework gap analysis has been completed by KPMG, based This Statement was approved by the Board on 6 May 2021.
on the International IR Council’s International IR Framework.
KPMG had conducted an IR framework assessment workshop

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05 Audit Committee Report
06
COMPOSITION
The Audit Committee (“AC”) of the Company consists wholly of 3 Independent Non-Executive Directors, all of whom have satisfied the test of
independence under the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Listing Requirements”) and none of them
are directly responsible for, or part of any committee involved in, the management functions of the Company and its insurance subsidiaries
(collectively referred to as “Group”).
The AC’s composition meets the requirements of Paragraph 15.09 of the Listing Requirements as well as Practice 8.1 and Step Up Practice
8.4 under Principle B of the Malaysian Code on Corporate Governance. The AC Chairman, Peter Ho Kok Wai is a Member of the Malaysian
Institute of Accountants, Fellow of the Institute of Chartered Accountants in England and Wales and a Member of the Malaysian Institute of
Certified Public Accountants. The composition of the AC as at the date of this report is as follows:-
Tan Sri Datuk (Dr.) Rafiah Binti Salim

Peter Ho Kok Wai (Chairman) Goh Ching Yin (Member)
(Member)
Independent Non-Executive Director Independent Non-Executive Director
Independent Non-Executive Director
The AC for the Group is centralised at the Company level.
ANNUAL PERFORMANCE ASSESSMENT
The Group had in March 2020 engaged KPMG Management & Risk Consulting Sdn Bhd (“KPMG”) to facilitate the conduct of the Board
Effectiveness Evaluation and Board Remuneration Review of the Group.
The performance evaluation of the AC as a whole for the financial year ended 31 December 2019 until the second quarter of the financial
year 2020 were facilitated by KPMG in July 2020. The AC scored 93% out of 100% in the performance evaluation assessment. The Board is
satisfied that the AC members have the required skills and competencies to discharge the duties and responsibilities of the AC, and the AC
had discharged its functions and duties in accordance with the AC’s terms of reference (“TOR”).
ROLES OF THE AC
AC is charged with the responsibilities of assisting the respective Boards of the Group in its oversight, amongst others, as follows:-
Support the Board in ensuring Monitor and evaluate the Assess the internal control Review and report to the Board
that there is a reliable and performance and effectiveness environment of conflict of interest situations
transparent financial reporting of the external and internal and related party transactions
process audit functions (“RPTs”)
AC’s TOR is incorporated in the Board Charter, which is available in the Company’s website at allianz.com.my/corporate-profile (under the Corporate Governance section).
MEETINGS AND ATTENDANCE OF MEETINGS
The AC held six meetings in 2020, attended by all the AC members. The AC members’ attendance records are set out in the Corporate
Governance Overview Statement section in this Annual Report.
The respective Chief Executive Officers of the Group, the Chief Financial Officer/Head of Finance (“Finance Team”) of the Group and the
Group Head of Internal Audit Department (“IAD”) are permanent invitees to the AC meetings to assist in the deliberation of matters within
their purview. Other members of the Management are also invited to the AC meeting to facilitate discussion on specific agenda items under
their purview.
The Chairman of AC engages with the Senior Management, the Group Head of IAD and External Auditors on a continuous basis, to be kept
informed of matters affecting the Group.
The meetings of the AC are transparent, with all proceedings and actions being recorded and documented. The AC member who has a
direct or deemed interest in a proposal or subject matter presented at the AC meeting shall abstain from deliberation and voting on the said
proposal or subject matter. The Chairman of the AC reports to the Boards of the Group on matters deliberated during the AC meetings and
require the attention of the respective Boards. The minutes of the AC, upon confirmation, are presented to the respective Boards of the Group
for information.

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Audit Committee Report 05
06
SUMMARY OF WORK the statutory audits of the Group and AFS for IL Funds for the
FYE 2019 of the Company’s life insurance subsidiary.
The following were the summary of work carried out by the AC during
the financial year ended 31 December 2020 (“FYE 2020”):- The Management Representation Letters set out the
representations made by the respective Boards/Management
Financial Matters on information and/or assumptions presented to External
Auditors during the course of their audit, confirming the
(a) AC reviewed and recommended the following for the financial statements have been drawn up to give a true and
approvals of the respective Boards of the Group:- fair view in accordance with the Malaysian Financial Reporting
Standards (“MFRS”) and International Financial Reporting
(i) The Audited Financial Statements and Directors’ Reports Standards (“IFRS”) and the requirements of the Companies Act
(“AFS”) of the Company and its subsidiaries for the 2016, the Financial Services Act 2013 and guidelines/circulars
financial year ended 31 December 2019 (“FYE 2019”). issued by Bank Negara Malaysia (“BNM”) as well as the
Management’s responsibilities for the financial statements.
(ii) The audited and unaudited consolidated quarterly
reports of the Group. AC also reviewed and recommended for the approval of the
respective Boards of the Company’s insurance subsidiaries, the
(iii) The AFS and AFS for Investment-Linked (“IL”) Funds for respective Management Representation Letter to the External
the FYE 2019 and the Interim Financial Statements for Auditors in respect of the limited review of the Company’s
the financial period ended 30 September 2020 (“Interim insurance subsidiaries’ Interim Review.
Review”) of the life insurance subsidiary.
(c) AC reviewed and recommended for the approvals of the
(iv) The AFS for the FYE 2019 and the Interim Review of the respective Boards of the Company’s insurance subsidiaries,
general insurance subsidiary. the respective Actuarial Reports and Audited Reporting Forms
in relation to Risk-Based Capital Framework for the FYE 2019.
(v) The unaudited Interim Financial Statements for the half-
year ended 30 June 2020 of the insurance subsidiaries. (d) AC reviewed the Statement on Risk Management and Internal
Control (“SORMIC”) prior to the same being submitted to
(vi) The audited annual return for the FYE 2019 of the External Auditors for review.
insurance subsidiaries.
The Management has given assurance that:-
The review covers among others, significant and unusual
events, the going concern assumption, compliance with (i) the present risk management framework and internal
accounting standards and other regulatory requirements, control system are adequate and effective in mitigating
material litigation, profit contribution by insurance operations risks to achieve its business objectives; and
and prospects of the Group.
(ii) no significant deficiencies have been identified in
The Finance Team have given their assurance to AC that the design or operation of internal controls that
the financial statements of the respective companies were could adversely affect the Group’s ability to meet its
prepared on a going concern basis and complied with relevant business objectives.
statutory and regulatory requirements.
External Auditors had reviewed the SORMIC and concluded
The External Auditors of the Group, PricewaterhouseCoopers that nothing has come to their attention that causes
(“PwC”) PLT, has given an unqualified opinion on the AFS of them to believe that the SORMIC, in all material aspects
the Company and its insurance subsidiaries for FYE 2019.
have not been prepared in accordance with the relevant
disclosure requirements or were factually inaccurate.
(b) AC reviewed and recommended for the approvals of
Following clearance obtained from the External Auditors,
the respective Boards of the Group, the Management
AC recommended for the inclusion of SORMIC in the Annual
Representation Letters to the External Auditors in respect of
Report for the Board’s approval.

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Audit Committee Report
06
AC also reviewed the Management Representation Letter in Group, migration of current accounting system, namely
relation to SORMIC and was satisfied with the contents of the SUN to SAP system and consolidation of unit trust
same. AC approved the Management Representation Letter investment.
for submission to the External Auditors.
(d) the interim audit findings raised by the External Auditors
(e) AC reviewed the updates and progress scorecard on the in their Limited Review and Status Update Report to
implementation of IFRSs 9 and 17. The Management had the Group and the Management’s responses to the
on a quarterly basis updated the AC on the progress of audit findings. AC was satisfied with the Management’s
the implementation of IFRSs 9 and 17. The AC has also responses.
recommended for the approvals of the respective Boards
of the insurance subsidiaries for a revised budget of IFRSs One private discussion was held between AC and External
9 and 17 due to additional cost and resources required to Auditors without the presence of the Management on
support the project arising from one-year deferral of IFRS 17 21 February 2020 to allow them to express concerns, problems
implementation to 2023. and reservations, if any, arising from their audits.
As at 31 December 2020, the implementation of IFRSs 9 and PwC PLT were satisfied with the cooperation extended to them
17 was on track and within budget. during the course of their audit.
External Auditors Related Matters (B) Re-appointment of External Auditors
(A) Audit Plan, Findings and Recommendations (a) In line with AC’s responsibility to review and appoint
the External Auditors, AC reviewed the performance
During the financial year 2020, the External Auditors attended assessment of PwC PLT including its engagement
the AC meetings and reviewed the following matters with the partner (“EP”) and concurring partner (“CP”), based
AC:- on the criteria prescribed by the relevant authorities,
amongst others, PwC PLT’s independence, the
(a) the 2019 final audit findings of the Group covered adequacy of its experience and resources, the level
significant accounting, auditing and internal control of knowledge, capabilities, experience and quality of
issues in the course of the statutory audit of the Group previous work, level of engagement, ability to perform
for the FYE 2019. The External Auditors have not alerted the audit work within the agreed timeframe, adequacy
AC so far on any material concern/weaknesses on in audit coverage, effectiveness in planning and conduct
internal controls of the Group. of audit, ability to provide constructive observations and
independence.
(b) the respective Management Letters issued by the
External Auditors highlighted matters on system of In February 2020, AC undertook an annual assessment
internal control which came to External Auditors’ on the performance of PwC PLT, including its EP and CP.
attention during the course of the statutory audit The assessment on the performance of PwC PLT based
of the insurance subsidiaries for the FYE 2019 and on the criteria prescribed by the relevant authorities had
been performed by the Finance Team of the respective
the respective Managements’ responses in relation
companies within the Group. The Finance Team of the
thereto. AC was satisfied with the responses provided
Group were satisfied with the work delivered by PwC PLT
by the respective Managements and recommended
and recommended the re-appointment of PwC PLT as
the same to the respective Boards of the insurance External Auditors for the financial year 2020 based on
subsidiaries for approval. the following rationales:-
(c) the External Audit Plan of the Group for the FYE 2020 (i) PwC PLT is familiar with the local insurance
detailed amongst others, the areas of focus such as industry and they are also the external auditors of
specific risks areas for the respective entities within the Allianz SE Group (“Allianz Group”).

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(ii) In view of the above, PwC PLT would be able (d) AC also reviewed and recommended the following
to provide effective co-ordination of the audits proposals for the approvals of the respective Boards of
between the companies within the Group as well the Group:-
as between the Group and Allianz Group.
(iii) PwC PLT met the minimum criteria for appointment, (i) the re-appointment of PwC PLT to review the
as specified by BNM.
SORMIC of the Company for the financial year
(iv) PwC PLT completed the Group’s 2019 statutory
2020;
audit satisfactorily.
(ii) the engagement of PwC PLT to perform agreed-
upon procedures in relation to the issuance of
PwC PLT confirmed that, for the audit of the financial
Validation Reports for Perbadanan Insurans
statements of the Company and its subsidiaries for the
Deposit Malaysia ("PIDM") Differential Levy
FYE 2020, PwC PLT has maintained its independence
System (“DLS”) Framework and Return on
in accordance with the firm’s requirements and the
Calculation of Premiums for FYE 2019 (“Validation
provisions of the By-Laws on Professional Independence
Reports”) to PIDM for the insurance subsidiaries
of the Malaysian Institute of Accountants.
and the report to Motor Insurers’ Bureau of West
Malaysia for general insurance subsidiary for
AC deliberated on the evaluation and
FYE 2019;
recommendation of the Finance Team and concurred
(iii) the engagement of PwC PLT to perform Interim
with the Management’s recommendation and
Review on the insurance subsidiaries;
justification to re-appoint PwC PLT as the External
(iv) the PwC PLT’s master engagement letter for the
Auditors for the Group and recommended the
review of SORMIC issued in financial year 2019
re-appointment of PwC PLT as the External Auditors for
which were effective for subsequent financial
the Group for the financial year 2020 for the respective
years unless terminated in writing by the Company
Boards’ approval.
or PwC PLT as well as PwC PLT’s engagement
letters in relation to the above engagements (ii)
AC also ensures that there is a rotation on the EP and
and (iii).
the CP at least once in every 5 years. During the financial
year, AC reviewed the proposed re-appointment of the
(C) Provision of Non-Audit Services by the External Auditors
EP and the appointment of the CP together with the EP’s
statutory declaration pertaining to his compliance with
AC is required to ensure proper check and balances are in
the BNM’s appointment criteria for auditors. AC satisfied
place so that provision of non-audit services by the External
that the EP and the CP met the qualification criteria as
Auditors do not interfere with their exercise of independent
prescribed by BNM. AC therefore recommended the
judgment. In this regard, the Policy on Audit and Non-Audit
re-appointment of the EP and appointment of the CP of
Services Provided by External Auditors (“Policy”) was put
the Group for the respective Boards’ approval.
in place to govern the professional relationship between
(b) AC reviewed the scope of work and the audit fees of the the Group and its External Auditors in relation to audit and
Group for the financial year 2020 (“2020 Audit Fees”) non-audit services. The Policy aims to ensure that the
and recommended the same for the respective Boards’ independence and objectivity of the External Auditors are
consideration. not compromised.
The Policy is available in the Company’s website at

(c) The 2020 Audit Fees for the Company and the Group are allianz.com.my/corporate-profile (under the Corporate Governance
section)
as set out below:-
Group Company
RM’000 RM’000
Statutory Audit Fees 838 145

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During the year, AC recommended the below mentioned non- AC reviewed the RPTs/RRPTs and submitted its
audit services and their respective fees ("Non-Audit Services recommendation to the respective Boards of the Group for
& Fees") for the respective Boards’ approval. The Non-Audit consideration. The AC also reviewed and recommended the
Services & Fees were approved by the respective Boards of announcement in respect of the renewal of Shareholders’
the Group during the financial year 2020:- Mandate for RRPTs, for the Board’s approval.
Subsidiaries Company AC member who has a direct or deemed interest in the RRPT
RM’000 RM’000 presented at AC meeting had abstained from deliberation
Non-Audit Fees and voting on the said RRPT.
• review of interim financial 153 -
information for the Interim AC also reviewed the list of RPTs entered into by the
Review for the insurance insurance subsidiaries for the periods from 1 January 2019 to
subsidiaries 31 December 2019 and from 1 January 2020 to 30 June 2020
which were submitted to BNM.
• review of SORMIC - 10
(c) During the financial year, in order to simplify and expedite

The total non-audit fees of the Group for the financial year
approval process of RPTs/RRPTs, AC recommended that
2020 amounted to RM163,000.
RPTs/RRPTs with a transaction or contract value below
RM250,000, to be approved by the Chief Executive Officers of
RPTs
the respective companies (“Proposed RPT Approval Matrix”)
(a) During the financial year, AC reviewed and deliberated on all to the respective Boards of the Group for consideration.
new and existing RPTs and recurrent RPTs (“RRPTs”) for the
ensuing year in accordance with the internal authority limits The AC also reviewed the review procedures for RRPTs to
approved by the Board and recommended to the Board for ensure that the procedures and processes are sufficient and
consideration. adequate to monitor, track and identify RPTs/RRPTs in a
timely and orderly manner. Arising from the Proposed RPT
(b) All RPTs and RRPTs were reviewed by the Shareholders’ Approval Matrix, the AC, upon recommendation from DDWG
Mandate Due Diligence Working Group (“DDWG”) prior to had proposed changes to the review procedures for RRPTs
the said transactions being presented to AC for consideration. (“Revised Review Procedures”) for the Board’s approval. AC was
The DDWG reviewed all RPTs and RRPTs and submitted its of the view that the Revised Review Procedures are sufficient
recommendations to AC based on the criteria, include but are to ensure that the RPTs/RRPTs are not more favourable to the
not limited to the following:- related parties than those generally available to the public
and are not to the detriment of the minority shareholders of the
(i) transaction prices or contract rates; Company, and the Group has in place adequate procedures
(ii) justification on the charging basis; and processes to monitor, track and identify RPTs/RRPTs in a
(iii) comply with the requirements under the applicable tax timely and orderly manner. In view thereof, AC approved the
laws including transfer pricing guidelines issued by the AC Statement in respect of the Revised Review Procedures
relevant authority;
for inclusion in the Circular to shareholders in relation to the
(iv) terms and conditions of the contract;
renewal of Shareholders’ Mandate for RRPTs.
(v) efficiency, quality, level of service and/or expertise and/
or technical support provided;
Given that the DDWG will review the Group’s RPTs/RRPTs
(vi) benefits arising from the services/products;
and submit its recommendations in accordance to the levels
(vii) satisfactory past year experience and working
of authority as determined by the respective Boards, the AC
relationship; and
upon recommendation of the Management proposed that the
(viii) in respect of the insurance activities, pursuant to
RPTs/RRPTs list approved by the respective Chief Executive
reinsurance, underwriting and treaty arrangements
Officers be tabled directly to the respective Boards on a
entered into between relevant parties.
half-yearly basis for notification, to the respective Boards of
the Group for consideration.

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(d) AC reviewed the disclosure of RRPTs outstanding amount Validation Reports. AC approved the Validation Reports
due from related parties (“Outstanding Amount”) including prepared by the Group Head of IAD and the Chairman of the
the Management’s action plan to collect the Outstanding AC was authorised to sign the Validation Reports for and on
Amount and the Management’s view on the recoverability behalf of the AC.
of the Outstanding Amount (collectively referred to as the
“Outstanding Amount Disclosure”) and agreed with the AC also reviewed the notification from PIDM in respect of the
Management’s view and action plan in relation thereto. AC DLS score, levy category and annual levy rate for assessment
having satisfied that the Outstanding Amount Disclosure year 2020 for the insurance subsidiaries.
met the disclosure requirements of Bursa Malaysia Securities
Berhad, resolved that the same be recommended for the (e) AC reviewed the results of the self-assessment review of
Board’s approval. the IAD in 2020. The internal audit self-assessment review is
conducted on an annual basis to evaluate the internal audit
(e) In ensuring that RPTs/RRPTs have been carefully reviewed, activities’ efficiency, effectiveness and identifies opportunities
AC reviewed the disclosures of the directorships and for improvement. The overall performance of the IAD was
shareholdings held by Directors and persons connected with rated Improvement Needed.
them on a half yearly basis or when the changes occurred.
(f) In February 2020, AC evaluated the 2019 performance of the
Group Head of IAD and submitted its recommendations to the
Internal Audit Related Matters
Nomination and Remuneration Committee (“NRC”) and the
respective Boards for review. AC also reviewed the 2020 target
(a) In its oversight over the Internal Audit function, AC had
letter of the Group Head of IAD and recommended the same
approved the Group’s 5-year (2021 – 2025) Internal Audit
for the approval of the NRC and the respective Boards.
Plan. The said 5-year Internal Audit Plan is a dynamic plan and
the review will be conducted on an annual basis. AC had also
(g) AC reviewed and was satisfied with the progress of IT initiatives
approved the management expenses budget of IAD.
to address common audit issues.
(b) AC reviewed on a quarterly basis, the progress reports of the

(h) The Group Head of IAD had on 24 August 2020 met with AC
Group’s Internal Audit Plan 2020 (“2020 Plan”) to ensure that
without the presence of the Management to discuss on key
the 2020 Plan was on track. AC also discussed the progress internal controls and internal audit matters. AC also reviewed
reports on various outstanding audit findings. AC noted that together with the Group Head of IAD, the resources, staffing
97% of the revised 2020 Plan has been executed. and succession plan of the IAD.
(c) The various Internal Audit Reports and Internal Assessment Integrity and Ethics
Reports covering core operations, non-core operations and
information technology (“IT”) were tabled for deliberations at (a) The oversight of whistleblowing and fraud matters of the
AC meetings. The system of internal control over the Group is performed by the Company’s Integrity Committee.
audited areas, including Management oversight, were The Integrity Committee coordinates all activities concerning
found to be adequate or with moderate shortcomings. prevention and detection of fraud and handling of
Lapses/shortcomings reflected in the reports were deemed whistleblowing incidents and reports its findings and
not significant or material and hence did not impact recommendation to AC.
the effectiveness of the Group’s overall internal control
environment. AC took note that rectification measures were During the financial year, AC reviewed and recommended
taken to address the audit concerns raised. Where appropriate, for the approval of the respective Boards of the Group, the
AC provided its opinions and directives to improve the existing revised AMB Group’s Whistleblowing Policy (“WBPP”). The
processes and procedures. revised WBPP was recommended following conduct of a gap
analysis of the Group’s existing WBPP with BNM’s expectation
(d) AC reviewed the Validation Reports, prepared by the Group in the 2019 supervisory review observations of the insurance
Head of IAD and External Auditors for the Company’s subsidiaries, relevant requirements, industry practices as well
insurance subsidiaries. Both the Group Head of IAD and as Allianz Group’s guidance on whistleblowing.
External Auditors had given clean opinion on their respective

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06
Further, AC also recommended for the approval of the AC reviewed and recommended for the approval of the
respective Boards of the Group, the revised AC’s TOR following respective Boards of the Group, the Allianz Group Audit
recommendation from BNM to enhance clarity in relation to Policy version 9.0 (“AGAP”). AGAP aims to ensure that the
whistle-blower protection and effective implementation of organisation and work of the Allianz Group’s Internal Audit
WBPP. functions worldwide adhere to a consistent set of minimum
rules and operating procedures such that the effectiveness of
(b) AC reviewed the findings and recommendations of the Integrity the controls necessary to achieve the Allianz Group’s goals are
Committee on the updates of reported whistleblowing cases ensured.
and new whistleblowing cases. There were no material issues
reported. AC approved the actions to be taken and the closure (e) AC deliberated on the progress of investigation by Malaysia
of cases as recommended by the Integrity Committee. Competition Commission in respect of the allegation by
Federation of Automobile Workshop Owners’ Association
(c) AC reviewed the findings and recommendations by the of Malaysia on Persatuan Insurans Am Malaysia and its
Integrity Committee on the updates of reported fraud cases members, including the general insurance subsidiary of the
and new fraud cases discovered by the insurance subsidiaries. Company.
There were no fraud cases of material or significant impact
detected. AC approved the actions to be taken and the closure (f) AC reviewed and recommended for the approval of the
of cases as recommended by the Integrity Committee. respective Boards of the Group, the AMB Group Sales
Disciplinary Policy.
Others
(g) AC deliberated the post-mortem report on AMB Group’s
(a) AC reviewed and recommended for the approval of the Board, operational recovery amidst the COVID-19 pandemic.
the Chairman’s Statement, Management Discussion and
Analysis, AC Report and the Corporate Governance Overview The Group has activated its Business Continuity Plan since
Statement for inclusion in the Annual Report of the Company March 2020 to manage the COVID-19 triggered crisis and
for the FYE 2019. the situations arising thereon to safeguard the safety of its
staff and partners, while ensuring continuity of operations
(b) AC reviewed and discussed on the tax audit development for and service to its customers. While the AC is satisfied with the
the insurance subsidiaries. current approach and measures taken by the Management,
AC also deliberated on areas for improvement moving forward
(c) AC reviewed and deliberated on the BNM’s 2019 supervisory including staff performance assessment and work culture in
review observations of the insurance subsidiaries and the the new normal.
Management’s responses and remediation actions, prior to
the same being presented to the respective Boards. AC also (h) AC reviewed and recommended for the approval of the Board
monitored the remedial measures to address the findings of the life insurance subsidiary, the revised impairment policy
highlighted in BNM’s 2019 supervisory review on a quarterly of Agency Financing Scheme.
basis.
(i) AC reviewed and recommended for the approval of the
(d) AC reviewed and recommended for the approval of the Board of the general insurance subsidiary, the assessment on
respective Boards of the Group, the Allianz Group Accounting Standard Chartered Bank Malaysia Berhad’s Bancassurance
and Reporting Policy version 7.0 (“GARP”). GARP defines distribution right as at 31 December 2020.
the framework for the provision of reliable and high quality
financial information by Allianz Group, and shall thus, TRAINING
facilitate the implementation of regulatory and accounting
requirements. It aims to minimise any Accounting and During the FYE 2020, AC members attended various conferences,
Reporting risk to protect Allianz Group’s financial stability seminars and training programmes and the details of the
and reputation. Hence, the GARP outlines the principles for conferences, seminars and training programmes are reported in the
Accounting and Reporting functions and processes in the 2020 Corporate Governance Report of the Company.
Allianz Group and sets the related governance structure.
A gap analysis was performed and there were no material
gaps or applications that require adaptation.

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INTERNAL AUDIT FUNCTION These audits and assessment reviews were performed in line with
BNM’s guidelines with regard to Internal Audit Function, Professional
The internal audit function is carried out by the IAD which is Practice of Internal Auditing set by the Institute of Internal Auditors
independent of business operations. The IAD is headed by the Group and other relevant practices or guidelines.
Head of IAD, who reports directly to the AC and to the Chief Executive
Officer administratively. The IAD also established a follow-up audit review to monitor
and ensure that audit recommendations have been effectively
All internal audit personnel had confirmed via annual declaration implemented. The progress reports of the audit observations on
to the Group Head of IAD that they were free from any relationship remedial measures taken by the Management of the respective
or conflict of interest, which could impair their objectivity and companies were tabled at AC meetings on a quarterly basis for AC’s
independence for internal audit activities carried out for the FYE review.
2020. The Group Head of IAD has provided assurance to the AC via
the annual declaration of independence for the FYE 2020 that the IAD also participated in an advisory consulting role in the development
internal audit activities carried out during the year has complied with of new process as well as system developments and enhancement
the independence requirements of the Institute of Internal Auditors where the objective is to add value and improve governance,
and other relevant practices or guidelines from Allianz Group risk management and controls without assuming management
Audit and there was no contravention of any applicable code of responsibility.
professional conduct in relation to the audit activities.
There were a total of 16 internal auditors including the Group Head
The primary objective of the IAD is to assist the Management, AC and of IAD. All internal auditors have completed tertiary education in the
the respective Boards of the Group in the effective discharge of its relevant fields related to the business of the Group and the level of
responsibilities. This is performed through the independent assessment expertise and professionalism within IAD at the end of 2020 was as
and appraisal of the internal controls and the evaluation of the follows:-
effectiveness of risk management system and corporate governance
process of the Group to ensure that organisational and management Expertise Percentage of total
controls are adequate and effective, in line with the Group’s goals. internal auditors
It includes promoting and recommending cost effective controls for
safeguarding the Group’s assets and minimising the opportunities for Finance 80%
error and fraud. IT 19%
Business/Economics 65%
During the FYE 2020, the IAD carried out its duties in accordance
Marketing 50%
with its Audit Charter and 2020 Plan. All internal audit reports
which incorporated the Management of the respective companies’ General/Others 80%
responses and action plans were tabled for discussion at AC meetings. Professional Certification
Certified Internal Auditor (CIA) 6%
2020 Plan was developed based on annual risk assessment
Association of Chartered Certified 38%
and approved by the AC. The identified key audit areas for 2020
encompassed market and brand management, risk and capital Accountants (ACCA) Association of
management, investment management, actuarial pricing, sales Chartered Management Accountant,
distribution – agency, bancassurance, underwriting and policy and etc.
administration, cash transaction and payable, claims fraud Institute of Internal Auditors Memberships 31%
management, IT systems audit and regulatory compliance audit such
Post Graduate
as Business Continuity Management and Replacement of Policy.
MBA and Masters 6%
A total of 35 internal audit assignments were carried out during
the FYE 2020. A total of 37 internal audit and assessment reports The total cost incurred by the IAD in discharging the internal audit
generated during the FYE 2020 were reviewed and deliberated by AC. functions of the Group for the financial year 2020 was RM3.3 million
There were no significant or material audit findings detected during (2019: RM3.0 million).
the FYE 2020.
This AC Report was approved by the Board on 6 May 2021.

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05 Statement on Risk Management
06
and Internal Control
This Statement on Risk Management and Internal Control (“Statement”) is made pursuant
to Bursa Malaysia Securities Berhad’s Main Market Listing Requirements (“MMLR”) that
requires the Board of Directors (“Board”) to include in the Annual Report, a statement
about the state of its internal control.
This Statement has been prepared in accordance with the Statement on Risk Management and Internal Control – Guidelines for Directors of
Listed Issuers issued by an industry-led task force in December 2012.
Board Responsibility
The Board is fully committed to ensure that effective risk management and internal control systems are in place within Allianz Malaysia
Berhad ("Company") and its subsidiaries (collectively referred to as the “Group”) and continuous reviews are undertaken to ensure adequacy
and integrity of these systems. While such systems, are designed to safeguard shareholders’ investments and the Group’s assets, they can
only mitigate rather than eliminate the risk of failure to achieve the business objectives of the Group. These systems, by their nature, can only
provide reasonable but not absolute assurance against material misstatement or loss.
The Board has established an on-going process for identifying, evaluating and managing the significant risks encountered by the Group in
achieving its business objectives. The process, which is reviewed and updated from time to time to cater for changes in business environment,
has been in place throughout the financial year ended 31 December 2020 and up to the date of this Statement.
Audit Committee Risk Management Committee

The Audit Committee (“AC”) through the Internal Audit function The Risk Management Committee (“RMC”) deliberates on the
assists the Board to assess the effectiveness and adequacy of on-going assessment and key risks identified and actions taken
the Group’s internal control system. The AC has oversight on the to mitigate and/or minimise the risks from Compliance and Risk
Internal Audit’s independence, scope of work and resources. The Management functions. This is to ensure that the key risks are
AC deliberates on key internal audit findings and investigation adequately managed and the management process is in place
reports (if any), tabled on a quarterly basis. and functioning effectively.
The Board is also informed of the decision and significant issues deliberated and recommendations by the AC and RMC via the reporting of
the respective Chairman of AC and RMC as well as the minutes of the AC and RMC tabled at the Board Meetings.
The Chief Executive Officer and the Chief Financial Officer have given assurance to the Board on the adequacy and effectiveness of the
Group’s risk management and internal control system. For the financial year ended 31 December 2020 and up to the date of this Statement,
the Management has not identified any significant deficiencies in the design or operation of risk management and internal controls of the
Group that could adversely affect the Group’s ability in meeting its business objectives.
Control Structure
The key processes that the Board has established for reviewing the adequacy and integrity of risk management and internal controls of the
Group are as described below.

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Statement on Risk Management 05
and Internal Control 06
Risk Management Framework Both the Compliance and Risk Management functions report to the
RMC which assists the Boards of the OEs to discharge its oversight
The Board recognises the importance of having in place a risk function effectively. As part of its responsibilities, the Compliance
management system to identify key risks and implement appropriate and Risk Management functions advise the Boards and Senior
controls to manage such risks as an integral part of the Group’s Management of the OEs on compliance, risk and regulatory matters;
operations. The Group has in place a Risk Management Framework and promote risk and compliance awareness amongst the Group’s
Manual (“RMFM”) for all companies within the Group (“OEs”). The
employees through trainings and workshops.
RMFM outlines the guiding principles of the risk management
approach, structure, roles, responsibilities, accountabilities, reporting
In addition to the above oversight functions, Legal and Actuarial
requirements as well as the risk identification, evaluation and
monitoring process of the Group. It is designed to formalise the functions of the insurance OEs constitute additional components of
risk management functions and practices across the Group and to the “second line of defence”. An appropriate control framework has
increase awareness of the Group’s employees to risk identification, been established to avoid any potential conflict of interest to fulfil
measurement, control, on-going monitoring and reporting. their roles as the second line of defence.
The RMFM is in compliance with the relevant requirements of the • The Legal function seeks to mitigate legal risks arising from
guidelines and/or policies issued by Bank Negara Malaysia (“BNM”) legislative changes, major litigation and disputes, regulatory
and Allianz SE Group. proceedings and unclear contractual terms.
The system of risk governance process is integrated into the core

• The Actuarial function contributes towards assessing and
management processes and forms part of the daily business
managing risks in line with regulatory requirements and reports
process so that a value-added contribution in terms of sustainable
to the respective Board and Senior Management of the OEs. Its
competitive advantage and improved business performance can
be established. Various standards are implemented by the Group, scope of work includes coordination and calculation of technical
including organisational structure, risk strategy, written policies, reserves, providing oversight on product pricing and profitability
authority limits, system documentation and reporting, to ensure and contribution to the effective implementation of the risk
accurate and timely flow of risk-related information and a disciplined management system.
approach towards decision making and execution.
The RMC drives the risk management framework of the Group and
The Group also adopts the three lines of defence model where the reports quarterly to the Boards of the OEs on its recommendations
“first line of defence” rests with the business managers. They are and/or decisions. The Risk Management Working Committee
responsible in the first instance for both the risks and returns of their (“RMWC”) is established at the Management level of the respective
decisions.
OEs and serves as a platform for two-way communication between
the Management and the RMC on matters relating to risk strategy
The “second line of defence” is made up of the oversight
and management. Through the quarterly reporting from RMWC, the
functions comprising Compliance and Risk Management that are
RMC consolidates the status of the risks and presents them to the
independent from business operations.
respective Board of the OEs for consideration.
• The Compliance function assists the respective Board and

The Governance and Control Committee (“GovCC”) supports
Senior Management of the OEs in managing and mitigating the
the respective OEs’ Management to fulfil its responsibilities with
compliance risks due to any non-compliance of the requirements
respect to regulatory governance, organisational and control
of the law, regulations as well as regulatory and industry
requirements. The GovCC also provides a platform for structured
guidelines.
and institutionalised interaction and collaboration on
cross-functional and control related topics to facilitate a consistent
• Risk Management function assists the respective Board and
approach in terms of processes, methodologies, assessments,
Senior Management of the OEs to achieve its strategic goals
materiality and others. GovCC members consist of senior
and objectives by implementing risk management activities and
management from governance and operation functions. The GovCC
controls across the organisation.
reports to the respective OE’s Senior Management Committee on
governance and internal control system related matters.

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05
Statement on Risk Management
06 and Internal Control
Internal Audit
The Internal Audit function of the Group, which reports to the AC, undertakes independent reviews or assessments of the Group’s operations
and its system of internal controls. It provides monitoring of the controls and risk management procedures as well as highlights significant
risks impacting the Group. The internal audit personnel form the “third line of defence”, are independent from the day-to-day activities of the
Group and have unrestricted access to all activities conducted by the Group.
Internal Audit Plan is developed based on annual risk assessment and approved by the AC. The audit scope covers auditable areas
encompassing financial operations, sales, underwriting and claims operation, operation such as complaints management, internal and
regulatory compliance audit such as business continuity management, replacement of policy, and IT systems.
Internal audit findings are discussed at management level. Senior and functional line management are tasked to ensure that management
action plans are carried out in accordance with the internal audit recommendations. All internal audit reports are submitted to the AC. The
AC deliberates on key audit findings and management actions to address these findings during the AC meetings.
Follow-up audits are also performed to monitor continued compliance and the internal auditors will provide quarterly updates to the AC on
the progress of the management action plans as well as progress of the Internal Audit plan.
Risk Management Process
Risk management is considered and managed as part of the daily process of managing and directing the business. These include the
implementation of a limit system, various frameworks, manuals and policies.
Besides the embedded process, the following risk management cycle to identify, assess, mitigate, monitor and report will also be carried out
by the Risk Management function together with the respective risk owners: -
Risk Identification & Assessment Process
Preparation Identification Risk Mitigation

RMWC/RMC Board
of Top Risk & Evaluation Plans/Key Risk
Review Approval
Assessment of Risk Indicators
Review & Follow-Ups Updates
Supplementary Risk Assessments (e.g. Risk and Control Self-Assessment, Emerging Risk)

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(i) Top Risk Assessment (“TRA”)
TRA approach is in place to periodically analyse all material quantifiable and non-quantifiable risks including market, credit,
underwriting, business, operational, liquidity, reputational and strategic risks.
The Group identifies and remediates significant threats to financial results, operational viability or the delivery of key strategic objectives,
regardless of whether they relate to quantifiable or non-quantifiable risks using the approved TRA Matrix. The identified top risks are
assessed quarterly by the assigned risk owners; and the same is reviewed by the RMWC and the RMC and approved by the Board. Key
risk indicators are also put in place to monitor changes in risk exposure or control effectiveness for the top risks on a quarterly basis. The
key risks and their salient points on how the Group manages these risks are set out below:-
Key Risks Broad Definition Risk Management Practices
Market Unexpected losses arising due to changes • Investment activity is strictly governed by the pre-approved
in market prices or parameters influencing limits and appetite and monitored through a front end
market prices, as well as the resultant risk system. Any exception requires pre-approval.
from options and guarantees that are • An asset and liability process has been put in place to
embedded in contracts or from changes manage the risks and returns expected from the insurance
to the net worth of assets and liabilities obligations.
in related undertakings driven by market • Selectively using derivative to either hedge the portfolio
parameters. In particular, these include against adverse market movements or reduce reinvestment
changes driven by equity prices, interest risk.
rates, real estate prices, exchange rates,
credit spreads and implied volatilities.
It also includes changes in market prices
due to worsening of market liquidity.
Credit Unexpected losses in the market value of • Credit analyses are conducted prior to purchase and regular
the portfolio due to deterioration in the review on portfolio.
credit quality of counterparties including • Investment activity is strictly governed by the pre-approved
their failure to meet payment obligations limits to ensure the diversification of investment portfolio
or due to non-performance of instruments. in order to minimise the impact of default by any single
counterparty.
• Only uses pre-approved reinsurance partners with strong
credit profiles.
Underwriting Unexpected financial losses due to • Managed through a comprehensive and strict standard for
inadequacy of premiums for catastrophe underwriting limit guidelines. Where necessary, the risk will
and non-catastrophe risks, due to the be surveyed by the loss control engineers.
inadequacy of reserves or due to the • Regular monitoring of products, assumptions used against
unpredictability of mortality or longevity. actual industry statistics and re-pricing will be considered if
necessary.
• Adequate reinsurance is purchased and reviewed annually
to ensure adequate continuous cover within acceptable
appetite and costs.
• New products undergo a robust product development
process.
Business Unexpected decrease in actual results as • Regular monitoring of actual experience.

compared to business assumptions, which • New products undergo a robust product development review
leads to a decline in income without a process.
corresponding decrease in expenses; this
includes lapse risk.

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(i) Top Risk Assessment (“TRA”) (continued)
Key Risks Broad Definition Risk Management Practices
Legal and Losses arising from a breach of relevant • Trainings will be provided and annual declarations required
Regulatory laws and regulations. from all staff.
• New guidelines will be published in the Group’s staff e-portal
and highlighted through e-mails.
• Regular reviews are conducted to ensure compliance.
Information Information security breach losses • Strict policy and disciplinary action for security breach.
Security triggered by both information technology • Staff awareness on IT Security and Privacy.
(“IT”) and non-IT leading to loss of data • Access Control.
confidentiality, loss of data integrity, as • Regular review on User ID access.
well as business disruption and loss of • Use of virus protection software.
availability of services resulting in legal • Data Loss Prevention solution.
costs, fines, forensic costs, remediation • Conduct of Annual Penetration Testing by independent party
costs, compensation and/or reputation to detect possible external and internal vulnerabilities.
management costs. • IT security controls in place, such as Firewall, Malware
Protection and Distributed Denial-of-Service protection.
• Privilege Identity Management.
• Database encryption.
• Privacy Impact Assessment.
• Data privacy contractual obligations for Service Providers.
(ii) Operational Risk Management (“ORM”) (iii) Reputational Risk Management
ORM is a continuous process which includes operational risk All activities within Group can influence its reputation, which is
identification, measurement, quantification, management determined by the perceptions and beliefs of its stakeholders.
and monitoring to mitigate the operational loss resulting from Hence, thorough management of any potential reputational
inadequate or failed internal processes, people, system or risks is required. Any risks that might have significant impact on
from external events. OEs within the Allianz SE Group will be escalated to Allianz SE.
ORM is monitored through a combination of the following The Group has adopted Allianz SE Group’s Allianz Standard
activities: - for Reputational Risk Management which establishes a
core set of principles and processes for the management of
• Integrated Risk and Control System. reputational risks within the Group. The management of direct
• Analysis of actual loss events reported into the Loss Data reputational risks requires balancing the benefits of a given
Capture database. business decision against the potential reputational impacts,
• Periodic audits by the Internal Audit Department and taking into account the Group’s reputational risk strategy and
reviews by Risk Management function. Environmental, Social and Governance approach. Indirect
• Other key risk indicators and feedback from subject reputational risks are managed through the TRA as well as risk
matter experts (for example IT Security Officer, Data and control self-assessment processes, which apply the same
Privacy Officer, Business Continuity Management Officers, reputational risk assessment methodology used for direct
Anti-Fraud and Anti-Corruption Coordinators, as well as reputational risks.
respective operation managers).
The Corporate Communications function of the Group actively
manages the reputational risk by assessing any potential risk
arising from media, social media or any transaction relating to
pre-defined sensitive areas.

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(iv) Liquidity Risk Management economic conditions. The results of the stress test will then
be incorporated into the respective insurance OEs’ capital
Liquidity risk is a consequential risk, i.e. another adverse event management plan, in determining the extent of capital
has to happen before the Group runs into liquidity issues. On affected by the threats arising from adverse events and the
this background, the Group has identified various events that actions required to mitigate such threats.
might lead to liquidity shortages. To mitigate this, limits on the
cash position have been put in place and closely monitored. The Boards and Management of the insurance OEs
participated actively in providing feedback on the stress
In addition, as the Group is operating in insurance business, the test results and appropriateness of the methodology and
following risk evaluation tools are also adopted as part of the assumptions adopted to perform the stress test for the
Group’s risk management framework: - respective insurance OEs.
(v) Internal Capital Adequacy Assessment Process (“ICAAP”) Other Key Internal Control Process
ICAAP is an overall process by which the insurance OEs The other key processes that the Board has established to provide
adopted to ensure it has adequate capital to meet its capital effective internal control include: -
requirements which reflects its own risk profile on an on-going
basis. The formal assessment is conducted at least on an Clear and Defined Organisational Structure
annual basis and its results are reported to the Board of the
insurance OE. • The Group has established an organisational structure with
clearly defined lines of responsibility, authority limits and
accountability aligned to its business and operation requirements
The review of the ICAAP coincides with the annual planning
and control environment. Relevant Board Committees with
process and any changes in the strategic directions and
specific responsibilities delegated by the Board are established
business plans of the insurance OE will be updated in its Risk
to provide oversight governance over the Group’s activities.
Strategy, and accordingly all risks identified will also be taken
The Board Committees are centralised at Allianz Malaysia
into account when computing the Individual Target Capital
Berhad Board level. The Board Committees have the authority
Level (“ITCL”) of the insurance OE.
to examine matters under their terms of reference and report to
the respective Board of the OEs with their observations and/or
The ITCL is validated by stress testing to ensure that it will still recommendations. The ultimate responsibility for the decision on
be above the Supervisory Target Capital Level imposed by all matters, however, lies with the respective Board of the OEs.
the regulator even after the occurrence of a severe plausible
event demonstrating a focus on balance sheet strength and • Various Management Committees are established by the
protection of shareholders’ value. A Capital Management Management of the insurance OEs to assist in managing the day-
Plan (“CMP”) was drawn up with the objective to optimise to-day operations and ensure its effectiveness. The Management
risk and return, while maintaining sufficient level of capital Committees formulate tactical plans and business strategies,
in accordance with the insurance OE’s risk appetite and monitor performance and ensure activities are carried out in
regulatory requirements. The CMP identified the action plans accordance with corporate objectives, strategies, business plans
and sources of capital that are available for a pre-determined and policies as approved by the respective Board of the insurance
ITCL thresholds if they are triggered to bring the capital OEs.
adequacy ratio above the internal soft threshold level.
Management Authority Limit
(vi) Stress Testing
• The Board’s approving authority is delegated to the Management
Stress test is an effective risk management tool and the through formal and defined operational authority limits that
Group conducts such stress test regularly. The stress test governs business procedures and decision-making process in the
process is designed based on the respective insurance OEs’ Group. The operational authority limits incorporate segregation
of duties and check and balance in delegation of authority.
solvency position, lines of business, current position within
the market, investment policy, business plan and general

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• The Management’s authority limits include limits for underwriting • A due diligence working group was formed to review the related
of risks, claims settlement, reinsurance, and capital expenditures party transactions and submit its recommendations in accordance
and are reviewed and updated to ensure relevance to the to the levels of authority as determined by the respective OE’s
Group’s operations. Such authority limits are documented and Board for consideration. The AC will review the related party
made available to all staff via the Group’s staff e-portal. transactions that falls within its authority limit and submit its
recommendation to the respective OE’s Board for consideration.
• In ensuring that the decision making process is transparent and
to the best interest of the Group, all Directors and staff including • The AC also review the related party transaction review procedures
the Chief Executive Officer are required to declare their interest on an annual basis to ensure that the procedures and processes
in other entities on an annual basis. In addition, they are also are sufficient and adequate to monitor, track and identify related
required to disclose to the Group, any circumstance that may give party transactions including recurrent transactions in a timely and
rise to a conflict of interest situation during the course of carrying orderly manner.
out their duties.
Underwriting and Reinsurance
Policies and Procedures
• The insurance OEs employ high standards in their respective
• Clear, formalised and documented internal policies and underwriting process. This includes among others, risk
procedures are in place to ensure continued compliance with segmentation and selection, setting adequate pricing and terms
internal controls and relevant rules and regulations imposed by and conditions, setting of right retention limit and adequate
the relevant authorities. reinsurance protection.
• These policies and procedures are subject to review and • Underwriting authority is controlled centrally at the Head Office
improvement to reflect changing risks and process enhancement, level. Reinsurance is in place primarily to ensure that no single
as and when required. Policies and procedures are also made loss or aggregation of losses arising from a single event will have
available via the Group’s staff e-portal for easy access by the an adverse financial impact on the Group. Reinsurers selection is
employees. guided by the guidelines issued by the regulator and the Allianz
SE Group. Reinsurance needs are reviewed annually in respect
Annual Business Plan and Performance Review of reinsurance treaties and on case to case basis on facultative
arrangements.
• Annual business plans are submitted to the respective Board
of the OEs for approval. Financial condition and business Financial Control Procedures
performance reports are also submitted to the respective Board
of the OEs for review during the Board meetings. These reports • Financial control procedures are put in place and are documented
cover all key operational areas and provide a sound basis for the in the procedural workflows of each business unit. These workflows
respective Board of the OEs to assess the financial performance are subject to reviews and improvements to reflect changing risks
of the OEs and to identify potential problems or risks faced by the and process enhancement as and when required.
OEs, thus enabling the respective Board of the OEs to effectively
monitor on an on-going basis, the affairs of the respective OEs. Investment
Related Party Transactions • The Investment Committee of the insurance OEs are responsible
for setting investment policies, objectives, guidelines and controls
• The Group has established the necessary controls and procedures for the Investment Department. The Investment Department is
to ensure compliance with the relevant regulatory requirements responsible for managing the investment functions of the Group
in respect of related party transaction. Necessary disclosures are within the pre-determined parameters.
made to the respective Board of the OEs and where required, prior
approval of the respective Board of the OEs and/or shareholders • The Group has in place the Group Investment Manual which sets
for the transactions will be obtained prior to execution. out the detailed investment procedures and controls, including
an Investment Code of Ethics to ensure that the Group’s interests
prevail over the personal interests of the employees.

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• The investment limits are set at various levels with limits which assist to ensure that the products developed and marketed by the
are more stringent than the regulatory limits as prescribed by respective insurance OEs are appropriate to the needs, resources
BNM. The investment limits are monitored monthly to ensure and financial capability of the targeted consumer segments.
compliance with the investment limits as specified in the Risk
Based Capital Framework for Insurers issued by BNM. • The on-going product risk management is embedded within the
risk management framework of the Group.
• The investment performance reports are amongst the reports
Whistleblowing and Anti-Fraud
submitted to the Investment Committee and the Board of the
insurance OEs for review at its quarterly meetings.
• The oversight of whistleblowing and fraud matters of the Group is
performed by the Company’s Integrity Committee (“InC”). The InC
Code of Conduct for Business Ethics and Compliance (“COC”) coordinates all activities concerning prevention and detection of
fraud and handling of whistleblowing incidents.
• Every employee is required to attest on an annual basis that they
understand and comply with the Allianz SE Group’s COC. The • The Group has adopted the Allianz SE Group’s Anti-Fraud Policy
COC among others, is essential in promoting ethical conduct (“Allianz SE AFP”) and the Allianz SE Group’s Whistleblowing
within the Group and encompasses non-disclosure of the Group’s Policies and Procedures (“Allianz SE WBPP”) to address fraud
information, accountability and areas on potential conflict of and whistleblowing issues respectively. The Allianz SE AFP defines
fraud events, investigation process, reporting procedures, fraud
interest.
risk assessments, training and the roles and responsibilities of
Management and employees. The Allianz SE WBPP on the other
Anti-Money Laundering/Counter Financing of Terrorism hand, describes the Group’s Speak-Up Policy, avenues for filing a
(“AML/CFT”) and Targeted Financial Sanctions concern and handling of whistleblowing incidents.
• The Group has in place internal policies and procedures relating to • In respect of whistleblowing, the Group has established
AML/CFT to prevent and detect money laundering and terrorism a whistleblowing mechanism to enable anonymous and
financing activities. In life insurance OE, these include customer non-anonymous reporting of any breach of the COC, any laws,
due diligence, screening against sanctions list and suspicious regulations, orders or any internal rules. These whistleblowing
transaction reporting to the Compliance Department whereas cases are assessed confidentially by the InC to determine
its validity and reports the findings and any recommendations to
in general insurance OE, sanctions list screening procedures
the AC.
are in place and any suspicious transactions are reported to
the Compliance Department. In respect of education, staff and The effectiveness of the whistleblowing policies and procedures are
agents of life insurance OE are trained on AML/CFT requirements reviewed periodically at least once in 3 years.
to promote understanding of their fundamental responsibilities in
adhering to the procedures of verifying customers’ identities and Anti-Corruption
reporting of suspicious transactions.
• The Group has adopted a localised Anti-Corruption Policy
Product Development (“Policy”) that outlines the guiding principles of Allianz SE,
Malaysian Anti-Corruption Commission Act 2009 (“MACC Act”)
and MMLR with effect from 16 June 2020. Prior to that, the Group
• The insurance OEs have each in place a Product Development
adopted the Allianz SE Group’s Anti-Corruption Policy and MACC
Management Policy (“PDM Policy”) which sets out the policies
Act. The Policy serves to outline the Group’s existing controls
and procedures on product development in accordance with the and behavioural guidelines on the risk areas of dealing with
requirements of the Guideline on Introduction of New Products by government officials, business courtesies, hiring of representatives,
Insurers and Takaful Operators (BNM/RH/STD 029-10) issued by political contributions, charitable contributions, joint ventures and
BNM (“BNM Product Guidelines”). outsourcing agreements as well as facilitation payments.
• The PDM Policy aims to promote sound risk management Corruption risk is being assessed annually and the effectiveness
practices in managing and controlling product risk by ensuring of the policies and procedures are reviewed periodically at least
once in 3 years.
the appropriate assessment and mitigation of risk during the
development and marketing stages. The PDM Policy will also

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• The Vendor Integrity Screening process which is a part of the Allianz Agent Sales Disciplinary Policy
SE Group’s Anti-Corruption Programme aims at ensuring an integrity-
based due diligence is performed before any third party vendor is • As part of the measures to improve uniformity in disciplining
engaged. The screening contains a self-assessment section which the agency force, insurance OEs have each formalised a Sales
among others, includes questions on anti-corruption to be answered
Disciplinary Policy detailing definition of types of offences/
by the potential vendor and a risk evaluation to be completed by
misconduct and the associated recommended disciplinary
the relevant staff/department in charge. Only those vendors whose
actions.
screening does not reveal any negative findings will be engaged.
Business Continuity Management

Employees
• Business Continuity Plans for all OEs have been formulated to

• All staff are required to make an annual declaration that they
ascertain that the Group will recover and restore any interrupted
fulfilled the minimum criteria of “A Fit and Proper Person” as
critical functions within a predetermined time upon the occurrence
prescribed in Sections 59(1), (2) and (3) of the Financial Services
of any disastrous events.
Act, 2013. In addition, all staff are also required to attest that they
understand and comply with the requirements of the following
• The testing for Business Continuity Plan and Disaster Recovery
internal guidelines and policies:-
Plan is conducted at least once a year.
(i) Related Party Transaction Declaration;
Information System
(ii) Disclosure of Data;
(iii) Conflict of Interest;
• All employees are required to strictly abide by and comply with
(iv) Code of Conduct for Business Ethics and Compliance;
the Group Information Technology and Information Security
(v) IT Security Policy and Guideline e-Awareness Declaration;
Policy and Standard (“IT and IS Policy”) which establishes core
(vi) Anti-Corruption Policy;
principles, responsibilities, tasks and organisational framework
(vii) Anti-Fraud Awareness Declaration; and
for IT and Information Security, in order to facilitate the fulfilment
(viii) Guidelines on the Code of Conduct for the General
of internal and regulatory requirements.
Insurance Industry and Code of Ethics and Conducts for the
Life Insurance Industry.
• Following the issuance of Risk Management in Technology Policy
Document (“RMiT Policy”) by BNM effective since 1 January
Sales Standard and Sales Agent Code of Conduct
2020, which superseded the Guidelines on Management of
IT Environment (GPIS 1) and Guidelines on Internet Insurance
• The Group’s insurance intermediaries are guided by the Allianz SE
(Consolidated) (BNM/RH/GL/003-5), the insurance OEs are
Sales Standard and Allianz SE Singapore Branch (“AZAP”) Sales
committed to remedy the gaps to meet the expectations and
Agent Code of Conduct in order to promote professional sales
requirements prescribed under the RMiT Policy. Accordingly,
conduct of intermediaries representing the Group. The Group has
two new frameworks were implemented, i.e., the formulation of
established an Ethics and Compliance Committee in insurance
Technology Risk Management Framework and Cyber Resilience
OEs to deal with intermediary behaviour that are contrary to the
Framework, which were approved by the Board on 16 June 2020.
Sales Standard and AZAP Sales Agent Code of Conduct.
• The IT & Digital Steering Committee (“ITDSC”) is responsible

• In addition, agents of the insurance OEs are also required to
for the overall strategic deployment of IT and digital assets
comply with the Code of Ethics and Conduct imposed by the
in tandem with the business objectives. Other duties and
respective insurance associations.
responsibilities of ITDSC include, establishing effective IT and
digital plans, formulation and implementation of technology
• All internal control deficiencies or breaches related to the Sales
risks management program, recommending to the respective
Policy and Sales Agent Code of Conduct are reported to the
Senior Management Committees, RMC and Board (whichever
respective Senior Management Committees of the insurance OEs
applicable) for approval on IT-related expenditure and material
together with corrective measures.
deviation from technology-related policies, as well as monitoring
the progress of approved IT and digital programs/projects.

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Data Management Framework Review of Statement on Risk Management and Internal Control
by External Auditors
• The Group Data Management Framework (“DMF”) has been in
place to establish and maintain a sound data and information As required by Paragraph 15.23 of the Bursa Malaysia Securities
management system framework. The objective of the DMF Berhad’s MMLR, the external auditors have reviewed this Statement
is to manage data and disseminate information effectively, pursuant to the scope set out in Recommended Practice Guide
efficiently and to maximise the value of data assets. In addition, (“RPG”) 5 (Revised 2015), Guidance for Auditors on Engagements to
the DMF aims to ensure the integrity of data assets by preventing Report on the Statement on Risk Management and Internal Control
unauthorised or inappropriate use of data and information. included in the Annual Report issued by the Malaysian Institute
of Accountants for inclusion in the annual report of the Group for
Data Privacy the year ended 31 December 2020, and in their limited assurance
review, they have reported to the Board that nothing has come
• The Allianz Privacy Standard (“APS”), contains the global to their attention that cause them to believe that the statement
minimum requirements applicable within the Allianz SE Group intended to be included in the annual report of the Group, in all
for the processing and transfer of personal data within the material respects:
Allianz SE Group. The APS takes into account the requirements
of the European Union privacy law, the General Data Protection (a) has not been prepared in accordance with the disclosures
Regulation to facilitate cross-border transfers of personal data required by paragraphs 41 and 42 of the Statement on Risk
originating from or processed in the European Economic Area Management and Internal Control - Guidelines for Directors of
within the Allianz SE Group. Under the APS, there are functional Listed Issuers, or
rules specifying data privacy and protection requirements,
which include conducting Privacy Impact Assessment to record (b) is factually inaccurate.
processing activities that involve handling of personal data and
to comply with the Personal Data Breach Incident Workflow. RPG 5 (Revised 2015) does not require the external auditors to
Compliance with the APS adopted by the Group ensures consider whether the Statement covers all risks and controls, or to
compliance with the Malaysian Personal Data Protection Act, form an opinion on the adequacy and effectiveness of the Group’s risk
2010 and is in line with the Code of Practice on Personal Data management and internal control system including the assessment
Protection for Insurance and Takaful in Malaysia. and opinion made by the Board and management thereon. The
external auditors are also not required to consider whether the
Human Resources Policies and Procedures processes described to deal with material internal control aspects of
any significant problems disclosed in the annual report will, in fact,
• The Group has established proper policies and procedures remedy the problems.
on human resource management, including recruitment,
learning and development, talent development, performance Conclusion
management and employee benefits. These policies and
procedures are reviewed as and when the need arises and Based on the Board’s review through the various Board Committees,
changes effected are communicated to relevant employees via- external auditors’ limited assurance review and the assurance and
email. The policies and procedures are also made available via reports from the Management, the Board is of the view that the
the Group’s staff e-portal for easy access by the employees. system of internal control and risk management of the Group is
sound and sufficient to safeguard shareholders’ investments and the
Group’s assets.
This Statement is made in accordance with the resolution of the

Board dated 24 February 2021.

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05 Additional
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Compliance Information
1. UTILISATION OF PROCEEDS RAISED FROM CORPORATE PROPOSALS
During the financial year ended 31 December 2020, there were no proceeds raised from corporate proposals.
2. MATERIAL CONTRACTS
Allianz Malaysia Berhad ("AMB" or "Company") and its subsidiaries (collectively referred to as "Group") have not entered into any
material contracts involving the interest of the Directors, Chief Executive Officer who is not a Director or major shareholders, which is
either still subsisting at the end of the financial year ended 31 December 2020 or, had been entered into since the end of the previous
financial year.
3. ANALYSIS OF SHAREHOLDINGS AS AT 12 APRIL 2021
3.1 ORDINARY SHARES
Number of Issued Shares : 177,168,939

Class of Shares : Ordinary shares
Voting Rights : One vote per ordinary share
DISTRIBUTION OF SHAREHOLDINGS
No. of % of No. of % of
Size of Holdings Shareholders Shareholders Shares Held Shares
Less than 100 207 4.68 1,585 0.000
100 to 1,000 2,479 56.00 1,137,829 0.64
1,001 to 10,000 1,333 30.11 4,958,015 2.80
10,001 to 100,000 340 7.68 9,137,451 5.16
100,001 to less than 5% of issued shares 67 1.51 46,571,764 26.29
5% and above of issued shares 1 0.02 115,362,295 65.11
Total 4,427 100.00 177,168,939 100.00
SUBSTANTIAL SHAREHOLDERS' SHAREHOLDINGS AS PER THE REGISTER OF SUBSTANTIAL SHAREHOLDERS
Direct Interest Indirect Interest

Name of Substantial Shareholder Shares Held Shares Shares Held Shares
Allianz SE 115,362,295 65.11 - -
Employees Provident Fund Board 10,036,000 5.67 - -

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Additional 05
Compliance Information 06
3. ANALYSIS OF SHAREHOLDINGS AS AT 12 APRIL 2021 (CONTINUED)
3.1 ORDINARY SHARES (CONTINUED)
30 LARGEST SHAREHOLDERS AS IN THE RECORD OF DEPOSITORS
No. of % of
No. Name of Shareholders Shares Held Shares
1 CITIGROUP NOMINEES (ASING) SDN BHD 115,362,295 65.11
ALLIANZ SE
2 CITIGROUP NOMINEES (TEMPATAN) SDN BHD 6,781,300 3.83
EMPLOYEES PROVIDENT FUND BOARD
3 PERTUBUHAN KESELAMATAN SOSIAL 5,176,422 2.92
4 AMANAHRAYA TRUSTEES BERHAD 3,612,300 2.04
PUBLIC SMALLCAP FUND
5 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 3,011,800 1.70
EMPLOYEES PROVIDENT FUND BOARD (ABERDEEN)
KUMPULAN WANG PERSARAAN (DIPERBADANKAN) (ABERDEEN)
8 WOO KHAI YOON 2,050,000 1.16
9 LEMBAGA TABUNG ANGKATAN TENTERA 1,453,800 0.82
10 MAYBANK NOMINEES (TEMPATAN) SDN BHD 1,199,100 0.68
MTRUSTEE BERHAD FOR TENAGA NASIONAL BERHAD
RETIREMENT BENEFIT TRUST FUND (FM-ABERDEEN)
(419500)
EXEMPT AN FOR CITIBANK NEW YORK (NORGES BANK 14)
12 NEOH CHOO EE & COMPANY, SDN. BERHAD 842,500 0.48
13 CITIGROUP NOMINEES (ASING) SDN BHD 841,800 0.48
EXEMPT AN FOR CITIBANK NEW YORK (NORGES BANK 19)
14 AMANAHRAYA TRUSTEES BERHAD 802,200 0.45
PUBLIC STRATEGIC SMALLCAP FUND
15 LIM SU TONG @ LIM CHEE TONG 802,000 0.45
16 MAYBANK NOMINEES (TEMPATAN) SDN BHD 711,100 0.40
RETIREMENT BENEFIT TRUST FUND (RB-TNB-AHAM)
(420317)
NATIONAL TRUST FUND (IFM MAYBANK) (412183)
PUBLIC SECTOR SELECT FUND

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Additional
06 Compliance Information
3.1 ORDINARY SHARES (CONTINUED)
30 LARGEST SHAREHOLDERS AS IN THE RECORD OF DEPOSITORS (CONTINUED)
No. of % of
No. Name of Shareholders Shares Held Shares
19 AMSEC NOMINEES (TEMPATAN) SDN BHD 500,000 0.28
AMBANK (M) BERHAD FOR LIM SU TONG @ LIM CHEE TONG (8335-1101)
MAYBANK TRUSTEES BERHAD FOR MANULIFE INVESTMENT - HW FLEXI FUND
(270519)
NATIONAL TRUST FUND (IFM AFFINHWANG) (410195)
22 CITIGROUP NOMINEES (TEMPATAN) SDN BHD 442,000 0.25
KUMPULAN WANG PERSARAAN (DIPERBADANKAN) (AFFIN ABSR EQ)
23 DB (MALAYSIA) NOMINEE (TEMPATAN) SENDIRIAN BERHAD 440,517 0.25
EXEMPT AN FOR AFFIN HWANG ASSET MANAGEMENT BERHAD (TSTAC/CLNT-T)
PUBLIC SELECT TREASURES EQUITY FUND
PB SMALLCAP GROWTH FUND
26 HSBC NOMINEES (ASING) SDN BHD 344,800 0.19
BPSS SIN FOR ABERDEEN STANDARD MALAYSIAN EQUITY FUND (BPTSSL)
27 CITIGROUP NOMINEES (TEMPATAN) SDN BHD 341,700 0.19
EMPLOYEES PROVIDENT FUND BOARD (F TEMPLETON)
28 CIMSEC NOMINEES (TEMPATAN) SDN BHD 325,000 0.18
CIMB FOR NOBLE SOUND SDN BHD (PB)
29 HSBC NOMINEES (TEMPATAN) SDN BHD 303,425 0.17
HSBC (M) TRUSTEE BHD FOR PERTUBUHAN KESELAMATAN SOSIAL
(AFF HWG6939-403)
30 UOB KAY HIAN NOMINEES (TEMPATAN) SDN BHD 295,300 0.17
EXEMPT AN FOR UOB KAY HIAN PTE LTD ( A/C CLIENTS )

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Additional 05
3.2 IRREDEEMABLE CONVERTIBLE PREFERENCE SHARES (“ICPS”)

Number of Issued ICPS : 169,036,846

Class of Shares : Preference shares

Voting Rights : The ICPS holders shall carry no right to vote at any general meeting of the Company except for
the following circumstances:-
(a) when the dividend or part of the dividend on the ICPS is in arrears for more than 6 months;
(b) on a proposal to wind-up the Company;
(c) during the winding-up of the Company;
(d) on a proposal that affect the rights attached to the ICPS;
(e) on a proposal to reduce the Company’s share capital; or
(f) on a proposal for the disposal of the whole of the Company’s property, business and
undertaking
In any such cases, the ICPS holders shall be entitled to vote together with the holders of ordinary shares and exercise 1 vote for
each ICPS held.
DISTRIBUTION OF ICPS HOLDINGS
Size of Holdings ICPS Holders ICPS Holders ICPS Held ICPS
Less than 100 24 3.10 498 0.00
100 to 1,000 405 52.32 144,505 0.08
1,001 to 10,000 229 29.59 872,790 0.52
10,001 to 100,000 91 11.76 2,720,927 1.61
100,001 to less than 5% of issued ICPS 24 3.10 21,095,258 12.48
5% and above of issued ICPS 1 0.13 144,202,868 85.31
Total 774 100.00 169,036,846 100.00
SUBSTANTIAL SHAREHOLDER’S ICPS HOLDINGS
Direct Interest Indirect Interest

Name of Substantial Shareholder ICPS Held ICPS ICPS Held ICPS
Allianz SE 144,202,868 85.31 - -

02
03
04
05
Additional
3.2 IRREDEEMABLE CONVERTIBLE PREFERENCE SHARES (“ICPS”) (CONTINUED)
30 LARGEST ICPS HOLDERS AS IN THE RECORD OF DEPOSITORS
No. of % of
No. Name of ICPS Holders ICPS Held ICPS
ALLIANZ SE
2 MAYBANK NOMINEES (TEMPATAN) SDN BHD 5,624,400 3.33
MAYBANK TRUSTEES BERHAD FOR PUBLIC REGULAR SAVINGS FUND
(N14011940100)
EMPLOYEES PROVIDENT FUND BOARD
4 AMANAHRAYA TRUSTEES BERHAD 2,771,000 1.64
PUBLIC SMALLCAP FUND
5 PERTUBUHAN KESELAMATAN SOSIAL 2,504,300 1.48
6 HSBC NOMINEES (TEMPATAN) SDN BHD 1,556,458 0.92
HSBC (M) TRUSTEE BHD FOR AFFIN HWANG SELECT OPPORTUNITY FUND
(3969)
7 OLIVE LIM SWEE LIAN 1,079,900 0.64
8 HSBC NOMINEES (ASING) SDN BHD 687,900 0.41
CACEIS BANK FOR HMG GLOBETROTTER
9 AU YONG MUN YUE 500,000 0.30
10 DB (MALAYSIA) NOMINEE (ASING) SDN BHD 341,100 0.20
DEUTSCHE BANK AG SINGAPORE FOR PANGOLIN ASIA FUND
RETIREMENT BENEFIT TRUST FUND (FM-ABERDEEN) (419500)
12 PUBLIC NOMINEES (TEMPATAN) SDN BHD 220,000 0.13
PLEDGED SECURITIES ACCOUNT FOR CHEONG JIIN CHEANG (E-BBB)
13 RHB CAPITAL NOMINEES (TEMPATAN) SDN BHD 220,000 0.13
PLEDGED SECURITIES ACCOUNT FOR SU MING KEAT
14 LOH CHAI KIAM 204,000 0.12
15 AMSEC NOMINEES (TEMPATAN) SDN BHD 200,000 0.12
AMBANK (M) BERHAD FOR LIM SU TONG @ LIM CHEE TONG (8335-1101)
16 DB (MALAYSIA) NOMINEE (ASING) SDN BHD 200,000 0.12
STATE STREET LUXEMBOURG FUND WLGK FOR GOODHART PARTNERS
HORIZON FUND - HMG GLOBAL EMERGING MARKETS EQUITY FUND
CIMB FOR NOBLE SOUND SDN BHD (PB)
PLEDGED SECURITIES ACCOUNT FOR YONG CHEN KONG @ JOSEPH YONG

01
02
03
04
Additional 05
3.2 IRREDEEMABLE CONVERTIBLE PREFERENCE SHARES (“ICPS”) (CONTINUED)
30 LARGEST ICPS HOLDERS AS IN THE RECORD OF DEPOSITORS (CONTINUED)
No. of % of
No. Name of ICPS Holders ICPS Held ICPS
19 CGS-CIMB NOMINEES (TEMPATAN) SDN BHD 150,000 0.09
EXEMPT AN FOR CGS-CIMB SECURITIES (SINGAPORE) PTE. LTD.
(RETAIL CLIENTS)
20 MAYBANK SECURITIES NOMINEES (ASING) SDN BHD 133,100 0.08
MAYBANK KIM ENG SECURITIES PTE LTD FOR KEGANI PACIFIC LTC FUND L.P.
21 LIM TEAN KAU 128,000 0.08
PLEDGED SECURITIES ACCOUNT FOR YONG CHEN KONG @ JOSEPH YONG
(E-IMO)
CIMB FOR KATHRYN MA WAI FONG (PB)
24 KENANGA NOMINEES (TEMPATAN) SDN BHD 125,000 0.07
PLEDGED SECURITIES ACCOUNT FOR HII YU HO
25 EVERGREEN ANGLE SDN BHD 123,000 0.07
26 CGS-CIMB NOMINEES (TEMPATAN) SDN BHD 100,000 0.06
PLEDGED SECURITIES ACCOUNT FOR LOKE PIK WAH (MY0288)
27 INSAS PLAZA SDN BHD 90,900 0.05
PLEDGED SECURITIES ACCOUNT FOR PHUA KIAP WITE (E-KTN)
PLEDGED SECURITIES ACCOUNT FOR KONG GOON KHING (E-JCL)
30 SAI YEE @ SIA SAY YEE 73,000 0.04

02
03
04
05
Additional
4. LIST OF TOP TEN PROPERTIES AS AT 31 DECEMBER 2020 OWNED BY THE GROUP
Built-up Latest Net Book

Existing Area Type of Age of Date of Value
No. Location Use Tenure (Sq. meters) Building Building revaluation RM’000
1 Block 3A, Plaza Sentral Freehold Corporate 18 years

Jalan Stesen Sentral 5 office
50470 Kuala Lumpur
Wilayah Persekutuan
Level 10 and 12 Head office 1,493 07/04/2016 15,840

Level 13A Head office 745 20/09/2017 7,332
Level 13 & 15 Head office 1,493 17/09/2020 15,944
2 Wisma Allianz Branch Lot PT1- 3,672 Office 39 years 17/10/2016 3,769
33, Jalan Gereja office Leasehold building
50100 Kuala Lumpur Expiring
Wilayah Persekutuan 06/09/2072
Lot 263 37 years 17/10/2016 6,863

Freehold
3 Wisma Allianz Life Branch Leasehold 2,500 Terrace 21 years 31/10/2019 9,366
No. 11, 12, 13 and 14 office Expiring shop/
Jalan 53 08/03/2081 office
Desa Jaya Commercial Centre
Taman Desa, Kepong
52100 Kuala Lumpur
Wilayah Persekutuan
4 No. 42 & 46, Jalan Tiara 2C Branch Leasehold 1,228 Terrace 17 years 26/11/2015 4,501
Bandar Baru Klang, Klang office Expiring shop/
41150 Selangor Darul Ehsan 08/05/2093 office
5 Unit Nos. A-G-1, A-1-1, Branch Leasehold 884 Commercial 16 years 15/10/2020 2,904
A-2-1, A-2-2 Office/ Expiring building
Block A, Greentown Square Investment 01/10/2102
Jalan Dato' Seri Ahmad Said, properties
Ipoh 30450 Perak Darul Ridzuan
6 No. 487, Jalan Permatang Rawa Branch Freehold 758 4-storey 17 years 25/11/2015 1,988
Bandar Perda office shop
Bukit Mertajam, 14000 Penang office
7 No. 15, Jalan 8/1D Branch Leasehold 697 Terrace 18 years 1/11/2016 1,964
Section 8, office Expiring shop/
46050 Petaling Jaya, Selangor 07/08/2066 office

01
02
03
04
Additional 05
4. LIST OF TOP TEN PROPERTIES AS AT 31 DECEMBER 2020 OWNED BY THE GROUP (CONTINUED)
Built-up Latest Net Book

Existing Area Type of Age of Date of Value
No. Location Use Tenure (Sq. meters) Building Building revaluation RM’000
8 No. 300 & 301 Branch Freehold 1,088 3 storey 16 years 19/10/2016 1,810
Jalan Lumpur, office shophouse
05100 Alor Star,
Kedah Darul Aman
9 Lot G-1-1, G-1-2 & G-1-3 Branch Leasehold 525 3 storey 12 years 1/11/2016 1,497
No.11, Jalan Tiara 2D/Kui office Expiring shophouse
Bdr Baru Klang, 08/05/2093
41150 Klang
10 Lot No. 285, Pajakan Negeri For rental Leasehold 937 3 storey 35 years 13/10/2016 1,485
No. 2451, Kawasan Bandar Expiring shophouse
XXXIX 24/10/2082
Daerah Melaka Tengah

02
03
04
05
Additional
5. RECURRENT RELATED PARTY TRANSACTIONS
The recurrent related party transactions of a revenue or trading nature entered into by the Group during the financial year ended
31 December 2020 were as follows:-
Income/
Name of (Expenses)
No. Nature of Recurrent Related Party Transactions Related Parties RM'000
1 Reinsurance arrangements between the Company’s insurance subsidiaries and **Allianz SE Group (244,370)
Allianz SE Group where the risk and premium are shared between the parties in
accordance with the reinsurance arrangements entered into between the parties*
2 Payment of annual maintenance and support fees by the Company's life insurance **Allianz Technology (420)
subsidiary to Allianz Technology SE (“Allianz Technology”) for the software system
provided by Allianz Technology
3 Payment of fees by the Company's life insurance subsidiary to Allianz Technology for **Allianz Technology 55
sharing of Human Resource database platform
4 Payment of fees by the Company's general insurance subsidiary to Allianz **Allianz Technology (8,268)
Technology for purchasing of various software licenses
5 Engagement of Allianz Technology, Munich branch Wallisellen for the support and **Allianz Technology (289)
maintenance support service on the Company's life insurance subsidiary Expert
Underwriting System
6 Payment of fees by the Company's life insurance subsidiary to Allianz Technology **Allianz Technology (174)
for the leasing of license services of Thunderhead solution for the implementation of
E-Policy
7 Payment of fees by the Company’s life insurance subsidiary to IDS GmbH ("IDS") for **IDS (128)
conducting performance attribution analysis
8 Investment and redemption of funds (including fund management fees) distributed **AGI 1,157
by Allianz Global Investors Singapore Limited ("AGI") by the Company's life insurance
subsidiary
9 Payment of fees by the Company's insurance subsidiaries to Allianz Investment **AIM Singapore (2,610)
Management Singapore Pte Ltd ("AIM Singapore") for investment advisory services
provided by AIM Singapore
10 Payment of fees by the Company's life insurance subsidiary to RCM Asia Pacific **RCM (747)
Limited ("RCM") for sharing of AGI Global Bloomberg Asset & Investment Manager
database, IT support, maintenance and execution of equity transactions provided by
RCM to the Company's insurance subsidiaries
11 Payment of fees by the Company's life insurance subsidiary to Allianz Investment **AIM SE (205)
Management SE ("AIM SE") and IDS for IT infrastructure and operational investment
controlling and support services
12 Payment of fees by the Company’s life insurance subsidiary to AIM SE for supporting **AIM SE (161)
advisory services in various areas of the investment process

01
02
03
04
Additional 05
5. RECURRENT RELATED PARTY TRANSACTIONS (CONTINUED)
Income/
Name of (Expenses)
13 Payment of fees by the Company's insurance subsidiaries to Allianz SE Singapore ** AZAP (3,051)
Branch ("AZAP") for the business building advisory services and regional investment
provided by AZAP
14 Payment of fees by the Company's general insurance subsidiary to AZAP for ** AZAP (29)
subscription of ABACUS, an enterprise architect software
15 Payment of fees by the Company's insurance subsidiaries to AZAP for sharing of ** AZAP (2,657)
marketing measures undertaken by Allianz SE
16 Payment of fees by the Company's life insurance subsidiary to AZAP for sharing of ** AZAP (125)
Global Procurement (excluding IT) services and support rendered by Allianz SE
17 Payment of fees by the Company's life insurance subsidiary to Allianz SE on the **Allianz SE (63)
support of design and development for Global Digital Factory
18 Payment of fees by the Company's insurance subsidiaries to Allianz SE for IT security **Allianz SE (284)
services
19 Payment of fees by the Company's general insurance subsidiary to Allianz SE to **Allianz SE (2,596)
support the development and improvement of technical excellence
20 Payment of fees by the Company's life insurance subsidiary to Allianz SE for the **Allianz SE (51)
implementation of global cyber insurance solution
21 Payment of service fees by the Company’s general insurance subsidiary to Allianz **AWP (1,794)
Worldwide Partners Services Sdn Bhd (“AWP”) for road assistance services provided
by AWP to the policyholders of the Company's general insurance subsidiary
22 Operational fees received by the Company's general insurance subsidiary for the **EHS 2,000
services rendered by the Company's general insurance subsidiary to Euler Hermes
Singapore Services Pte Ltd ("EHS")
23 Fees received by the Company for providing audit services to Allianz SE Group under **Allianz SE Group 91
the Regional Audit Hub
24 Fees received by the Company for providing life actuarial modeling services to **Allianz SE Group 1,525
Allianz SE Group under the Regional Actuarial Center of Competence
25 Payment of fees by the Company's life insurance subsidiary to Allianz SE for the **Allianz SE (39)
development of Allianz One Finance Programme
26 Payment of fees by the Company's life insurance subsidiary to Allianz Technology for **Allianz Technology (137)
the implementation of Allianz Global Network

02
03
04
05
Additional
5. RECURRENT RELATED PARTY TRANSACTIONS (CONTINUED)
Income/
Name of (Expenses)
27 Payment of annual maintenance fees by the Company's life insurance subsidiary to **Allianz Technology 1,478
Allianz Technology for SAP Central Accounting Platform/Investment Management
Accounting
28 Payment of fees by the Company's life insurance subsidiary to Allianz Technology **Allianz Technology (105)
to support the implementation and maintenance of infrastructure for actuarial
modeling and recharge of cost incurred to Allianz SE Group
29 Payment of fees by the Company's life insurance subsidiary to Allianz Technology for **Allianz Technology (212)
the purchase of Actuarial Reporting Group Object
30 Fees received by the Company's for providing Master Data Management support **Allianz SE Group 291
services to Allianz SE Group
31 Payment of annual membership fees by the Company's life insurance subsidiary to **AGB (49)
Allianz Global Benefits GmbH (“AGB”) for participating in the Allianz International
Employee Benefits Network
32 Payment of fees to Allianz Technology for the implementation and support service of **Allianz Technology (814)
Data Center Consolidation for the Company's life insurance subsidiary
33 Payment of fees by the Company's life insurance subsidiary to Allianz Technology for **Allianz Technology 263
sharing of Group Intranet Access and Group Directory International through Allianz
Global Network services
34 Payment of fees by the Company's life insurance subsidiary to Allianz Technology for **Allianz Technology (1,035)
information technology security services provided by Allianz Technology
35 Fees received by the Company's general insurance subsidiary for providing **Allianz RE 441
reinsurance and Midcorp services to Allianz SE Reinsurance Branch Asia Pacific
(“Allianz Re”)
36 Payment of fees by the Company's insurance subsidiaries to Rapidpro Consulting **Rapidro (990)
Sdn Bhd ("Rapidpro") for consulting and training services rendered by Rapidpro
Notes:-
* As the Group is in the insurance business, the figures do not include payment obligations arising from claims duly made pursuant to any insurance
policies issued.
** Deemed to be related parties to the Company via Allianz SE’s direct interest as the major shareholder of the Company.
Income/(expense) as disclosed above is net of any reversal during the year

OUR FINANCIAL PERFORMANCE
Directors’ Report 124

Statements of Financial Position 129
Statements of Profit or Loss 130
Statements of Profit or Loss and Other Comprehensive Income 131
Statements of Changes in Equity 132
Statements of Cash Flows 135
Notes to the Financial Statements 138
Statement by Directors 269
Statutory Declaration 270
Independent Auditors’ Report 271
01 Our Financial Performance
02
03
04
05 Directors’ Report
06 for the year ended 31 December 2020
The Directors have pleasure in submitting their report and the audited financial statements of the Group (Allianz Malaysia Berhad and its
subsidiaries) and of the Company for the financial year ended 31 December 2020.
PRINCIPAL ACTIVITIES
The Company is principally engaged in investment holding activities, whilst the principal activities of the subsidiaries are as stated in Note 7 to
the financial statements. There has been no significant change in the nature of these activities during the financial year.
RESULTS
Group Company
RM’000 RM’000
Net profit for the year attributable to owners of the Company 520,325 274,445
DIVIDENDS
Since the end of the previous financial year, the amount of dividends paid by the Company were as follows:
(i) In respect of the financial year ended 31 December 2019:
Interim Dividend
• a single tier interim dividend of 61.20 sen per Irredeemable Convertible Preference Share (“ICPS”) totaling RM103,623,000 were
paid on 14 February 2020;
• a single tier interim dividend of 51.00 sen per ordinary share totaling RM90,213,000 were paid on 14 February 2020;
Special Dividend
• a single tier special dividend of 16.80 sen per ICPS totaling RM28,445,000 were paid on 14 February 2020; and
• a single tier special dividend of 14.00 sen per ordinary share totaling RM24,764,000 were paid on 14 February 2020.
(ii) In respect of the financial year ended 31 December 2020:
Interim Dividend
• a single tier interim dividend of 69.60 sen per ICPS totaling RM117,845,000 were paid on 18 February 2021; and
• a single tier interim dividend of 58.00 sen per ordinary share totaling RM102,595,000 were paid on 18 February 2021.
The Directors do not recommend any final dividend to be paid for the financial year under review.
RESERVES AND PROVISIONS
There were no material transfers to or from reserves and provisions during the financial year under review except as disclosed in the financial
statements.

01
02
03
04
for the year ended 31 December 2020
06
DIRECTORS OF THE COMPANY
Directors who served during the financial year until the date of this report are:
Tan Sri Datuk (Dr.) Rafiah Binti Salim (Chairman)

Tunku Zain Al-‘Abidin Ibni Tuanku Muhriz
Solmaz Altin
Claudia Salem
Peter Ho Kok Wai
Goh Ching Yin (Appointed on 1 July 2020)
Gerard Lim Kim Meng (Appointed on 1 January 2021)
Marzida Binti Mohd Noor (Resigned on 1 March 2020)
Dato’ Dr. Thillainathan A/L Ramasamy (Retired on 30 June 2020)
LIST OF DIRECTORS OF THE SUBSIDIARIES
Pursuant to Section 253 of the Companies Act 2016 in Malaysia, the list of Directors of the subsidiaries during the financial year and during
the period from the end of the financial year to the date of this report is as follows:
Allianz Life Insurance Malaysia Berhad Allianz General Insurance Company (Malaysia) Berhad
Goh Ching Yin (Chairman) Tan Sri Datuk (Dr.) Rafiah Binti Salim (Chairman)
Dato’ Dr. Thillainathan A/L Ramasamy (Retired on 30 June 2020) Tunku Zain Al-‘Abidin Ibni Tuanku Muhriz
Peter Ho Kok Wai Goh Ching Yin (Resigned on 30 June 2020)
Anusha Thavarajah (Appointed on 16 June 2020) Zakri Bin Mohd Khir
Dato’ Dr. Kantha A/L Rasalingam (Appointed on 8 July 2020) Dr. Muhammed Bin Abdul Khalid (Appointed on 10 August 2020)
Joseph Kumar Gross (Resigned on 16 June 2020) Datuk Gnanachandran A/L S. Ayadurai (Resigned on 10 December
Datuk Gnanachandran A/L S. Ayadurai (Resigned on 2020)
10 December 2020)
DIRECTORS’ INTERESTS IN SHARES
The interests and deemed interests in the shares of the Company and of its related corporations (other than wholly-owned subsidiaries) of
those who were Directors at financial year end (including the interests of the spouses or children of the Directors who themselves are not
Directors of the Company) as recorded in Register of Directors’ Shareholdings are as follows:
Number of registered share

At 1.1.2020 Bought Sold At 31.12.2020
Interest in the Ultimate Holding Company, Allianz SE

Claudia Salem - 1(a) - 1
Note:
(a)
Free share granted during the financial year under Allianz Free Share Program
Saved as disclosed above, none of the other Directors holding office as at 31 December 2020 had any interest in the ordinary shares and/or
ICPS of the Company and of its related corporations during the financial year.

02
03
04
05
Directors’ Report
06
DIRECTORS’ BENEFITS
Since the end of the previous financial year, no Director of the Company has received nor become entitled to receive any benefit (other than
those fees and other benefit included in the aggregate amount of remuneration received or due and receivable by Directors as shown in Note
29.2 to the financial statements or the fixed salary of a full time employee of the Company or of related corporations) by reason of a contract
made by the Company or a related corporation with the Director or with a firm of which the Director is a member, or with a company in which
the Director has a substantial financial interest.
There were no arrangements during and at the end of the financial year which had the object of enabling Directors of the Company to
acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate.
HOLDING COMPANY
The Directors regard Allianz SE, a public listed company incorporated and domiciled in Germany, as the Company’s holding company.
SUBSIDIARIES
The details of the Company’s subsidiaries are disclosed in Note 7 to the financial statements.
ISSUE OF SHARES
During the financial year, the Company increased its ordinary shares to 176,888,839 by the issuance of 1,200 ordinary shares pursuant to the
conversion of 1,200 ICPS. Accordingly, the ICPS of the Company was reduced to 169,316,946 as at 31 December 2020. As at 31 December
2020, the total share capital of the Company amounted to RM771,028,887.
All the new ordinary shares issued rank pari passu in all respects with the existing ordinary shares of the Company except that the new shares
shall not be entitled to any dividends, rights, allotments and/or other distributions where the entitlement date is prior to the allotment date
of the new ordinary shares.
Save as disclosed above, there were no other changes in the issued share capital of the Company during the financial year.
OPTIONS GRANTED OVER UNISSUED SHARES
No options were granted to any person to take up unissued shares of the Company during the financial year.
INDEMNITY AND INSURANCE COSTS
The Group and the Company maintain a Directors’ and Officers’ Liability Insurance for the purpose of Section 289(5) of the Companies
Act 2016 in Malaysia, throughout the year, which provides appropriate insurance cover for the Directors and Officers of the Company. The
amount of insurance premium paid during the financial year amounted to RM60,773.
There was no indemnity given to, or insurance effected for auditors of the Company in respect of the liability for any act or omission in their
capacity as auditors of the Company during the financial year.
However, in the ordinary course of business of a subsidiary in the underwriting of all classes of general insurance business, provided a
professional indemnity insurance to its auditors during the financial year.

01
02
03
04
06
OTHER STATUTORY INFORMATION
Before the financial statements of the Group and of the Company were made out, the Directors took reasonable steps to ascertain that:-
(i) all known bad debts have been written off and adequate provision made for doubtful debts;
(ii) any current assets which were unlikely to be realised in the ordinary course of business have been written down to an amount which
they might be expected so to realise; and
(iii) there was adequate provision for insurance contract liabilities in the Group in accordance with the valuation methods specified in Part
D of the Risk-Based Capital (“RBC”) Framework issued by Bank Negara Malaysia (“BNM”).
At the date of this report, the Directors are not aware of any circumstances:-
(i) that would render the amount written off for bad debts or the amount of the provision for doubtful debts and insurance contract
liabilities in the Group and in the Company inadequate to any substantial extent, or
(ii) that would render the value attributed to the current assets in the financial statements of the Group and of the Company misleading, or
(iii) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company
misleading or inappropriate, or
(iv) not otherwise dealt with in this report or the financial statements that would render any amount stated in the financial statements of
the Group and of the Company misleading.
At the date of this report, there does not exist:-
(i) any charge on the assets of the Group or of the Company that has arisen since the end of the financial year and which secures the
liabilities of any other person, or
(ii) any contingent liability in respect of the Group or of the Company that has arisen since the end of the financial year, other than those
disclosed in Note 42 to the financial statements.
No contingent liability or other liability of any company in the Group has become enforceable, or is likely to become enforceable within the
period of twelve months after the end of the financial year which, in the opinion of the Directors, will or may substantially affect the ability of
the Group and of the Company to meet their obligations as and when they fall due. For the purpose of this paragraph, contingent liabilities
and other liabilities do not include liabilities arising from contracts of insurance underwritten in the ordinary course of business of the Group.
In the opinion of the Directors, the financial performance of the Group and of the Company for the financial year ended 31 December 2020
have not been substantially affected by any item, transaction or event of a material and unusual nature nor has any such item, transaction or
event occurred in the interval between the end of the financial year and the date of this report.

02
03
04
05
Directors’ Report
06
AUDITORS
The auditors, PricewaterhouseCoopers PLT (LLP0014401-LCA & AF 1146) have expressed their willingness to accept re-appointment as
auditors.
The auditors’ remuneration is disclosed in Note 29 to the financial statements.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:
……………………………………………………… ………………………………………………………
Goh Ching Yin Peter Ho Kok Wai
Director Director
Kuala Lumpur
Date: 24 February 2021

01
02
03
04
Statements of Financial Position 05
as at 31 December 2020 06
Group Company
2020 2019 2020 2019
Note RM’000 RM’000 RM’000 RM’000
Assets
Property, plant and equipment 3 107,478 87,284 1,178 796
Right-of-use assets 4 58,042 74,335 - -
Intangible assets 5 358,490 370,580 - -
Investment properties 6 - 20,155 - -
Investments in subsidiaries 7 - - 961,088 961,088
Subordinated loan 8 - - - 54,300
Reinsurance assets 9 895,553 926,586 - -
Investments 10 18,729,603 16,085,347 22,624 5,906
Derivative financial assets 11 81,738 62,177 - -
Current tax assets 12,972 12,584 36 -
Insurance receivables 12 199,651 195,352 - -
Other receivables, deposits and prepayments 13 161,085 164,196 286,414 210,913
Deferred acquisition costs 14 116,170 111,423 - -
Cash and cash equivalents 1,175,963 1,600,053 11,059 21,927
Total assets 21,896,745 19,710,072 1,282,399 1,254,930
Equity
Share capital
– Ordinary shares 15 232,601 232,597 232,601 232,597
– Irredeemable Convertible Preference Shares 15 538,428 538,432 538,428 538,432
Reserves 16 3,260,477 2,902,540 287,481 233,476
Total equity attributable owners of the Company 4,031,506 3,673,569 1,058,510 1,004,505
Liabilities
Insurance contract liabilities 17 16,053,272 14,422,224 - -
Deferred tax liabilities 18 434,972 356,014 83 135
Derivative financial liabilities 11 301 1,244 - -
Lease liabilities 19 42,785 57,124 - -
Insurance payables 20 489,117 424,051 - -
Other payables and accruals 21 837,381 769,750 223,806 250,048
Current tax liabilities 7,411 6,096 - 242
Total liabilities 17,865,239 16,036,503 223,889 250,425
Total equity and liabilities 21,896,745 19,710,072 1,282,399 1,254,930
The accompanying notes form an integral part of these financial statements.

02
03
04
05 Statements of Profit or Loss
06 for the year ended 31 December 2020
Group Company
2020 2019 2020 2019
Note RM’000 RM’000 RM’000 RM’000
Operating revenue 22 5,945,711 5,534,374 281,216 203,148
Gross earned premiums 23(a) 5,233,240 4,848,449 - -

Premiums ceded to reinsurers 23(b) (362,584) (346,188) - -
Net earned premiums 4,870,656 4,502,261 - -
Investment income 24 712,471 685,925 281,216 203,148

Realised gains and losses 25 30,291 (8,710) - -
Fair value gains and losses 26 39,933 340,447 - -
Fee and commission income 27(a) 31,137 55,437 - -
Other operating income 34,880 51,826 171 234
Investment and other income 848,712 1,124,925 281,387 203,382
Gross benefits and claims paid 28(a) (2,286,969) (2,494,310) - -

Claims ceded to reinsurers 28(b) 119,732 172,269 - -
Gross change in contract liabilities 28(c) (1,344,359) (1,242,316) - -
Change in contract liabilities ceded to reinsurers 28(d) (17,412) 42,755 - -
Net benefits and claims (3,529,008) (3,521,602) - -
Fee and commission expense 27(b) (774,584) (737,626) - -

Management expenses 29 (641,438) (617,971) (6,558) (6,418)
Interest expense 30 (1,733) (2,541) - -
Other operating expenses (42,975) (55,302) (5) (1)
Other expenses (1,460,730) (1,413,440) (6,563) (6,419)
Profit before tax 729,630 692,144 274,824 196,963

Tax expense 31 (209,305) (199,666) (379) (890)
Profit for the year 520,325 492,478 274,445 196,073
Profit for the year attributable to:
Owners of the Company 520,325 492,478 274,445 196,073
Basic earnings per ordinary share (sen) 32(a) 227.53 203.87
Diluted earnings per ordinary share (sen) 32(b) 150.29 142.29

01
02
03
04
Statements of Profit or Loss and 05
Other Comprehensive Income 06

Group Company
2020 2019 2020 2019
Note RM’000 RM’000 RM’000 RM’000
Profit for the year 520,325 492,478 274,445 196,073
Other comprehensive income, net of tax

Items that are or may be reclassified subsequently
to profit or loss
Fair value of available-for-sale financial assets
Net gains arising during the financial year 260,431 304,972 - -
Realised gains transferred to profit or loss (48,118) (17,468) - -
(Losses)/Gains on cash flow hedge (4,085) 20,960 - -
Tax effects thereon (26,970) (38,574) - -
Change in insurance contract liabilities arising from

net fair value change on
AFS financial assets 17(a) (138,800) (200,584) - -
Cash flow hedge reserve 17(a) 4,085 (20,960) - -
Tax effects thereon 17(a) 10,777 17,724 - -
Items that will not be reclassified subsequently to

profit or loss
Revaluation of property, plant and equipment and
right-of-use assets - 1,500 - -
Tax effects thereon - (120) - -
Change in insurance contract liabilities arising from
revaluation 17(a) - (1,099) - -
Tax effects thereon 17(a) - 88 - -
Reversal of deferred tax on revaluation surplus of
land and buildings upon disposal 732 - - -
Total other comprehensive income for the year,
net of tax 58,052 66,439 - -
Total comprehensive income for the year,
net of tax 578,377 558,917 274,445 196,073
Total comprehensive income attributable to:
Owners of the Company 578,377 558,917 274,445 196,073

06
05
04
03
02
01
132
Statements of Changes in Equity
Attributable to owners of the Company

Non-distributable Distributable
Retained
ANNUAL REPORT 2020

Irredeemable earnings -
Our Financial Performance
Convertible Life non-

Ordinary Preference Revaluation Fair value participating Retained Total
shares Shares reserve reserve fund surplus* earnings equity
Group Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2020 232,597 538,432 42,303 77,446 971,897 1,810,894 3,673,569

Fair value of AFS financial assets - - - 57,320 - - 57,320
Disposal of land and buildings - - (3,738) - - 3,738 -
Reversal of deferred tax on
revaluation surplus - - - - - 732 732
Profit for the year - - - - 165,423 354,902 520,325
Total comprehensive income for
the year - - (3,738) 57,320 165,423 359,372 578,377
Contributions by and distributions
to owners of the Company
Conversion of Irredeemable
Convertible Preference Shares
to ordinary shares 4 (4) - - - - -
Dividends to owners of the
Company 33 - - - - - (220,440) (220,440)
Total transactions with owners of
the Company 4 (4) - - - (220,440) (220,440)
At 31 December 2020 232,601 538,428 38,565 134,766 1,137,320 1,949,826 4,031,506
Note 15 Note 15 Note 16.1 Note 16.2 Note 16 Note 16
* Non-distributable retained earnings comprise non-participating fund surplus, net of deferred tax, which is wholly attributable to the shareholders. This amount is
only distributable upon the actual transfer of surplus from the life non-participating fund to the Shareholder’s fund as recommended by the Appointed Actuary
and approved by the Board of Directors of the life insurance subsidiary.


Retained
Irredeemable earnings -
Convertible Life non-
Ordinary Preference Revaluation Fair value participating Retained Total
shares Shares reserve reserve fund surplus* earnings equity
Group Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2019 231,964 539,065 41,934 11,376 752,903 1,784,455 3,361,697

Total other comprehensive income
for the year - - 369 66,070 - - 66,439
Profit for the year - - - - 218,994 273,484 492,478
Total comprehensive income for
the year - - 369 66,070 218,994 273,484 558,917
Contributions by and distributions
to owners of the Company
Conversion of Irredeemable
Convertible Preference Shares
to ordinary shares 633 (633) - - - - -
Dividends to owners of the
Company 33 - - - - - (247,045) (247,045)
Total transactions with owners of
the Company 633 (633) - - - (247,045) (247,045)
At 31 December 2019 232,597 538,432 42,303 77,446 971,897 1,810,894 3,673,569
Note 15 Note 15 Note 16.1 Note 16.2 Note 16 Note 16
* Non-distributable retained earnings comprise non-participating fund surplus, net of deferred tax, which is wholly attributable to the shareholders. This amount is
only distributable upon the actual transfer of surplus from the life non-participating fund to the Shareholder’s fund as recommended by the Appointed Actuary
and approved by the Board of Directors of the life insurance subsidiary.
ANNUAL REPORT 2020

133
06
05
04
03
02
01
02
03
04
05
06

Irredeemable
Convertible
Share Preference Retained Total
capital Shares earnings equity
Company Note RM’000 RM’000 RM’000 RM’000
At 1 January 2019 231,964 539,065 284,448 1,055,477

Profit for the year - - 196,073 196,073
Total comprehensive income for the year - - 196,073 196,073
Contributions by and distributions to owners of the
Company - - - -
Conversion of Irredeemable Convertible
Preference Shares to ordinary shares
Transfer from share premium on 31 Dec 2017 633 (633) - -
Dividends to owners of the Company 33 - - (247,045) (247,045)
Total transactions with owners of the Company 633 (633) (247,045) (247,045)
At 31 December 2019 /1 January 2020 232,597 538,432 233,476 1,004,505
Profit for the year - - 274,445 274,445
Total comprehensive income for the year - - 274,445 274,445
Contributions by and distributions to owners of the
Company - - - -
Conversion of Irredeemable Convertible
Preference Shares to ordinary shares - - - -
Transfer from share premium on 31 Dec 2017 4 (4) - -
Dividends to owners of the Company 33 - - (220,440) (220,440)
Total transactions with owners of the Company 4 (4) (220,440) (220,440)
At 31 December 2020 232,601 538,428 287,481 1,058,510
Note 15 Note 15 Note 16

01
02
03
04
for the year ended 31 December 2020 06
Group Company
2020 2019 2020 2019
RM’000 RM’000 RM’000 RM’000
Cash flows from operating activities

Profit before tax 729,630 692,144 274,824 196,963
Adjustments for:
Investment income (712,471) (685,925) (281,216) (203,148)
Interest income (511) (706) - -
Interest expense 1,733 2,541 - -
Realised (gains)/losses from financial assets recorded in profit
or loss (30,113) 9,115 - -
Fair value gains on financial assets recorded in profit or loss (177,639) (359,293) - -
Purchase of available-for-sale (“AFS”) financial investments (2,302,879) (1,245,946) - -
Maturity of AFS financial investments 420,475 739,192 - -
Proceeds from sale of AFS financial investments 898,564 416,679 - -
Purchase of designated upon initial recognition (“DUIR”)
financial investments (855,510) (381,391) - -
Maturity of DUIR financial investments 213,030 202,066 - -
Proceeds from sale of DUIR financial investments 101,350 151,048 - -
Purchase of held for trading (“HFT”) financial investments (2,367,347) (1,277,036) - -
Maturity of HFT financial investments 172,200 155,050 - -
Proceeds from sale of HFT financial investments 1,287,943 396,735 - -
Decrease/(Increase) in loans and receivables 48,324 (385,861) (16,585) (3,853)
(Increase)/Decrease in fair value of investment 140 (241) - -
Unrealised foreign exchange (gain)/loss 2904 (238) - -
Depreciation of property, plant and equipment 14,001 15,488 315 350
Depreciation of right-of-use assets 17,877 18,154 - -
Amortisation of intangible assets 23,580 20,110 - -
Gains on disposal of property, plant and equipment (178) (405) - -
Impairment loss on AFS financial investments 137,566 19,087 - -
Property, plant and equipment written off 81 1,128 - 1
Allowance for impairment loss on reinsurance asset (8) - - -
Insurance and other receivables:
- Bad debts written off 7,205 236 - -
- (Reversal of)/Allowance for impairment loss (7,575) 3,007 - -
- Bad debts recovered (119) (54) - -
Operating loss before changes in working capital (2,377,747) (1,495,316) (22,662) (9,687)

02
03
04
05
Statements of Cash Flows
06
Group Company
2020 2019 2020 2019
RM’000 RM’000 RM’000 RM’000
Changes in working capital:

Decrease/(Increase) in reinsurance assets 31,041 (22,582) - -
(Increase)/Decrease in insurance receivables (2,223) 32,649 - -
Decrease/(Increase) in other receivables, deposits and
prepayments 2,525 (13,483) 4,332 12,009
Increase in insurance contract liabilities 1,507,110 1,427,520 - -
Increase in deferred acquisition costs (4,747) (16,363) - -
Increase/(Decrease) in insurance payables 65,066 (3,719) - -
Increase in other payables and accruals 94,236 105,382 363 249
Cash (used in)/generated from operations (684,739) 14,088 (17,967) 2,571
Tax paid (155,658) (121,796) (709) (777)

Dividends received 68,125 82,734 199,822 159,630
Interest income received 638,456 595,235 1,428 3,318
Interest paid on lease liabilities (1,733) (2,541) - -
Net cash (used in)/generated from operating activities (135,549) 567,720 182,574 164,742
Cash flows from investing activities

Proceeds from disposal of property, plant and equipment 995 5,185 - -
Proceeds from disposal of right of use asset 1,812 - - -
Acquisition of property, plant and equipment (15,954) (14,827) (697) (295)
Acquisition of right of use asset (117) - - -
Acquisition of intangible assets (10,614) (35,692) - -
Proceeds from disposal of intangible assets - 6,375 - -
Net cash used in investing activities (23,878) (38,959) (697) (295)
Cash flows from financing activities

Dividends paid to owners of the Company (247,045) (152,044) (247,045) (152,044)
Interest paid - - - -
Repayment of advance to holding company - - 54,300 -
Repayment of lease liabilities (17,618) (16,299) - -
Net cash used in financing activities (264,663) (168,343) (192,745) (152,044)
Net (decrease)/ in cash and cash equivalents (424,090) 360,418 (10,868) 12,403
Cash and cash equivalents at 1 January 1,600,053 1,239,635 21,927 9,524
Cash and cash equivalents at 31 December 1,175,963 1,600,053 11,059 21,927

01
02
03
04
06
Group Company
2020 2019 2020 2019
RM’000 RM’000 RM’000 RM’000
Cash and cash equivalents comprise:

Fixed and call deposits with licensed financial institutions
(with maturity of less than three months) 1,119,267 1,538,291 9,410 20,487
Cash and bank balances 56,696 61,762 1,649 1,440
1,175,963 1,600,053 11,059 21,927
Included in the fixed and call deposits are RM 69,118,000 (2019: RM69,091,000) held as cash collateral for guarantees issued on behalf of
the policyholders (Note 20).
GROUP AND COMPANY
Reconciliation of liabilities arising from financing activities
Lease
liabilities Total
RM’000 RM’000
At 1 January 2019 69,332 69,332

Cash flows (18,841) (18,841)
Interest charge 2,541 2,541
Lease additions 4,092 4,092
At 31 December 2019/1 January 2020 57,124 57,124
Cash flows (19,351) (19,351)
Interest charge 1,733 1,733
Lease additions 2,424 2,424
Modification/Termination of lease 855 855
At 31 December 2020 42,785 42,785

02
03
04
05 Notes to the Financial Statements
06
PRINCIPAL ACTIVITIES AND GENERAL INFORMATION
Allianz Malaysia Berhad is a public limited liability company incorporated and domiciled in Malaysia and is listed on the Main Market of
Bursa Malaysia Securities Berhad. The address of the principal place of business and registered office of the Company is as follows:
Level 29, Menara Allianz Sentral

203, Jalan Tun Sambanthan
50470 Kuala Lumpur
The consolidated financial statements of the Company as at and for the financial year ended 31 December 2020 comprise the Company and
its subsidiaries (together referred to as the “Group” and individually referred to as “Group entities”). The financial statements of the Company
as at and for the financial year ended 31 December 2020 do not include other entities.
The Company is principally engaged in investment holding activities whilst the principal activities of the subsidiaries are as stated in Note 7.
The holding company is Allianz SE, a public listed company incorporated and domiciled in Germany.
The financial statements were authorised for issue by the Board of Directors on 24 February 2021.

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06
1. BASIS OF PREPARATION
1.1 Statement of compliance
The financial statements of the Group and of the Company have been prepared in accordance with Malaysian Financial
Reporting Standards (“MFRSs”), International Financial Reporting Standards and the requirements of the Companies Act 2016 in
Malaysia.
The following are accounting standards, amendments to standards and interpretations that have been issued by Malaysian
Accounting Standards Board (“MASB”) for the financial year beginning on or after 1 January 2020 and adopted by the Group
and the Company:
MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2020
• The Conceptual Framework for Financial Reporting (Revised 2018)

• Amendments to MFRS 101, Presentation of Financial Statements – Definition of Material
• Amendments to MFRS 108, Accounting Policies, Changes in Accounting Estimates and Errors – Definition of Material
• Amendments to MFRS 3, Business Combinations – Definition of a Business
• Amendments to MFRS 9, MFRS 139, MFRS 7 – Interest Rate Benchmark Reform
• Amendments to MFRS 4, Extension of the Temporary Exemption from Applying MFRS 9
The following are accounting standards, amendments to standards and interpretations that have been issued by MASB but not
yet effective and have not been early adopted by the Group and the Company:
• Amendments to MFRS 16, COVID-19 Related Rent Concessions
• Amendments to MFRS 116, Proceeds before Intended Use

• Amendments to MFRS 3, Reference to Conceptual Framework
• Amendments to MFRS 137, Onerous Contracts – Cost of Fulfilling a Contract
• Annual Improvement to MFRSs 2018 – 2022 Cycle effective for annual periods beginning on or after 1 January 2022
• Amendments to MFRS101, Classification of liabilities and current or non-current

• MFRS 17, Insurance Contracts

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04
05
Notes to the Financial Statements
06
1. BASIS OF PREPARATION (CONTINUED)
1.1 Statement of compliance (continued)
MFRS 17, Insurance Contracts
MFRS 17 replaces the guidance in MFRS 4, Insurance Contracts.
MFRS 17 applies to insurance contracts issued, to all reinsurance contracts and to investment contracts with discretionary
participating features if an entity also issues insurance contracts. For fixed-fee service contracts whose primary purpose is the
provision of services, an entity has an accounting policy choice to account for them in accordance with either MFRS 17 or MFRS
15 ‘Revenue from Contracts with Customers’. Insurance contracts (other than reinsurance) where the entity is the policyholder are
not within the scope of MFRS 17. Embedded derivatives and distinct investment and service components should be ‘unbundled’
and accounted for separately in accordance with the related MFRSs. Voluntary unbundling of other components is prohibited.
MFRS 17 requires a current measurement model where estimates are remeasured at each reporting period. The measurement is
based on the building blocks of discounted, probability-weighted cash flows, a risk adjustment and a contractual service margin
(“CSM”) representing the unearned profit of the contract. An entity has a policy choice to recognise the impact of changes in
discount rates and other assumptions that related to financial risks either in profit or loss or in other comprehensive income.
Alternative measurement models are provided for the different insurance coverages:
(a) Simplified Premium Allocation Approach if the insurance coverage period is a year or less; and
(b) Variable Fee Approach should be applied for insurance contracts that specify a link between payments to the policyholder
and the returns on the underlying items.
The requirements of MFRS 17 align the presentation of revenue with other industries. Revenue is allocated to the periods in
proportion to the value of the expected coverage and other services that the insurer provides in the period, and claims are
presented when incurred. Investment components are excluded from revenue and claims. Insurers are required to disclose
information about amounts, judgements and risks arising from insurance contracts.
The Group is currently assessing the financial impact that may arise from the adoption of MFRS 17.
Except as mentioned above, the initial application of other new standards, amendments to standards or interpretations issued by
MASB effective for periods subsequent to 1 January 2021 are not expected to have any material financial impact to the current
period and prior period financial statements of the Group and the Company.
1.2 Basis of measurement
The financial statements have been prepared on the historical cost basis other than as disclosed in Note 2.
1.3 Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic
environment in which the entity operates (the “functional currency”). The financial statements are presented in Ringgit Malaysia
(“RM”), which is the Company’s functional currency. All financial information is presented in RM and has been rounded to the
nearest thousand, unless otherwise stated.

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06
1. BASIS OF PREPARATION (CONTINUED)
1.4 Use of estimates and judgements
The preparation of the financial statements in conformity with MFRSs requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, and disclosure of
contingent assets and liabilities at the date of financial statement, and the reported amount of income and expenses during the
year. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in
the period in which the estimates are revised and in any future periods affected.
There are no significant areas of estimation uncertainty and critical judgements in applying accounting policies that have
significant effect on the amounts recognised in the financial statements other than those disclosed in the following notes:
Note 2.25.1 – Valuation of general insurance claims liabilities

Note 2.25.2 – Valuation of life actuarial liabilities
Note 2.25.3 – Impairment of goodwill
The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the
financial statements are disclosed in note 2.25.
2. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently to the periods presented in these financial statements and have
been applied consistently by Group entities, unless otherwise stated.
2.1 Basis of consolidation
2.1.1 Subsidiaries
Subsidiaries are entities, including structured entities, controlled by the Group and the Company. The financial statements
of subsidiaries are included in the consolidated financial statements from the date that control commences until the date
that control ceases.
The Group controls an entity when it is exposed, or has rights, to variable returns from its involvement with the entity and has
the ability to affect those returns through its power over the entity. Potential voting rights are considered when assessing
control only when such rights are substantive. The Group also considers it has de facto power over an investee when, despite
not having the majority of voting rights, it has the current ability to direct the activities of the investee that significantly affect
the investee’s return.

Investments in subsidiaries are measured in the Company’s separate statement of financial position at cost less any
impairment losses, unless the investment is classified as held for sale or distribution. The cost of investments includes
transaction costs.
On disposal of investments in subsidiaries, the difference between disposal proceeds and the carrying amounts of the
investments is recognised in profit or loss.

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06
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.1 Basis of consolidation
2.1.2 Business combinations
Business combinations are accounted for using the acquisition method from the acquisition date, which is the date on which
control is transferred to the Group.
For new acquisitions, the Group measures the cost of goodwill at the acquisition date as:
• the fair value of the consideration transferred; plus
• the recognised amount of any non-controlling interests in the acquiree; plus
• if the business combination is achieved in stages, the fair value of the existing equity interest in the acquiree; less
• the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed.
When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss.
For each business combination, the Group elects whether it measures the non-controlling interests in the acquiree either at
fair value or at the proportionate share of the acquiree’s identifiable net assets at the acquisition date.
Transaction costs, other than those associated with the issue of debt or equity securities, that the Group incurs in connection
with a business combination are expensed as incurred.
2.1.3 Loss of control
Upon the loss of control of a subsidiary, the Group derecognises the assets and liabilities of the former subsidiary, any non-
controlling interests and the other components of equity related to the former subsidiary from the consolidated statement
of financial position. Any surplus or deficit arising on the loss of control is recognised in profit or loss. If the Group retains any
interest in the former subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently, it
is accounted for as equity accounted investee or as an available-for-sale financial asset depending on the level of influence
retained.
2.1.4 Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are
eliminated in preparing the consolidated financial statements.
2.2 Foreign currency transactions and balances
Transactions in foreign currencies are translated to the functional currency of Group entities at exchange rates at the dates of the
transactions.
Monetary assets and liabilities denominated in foreign currencies at the end of the reporting period are retranslated to the
functional currency at the exchange rate at that date.
Non-monetary assets and liabilities denominated in foreign currencies are not retranslated at the end of the reporting date,
except for those that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that
the fair value was determined.

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06
2.2 Foreign currency transactions and balances (continued)
Foreign currency differences arising from settlement of foreign currency transactions and from retranslation of monetary assets
and liabilities are recognised in profit or loss, except for differences arising on the retranslation of available-for-sale equity
instruments or a financial instrument designated as a hedge of currency risk, which are recognised in other comprehensive
income.
2.3 Property, plant and equipment
2.3.1 Recognition and measurement
All items of property, plant and equipment except for work-in-progress are stated at cost/valuation less any accumulated
depreciation and any accumulated impairment losses. Work-in-progress is stated at cost less accumulated impairment.
The Group revalues its properties comprising land and buildings every five years and at shorter intervals whenever the fair
value of the revalued assets is expected to differ materially from their carrying value.
Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset, and
the net amount is restated to the revalued amount of the asset.
The revalued amounts of property are determined by using the Comparison Method. The Comparison Method entails
critical analysis of recent evidence of values of comparable properties in the neighbourhood and making adjustment for
differences such as differences in location, size and shape of land, age and condition of building, tenure, title restrictions if
any and other relevant characteristics.
Valuation of the properties involves a degree of judgement before arriving at the respective property’s revalued amount.
As such, the revalued amount of the properties may be different from its actual market price.
Surpluses arising from revaluation are credited to revaluation reserve account via the statement of other comprehensive
income. Any deficit arising is offset against the revaluation reserve to the extent of a previous increase for the same property.
In all other cases, a decrease in carrying amount is recognised in profit or loss.
Cost includes expenditures that are directly attributable to the acquisition of the asset and any other costs directly
attributable to bringing the asset to working condition for its intended use, and the costs of dismantling and removing the
items and restoring the site on which they are located. The cost of self-constructed assets also includes the cost of materials
and direct labour.
Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.
The cost of property, plant and equipment recognised as a result of a business combination is based on fair value at
acquisition date. The fair value of property is the estimated amount for which a property could be exchanged between
knowledgeable willing parties in an arm’s length transaction after proper marketing wherein the parties had each acted
knowledgeably, prudently and without compulsion. The fair value of other items of plant and equipment is based on the
quoted market prices for similar items when available and replacement cost when appropriate.

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06
2.3 Property, plant and equipment (continued)
2.3.1 Recognition and measurement (continued)
When significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as
separate items (major components) of property, plant and equipment.
The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from
disposal with the carrying amount of property, plant and equipment and is recognised on a net basis within “realised gains
and losses” in profit or loss. When revalued assets are sold, the amounts included in the revaluation reserve are transferred
to retained earnings.
2.3.2 Subsequent costs
The cost of replacing a component of an item of property, plant and equipment is recognised in the carrying amount of
the item if it is probable that the future economic benefits embodied within the component will flow to the Group or the
Company, and its cost can be measured reliably. The carrying amount of the replaced component is derecognised to profit
or loss. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.
2.3.3 Depreciation
Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed,
and if a component has a useful life that is different from the remainder of that asset, then that component is depreciated
separately.
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of
an item of property, plant and equipment from the date that they are available for use. Freehold land is not depreciated.
Work-in-progress are not depreciated until the assets are ready for their intended use.
The estimated useful lives for intangible assets are as follows:
Buildings 50 years
Office equipment, computers, furniture and fittings 2 to 10 years
Motor vehicles 5 years
Office renovations and partitions 10 years
Depreciation methods, useful lives and residual values are reviewed at end of the reporting period, and adjusted as
appropriate.
Leased assets (including leasehold land) are presented as a separate line item in statement of financial position. See
accounting policy Note 2.5.1 on right-of-use assets for these assets.

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2.4 Intangible assets
2.4.1 Goodwill
Goodwill arising from business combinations is measured at cost less any accumulated impairment losses. See accounting
policy in Note 2.7.3 to the financial statements on impairment of goodwill.
2.4.2 Development costs
Expenditure incurred on software development is capitalised, only if development costs can be measured reliably, the
product or process is technically and commercially feasible, future economic benefits are probable and the Group intends
to and has sufficient resources to complete development and to use the asset.
The expenditure capitalised includes the cost of materials, direct labour and overheads costs that are directly attributable
to preparing the asset for its intended use. Other development expenditure is recognised in profit or loss as incurred.
Capitalised development expenditure is measured at cost less any accumulated amortisation and any accumulated
impairment losses.
2.4.3 Other intangible assets
Intangible assets, other than goodwill, that are acquired by the Group, which have finite useful lives, are measured at cost
less any accumulated amortisation and any accumulated impairment losses.
The fair value of intangible assets acquired in a business combination is based on the discounted cash flows expected to be
derived from the use and eventual sale of the assets.
2.4.4 Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to
which it relates. All other expenditure is recognised in profit or loss as incurred.
2.4.5 Amortisation
Amortisation is based on the cost of an asset less its residual value.
Goodwill with indefinite useful lives is not amortised but is tested for impairment annually and whenever there is an
indication that it may be impaired. See accounting policy in Note 2.7.3 on impairment of goodwill.
Intangible assets with finite useful lives are amortised from the date that they are available for use.

Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives of intangible assets from
the date they are available for use. The estimated useful lives for intangible assets are as follows:
Capitalised software development costs 3 to 5 years

Other intangible assets 6 to 18 years
Amortisation methods, useful lives and residual values are reviewed at the end of each reporting period and adjusted, if
appropriate.

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2.5 Leases
2.5.1 Accounting by lessee
Leases are recognised as right-of-use (‘ROU’) asset and a corresponding liability at the date on which the leased asset is
available for use by the Group (i.e. the commencement date).
Contracts may contain both lease and non-lease components. The Group allocates the consideration in the contract to the
lease and non-lease components based on their relative stand-alone prices. However, for leases of properties for which
the Group is a lessee, it has elected the practical expedient provided in MFRS 16 not to separate lease and non-lease
components. Both components are accounted for as a single lease component and payments for both components are
included in the measurement of lease liability.
Lease term
In determining the lease term, the Group considers all facts and circumstances that create an economic incentive to exercise
an extension option, or not to exercise a termination option. Extension options (or periods after termination options) are
only included in the lease term if the lease is reasonably certain to be extended (or not to be terminated).
The Group reassess the lease term upon the occurrence of a significant event or change in circumstances that is within the
control of the Group and affects whether the Group is reasonably certain to exercise an option not previously included
in the determination of lease term, or not to exercise an option previously included in the determination of lease term. A
revision in lease term results in remeasurement of the lease liabilities.
ROU assets
ROU assets are initially measured at cost comprising the following:

• The amount of the initial measurement of lease liability;
• Any lease payments made at or before the commencement date less any lease incentive received;
• Any initial direct costs; and
• Decommissioning or restoration costs.
ROU assets that are not investment properties are subsequently measured at valuation/cost, less accumulated depreciation
and impairment loss (if any). The ROU assets are generally depreciated over the shorter of the asset’s useful life and the
lease term on a straight-line basis. In addition, the ROU assets are adjusted for certain remeasurement of the lease liabilities.
The Group applies the fair value model to ROU assets that meet the definition of investment property of MFRS 140 consistent
with those investment properties owned by the Group. Refer to Note 2.8 for accounting policy on investment properties.
The Group presents ROU assets that meet the definition of investment property in the statement of financial position as
investment property. ROU assets that are not investment properties are presented as a separate line item in the statement
of financial position.

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2.5 Leases (continued)
2.5.1 Accounting by lessee (continued)
Lease liabilities
Lease liabilities are initially measured at the present value of the lease payments that are not paid at that date. The lease
payments include fixed payments (including in-substance fixed payments), less any lease incentive receivable.

Lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which
is generally the case for leases in the Group, the lessee’s incremental borrowing is used. This is the rate that the individual
lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the ROU in a similar economic
environment with similar term, security and conditions.
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the
lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
The Group presents the lease liabilities as a separate line item in the statement of financial position. Interest expense on the
lease liability is presented within the interest expenses in profit or loss in the statement of profit or loss.
Short term leases and leases of low value assets
Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise photocopiers. Payments
associated with short-term leases of equipment and all leases of low-value assets are recognised on a straight-line basis as
an expense in profit or loss.
2.5.2 The Group and the Company as a lessor
As a lessor, the Group determines at lease inception whether each lease is a finance lease or an operating lease. To
classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and
rewards incidental to ownership of the underlying asset to the lessee. As part of this assessment, the Group considers certain
indicators such as whether the lease is for the major part of the economic life of the asset.
Operating lease
The Group classifies a lease as an operating lease if the lease does not transfer substantially all the risks and rewards
incidental to ownership of an underlying asset to the lessee.
The Group recognises lease payments received under operating lease as lease income on a straight-line basis over the
lease term.
When assets are leased out under an operating lease, the asset is included in the statement of financial position based on
the nature of the asset. Initial direct costs incurred in obtaining an operating lease are added to the carrying amount of
underlying asset and recognised as an expense over the lease term on the same basis as lease income.
Sublease classification
When the Group is an intermediate lessor, it assesses the lease classification of a sublease with reference to the ROU asset
arising from the head lease, not with reference to the underlying asset.

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2.6 Financial instruments
Group
2.6.1 Initial recognition and measurement
A financial asset or a financial liability is recognised in the statements of financial position when, and only when, the Group
or the Company becomes a party to the contractual provisions of the instrument.
A financial instrument is recognised initially, at its fair value plus, in the case of a financial instrument not at fair value
through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial instrument.
An embedded derivative is recognised separately from the host contract and accounted for as a derivative if, and only if, it
is not closely related to the economic characteristics and risks of the host contract and the host contract is not categorised
as fair value through profit or loss. The host contract, in the event an embedded derivative is recognised separately, is
accounted for in accordance with policy applicable to the nature of the host contract.
2.6.2 Financial instruments categories and subsequent measurement
The Group categorises and measures financial instruments as follows:
Financial assets
(a) Financial assets at fair value through profit or loss
Fair value through profit or loss category comprises financial assets that are held for trading, including derivatives
(except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument) or
financial assets that are specifically designated into this category upon initial recognition.
Derivatives that are linked to and must be settled by delivery of unquoted equity instruments whose fair values cannot
be reliably measured are measured at cost.
Financial assets categorised as fair value through profit or loss are subsequently measured at their fair values with
the gain or loss recognised in profit or loss.
(b) Loans and receivables, excluding insurance receivables
Loans and receivables category comprises debt instruments that are not quoted in an active market that include
loans, other receivables, deposits and cash and cash equivalents.
Financial assets categorised as loans and receivables are subsequently measured at amortised cost using the
effective interest method.

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2.6 Financial instruments (continued)
2.6.2 Financial instruments categories and subsequent measurement (continued)
Financial assets (continued)
(c) Available-for-sale financial assets
Available-for-sale category comprises investment in equity and debt securities instruments that are not held for
trading.
Investments in equity instruments that do not have a quoted market price in an active market and whose fair value
cannot be reliably measured are measured at cost. Other financial assets categorised as available-for-sale are
subsequently measured at their fair values with the gain or loss recognised in other comprehensive income, except
for impairment losses, foreign exchange gains and losses arising from monetary items and gains and losses of
hedged items attributable to hedge risks of fair value hedges which are recognised in profit or loss. On derecognition,
the cumulative gain or loss recognised in other comprehensive income is reclassified from equity into profit or loss.
Interest calculated for a debt instrument using the effective interest method is recognised in profit or loss.
(d) Insurance receivables
Insurance receivables are recognised when due and measured on initial recognition at the fair value of the
consideration received or receivable. Subsequent to initial recognition, insurance receivables are measured at
amortised cost using the effective interest method.
If there is objective evidence that the insurance receivable is impaired, the carrying amount of the insurance receivable
will be reduced accordingly and the impairment loss recognised in profit or loss. The Group gathers the objective
evidence that an insurance receivable is impaired using the same process adopted for financial assets carried at
amortised cost. The impairment loss is calculated under the same method used for these financial assets. These
processes are described in Note 2.7.2.
Insurance receivables are derecognised when the derecognition criteria for financial assets, as described in Note
2.6.5 have been met.
Financial liabilities
All financial liabilities are initially measured at fair value and subsequently measured at amortised cost other than those
categorised as fair value through profit or loss.
Fair value through profit or loss category comprises financial liabilities that are held for trading, derivatives (except for a
derivative that is a financial guarantee contract or a designated and effective hedging instrument) or financial liabilities
that are specifically designated into this category upon initial recognition.
Derivatives that are linked to and must be settled by delivery of equity instruments that do not have a quoted price in an
active market for identical instruments whose fair values otherwise cannot be reliably measured are measured at cost.
Financial liabilities categorised as fair value through profit or loss are subsequently measured at their fair values with the
gain or loss recognised in profit or loss.

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2.6.3 Regular way purchase or sale of financial assets
A regular way purchase or sale is a purchase or sale of a financial asset under a contract whose terms require delivery of
the asset within the time frame established generally by regulation or convention in the marketplace concerned.
A regular way purchase or sale of financial assets is recognised and derecognised, as applicable, using trade date
accounting. Trade date accounting refers to:
(a) the recognition of an asset to be received and the liability to pay for it on the trade date, and
(b) derecognition of an asset that is sold, recognition of any gain or loss on disposal and the recognition of a receivable
from the buyer for payment on the trade date.
2.6.4 Hedge accounting
Cash flow hedge
A cash flow hedge is a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated
with a recognised asset or liability or a highly probable forecast transaction and could affect the profit or loss. In a cash flow
hedge, the portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognised
in other comprehensive income and the ineffective portion is recognised in profit or loss.
Subsequently, the cumulative gain or loss recognised in other comprehensive income is reclassified from equity into profit
or loss in the same period or periods during which the hedged forecast cash flows affect profit or loss. If the hedge item is
a non-financial asset or liability, the associated gain or loss recognised in other comprehensive income is removed from
equity and included in the initial amount of the asset or liability. However, loss recognised in other comprehensive income
that will not be recovered in one or more future periods is reclassified from equity into profit or loss.
Cash flow hedge accounting is discontinued prospectively when the hedging instrument expires or is sold, terminated or
exercised, the hedge is no longer highly effective, the forecast transaction is no longer expected to occur or the hedge
designation is revoked. If the hedge is for a forecast transaction, the cumulative gain or loss on the hedging instrument
remains in equity until the forecast transaction occurs. When the forecast transaction is no longer expected to occur, any
related cumulative gain or loss recognised in other comprehensive income on the hedging instrument is reclassified from
equity into profit or loss.
The Group enters into forward purchase agreements as cash flow hedging instruments to hedge against variability in future
cash flows arising from movements in interest rates of debt securities.

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2.6.5 Derecognition
A financial asset or part of it is derecognised when, and only when the contractual rights to the cash flows from the financial
asset expire or control of the asset is not retained or substantially all of the risks and rewards of ownership of the financial
asset are transferred to another party. On derecognition of a financial asset, the difference between the carrying amount
and the sum of the consideration received (including any new asset obtained less any new liability assumed) and any
cumulative gain or loss that had been recognised in equity is recognised in profit or loss.
A financial liability or a part of it is derecognised when, and only when, the obligation specified in the contract is discharged,
cancelled or expires. On derecognition of a financial liability, the difference between the carrying amount of the financial
liability extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred
or liabilities assumed, is recognised in profit or loss.
2.6.6 Company
Classification
The Company classifies its financial assets in the following measurement categories:
(a) those to be measured subsequently at fair value (either through other comprehensive income (‘OCI’) or through profit
or loss), and
(b) those to be measured at amortised cost.
Recognition and derecognition
Regular way purchases and sales of financial assets are recognised on trade-date, the date on which the Company commits
to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial
assets have expired or have been transferred and the Company has transferred substantially all the risks and rewards of
ownership.
Measurement
At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair
value through profit or loss (‘FVTPL’), transaction costs that are directly attributable to the acquisition of the financial asset.
Transaction costs of financial assets carried at FVTPL are expensed in profit or loss.
Debt instruments
Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the
cash flow characteristics of the asset. The Company reclassifies debt investments when and only when its business model
for managing those assets changes.
Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the
cash flow characteristics of the asset. The Company reclassifies debt investments when and only when its business model
for managing those assets changes.

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2.6.6 Company (continued)
Debt instruments (continued)
There are three measurement categories into which the Company can classify its debt instruments:
(a) Amortised cost
Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of
principal and interest on the principal outstanding (“SPPI”) are measured at amortised cost. Interest income from
these financial assets is included in investment income using the effective interest rate method. Any gain or loss
arising on derecognition is recognised directly in profit or loss and presented in realised gains and losses together
with foreign exchange gains and losses. Impairment losses are included in other operating expenses.
(b) Fair value through other comprehensive income (‘FVOCI’)
Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash
flows represent SPPI, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except
for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are
recognised in profit or loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised
in OCI is reclassified from equity to profit or loss and recognised in realized gains and losses. Interest income from
these financial assets is included in investment income using the effective interest rate method. Impairment expenses
are included in other operating expenses.
(c) Fair value through profit or loss (‘FVTPL’)
Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVTPL. The Company may also
irrevocably designate financial assets at FVTPL if doing so significantly reduces or eliminates a mismatch created
by assets and liabilities being measured on different bases. Fair value changes are recognised in profit or loss and
presented net within fair value gains and losses in the period which it arises.
Subsequent measurement – Impairment
The Company assesses on a forward-looking basis the expected credit loss (‘ECL’) associated with its debt instruments
carried at amortised cost and at FVOCI. The impairment methodology applied depends on whether there has been a
significant increase in credit risk.
The Company has the following types of financial assets that are subject to the ECL model:
• Investments
• Other receivables
• Cash and cash equivalents

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Subsequent measurement – Impairment (continued)
While the above financial assets are subject to the impairment requirements of MFRS 9, the assessed impairment loss was
immaterial.
ECL represent a probability-weighted estimate of the difference between present value of cash flows according to contract
and present value of cash flows the Company expects to receive, over the remaining life of the financial instrument.
The measurement of ECL reflects:

• an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;
• the time value of money; and
• reasonable and supportable information that is available without undue cost or effort at the reporting date about
past events, current conditions and forecasts of future economic conditions.
General 3-stage approach for ECL
At each reporting date, the Company measures ECL through loss allowance at an amount equal to 12 month ECL if credit
risk on a financial instrument or a group of financial instruments has not increased significantly since initial recognition. For
all other financial instruments, a loss allowance at an amount equal to lifetime ECL is required.
Significant increase in credit risk
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant
increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase
in credit risk, the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of
default as at the date of initial recognition. It considers available reasonable and supportable forward-looking information.
The following indicators are incorporated:

• external credit rating (as far as available)
• actual or expected significant adverse changes in business, financial or economic conditions that are expected to
cause a significant change to the debtor’s ability to meet its obligations
• actual or expected significant changes in the operating results of the debtor
• significant increases in credit risk on other financial instruments of the same debtor
• significant changes in the value of the collateral supporting the obligation or in the quality of third-party guarantees
or credit enhancements
• significant changes in the expected performance and behaviour of the debtor, including changes in the payment
status of debtor in the group and changes in the operating results of the debtor.

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Definition of default and credit-impaired financial assets
The Company defines a financial instrument as default, which is fully aligned with the definition of credit-impaired, when it
meets one or more of the following criteria:
Quantitative criteria:
The Company defines a financial instrument as default, when the counterparty fails to make contractual payment within
90 days of when they fall due.
Qualitative criteria:
The debtor meets unlikeliness to pay criteria, which indicates the debtor is in significant financial difficulty. The Company
considers the following instances:
• the debtor is in breach of financial covenants
• concessions have been made by the lender relating to the debtor’s financial difficulty
• it is becoming probable that the debtor will enter bankruptcy or other financial reorganization
• the debtor is insolvent
Financial instruments that are credit-impaired are assessed on individual basis. Subordinated loan to subsidiary is assessed
on individual basis for ECL measurement, as credit risk information is obtained and monitored based on each loan to
subsidiary.
Write-off
The Company writes off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and has
concluded there is no reasonable expectation of recovery. The assessment of no reasonable expectation of recovery is
based on unavailability of debtor’s sources of income or assets to generate sufficient future cash flows to repay the amount.
The Company may write-off financial assets that are still subject to enforcement activity. Subsequent recoveries of amounts
previously written off will result in impairment gains.
2.7 Impairment
2.7.1 Financial assets, excluding insurance receivables (Group)
All financial assets (except for financial assets categorised as fair value through profit or loss and investment in subsidiaries)
are assessed at each reporting date whether there is any objective evidence of impairment as a result of one or more events
having an impact on the estimated future cash flows of the asset. Losses expected as a result of future events, no matter
how likely, are not recognised. For an investment in an equity instrument, a significant or prolonged decline in the fair value
below its cost is an objective evidence of impairment. If any such objective evidence exists, then the impairment loss of the
financial asset is estimated.

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2.7 Impairment (continued)
2.7.1 Financial assets, excluding insurance receivables (Group) (continued)
An impairment loss in respect of loans and receivables (excluding insurance receivables as set out in Note 2.7.2 below) is
recognised in profit or loss and is measured as the difference between the asset’s carrying amount and the present value
of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount of the asset is
reduced through the use of an allowance account.
An impairment loss in respect of available-for-sale financial assets is recognised in profit or loss and is measured as the
difference between the financial asset’s acquisition cost (net of any principal repayment and amortisation) and the financial
asset’s current fair value, less any impairment loss previously recognised. Where a decline in the fair value of an available-
for-sale financial asset has been recognised in other comprehensive income, the cumulative loss in other comprehensive
income is reclassified from equity to profit or loss.
An impairment loss in respect of unquoted equity instrument that is carried at cost is recognised in profit or loss and is
measured as the difference between the financial asset’s carrying amount and the present value of estimated future cash
flows discounted at the current market rate of return for a similar financial asset.
Impairment losses recognised in profit or loss for an investment in an equity instrument classified as available-for-sale are
not reversed through profit or loss.
If, in a subsequent financial period, the fair value of a debt instrument increases and the increase can be objectively related
to an event occurring after the impairment loss was recognised in profit or loss, the impairment loss is reversed, to the extent
that the financial asset’s carrying amount does not exceed what the carrying amount would have been had the impairment
not been recognised at the date the impairment is reversed. The amount of the reversal is recognised in profit or loss.
2.7.2 Insurance receivables
Insurance receivables are assessed at each reporting date whether there is any objective evidence of impairment as a
result of one or more events having an impact on the estimated future cash flows of the asset. Losses expected as a result
of future events, no matter how likely, are not recognised. An objective evidence of impairment is deemed to exist where the
principal or interest or both for insurance receivables is past due for more than 90 days or 3 months for those individually
assessed, as prescribed in the Guidelines on Financial Reporting for Insurers issued by Bank Negara Malaysia (“BNM”).
An impairment loss in respect of insurance receivables is recognised in profit or loss and is measured as the difference
between the financial asset’s carrying amount and the present value of estimated future cash flows discounted at the
financial asset’s original effective interest rate. The carrying amount of the financial asset is reduced through the use of an
allowance account.
If, in a subsequent period, the fair value of insurance receivables increases and the increase can be objectively related to
an event occurring after the impairment loss was recognised in profit or loss, the impairment loss is reversed, to the extent
that the insurance receivable’s carrying amount does not exceed what the carrying amount would have been had the
impairment not been recognised at the date the impairment is reversed. The amount of the reversal is recognised in profit
or loss.

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2.7 Impairment (continued)
2.7.3 Other assets
The carrying amounts of other assets (except for investment properties that are measured at fair value and deferred tax
assets) are reviewed at the end of each reporting period to determine whether there is any indication of impairment. If any
such indication exists, then the asset’s recoverable amount is estimated. For goodwill that has indefinite useful lives, the
recoverable amount is estimated usually at each reporting date.
For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash
inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (known
as “cash-generating unit”). For the purpose of goodwill impairment testing, cash-generating units to which goodwill has
been allocated are aggregated so that the level at which impairment testing is performed reflects the lowest level at which
goodwill is monitored for internal reporting purposes. The goodwill acquired in a business combination, for the purpose of
impairment testing, is allocated to a cash-generating unit or a group of cash-generating units that are expected to benefit
from the synergies of the combination.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs of
disposal. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or
cash-generating unit.
An impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit exceeds its estimated
recoverable amount. Impairment losses are recognised in profit or loss.
Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any
goodwill allocated to the cash-generating unit (group of cash-generating units) and then to reduce the carrying amounts
of the other assets in the cash-generating unit (groups of cash-generating units) on a pro rata basis.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior
periods are assessed at the end of each reporting period for any indications that the loss has decreased or no longer exists.
An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount
since the last impairment loss was recognised. An impairment loss is reversed only to the extent that the asset’s carrying
amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no
impairment loss had been recognised. Reversals of impairment losses are credited to profit or loss in the financial year in
which the reversals are recognised, unless it reverses an impairment loss on a revalued asset, in which case it is credited
directly to revaluation reserve. When an impairment loss on the same revalued asset was previously recognised in profit or
loss, a reversal of that impairment loss is recognised in profit or loss.

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2.8 Investment properties
2.8.1 Investment properties carried at fair value
Investment properties are properties which are owned or held under a leasehold interest to earn rental income or for
capital appreciation or for both, but not for sale in the ordinary course of business.
Investment properties are measured initially at cost and subsequently at fair value with any change therein recognised in
profit or loss for the period in which they arise.
Where the fair value of the investment property under construction is not reliably determinable, the investment property
under construction is measured at cost until either its fair value becomes reliably determinable or construction is complete,
whichever is earlier.
Cost includes expenditure that is directly attributable to the acquisition of the investment property. The cost of self-
constructed investment property includes the cost of materials and direct labour, any other costs directly attributable to
bringing the investment property to a working condition for their intended use and capitalised borrowing costs.
An investment property is derecognised on its disposal, or when it is permanently withdrawn from use and no future
economic benefits are expected from its disposal. The difference between the net disposal proceeds and the carrying
amount is recognised in profit or loss in the period in which the item is derecognised.
2.8.2 Reclassification to/from investment property

When an item of property, plant and equipment is transferred to investment properties following a change in its use, any
difference arising at the date of transfer between the carrying amount of the item immediately prior to transfer and its fair
value is recognised directly in other comprehensive income and accumulated in equity as a revaluation reserve. However, if
a fair value gain reverses a previous impairment loss, the gain is recognised in profit or loss. Upon disposal of an investment
property, any surplus previously recorded in equity is transferred to retained earnings; the transfer is not made through
profit or loss.
When the use of a property changes such that it is reclassified as property, plant and equipment, its fair value at the date
of reclassification becomes its deemed cost for subsequent accounting.
2.8.3 Determination of fair value
An external, independent valuation firm, having appropriate recognised professional qualifications and recent experience
in the location and category of property being valued, values the investment properties portfolio annually.
The revalued amounts of property are determined by using the Comparison Method. The Comparison Method entails
critical analysis of recent evidence of values of comparable properties in the neighbourhood and making adjustment for
differences such as differences in location, size and shape of land, age and condition of building, tenure, title restrictions if
any and other relevant characteristics.
The determination of the fair values involves a degree of judgement. As such, the fair value of the investment properties
may be different from its actual market price.

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2.9 Cash and cash equivalents and placements with financial institutions
Cash and cash equivalents consist of cash on hands, balances and deposits held at call with financial institutions and highly liquid
investments which have an insignificant risk of changes in fair value with original maturities of three months or less, and are used
by the Group and the Company in the management of their short term commitments.
2.10 Equity instruments
Instruments classified as equity are measured at cost on initial recognition and are not remeasured subsequently.
2.10.1 Ordinary share capital
Ordinary share capital is classified as equity.
2.10.2 Preference share capital
Preference share capital is classified as equity if it is non-redeemable, or is redeemable but only at the Company’s option,
and any dividends are discretionary. Dividends thereon are recognised as distributions within equity.
Preference share capital is classified as financial liability if it is redeemable on a specific date or at the option of the equity
holders, or if dividend payments are not discretionary. Dividends thereon are recognised as interest expense in profit or loss
as accrued.
2.10.3 Dividends on ordinary shares
Dividends on ordinary shares are recognised as a liability and accounted for in the equity as an appropriation of retained
earnings when they are approved for payment.
Dividends for the year that are approved after the end of the reporting period are dealt with as a subsequent event.
2.11 Provisions
A provision is recognised if, as a result of a past event, the Group and the Company have a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments
of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.
Contingent liabilities
Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the
obligation is not recognised in the statements of financial position and is disclosed as a contingent liability, unless the probability
of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or
non-occurrence of one or more future events, are also disclosed as contingent liabilities unless the probability of outflow of
economic benefits is remote. Contingent liabilities do not include liabilities arising from contracts of insurance underwritten in the
ordinary course of business of the Group.

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2.12 Other financial liabilities and insurance payables
Other financial liabilities and insurance payables are recognised when due and measured on initial recognition at the fair value
of the consideration received less directly attributable transaction costs. Subsequent to initial recognition, they are measured at
amortised cost using the effective interest method.
2.13 Product classification
Product classification applies to the Group’s general insurance and life insurance subsidiaries.
The insurance subsidiaries issue insurance contracts that transfer significant insurance risk. These contracts may also transfer
financial risk.
Financial risk is the risk of a possible future change in interest rate, financial instrument price, commodity price, foreign exchange
rate, index of price or rate, credit rating or credit index or other variable, provided in the case of a non-financial variable that the
variable is not specific to a party to the contract. Insurance risk is the risk other than financial risk.
Insurance contracts are those contracts that transfer significant insurance risk. An insurance contract is a contract under which the
insurance subsidiaries (the insurer) have accepted significant insurance risk from another party (the policyholders) by agreeing
to compensate the policyholders if a specified uncertain future event (the insured event) adversely affects the policyholders. As a
general guideline, the insurance subsidiaries determine whether they have significant insurance risk, by comparing benefits paid
with benefits payable if the insured event did not occur.
Investment contracts are those contracts that do not transfer significant insurance risk.
Once a contract has been classified as an insurance contract, it remains as an insurance contract for the remainder of its life-time,
even if the insurance risk reduces significantly during this period, unless all rights and obligations are extinguished or expired.
Investment contracts can, however, be reclassified as insurance contracts after inception if insurance risk becomes significant.
Insurance and investment contracts (if any) are further classified as being either with or without discretionary participation
features (“DPF”). DPF is a contractual right to receive, as a supplement to guaranteed benefits, additional benefits that are:
• likely to be a significant portion of the total contractual benefits;

• whose amount or timing is contractually at the discretion of the issuer; and
• that are contractually based on the:
– performance of a specified pool of contracts or a specified type of contract;
– realised and/or unrealised investment returns on a specified pool of assets held by the issuer; or
– profit or loss of the company, fund or other entity that issues the contract.
Under the terms of the contracts, surpluses in the DPF funds can be distributed on a discretion over the amount and timing
of the distribution of these surpluses to policyholders. All DPF liabilities, including unallocated surpluses, both guaranteed and
discretionary, at the end of the reporting period are held within insurance or investment contract liabilities, as appropriate. Surplus
of contracts without DPF is attributable wholly to shareholders and is classified as an equity of the Group.

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2.13 Product classification (continued)
For financial options and guarantees which are not closely related to the host insurance contract and/or investment contract with
DPF, bifurcation and unbundling are required to measure these embedded derivatives separately at fair value through profit or
loss. However, bifurcation is not required if the embedded derivative is itself an insurance contract and/or investment contract
with DPF, or if the host insurance contract and/or investment contract itself is measured at fair value through profit or loss.
When insurance contracts contain both a financial risk component and a significant insurance risk component and the cash flows
from the two components are distinct and can be measured reliably, the underlying amounts are unbundled. Any premiums
relating to the insurance risk component are accounted for on the same basis as insurance contracts and the remaining element
is accounted for as a deposit through the statements of financial position similar to investment contracts.
2.14 Reinsurance
Reinsurance applies to the Group’s general insurance and life insurance subsidiaries.
Insurance risk is ceded in the normal course of business for all of its businesses. Reinsurance assets represent balances due from
reinsurance companies. Amounts recoverable from reinsurers are estimated in a manner consistent with the outstanding claims
provision or settled claims associated with the reinsurer’s policies and are in accordance with the related reinsurance contracts.
Ceded reinsurance arrangements do not relieve the insurance subsidiaries from their obligations to policyholders. Premiums
ceded and claims reimbursed/recoveries are recognised in the same accounting period as the original policy/contract in which
the reinsurance relates, and are presented on a gross basis for both ceded and assumed reinsurance in the statement of profit or
loss and statement of financial position.
Reinsurance assets are reviewed for impairment at each reporting date or more frequently when an indication of impairment
arises during the reporting period. Impairment occurs when there is objective evidence as a result of an event that occurred after
initial recognition of the reinsurance asset that the insurance subsidiary may not receive all outstanding amounts due under the
terms of the contract and the event has a reliably measurable impact on the amounts that the insurance subsidiary will receive
from the reinsurer. The impairment loss is recorded in profit or loss.
The insurance subsidiary also assumes reinsurance risk in the normal course of business for general (non-life) insurance contracts
when applicable.
Premiums and claims on assumed reinsurance are recognised as revenue or expenses in the same manner as they would be if the
reinsurance were considered direct business, taking into account the product classification of the reinsured business. Reinsurance
liabilities represent balances due to reinsurance companies. Amounts payable are estimated in a manner consistent with the
related reinsurance contract.
Reinsurance assets or liabilities are derecognised when the contractual rights are extinguished or expired or when the contract is
transferred to another party.
Reinsurance contracts that do not transfer significant insurance risk are accounted for directly through the statements of financial
position. These are deposit assets or financial liabilities that are recognised based on the consideration paid or received less any
explicit identified premiums or fees to be retained by the reinsured. Investment income on these contracts is accounted for using
the effective interest method when accrued.

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2.15 General insurance underwriting results
The general insurance underwriting results are determined for each class of business after taking into account reinsurances,
commissions, unearned premium reserves and claims incurred.
2.15.1 Premium income
(a) Gross premiums
Gross premiums are recognised in a financial period in respect of risks assumed during that particular financial period.
(b) Reinsurance premiums
Inwards facultative reinsurance premiums are recognised in the financial period in respect of the facultative risks assumed
during that particular financial period, as in the case of direct policies, following the individual risks’ inception dates.
Inwards treaty reinsurance premiums comprise both proportional and non-proportional treaties. In respect of
reinsurance premiums relating to proportional treaties, it is recognised on the basis of periodic advices received from
the cedants given that the periodic advices reflect the individual underlying risks being incepted and reinsured at
various inceptions dates of these risks and contractually accounted for, as such to reinsurers under the terms of the
proportional treaties.
In respect of reinsurance premiums relating to non-proportional treaties which cover losses occurring during a
specified treaty period, the inwards treaty reinsurance premiums are recognised based on the contractual premiums
already established at the start of the treaty period under the non-proportional treaty contract.
2.15.2 Unearned premium reserves (“UPR”)
Unearned premium reserves (“UPR”) represent the portion of the net premiums of insurance policies written that relate to
the unexpired periods of the policies at the end of the financial period.
In determining UPR at the end of the reporting period, the method that most accurately reflects the actual unearned
premium used is as follows:
• 25% method for marine cargo, aviation cargo and transit
• 1/24th method (or other more accurate) for all other classes of Malaysian general policies
• 1/8th method for all other classes of overseas inward treaty business
• Non-annual policies are time-apportioned over the period of the risks
2.15.3 Claims and expenses
A liability for outstanding claims is recognised in respect of both direct insurance and inward reinsurance.
The amount of outstanding claims is the best estimate of the expenditure required together with related expenses less
recoveries to settle the present obligation at the end of the reporting period.
Provision is also made for the cost of claims, together with related expenses, incurred but not reported at the end of the
reporting period, using a mathematical method of estimation.

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2.15 General insurance underwriting results (continued)
2.15.4 Acquisition costs and deferred acquisition cost (“DAC”)
The gross costs of acquiring and renewing insurance policies and income derived from ceding reinsurance premiums are
recognised as incurred and properly allocated to the periods in which it is probable they give rise to income.
Those costs are deferred to the extent that these costs are recoverable out of future premiums. All other acquisition costs
are recognised as an expense when incurred.
Subsequent to initial recognition, deferred acquisition cost is amortised/allocated to the periods according to the original
policies which give rise to income. Amortisation is recognised in profit or loss.
An impairment review is performed at each reporting date or more frequently when an indication of impairment arises.
When the recoverable amount is less than the carrying value, an impairment loss is recognised in profit or loss. DAC is also
considered in the liability adequacy test for each accounting period.
DAC is derecognised when the related contracts are either settled or disposed of.
2.15.5 General insurance contract liabilities
General insurance contract liabilities are recognised when contracts are entered into and premiums are charged.
These liabilities comprise claims liabilities and premium liabilities.
Claims liabilities
Claims liabilities are recognised in respect of both direct insurance and inward reinsurance. Claims liabilities refer to the
obligation by the insurance subsidiary, whether contractual or otherwise to make future payments in relation to all claims
that have been incurred as at valuation date (See Note 2.25.1). These include provision for claims reported, claims incurred
but not reported (“IBNR”), claims incurred but not enough reserved (“IBNER”) together with related claims handling costs.
Claims liabilities consist of the best estimate value of the claim liabilities and the Provision of Risk Margin for Adverse
Deviation (“PRAD”) at a 75% confidence letter as required by BNM, calculated at the overall insurance subsidiary level. The
liability is not discounted for the time value of money. No provision for equalisation or catastrophe reserve is recognised.
The liabilities are derecognised when the contract expires, is discharged or is cancelled.
Premium liabilities
Premium liabilities is the higher of the aggregate of the UPR and the best estimate value of the insurer’s unexpired risk
reserves (“URR”) at the valuation date and the PRAD at a 75% confidence letter as required by BNM, calculated at the
overall insurance subsidiary level.
The provision for unearned premiums represents premiums received for risks that have not yet expired. Generally, the
reserve is released over the term of the contract and is recognised as premium income.
The URR is the prospective estimate of the expected future payments arising from future events insured under policies
in force at the valuation date and also includes allowance for the insurer’s expenses, including overheads and cost of
reinsurance, expected to be incurred for administering these policies and settling the relevant claims, and expected future
premium refunds.

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2.16 Life insurance underwriting results
2.16.1 Surplus of Life fund
The surplus transferable from the Life fund to profit or loss of Shareholders’ fund is based on the surplus determined by
an annual actuarial valuation of the liabilities to policyholders, made in accordance with the provisions of the Financial
Services Act, 2013 by the insurance subsidiary’s appointed actuary.
2.16.2 Gross premiums
Gross premiums are recognised as soon as the amount of the premiums can be reliably measured. First premium is
recognised from inception date and subsequent premium is recognised when it is due.
At the end of the financial year, all due premiums are accounted for to the extent that they can be reliably measured.
Premiums not received on due dates are recognised as revenue in profit or loss and reported as outstanding premiums in
the statements of financial position.

2.16.3 Reinsurance premiums
Gross reinsurance premiums on ceded reinsurance are recognised as an expense when payable or on the date on which
the policy is effective.
2.16.4 Benefits, claims and expenses
Benefits and claims that are incurred during the financial year are recognised when a claimable event occurs and/or the
insurer is notified.
Benefits and claims, including settlement costs, are accounted for using the case-by-case method and for this purpose, the
amounts payable under a policy are recognised as follows:
• maturity and other policy benefit payments due on specified dates are treated as claims payable on the due dates;
• death, surrender and other benefits without due dates are treated as claims payable, on the date of receipt of
intimation of death of the assured or occurrence of contingency covered; and
• bonus on DPF policy upon its declaration.
Reinsurance claims are recognised when the related gross insurance claim is recognised according to the terms of the
relevant contracts.

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2.16 Life insurance underwriting results (continued)
2.16.5 Life insurance contract liabilities
(i) Actuarial liabilities
Life actuarial liabilities are recognised when contracts are entered into and premiums are charged.
These liabilities are measured by using a prospective actuarial valuation method (See Note 2.25.2). The liability
is determined as the sum of the present value of future guaranteed benefits and, in the case of the participating
life policy, appropriate level of non-guaranteed benefits, and the expected future management and distribution
expenses, less the present value of future gross considerations arising from the policy discounted at the appropriate
risk discount rate. The liability is based on best estimate assumptions and with due regard to significant recent
experience. An appropriate allowance for provision of risk margin for adverse deviation from expected experience
is included in the valuation of non-participating life policies, the guaranteed benefits liabilities of participating life
policies, and non-unit actuarial liabilities of investment-linked policies.
The liability in respect of policies of a participating insurance contract is taken as the higher of the guaranteed benefit
liabilities or the total benefit liabilities at the insurance fund level derived as stated above.
In the case of a life policy where a part of, or the whole of the premiums are accumulated in a fund, the accumulated
amount, as declared to the policy owners, are set as the liabilities if the accumulated amount is higher than the figure
as calculated using the prospective actuarial valuation method.
For non-unit liability of investment-linked policy, the liability is valued by projecting future cash flows to ensure that
all future outflows can be met without recourse to additional finance or capital support at any future time during the
duration of the investment-linked policy.
In the case of a 1-year life policy or a 1-year extension to a life policy covering contingencies other than death or
survival, the liability for such life insurance contracts comprises the provision for unearned premiums or unexpired
risks, as well as for claims outstanding, which includes an estimate of the incurred claims that have not yet been
reported to the insurance subsidiary.
Adjustments to the liabilities at each reporting date are recorded in profit or loss. Profits originated from margins of
adverse deviations on run-off contracts, are recognised in profit or loss over the life of the contract.
The liability is derecognised when the contract expires, is discharged or is cancelled.

(ii) Benefit and claims liabilities
Benefit and claims liabilities represent the amounts payable under a life insurance policy in respect of claims and
benefits including settlement costs, and are accounted for using the case by-case method as set out above under
benefits and claims expenses.

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2.16 Life insurance underwriting results (continued)
2.16.5 Life insurance contract liabilities (continued)
(iii) Unallocated surplus
Surpluses of contracts with DPF are distributable to policyholders and shareholders in accordance with the relevant
terms under the insurance contracts. The life insurance subsidiary, however, has the discretion over the amount and
timing of the distribution of these surpluses to both the policyholders and shareholders. The amount and timing of the
distribution of these surpluses is subject to the recommendation of the life insurance subsidiary’s Appointed Actuary
and is determined by an actuarial valuation of the long term liabilities to policyholders at the date of the statements
of financial position and is made in accordance with the provision of the Financial Services Act, 2013 and related
regulations.
Unallocated surplus of contracts with DPF, where the amount are yet to be allocated or distributed to either
policyholders or shareholders by the end of the financial period, are held within the insurance contract liabilities.
(iv) Available-for-sale fair value reserve
Where unrealised gains or losses arise on AFS financial assets of the life participating fund, the adjustment to the
insurance contract liabilities, equals to the effect that the realisation of those gains or losses at the end of the reporting
years would have on those liabilities, is recognised directly in the other comprehensive income.
(v) Hedging reserve
Where unrealised gains or losses arise on cash flow hedge of the life participating fund, the adjustment to the
insurance contract liabilities, equals to the effect that the realisation of those gains or losses at the end of the reporting
years would have on those liabilities, is recognised directly in the other comprehensive income.
(vi) Asset revaluation reserve
Where asset revaluation reserve arises on the self-occupied properties of the DPF fund, the adjustment to the life
insurance liabilities equal to the effect that the realisation of those surpluses at the end of the reporting period would
have on those liabilities, is recognised directly in other comprehensive income.
(vii) Net asset value attributable to unitholders
The unit liability of investment-linked policy is equal to the net asset value of the investment-linked funds, which
represents net premium received and investment returns credited to the policy less deduction for mortality and
morbidity costs and expense charges.

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2.17 Policy administration and investment management service income
Insurance contract policyholders are charged for policy administration services, investment management services, surrenders
and other contract fees. These fees are recognised as income over the period in which the related services are performed.
Management fee income earned from the investment-linked business is recognised on an accrued basis based on the net asset
value of the investment-linked funds.
2.18 Commission and agency expenses
Gross commission and agency expenses, which are costs directly incurred in securing premium on insurance policies, are charged
to profit or loss in the period in which they are incurred.
2.19 Other revenue recognition
The following specific recognition criteria must also be met before revenue is recognised.
2.19.1 Interest income
Interest income is recognised as it accrues using the effective interest method in profit or loss.
2.19.2 Rental income
Rental income from investment properties and self-occupied properties are recognised in profit or loss on a straight-line
basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income over
the term of the lease on an accrual basis.
2.19.3 Dividend income
Dividend income is recognised in profit or loss on the date the Group’s and the Company’s right to receive payment is
established, which in the case of quoted securities is the ex-dividend date.
2.19.4 Realised gains and losses on investments
Realised gains and losses recorded in profit or loss on investments include gains and losses on disposal of financial assets
and investment properties. Gains and losses on the sale of investments are calculated as the difference between net sales
proceeds and the original or amortised cost and are recorded on occurrence of the sale transaction.
2.20 Short-term employee benefits
Short-term employee benefits obligations in respect of salaries, annual bonuses, paid annual leave and sick leave are measured
on an undiscounted basis and are expensed as the related service is provided.
A liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group
and the Company have a present legal or constructive obligation to pay this amount as a result of past service provided by the
employee and the obligation can be estimated reliably.

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2.20 Short-term employee benefits (continued)
The Group’s and the Company’s contributions to the statutory pension funds are charged to profit or loss in the financial year
to which they relate. Once the contributions have been paid, the Group and the Company have no further payment obligations.
Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in future payment is available.
2.21 Provision for agent’s retirement benefits
Provision for agent’s retirement benefits is calculated accordance with the terms and conditions in the respective agent’s
agreements. The scheme is not separately funded. The Company pays fixed contributions into the Agency Provident Fund.
Provision for agent’s retirement benefits is charged to profit or loss in the period in which it relates.
2.22 Income tax
Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profit or loss except to
the extent that it relates to a business combination or items recognised directly in equity, insurance contract liabilities or other
comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or
substantively enacted at the end of the reporting period, and any adjustment to tax payable in respect of previous financial years.
Deferred tax is recognised in full using the liability method, providing for temporary differences between the carrying amounts
of assets and liabilities in the statements of financial position and their tax base. Deferred tax is not recognised if the temporary
differences arise from the initial recognition of goodwill, the initial recognition of assets or liabilities in a transaction that is not
a business combination and that affects neither accounting nor taxable profit or loss. Deferred tax is measured at the tax rates
that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or
substantively enacted by the end of the reporting period.
Where investment properties are carried at their fair value in accordance with the accounting policy set out in Note 2.8.1, the
amount of deferred tax recognised is measured using the tax rates that would apply on sale of those assets at their carrying value
at the reporting date unless the property is depreciable and is held with the objective to consume substantially all of the economic
benefits embodied in the property over time, rather than through sale. In all other cases, the amount of deferred tax recognised
is measured based on the expected manner of realisation or settlement of the carrying amount of the assets and liabilities, using
tax rates enacted or substantively enacted at the reporting date. Deferred tax assets and liabilities are not discounted.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which
temporary difference can be utilised. Deferred tax assets are reviewed at the end of each reporting period and are reduced to
the extent that it is no longer probable that the related tax benefit will be realised.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax assets and liabilities, and
they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend
to settle current tax assets and liabilities on a net basis or their tax assets and liabilities will be realised simultaneously.

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2.23 Earnings per ordinary share
The Group presents basic and diluted earnings per share (“EPS”) data for its ordinary shares.
Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted
average number of ordinary shares in issue during the period. The profit or loss attributable to ordinary shareholders is adjusted
for the after tax amounts of preference dividends, differences arising on the settlement of preference shares, and other similar
effects of preference shares classified as equity.
Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number
of ordinary shares in issue adjusted for the effects of all dilutive potential ordinary shares, which comprise convertible notes.
2.24 Operating segments
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur
expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. All operating
segments’ operating results are reviewed regularly by the chief operating decision maker, which in this case is the Chief Executive
Officer of the Group, to make decisions about resources to be allocated to the segment and to assess its performance, and for
which discrete financial information is available.
2.25 Significant accounting judgements, estimates and assumptions
2.25.1 Valuation of general insurance claims liabilities
For general insurance contracts, claims liabilities are the outstanding claims reserve required for the future settlement of
losses on claims which have occurred but have yet to be fully settled. Claims liabilities fall into two categories: expected
ultimate cost of claims reported and expected ultimate cost of claims incurred but not yet reported (“IBNR”) at the end of
the reporting period.
It can take a significant period of time before the ultimate claims cost can be established with certainty and for some type
of policies, IBNR claims form the majority of the statements of financial position liability. The ultimate cost of outstanding
claims is estimated by using a range of standard actuarial claims projection techniques, such as Chain Ladder and
Bornheutter-Ferguson methods.
The expected ultimate cost of claims reported are based on estimates of future payments that will be made with respect
to individual claims. Such estimates are made on a case-by-case basis, based on the information available at the time the
reserves are established. The estimates reflect the informed judgement of claims personnel based on general insurance
reserving practices and knowledge of the nature and value of a specific type of claim.
These reserves are regularly re-evaluated in the ordinary course of the settlement process and adjustments are made as
new information becomes available. IBNR reserves are established to recognise the estimated cost of losses that have
occurred but where the Company has not yet been notified. The valuation of IBNR reserves is carried out by an Appointed
Actuary approved by BNM using professional judgement in applying actuarial methodology and assumptions, based on
the Company’s current and past claims experience, taking into account the Company’s underwriting practice and industry
experience. IBNR reserves are estimated based on actuarial statistical projections of the expected cost of the ultimate
settlement and administration of claims. The projections are based on available information at the time and include factors
such as trends in claims frequency, severity and speed of settlement. IBNR reserves are reviewed and revised quarterly as
additional information becomes available with the actual claims development.

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2.25 Significant accounting judgements, estimates and assumptions (continued)
2.25.1 Valuation of general insurance claims liabilities (continued)
As with all projections, there are elements of uncertainty and thus the projected future claims experience may be different
from its actual claims experience. These uncertainties may arise from changes in the underlying risks, changes in the spread
of risk, changes in the speed of reporting and settlement of claims as well as the suitability of the methodology used in the
projection model and its underlying assumptions.
The key assumptions used and the sensitivity analysis on the key assumptions are disclosed in Note 39.2.
2.25.2 Valuation of life actuarial liabilities
The actuarial valuation of life insurance contract liabilities is based on the Risk-Based Capital Framework for Insurers,
issued by BNM. The actuarial valuation of the insurance liability arising from policy benefits made under life insurance
contracts is the Company’s most critical accounting estimate.
An appropriate allowance for provision of risk margin for adverse deviation from expected experience is included in the
valuation of non-participating life policies, the guaranteed benefits liabilities of participating life policies and non-unit
actuarial liabilities of investment-linked policies.
The risk-free discount rate is used for all cash flows to determine the liability of a non-participating life policy, non-unit
actuarial liability of an investment-linked policy and guaranteed benefits insurance liability of participating policy. A
discount rate based on the historical yield and future investment outlook of the participating fund, net of tax on investment
income of the life fund is used for all cash flows to determine the total benefit liability of participating policies.
There are several sources of uncertainty in the estimation of these liabilities, including future mortality and morbidity rates,
expenses, persistency and discount rates. These key assumptions used are based on past experiences, current internal data,
external market indices and benchmarks which reflect current observable market prices and other published information.
Such assumptions require judgment and therefore, actual experience may differ from the assumptions made by the
Company. Actual experience is monitored to assess whether the assumptions remain appropriate and assumptions are
changed as warranted. Any movement in the key assumptions will have an effect in determining the actuarial liabilities
recognised in life insurance contract liabilities.
The key assumptions used and the sensitivity analysis on the key assumptions are disclosed in Note 39.1.
2.25.3 Impairment of goodwill
The Group assesses the impairment of goodwill on an annual basis in accordance with its accounting policy in Note 2.7.3.
The recoverable amounts of the goodwill are determined based on the value in use method, which requires the use of
estimates for cash flow projections. The key assumptions used in the assessment are disclosed in Note 5.

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2.26 Fair value measurement
Fair value of an asset or a liability is determined as the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date. The measurement assumes that the transaction to
sell the asset or transfer the liability takes place either in the principal market or in the absence of a principal market, in the most
advantageous market.
For non-financial asset, the fair value measurement takes into account a market participant’s ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its
highest and best use.
When measuring the fair value of an asset or a liability, the Group uses observable market data as far as possible. Fair value are
categorised into different levels in a fair value hierarchy based on the input used in the valuation technique as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can access at the measurement
date.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or
indirectly.
Level 3: unobservable inputs for the asset or liability.
The Group recognises transfers between levels of the fair value hierarchy as of the date the event or change in circumstances that
caused the transfers.

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3. PROPERTY, PLANT AND EQUIPMENT
Office
equipment,
computers, Office
furniture renovations
Land and and Motor and Work-in-
Land Buildings buildings* fittings vehicles partitions progress Total
Group Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Cost/Valuation
At 1 January 2019 10,369 46,983 1,659 125,921 2,133 34,901 2,849 224,815
Additions - - - 7,175 70 1,901 5,681 14,827
Disposals (2,069) (1,451) - (63) (389) - - (3,972)
Written off - - - (15,154) - (6,446) - (21,600)
Reclassification #
5 - - - 1,855 - 1,906 (5,870) (2,109)
Revaluation - 20 - - - - - 20
At 31 December
2019/
At 1 January 2020 8,300 45,552 1,659 119,734 1,814 32,262 2,660 211,981
Additions - - - 5,907 546 968 8,533 15,954
Disposals - (880) - (20) (377) (9) (49) (1,335)
Written off - - - (584) - (399) - (983)
Transfer from
investment
properties 6 900 19,115 - - - - - 20,015
Reclassification #
5 - - - 723 - 778 (2,377) (876)
At 31 December 2020 9,200 63,787 1,659 125,760 1,983 33,600 8,767 244,756
* The carrying amounts of land and buildings are not segregated as the required information is not available.
#
Certain work-in-progress were reclassified as software development costs (intangible assets) (See Note 5).

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3. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Office
equipment,
computers, Office
furniture renovations
Land and and Motor and Work-in-
Land Buildings buildings* fittings vehicles partitions progress Total
Group Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Depreciation
At 1 January 2019 - 7,590 105 99,320 1,552 22,059 - 130,626
Depreciation for the
year 29 - 1,633 37 10,907 279 2,632 - 15,488
Revaluation - (321) - - - - - (321)
Disposals - (254) - (62) (308) - - (624)
Written off - - - (14,817) - (5,655) - (20,472)
At 31 December
2019/
At 1 January 2020 - 8,648 142 95,348 1,523 19,036 - 124,697
Depreciation for the
year 29 - 1,566 20 9,409 314 2,692 - 14,001
Disposals - (126) - (18) (374) - - (518)
Written off - - - (503) - (399) - (902)
At 31 December 2020 - 10,088 162 104,236 1,463 21,329 - 137,278
Carrying amounts
At 1 January 2019 10,369 39,393 1,554 26,601 581 12,842 2,849 94,189
At 31 December
2019/
1 January 2020,
as restated 8,300 36,904 1,517 24,386 291 13,226 2,660 87,284
At 31 December 2020 9,200 53,699 1,497 21,524 520 12,271 8,767 107,478
* The carrying amounts of land and buildings are not segregated as the required information is not available.

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Office
equipment,
computers, Office
furniture and renovations Work-in-
fittings and partitions progress Total
Company Note RM’000 RM’000 RM’000 RM’000
Cost
At 1 January 2019 1,742 82 - 1,824
Additions 295 - - 295
Disposals (3) - - (3)
Written off (14) - - (14)
At 31 December 2019/1 January 2020 2,020 82 - 2,102
Additions 182 18 497 697
At 31 December 2020 2,188 100 497 2,785
Depreciation
At 1 January 2019 934 38 - 972
Depreciation for the year 29 343 7 - 350
Disposals (3) - - (3)
At 31 December 2019/1 January 2020 1,261 45 - 1,306
Depreciation for the year 29 307 8 - 315
At 31 December 2020 1,554 53 - 1,607
Carrying amounts
At 1 January 2019 808 44 - 852
At 31 December 2019/1 January 2020 759 37 - 796
At 31 December 2020 634 47 497 1,178

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3.1 Revaluation of properties
The Group’s land and buildings were revalued in October 2016 & October 2019 by external independent qualified valuers using
the Comparison Approach. This approach considers the sales of similar or substitute properties and related market data, and
establishes a value estimate by adjustments made for differences in factors that affect value. In general, the land and buildings
are compared with sales of similar properties that have been transacted in the open market. Listings and offers may also be
considered. Listings and offers may also be considered. There is no material change in fair value in 2020.
Had the land and buildings of the Group been carried at historical cost less accumulated depreciation, their carrying amounts
would have been as follows:
2020 2019
Group RM’000 RM’000
Land 7,096 3,095

Buildings 45,734 29,709
Land and buildings 2,145 1,253
54,975 34,057
3.2 Fair value information
Fair value of land and buildings are categorised as follows:
2020 2019
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Group
Land - - 9,200 9,200 - - 8,300 8,300
Buildings - - 53,699 53,699 - - 36,904 36,904
Land and buildings - - 1,497 1,497 - - 1,517 1,517
- - 64,396 64,396 - - 46,721 46,721
Level 3 fair value
The Level 3 unobservable input used in the valuation of land and buildings is the price per square foot (“psf”) which is derived
from the selling price of comparable land and building, adjusted for differences in location, property size, shape and terrain of
land, any title restrictions, availability of infrastructure, age and condition of building, finishes and services and other relevant
characteristics.
The estimated fair value would increase/(decrease) if the price per square foot were higher or lower and the historical sales
transaction value were higher or lower.
The following table shows the valuation technique used in the determination of fair values within Level 3, as well as the significant
unobservable input used in the valuation model.

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3.2 Fair value information (continued)
Land and buildings
2020 2020 2019 2019

Adjusted Price Adjusted Price
Fair Value per sq foot Fair Value per sq foot
Valuation technique used RM’000 RM/psf RM’000 RM/psf
Comparison Approach 64,396 223 – 2,643 46,721 223 – 2,643
4. RIGHT-OF-USE ASSETS
Leasehold land Buildings Total

RM’000 RM’000 RM’000
Group
Valuation/Cost
At 1 January 2019 20,187 69,332 89,519
Addition - 4,200 4,200
Disposals (1,514) (159) (1,673)
Revaluation 730 - 730
31 December 2019 19,403 73,373 92,776
Additions - 2,424 2,424
Disposals (1,770) (26) (1,796)
Modification/Termination of leases - (147) (147)
At 31 December 2020 17,633 75,624 93,257
Depreciation
At 1 January 2019 848 - 848
Depreciation for the year 410 17,744 18,154
Disposals (82) (50) (132)
Revaluation (429) - (429)
31 December 2019 747 17,694 18,441
Depreciation for the year 284 17,593 17,877
Disposals (101) - (101)
Modification/Termination of leases - (1,002) (1,002)
At 31 December 2020 930 34,285 35,215
Carrying amounts
At 31 December 2019/1 January 2020 18,656 55,679 74,335
At 31 December 2020 16,703 41,339 58,042

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4. RIGHT-OF-USE ASSETS (CONTINUED)
The Group leases a number of buildings for its office space and branches. The leases typically run for a period of 1 to 5 years, with
options to renew the lease after that date. The lease agreements do not impose any covenants.
In 2020, the total cash outflow for leases amounts to RM19,351,000 and income from subleasing right-of-use assets amounts to
RM71,000.
4.1 Right-of-use assets under the revaluation model
The leasehold land was last revalued in October 2019 by external independent qualified valuers using the Comparison Approach.
This approach considers the sales of similar or substitute properties and related market data, and establishes a value estimate
by adjustments made for differences in factors that affect value. In general, the leasehold land is compared with sales of similar
properties that have been transacted in the open market. Listings and offers may also be considered.
Had the leasehold land been carried at historical cost less accumulated amortisation, the carrying amounts would have been
RM6,846,000.
Fair value of leasehold land is categorised as level 3 of the fair value hierarchy.
Level 3 fair value
The Level 3 unobservable input used in the valuation of leasehold land is the price per square foot (“psf”) which is derived from the
selling price of comparable land, adjusted for differences in location, shape and terrain of land, any title restrictions, availability
of infrastructure, age and condition of building erected thereon and other relevant characteristics.
Leasehold land
2020 2020 2019 2019

Adjusted price Adjusted price
Comparison Approach 16,703 120 - 1,334 18,656 120 - 1,334

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5. INTANGIBLE ASSETS
Software Other
development intangible
Goodwill costs assets Total
Group Note RM’000 RM’000 RM’000 RM’000
Cost
At 1 January 2019 244,600 67,590 117,495 429,685
Additions - 8,192 27,500 35,692
Disposal - (6,375) - (6,375)
Reclassification 3 - 2,109 - 2,109
At 31 December 2019/1 January 2020 244,600 71,516 144,995 461,111
Additions - 10,614 - 10,614
Disposals - - - -
Reclassification 3 - 876 - 876
At 31 December 2020 244,600 83,006 144,995 472,601
Amortisation
At 1 January 2019 - 35,948 34,473 70,421
Amortisation for the year 29 - 10,380 9,730 20,110
At 31 December 2019/1 January 2020 - 46,328 44,203 90,531
Amortisation for the year 29 - 11,301 12,279 23,580
At 31 December 2020 - 57,629 56,482 114,111
Carrying amounts
At 1 January 2019 244,600 31,642 83,022 359,264
At 31 December 2019/1 January 2020 244,600 25,188 100,792 370,580
At 31 December 2020 244,600 25,377 88,513 358,490
Note 5.1 Note 5.2 Note 5.3
5.1 Goodwill
The aggregate carrying amount of goodwill is attributable to the acquisition of the following subsidiaries:
2020 2019
Allianz General Insurance Company (Malaysia) Berhad (“AGIC”) 239,610 239,610

Allianz Life Insurance Malaysia Berhad (“ALIM”) 4,990 4,990
244,600 244,600

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5. INTANGIBLE ASSETS (CONTINUED)
5.1 Goodwill (continued)
(i) AGIC
Impairment test for cash-generating unit (“CGU”) containing goodwill
For goodwill attributable to the acquisition of AGIC, the carrying amount of goodwill had been allocated to the entire
integrated general insurance business of the Group as one CGU, which represents the lowest level within the Group at
which goodwill is monitored for internal management purposes. The estimated recoverable amount is calculated based
on value in use, determined by discounted cash flows generated by the general insurance business using approved 5-year
financial budgets projected to perpetuity.
The following key assumptions have been used in the cash flow projections in respect of the determining the value in use
for CGU containing goodwill:
Key assumptions 2020 2019
Discount rate - pre tax 10.2% 10.8%

Terminal growth rate 3.0% 3.0%
(ii) ALIM
For goodwill attributable to the acquisition of ALIM, the annual impairment test was done by comparing the estimated
recoverable amount of ALIM with its carrying amount including the goodwill attributed. The recoverable amount is the
value in use which is measured by the Embedded Value attributable to ALIM calculated by an appointed actuary. ALIM
computes the Embedded Value using market consistent embedded value approach whereby the Embedded Value is the
present value of future shareholders distributable profits after tax discounted at the risk free yield curve with volatility
adjustment plus the Net Assets Value. The projected future cash flows are based on the best estimate of assumptions, either
derived from the operating unit experience or industry experience.
The estimated recoverable amounts of both the CGUs were determined to be higher than their carrying amounts and
thus no impairment loss was recognised. Based on the assessment of value in use for both the CGUs, the Group does not
expect that any reasonable change in the key assumptions will cause the carrying amount of the goodwill to exceed their
respective recoverable amounts. In conclusion, the key assumptions are not sensitive.
5.2 Software development costs
The software development costs are in relation to internal development expenditures incurred for the Open Product Underwriting
System (“OPUS”), Alternate Front End System (“ALPHA”), Business Intelligence System (“BI”) and digital application. These systems
are integrated systems designed to improve the efficiency of the business activities of the subsidiaries. The costs of developed
software are amortised over a period of three to five years.

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5.3 Other intangible assets
The carrying amounts of other intangible assets are as follows:
2020 2019
Group Note RM’000 RM’000
The Bancassurance Agreements:

- General insurance business 5.3.1 74,881 82,615
- Life insurance business 5.3.2 13,632 18,177
88,513 100,792
5.3.1 The Bancassurance Agreement – General insurance business
The intangible asset is in relation to the exclusive Bancassurance Agreement which is effective from 1 July 2017 and
Marketing Agreement which is effective from 1 October 2019 for the distribution of the Group’s general insurance products.
For the Bancassurance Agreement, the fee for this exclusive right is amortised over its useful life of 15 years using the
straight-line method, whereas for the Marketing Agreement, the fee for the exclusive right is amortised over its useful life of
6 years using the straight-line method.
In the impairment assessment conducted by AGIC, the future economic benefits that are attributable to the Bancassurance
Agreement was valued at the present value of projected future cash flows to be derived from the tenure of the agreement
of 15 years using the discounted cash flow model.
The following key assumptions have been used in cash flow projections in respect of the Bancassurance Agreement have
taken into account COVID-19 impact:
Bancassurance average annualized gross written premium growth rate 11.0% 12.0%
Discount rate – pre tax 10.2% 10.8%
5.3.2 The Bancassurance Agreement – Life insurance business
The intangible asset is in relation to the exclusive Bancassurance Agreement which provides the Group’s life insurance
subsidiary with an exclusive right to the use of the bancassurance network of a local commercial bank to sell, market and
promote conventional life product.
The fee for this exclusive right is amortised over its useful life of 11 years using the straight-line method. In the impairment
assessment conducted by ALIM, the future economic benefits that are attributable to the Bancassurance Agreement was
valued at the present value of projected future cash flows to be derived from the tenure of the agreement of 11 years using
the discounted cash flow model.

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5.3 Other intangible assets (continued)
5.3.2 The Bancassurance Agreement – Life insurance business (continued)
The following key assumptions have been used in cash flow projections in respect of the Bancassurance Agreement have
taken into account COVID-19 impact:
Bancassurance average annualized gross written premium growth rate 16.1% 8.2%
Discount rate – pre tax 10.2% 10.8%
5.3.3 Sensitivity to changes in key assumptions
Management considers that it is not reasonably possible for the abovementioned key assumptions to change so significantly
that would result in impairment.
6. Investment properties
2020 2019
At 1 January 20,155 19,914

Change in fair value recognised in profit or loss 26 (140) 241
Transfer to property, plant and equipment 3 (20,015) -
At 31 December - 20,155
Included in the above are:

At fair value:
Freehold land - 1,000
Buildings - 19,155
- 20,155
The following are recognised in profit or loss in respect of investment properties:
2020 2019
Direct operating expenses

income generating investment properties - (2)

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6. INVESTMENT PROPERTIES (CONTINUED)
Fair value of investment properties are categorised as follows:
2020 2019
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Freehold land - - - - - - 1,000 1,000

Buildings - - - - - - 19,155 19,155
- - - - - - 20,155 20,155
Level 3 fair value
The fair values of the investment properties were determined by external independent qualified valuers using Comparison
Method. This approach considers the sales of similar or substitute properties and related market data, and establishes a value
estimate by adjustments made for differences in factors that affect value. In general, the investment properties are compared
with sales of similar properties that have been transacted in the open market. Listings and offers may also be considered.
The Level 3 unobservable input used in the valuation of investment properties is the price per square foot (“psf”) which is derived
from the selling price of comparable land and building, adjusted for differences in location, property size, shape and terrain of
land, any title restrictions, availability of infrastructure, age and condition of building, finishes and services and other relevant
characteristics.
2020 2020 2019 2019

Adjusted Price Adjusted Price
Comparison Approach - - 20,155 238 – 1,015

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7. INVESTMENTS IN SUBSIDIARIES
2020 2019
Company RM’000 RM’000
At cost
Unquoted shares 961,088 961,088
The principal activities of the subsidiaries, the place of incorporation and the interest of the Company are as follows:
Effective ownership interest

Country of 2020 2019
Name of subsidiary Principal activity incorporation % %
Underwriting life insurance

Allianz Life Insurance Malaysia Berhad and investment-linked
(“ALIM”) business Malaysia 100 100
Allianz General Insurance Company Underwriting general
(Malaysia) Berhad (“AGIC”) insurance business Malaysia 100 100
Investment in debt securities
and money market
Affin Hwang Income Fund 5 instruments Malaysia 100 100
Allianz General Insurance Company (Malaysia) Berhad and Allianz Life Insurance Malaysia Berhad holds a 96.5% and 3.5% stake in
collective investment scheme, namely, Affin Hwang Income Fund 5, which consist of RM596,242,522 unitholders’ capital.
Allianz Malaysia Berhad determines that it has control over Affin Hwang Income Fund 5 and accordingly, the investment in Affin Hwang
Income 5 has been consolidated with those of the Company.
PricewaterhouseCoopers PLT is the auditor for all Allianz Malaysia Berhad’s subsidiaries.

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7. INVESTMENTS IN SUBSIDIARIES (CONTINUED)
The financial information of Affin Hwang Income 5 is disclosed below:
Statement of financial position as at 31 December 2020
2020
RM’000
Assets
Cash and cash equivalents 21,475
Investments 574,873
Total asset 596,348
Liabilities
Other payables and accruals 106
Total Liabilities 106
Net Asset Value of the Fund 596,242
Statement of comprehensive income as at 31 December 2020
2020
RM’000
Investment income 27,017

Expenses (778)
Net profit before taxation 26,239
Taxation -
Net profit after taxation 26,239
8. SUBORDINATED LOAN
2020 2019
Non-current
Subordinated loan to a subsidiary - 54,300
The Company has on 7 January 2013, entered into a facility agreement (“Facility Agreement”) with ALIM to make available to ALIM
a subordinated loan of up to the aggregate principal amount of RM73.0 million only (“Facility”) upon fulfillment of the terms and
conditions as stipulated in the Facility Agreement. The subordinated loan is unsecured, subject to interest at 4.5% per annum and
repayable in 2023. However, the subordinated loan has been fully repaid by ALIM on 8 January 2020.
The proceeds from the Facility were utilised by ALIM as subordinated loan for general working capital purposes including business
expansion.

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9. REINSURANCE ASSETS
2020 2019
Non-current
Reinsurance of insurance contracts
General insurance claims liabilities 257,251 268,049
Life insurance actuarial liabilities 39,045 33,508
296,296 301,557
Current
Reinsurance of insurance contracts
General insurance claims liabilities 480,146 492,307
Allowance for impairment 40.1(ii) (2,578) (2,586)
477,568 489,721
General insurance premium liabilities 92,614 99,702
Life insurance claims liabilities 29,032 35,565
Life insurance actuarial liabilities 43 41
599,257 625,029
Total 17 895,553 926,586

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10. INVESTMENTS
2020 2019
Malaysian government securities 5,612,655 4,451,937

Malaysian government guaranteed bonds 3,677,880 3,197,634
Ringgit denominated bonds by foreign issuers outside Malaysia - 40,623
Quoted equity securities of corporations in Malaysia 2,493,098 1,905,352
Quoted equity securities of corporations outside Malaysia 1,637 1,896
Unquoted equity securities of corporations in Malaysia 2,147 2,147
Unquoted bonds of corporations in Malaysia 4,963,751 4,540,106
Unquoted bonds of corporations outside Malaysia 125,727 121,018
Quoted unit trusts in Malaysia 57,468 75,679
Unquoted unit trusts in Malaysia 726,308 619,221
Unquoted unit trusts outside Malaysia 28,385 28,021
Structured deposits and negotiable certificate of deposits with licensed financial institutions 73,148 93,800
Malaysian government guaranteed loans - 190,504
Fixed and call deposits with:
Licensed financial institutions 882,677 729,545
18,644,881 15,997,483
Policy loans 7,915 9,681

Automatic premium loans 76,807 78,183
18,729,603 16,085,347
Financial investments are summarised by categories as follows:
Current Non-current Total

2020 2019 2020 2019 2020 2019
Group Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Available-for-sale financial
assets (“AFS”) 10(a) 8,096,088 7,015,939 - - 8,096,088 7,015,939
Loans and receivables (“LAR”) 10(b) 967,399 509,525 - 498,388 967,399 1,007,913
Fair value through profit or loss
(“FVTPL”)
- Held for trading (“HFT”) 10(c) 5,621,189 4,674,061 - - 5,621,189 4,674,061
- Designated upon initial
recognition (“DUIR”) 10(d) 4,044,927 3,387,434 - - 4,044,927 3,387,434
18,729,603 15,586,959 - 498,388 18,729,603 16,085,347

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10. INVESTMENTS (CONTINUED)
(a) Available-for-sale financial assets
Fair value
2020 2019

Malaysian government guaranteed bonds 2,315,457 1,846,320
Quoted equity securities of corporations in Malaysia 717,726 570,492
Structured deposits and negotiable certificate of deposits with licensed financial
institutions - 20,348
8,093,941 7,013,792
Cost
2020 2019
Unquoted equity securities of corporations in Malaysia 2,147 2,147

Total available-for-sale financial assets 8,096,088 7,015,939
(b) Loans and receivables
Amortised cost Fair value Amortised cost Fair value

2020 2020 2019 2019
Group RM’000 RM’000 RM’000 RM’000
Malaysian government guaranteed loans - - 190,504 191,506

Policy loans 7,915 7,915 9,681 9,681
Automatic premium loans 76,807 76,807 78,183 78,183
Licensed financial institutions 882,677 882,677 729,545 729,545
967,399 967,399 1,007,913 1,008,915

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(c) FVTPL – Held for trading
Fair value
2020 2019

Malaysian government guaranteed bonds 828,398 785,731
Quoted equity securities of corporations in Malaysia 1,775,372 1,334,860
Quoted equity securities of corporations outside Malaysia 1,637 1,896
Unquoted unit trusts outside Malaysia 28,385 28,021
5,621,189 4,674,061
(d) FVTPL – Designated upon initial recognition
Fair value
2020 2019
Malaysian government securities 1,307,299 780,944

Malaysian government guaranteed bonds 534,025 565,583
Unquoted bonds of corporations outside Malaysia 125,727 121,018
Structured deposits with licensed financial institutions 73,148 73,452
4,044,927 3,387,434

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The movements in carrying values of the financial investments are as follows:
AFS LAR HFT DUIR Total

Group Note RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2020 7,015,939 1,007,913 4,674,061 3,387,434 16,085,347

Purchases/Placements 2,302,879 41,494,949 2,367,347 855,510 47,020,685
Maturities (420,475) (41,543,273) (172,200) (213,030) (42,348,978)
Disposals (850,446) - (1,310,781) (96,517) (2,257,744)
Fair value gains recorded in:
Profit or loss:
- Unrealised gains 26 - - 65,587 87,407 152,994
- Movement in impairment allowance 26 (137,566) - - - (137,566)
Other comprehensive income 16.2 73,513 - - - 73,513
Insurance contract liabilities 17(a) 138,800 - - - 138,800
Accretion of discounts 24 2,559 - 1,603 2,823 6,985
Amortisation of premiums 24 (6,983) - (2,340) (3,845) (13,168)
Unrealised foreign exchange losses - - (780) (2,069) (2,849)
Movement in income due and accrued (22,132) 7,810 (1,308) 27,214 11,584
At 31 December 2020 8,096,088 967,399 5,621,189 4,044,927 18,729,603
AFS LAR HFT DUIR Total

Group Note RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2019 6,645,683 613,932 3,757,147 3,232,636 14,249,398

Purchases/Placements 1,245,946 36,125,283 1,277,036 381,391 39,029,656
Maturities (739,192) (35,739,422) (155,050) (202,066) (36,835,730)
Disposals (399,211) - (427,923) (146,443) (973,577)
Fair value gains recorded in:
Profit or loss:
- Unrealised gains 26 - - 221,671 122,781 344,452
- Movement in impairment allowance 26 (19,087) - - - (19,087)
Other comprehensive income 16.2 86,920 - - - 86,920
Insurance contract liabilities 17(a) 200,584 - - - 200,584
Accretion of discounts 24 1,533 - 1,354 2,453 5,340
Amortisation of premiums 24 (1,851) - (1,123) (2,105) (5,079)
Unrealised foreign exchange gains/(losses) - - 129 (1,378) (1,249)
Movement in income due and accrued (5,386) 8,120 820 165 3,719
At 31 December 2019 7,015,939 1,007,913 4,674,061 3,387,434 16,085,347

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2020 2019

Licensed financial institutions 22,624 5,906
Financial investments are summarised by category as follows:
Current Total
2020 2019 2020 2019
Company RM’000 RM’000 RM’000 RM’000
Amortised cost 22,624 5,906 22,624 5,906
Amortised cost Fair value Amortised cost Fair value

2020 2020 2019 2019
Company RM’000 RM’000 RM’000 RM’000

Licensed financial institutions 22,624 22,624 5,906 5,906
The movements in carrying values of the financial investments are as follows:
Amortised cost Total

At 1 January 2019 2,016 2,016

Placements 603,892 603,892
Maturities (600,039) (600,039)
Movement in accrued interest 37 37
At 31 December 2019/1 January 2020 5,906 5,906
Placements 953,495 953,495
Maturities (936,910) (936,910)
Movement in accrued interest 133 133
At 31 December 2020 22,624 22,624

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11. DERIVATIVE FINANCIAL ASSETS AND (LIABILITIES)
Nominal value Assets Liabilities

Group RM’000 RM’000 RM’000
2020
Derivative held for trading at fair value through profit or loss:
Collateralised interest rate swap 400,000 59,496 -
Cross currency swap 119,750 5,366 (301)
Derivatives used for hedging:
Forward purchase agreements 100,000 16,876 -
619,750 81,738 (301)
2019
Derivative held for trading at fair value through profit or loss:
Collateralised interest rate swap 400,000 36,804 -
Cross currency swap 119,750 4,412 (1,244)
Derivatives used for hedging:
Forward purchase agreements 160,000 20,961 -
679,750 62,177 (1,244)
The Group uses interest rate swap and cross currency swap to mitigate the changes in fair value of local and foreign currency-
denominated debt securities due to movements in interest rates or foreign exchange rates.
The Group enters into forward purchase agreements as cash flow hedging instruments to hedge against variability in future cash flows
arising from movements in interest rates of debt securities.
Table below shows the periods when the hedged cash flows are expected to occur:
>6 to 12 months >1 to 5 years

As at 31.12.2020
Cash inflows (assets) - -
Cash outflows (liabilities) (39,982) (56,824)
(39,982) (56,824)
As at 31.12.2019
Cash inflows (assets) - -
Cash outflows (liabilities) (59,275) (96,807)
(59,275) (96,807)

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12. INSURANCE RECEIVABLES
2020 2019
Current
Due premiums including agents, brokers and co-insurers balances 179,233 176,616
Due from reinsurers and cedants 63,117 70,526
Due from holding company 12.1 1,945 576
Due from related companies 12.1 10,390 6,461
Group claims receivables 831 797
255,516 254,976
Less: Allowance for impairment 40.1(ii) (55,865) (59,624)
199,651 195,352
12.1 Amount due from holding company and related companies
The amount due from related companies is unsecured and receivable in accordance with normal trade terms.
12.2 Financial assets
There is no netting off of gross amount of recognised financial assets against the gross amount of financial liabilities in the
statement of financial position.
There are no financial assets that are subject to enforceable master netting arrangement or similar arrangement to financial
instruments received as collateral or any cash collateral pledged or received (2019: Nil).

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13. OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS
2020 2019
Non-current
Other receivables
Other loans 30,851 35,634
Other receivables, deposits and prepayment 27,661 9,168
58,512 44,802
Staff loans
Mortgage loans 6,878 6,604
Other secured loans 1,198 1,448
8,076 8,052
66,588 52,854
Current
Other receivables
Sundry deposits 4,949 6,062
Malaysian Motor Insurance Pool (“MMIP”) 47,244 48,889
Other receivables and prepayments 37,990 54,693
Less: Allowance for impairment 40.1(ii) (742) (4,558)
89,441 105,086
Due from immediate holding company 226 121
Due from related companies 13.1 3,600 4,889
93,267 110,096
Staff loans
Mortgage loans 829 767
Other secured loans 401 479
1,230 1,246
94,497 111,342
Total 161,085 164,196

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13. OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS (CONTINUED)
13.1 Amounts due from holding company and related companies
The amount due from holding company and related companies are unsecured, interest free and repayable on demand.
2020 2019
Company Note RM’000 RM’000
Non-current
Other receivables
Other receivables, deposits and prepayments 1,026 1,206
Staff loans
404 364
1,430 1,570
Current
Other receivables
Other receivables, deposits and prepayments 1,023 815
Due from subsidiaries 13.2 4,214 8,649
Dividend receivable from subsidiaries 279,683 199,822
284,920 209,286
Staff loans
64 57
284,984 209,343
Total 286,414 210,913
13.2 Amount due from subsidiaries
The amount due from subsidiaries is unsecured, interest free and repayable on demand.

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14. DEFERRED ACQUISITION COSTS
Gross Reinsurance Net

Group Note RM’000 RM’000 RM’000
At 1 January 2019 106,804 (11,744) 95,060

Movement during the year 27 13,955 2,408 16,363
At 31 December 2019/1 January 2020 120,759 (9,336) 111,423
Movement during the year 27 3,535 1,212 4,747
At 31 December 2020 124,294 (8,124) 116,170
15. SHARE CAPITAL
2020 2019
Number of Number of
Amount shares Amount shares
Group and Company RM’000 ’000 RM’000 ’000
Issued and fully paid shares classified as equity

instruments:
Ordinary shares (Note 15.1)
At 1 January 232,597 176,888 231,964 176,688
Issued during the year 4 1 633 200
At 31 December 232,601 176,889 232,597 176,888
Irredeemable Convertible Preference Shares

(Note 15.2)
At 1 January 538,432 169,318 539,065 169,518
Conversion during the year (4) (1) (633) (200)
At 31 December 538,428 169,317 538,432 169,318
During the financial year, the Group and the Company issued 1,200 (2019: 199,200) ordinary shares via conversion of ICPS.
15.1 Ordinary shares
The holders of the ordinary shares are entitled to one vote per share at meetings of the Company, and to receive dividends as
declared from time to time.

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15. SHARE CAPITAL (CONTINUED)
15.2 Irredeemable Convertible Preference Shares (“ICPS”)
The ICPS holders do not carry the right to vote at any general meeting except for when the dividend or part of the dividend is in
arrears for more than 6 months, on a proposal to wind-up of the Company, during the winding-up of the Company, on a proposal
that affect the rights attached to the ICPS, on a proposal to reduce the Company’s share capital or on a proposal for the disposal
of the whole of the Company’s property, business and undertaking.
Holders of ICPS receive a non-cumulative preferential dividend equivalent to 1.2 times of the dividend rate of the ordinary shares
declared for the same financial year/period and calculated based on the nominal value of the ICPS at the Company’s discretion.
The ICPS may be converted at any time on a date falling 12 months after the quotation date of the ICPS. The conversion price is
fixed at 1 ordinary share of the Company and shall be satisfied by surrendering 1 ICPS for each ordinary share of the Company,
subject to adjustment to the conversion price. No cash is payable by the holder of the ICPS upon conversion of the ICPS to ordinary
shares. The ordinary shares resulting from each conversion shall rank pari passu in all respect with the remaining ordinary shares.
In the event of repayment of capital by the Company (including any cancellation of capital which is lost or unrepresented by
assets), each ICPS holder will be entitled to participate in such repayment and shall rank pari passu with the existing ordinary
shareholders.
16. RESERVES
2020 2019
Revaluation reserve 16.1 38,565 42,303

Fair value reserve 16.2 134,766 77,446
Life non-participating fund surplus 1,137,320 971,897
Retained earnings 16.3 1,949,826 1,810,894
3,260,477 2,902,540
Company
Retained earnings 287,481 233,476
287,481 233,476
16.1 Revaluation reserve
The revaluation reserve represents the surplus on revaluation of owner occupied properties for the general business and life
business.
16.2 Fair value reserve
The fair value reserve comprises the cumulative net change in the fair value of available-for-sale financial assets until the
investments are derecognised or impaired.

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16. RESERVES (CONTINUED)
16.3 Retained earnings
Restriction on payment of dividends by insurance subsidiaries
Pursuant to the RBC Framework for Insurers, the insurance subsidiaries of the Group (“Insurance Subsidiaries”) shall not pay
dividends if the Capital Adequacy Ratio position of the Insurance Subsidiaries is less than the Insurance Subsidiaries’ internal
target capital levels or if the payment of dividends would impair Insurance Subsidiaries’ Capital Adequacy Ratio position to below
Insurance Subsidiaries’ internal target capital levels.
Pursuant to Section 51(1) of the Financial Services Act, 2013 (“FSA”), the Insurance Subsidiaries are required to obtain Bank
Negara Malaysia’s written approval prior to declaring or paying any dividend on its shares.
17. INSURANCE CONTRACT LIABILITIES
2020 2019
Gross Reinsurance Net Gross Reinsurance Net
Life insurance 17(a) 12,152,477 (68,120) 12,084,357 10,763,670 (69,114) 10,694,556

General insurance 17(b) 3,900,795 (827,433) 3,073,362 3,658,554 (857,472) 2,801,082
16,053,272 (895,553) 15,157,719 14,422,224 (926,586) 13,495,638
Note 9 Note 9
(a) Life insurance
Life insurance contract liabilities consist of:
2020 2019
Actuarial liabilities 39.1 9,067,076 (39,088) 9,027,988 8,104,310 (33,549) 8,070,761

Benefits and claims
liabilities 668,224 (29,032) 639,192 577,403 (35,565) 541,838
Unallocated surplus (109,723) - (109,723) 30,069 - 30,069
Hedging reserve 15,526 - 15,526 19,284 - 19,284
Available-for-sale fair
value reserve 360,187 - 360,187 232,491 - 232,491
Net asset value
attributable to
unitholders 2,144,196 - 2,144,196 1,793,122 - 1,793,122
Revaluation reserve 6,991 - 6,991 6,991 - 6,991
12,152,477 (68,120) 12,084,357 10,763,670 (69,114) 10,694,556

17. INSURANCE CONTRACT LIABILITIES (CONTINUED)
(a) Life insurance (continued)
Gross Reinsurance
With DPF Without DPF Total With DPF Without DPF Total Net
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2020 4,198,875 6,564,795 10,763,670 (528) (68,585) (69,113) 10,694,557

Premiums received (Note 23) 102,048 2,847,070 2,949,118 (5,518) (100,101) (105,619) 2,843,499
Liabilities paid for death, maturities,
surrenders, benefits and claims (303,287) (987,508) (1,290,795) 3,024 51,887 54,911 (1,235,884)
Movements in benefits and claim liabilities 40,008 50,813 90,821 (246) 6,779 6,533 97,354
Benefits and claims experience variation 23,071 (176,778) (153,707) 1,128 44,550 45,678 (108,029)
Fees deducted (11,464) (684,136) (695,600) 1,127 24 1,151 (694,449)
Expected interest on reserve/net investment
income attributable to Universal Life Fund 155,749 216,608 372,357 - (268) (268) 372,089
Adjustments due to changes in assumptions 70,454 48,274 118,728 - (1,393) (1,393) 117,335
Net asset value attributable to unitholders - 13,739 13,739 - - - 13,739
Hedging reserve (4,085) - (4,085) - - - (4,085)
Available-for-sale fair value reserve (Note 10) 138,800 - 138,800 - - - 138,800
Unallocated surplus (139,792) - (139,792) - - - (139,792)
Deferred tax effects:
- Hedging reserve (Note 31.3) 327 - 327 - - - 327
- Available-for-sale fair value reserve
(Note 31.3) (11,104) - (11,104) - - - (11,104)
At 31 December 2020 4,259,600 7,892,877 12,152,477 (1,013) (67,107) (68,120) 12,084,357
ANNUAL REPORT 2020

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198
(a) Life insurance (continued)
Gross Reinsurance
ANNUAL REPORT 2020

At 1 January 2019 3,950,424 5,333,832 9,284,256 (440) (66,139) (66,579) 9,217,677
Premiums received (Note 23) 116,304 2,608,728 2,725,032 (6,027) (75,151) (81,178) 2,643,854
Liabilities paid for death, maturities,
surrenders, benefits and claims (321,702) (1,002,992) (1,324,694) 2,876 63,471 66,347 (1,258,347)
Movements in benefits and claim liabilities 51,851 59,269 111,120 (89) (3,001) (3,090) 108,030
Benefits and claims experience variation 89,250 (167,456) (78,206) 1,679 14,907 16,586 (61,620)
Fees deducted (13,240) (672,162) (685,402) 1,472 (23) 1,449 (683,953)
Expected interest on reserve/net investment
income attributable to Universal Life Fund 152,654 293,580 446,234 - (467) (467) 445,767
Adjustments due to changes in assumptions 72,131 48,182 120,313 - (2,182) (2,182) 118,131
Net asset value attributable to unitholders - 63,814 63,814 - - - 63,814
Hedging reserve 20,960 - 20,960 - - - 20,960
Available-for-sale fair value reserve (Note 10) 200,584 - 200,584 - - - 200,584
Revaluation reserves 1,099 - 1,099 - - - 1,099
Unallocated surplus (103,628) - (103,628) - - - (103,628)
Deferred tax effects: - - -
- Hedging reserve (Note 31.3) (1,677) - (1,677) - - - (1,677)
- Available-for-sale fair value reserve
(Note 31.3) (16,047) - (16,047) - - - (16,047)
- Revaluation reserves (Note 31.3) (88) - (88) - - - (88)
At 31 December 2019 4,198,875 6,564,795 10,763,670 (529) (68,585) (69,114) 10,694,556
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(b) General insurance
General insurance contract liabilities consist of:
2020 2019
Provision for claims reported

by policyholders 1,992,729 (526,197) 1,466,532 1,872,966 (537,797) 1,335,169
Provision for incurred but not
reported claims (“IBNR”) 731,826 (211,200) 520,626 681,278 (222,559) 458,719
2,724,555 (737,397) 1,987,158 2,554,244 (760,356) 1,793,888
Allowance for impairment 9 - 2,578 2,578 - 2,586 2,586
Provision for outstanding
claims 17.1 2,724,555 (734,819) 1,989,736 2,554,244 (757,770) 1,796,474
Provision for unearned
premiums 17.2 1,176,240 (92,614) 1,083,626 1,104,310 (99,702) 1,004,608
3,900,795 (827,433) 3,073,362 3,658,554 (857,472) 2,801,082
17.1 Provision for outstanding claims – movements
2020 2019
At 1 January 2,554,244 (757,770) 1,796,474 2,475,391 (714,461) 1,760,930

Claims incurred in the
current accident year 1,429,162 (155,329) 1,273,833 1,505,455 (230,306) 1,275,149
Other movements in
claims incurred in
prior accident years (262,734) 113,459 (149,275) (256,986) 81,075 (175,911)
Claims paid during the
year 28 (996,117) 64,821 (931,296) (1,169,616) 105,922 (1,063,694)
At 31 December 2,724,555 (734,819) 1,989,736 2,554,244 (757,770) 1,796,474
17.2 Provision for unearned premiums – movements
2020 2019
At 1 January 1,104,310 (99,702) 1,004,608 1,030,226 (122,964) 907,262

Premiums written in
the year 23 2,356,052 (249,877) 2,106,175 2,197,501 (241,748) 1,955,753
Premiums earned
during the year (2,284,122) 256,965 (2,027,157) (2,123,417) 265,010 (1,858,407)
At 31 December 1,176,240 (92,614) 1,083,626 1,104,310 (99,702) 1,004,608

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18. DEFERRED TAX ASSETS AND (LIABILITIES)
18.1 Recognised deferred tax assets and (liabilities) are attributable to the following:
Assets Liabilities Net

2020 2019 2020 2019 2020 2019
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Property, plant and equipment 1,252 1,777 (14,453) (14,632) (13,201) (12,855)
Intangible assets - - (18,631) (19,877) (18,631) (19,877)
Allowance for impairment on
insurance receivables 12,013 12,551 - - 12,013 12,551
Other payables and accruals 23,320 17,438 - - 23,320 17,438
Hedging reserve - - (1,350) (1,677) (1,350) (1,677)
Available-for-sale fair value reserve - - (71,932) (44,635) (71,932) (44,635)
Fair value movement recognised in
profit or loss 1,778 1,778 (29,159) (23,166) (27,381) (21,388)
Unallocated surplus - - (337,048) (284,809) (337,048) (284,809)
Other items - - (762) (762) (762) (762)
Tax assets/(liabilities) 38,363 33,544 (473,335) (389,558) (434,972) (356,014)
Offset of tax (38,363) (33,544) 38,363 33,544 - -
Net deferred tax liabilities - - (434,972) (356,014) (434,972) (356,014)
Company
Property, plant and equipment - - (83) (135) (83) (135)
Net tax liabilities - - (83) (135) (83) (135)

18. DEFERRED TAX ASSETS AND (LIABILITIES) (CONTINUED)
18.2 Movement in temporary differences during the year:
Recognised Recognised Recognised Recognised

in other in insurance in other in insurance
Recognised comprehensive contract Recognised comprehensive contract
in profit income liabilities At in profit income liabilities
At or loss (“OCI’) through OCI 31.12.2019/ or loss (“OCI’) through OCI At
1.1.2019 (Note 31.1) (Note 31.2) (Note 31.3) 1.1.2020 (Note 31.1) (Note 31.2) (Note 31.3) 31.12.2020
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Property,
plant and
equipment (13,965) 1,230 (32) (88) (12,855) (1,078) 732 - (13,201)
Intangible
assets (15,253) (4,624) - - (19,877) 1,246 - - (18,631)
Allowance for
impairment
on insurance
receivables 12,483 68 - - 12,551 (538) - - 12,013
Other payables
and accruals 19,675 (2,237) - - 17,438 5,882 - - 23,320
Hedging reserve - - - (1,677) (1,677) - - 327 (1,350)
Available-for-
sale fair value
reserve (7,738) - (20,850) (16,047) (44,635) - (16,193) (11,104) (71,932)
Fair value
movement
recognised in
profit or loss 3,757 (25,145) - - (21,388) (5,993) - - (27,381)
Unallocated
surplus (237,760) (47,049) - - (284,809) (52,239) - - (337,048)
Other items 2,585 (3,347) - - (762) - - - (762)
(236,216) (81,104) (20,882) (17,812) (356,014) (52,720) (15,461) (10,777) (434,972)
Company
Property,
plant and
ANNUAL REPORT 2020

equipment (142) 7 - - (135) 52 - - (83)
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19. LEASE LIABILITIES
2020 2019
RM’000 RM’000
Non-current 25,174 40,321

Current 17,611 16,803
42,785 57,124
20. INSURANCE PAYABLES
2020 2019
Non-current
Performance bond deposits 20.1 15,992 24,292
Current
Due to reinsurers and cedants 150,813 133,792
Due to agents, brokers, co-insurers and insurers 180,290 168,345
Due to related companies 20.2 88,896 52,823
Performance bond deposits 20.1 53,126 44,799
473,125 399,759
Total 489,117 424,051
20.1 Performance bond deposits
Performance bond deposits are interest bearing collateral deposits received from policyholders for guarantees issued on behalf
of policyholders.
20.2 Amounts due to related companies
The amounts due to holding company and related companies are unsecured and payable in accordance with normal trade
terms.
20.3 Financial liabilities
There is no netting off of gross amount of recognised financial liabilities against the gross amount of financial assets in the
statement of financial position. There are no financial liabilities that are subject to enforceable master netting arrangement or
similar arrangement to financial instruments received as collateral or any cash collateral pledged or received (2019: Nil).

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21. OTHER PAYABLES AND ACCRUALS
2020 2019
Current
Sundry creditors 143,948 153,150
Premium received in advance 110,019 94,550
Premium deposits 48,688 32,089
Cash collateral payables 77,504 55,465
Outstanding purchase of investment securities 8,220 22,512
Other payables and accrued expenses 203,749 144,092
Dividend payable 220,440 247,045
Due to holding company 21.1 17,200 13,817
Due to related companies 21.1 7,613 7,030
837,381 769,750
Total 837,381 769,750
Company
Current
Other payables and accrued expenses 3,366 3,003
Dividend payable 220,440 247,045
223,806 250,048
Total 223,806 250,048
21.1 Amounts due to holding company and related companies
The amounts due to holding company, immediate holding company and related company are unsecured, interest free and
repayable on demand.
22. OPERATING REVENUE
2020 2019
Gross earned premiums 23(a) 5,233,240 4,848,449

Investment income 24 712,471 685,925
5,945,711 5,534,374
Company
Investment income 24 281,216 203,148

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23. NET EARNED PREMIUMS
2020 2019
(a) Gross premiums

Insurance contracts:
Life 17(a) 2,949,118 2,725,032
General 17(b) 2,356,052 2,197,501
5,305,170 4,922,533
Change in unearned premiums provision:
General (71,930) (74,084)
Gross earned premiums 22 5,233,240 4,848,449
(b) Premiums ceded

Life 17(a) (105,619) (81,178)
General 17(b) (249,877) (241,748)
(355,496) (322,926)
Change in unearned premiums provision:
General (7,088) (23,262)
Premiums ceded to reinsurers (362,584) (346,188)
Net earned premiums 4,870,656 4,502,261

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24. INVESTMENT INCOME
2020 2019
Rental of premises from:

- Owner occupied properties - 8
Fair value through profit or loss - Held for trading financial assets
Interest income from:
- Malaysian government securities 32,978 41,872
- Malaysian government guaranteed bonds 51,047 30,416
- Ringgit denominated bonds by foreign issuers outside Malaysia - 245
- Unquoted bonds of corporations in Malaysia 63,953 60,829
Dividend income from:
- Quoted equity securities of corporations in Malaysia 46,798 38,955
- Quoted equity securities of corporations outside Malaysia 62 583
- Quoted unit trusts in Malaysia 87 854
Interest income from/(expense to) licensed financial institutions:
- Structured deposits - 590
- Cash collateral (1,554) (1,270)
Accretion of discounts 10 1,603 1,354
Amortisation of premiums 10 (2,340) (1,123)
Available-for-sale financial assets

- Ringgit denominated bonds by foreign issuers outside Malaysia - 1,232
Dividend income from:
- Quoted equity securities of corporations and unquoted unit trusts in Malaysia 20,886 37,669
- Quoted unit trusts in Malaysia 292 3,318
Interest income from licensed financial institutions:
- Structured deposits and negotiable certificate of deposits 564 1,410

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24. INVESTMENT INCOME (CONTINUED)
2020 2019
Fair value through profit or loss - Designated upon initial recognition financial
assets
- Ringgit denominated bonds by foreign issuers outside Malaysia - 493
- Unquoted bonds of corporations outside Malaysia 4,391 4,267
- Structured deposits and negotiable certificate of deposits 1,865 1,860
- Cross currency swap 1,787 1,580
- Collateralised forward starting interest rate swap 9,082 4,616
Loans and receivables

- Malaysian government guaranteed loans 3,836 8,632
- Mortgage loans - 1
- Policy loans 672 796
- Automatic premium loans 5,506 5,625
- Fixed and call deposits 48,625 44,734
- Bank balances 5,166 12,208
712,471 685,925
Note 22 Note 22
2020 2019
Dividend income from subsidiary 279,683 199,822
Amortised cost
- Fixed and call deposits 1,486 882
Interest income on subordinated loan 47 2,444
281,216 203,148
Note 22 Note 22

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25. REALISED GAINS AND LOSSES
2020 2019
Property, plant and equipment

Realised gains/(losses) on disposal 178 405
Financial assets
Realised gains on disposal of:
- Quoted equity securities of corporations in Malaysia 188,393 23,767
- Quoted equity securities of corporations outside Malaysia 7,586 824
- Quoted unit trusts in Malaysia 235 498
- Unquoted unit trusts in Malaysia - 350
- Unuoted unit trusts outside Malaysia 38 25
Realised losses on disposal of:

- Malaysian government securities - (3)
- Malaysian government guaranteed bonds (123) -
- Quoted equity securities of corporations in Malaysia (193,774) (53,057)
- Quoted equity securities of corporations outside Malaysia (3,803) (1,241)
- Quoted unit trusts in Malaysia (315) -
- Unquoted equity securities of corporations in Malaysia (171) -
- Unquoted unit trusts outside Malaysia - (240)
- Unquoted bonds of corporations in Malaysia (82) -
Total net realised losses for financial assets 30,113 (9,115)
Total net realised gains/(losses) 30,291 (8,710)
2020 2019
Realised loss on disposal - -

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26. FAIR VALUE GAINS AND LOSSES
2020 2019
Investment properties 6 (140) 241
Held for trading financial assets 10 65,587 221,671

Designated upon initial recognition financial assets 10 87,407 122,781
Derivatives 24,645 14,841
Total fair value gains on financial assets at FVTPL 177,639 359,293
Impairment loss on AFS financial assets 10 (137,566) (19,087)

Total fair net value gains 39,933 340,447
27. FEE AND COMMISSION
(a) Fee and commission income
2020 2019
Reinsurance commission income 29,925 53,029

Deferred acquisition costs 14 1,212 2,408
Total fee and commission income 31,137 55,437
(b) Fee and commission expense
2020 2019
Gross direct commission 778,119 751,581

Deferred acquisition costs 14 (3,535) (13,955)
Total fee and commission expense 774,584 737,626

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28. NET BENEFITS AND CLAIMS
(a) Gross benefits and claims paid
2020 2019
Life (1,290,852) (1,324,694)
General 17(b) (996,117) (1,169,616)
(2,286,969) (2,494,310)
(b) Claims ceded to reinsurers
2020 2019
Life 17(a) 54,911 66,347
General 17(b) 64,821 105,922
119,732 172,269
(c) Gross change in contract liabilities
2020 2019
Life (1,174,048) (1,163,463)
General (170,311) (78,853)
(1,344,359) (1,242,316)
(d) Change in contract liabilities ceded to reinsurers
2020 2019
Life 5,539 (554)
General (22,951) 43,309
(17,412) 42,755
Net benefits and claims (3,529,008) (3,521,602)

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29. MANAGEMENT EXPENSES
2020 2019
Advertising and marketing expenses 25,372 28,118

Amortisation of intangible assets 5 23,580 20,110
Auditors’ remuneration:
- statutory audit fees 838 794
- non-audit fees 235 79
Insurance and other receivables:
- (reversal of)/allowance for impairment loss (7,575) 3,007
- bad debts recovered (119) (54)
- bad debts written off 7,205 236
Bank charges 14,293 29,933
Depreciation of property, plant and equipment 3 14,001 15,488
Employee benefits expense 29.1 291,184 271,819
Executive directors’ emoluments 29.2 5,724 10,394
Non-executive directors’ fee and other emoluments 29.2 2,619 2,679
Rental of office equipment - 172
Rental of third party premises 901 637
Lease expense on low-value assets 296 259
Short- term lease expenses 2 287
Depreciation of right-of-use assets 4 17,877 18,154
Other expenses 245,005 215,859
641,438 617,971
Company
Auditors’ remuneration:
- statutory audit fees 145 143
- non-audit fees 10 10
Bank charges 5 -
Depreciation of property, plant and equipment 3 315 350
Employee benefits expense 29.1 2,795 2,973
Non-executive directors’ fee and other emoluments 29.2 968 941
Other expenses 2,320 2,001
6,558 6,418

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29. MANAGEMENT EXPENSES (CONTINUED)
29.1 Employee benefits expense
Group Company
2020 2019 2020 2019
RM’000 RM’000 RM’000 RM’000
Wages and salaries 219,985 198,287 1,532 1,371

Social security contributions 1,628 1,562 9 9
Contributions to Employees’ Provident Fund 31,083 29,125 288 317
Other benefits 38,488 42,845 966 1,276
291,184 271,819 2,795 2,973
29.2 Key management personnel compensation
Group Company
2020 2019 2020 2019
RM’000 RM’000 RM’000 RM’000
Executive directors:
Salaries and other emoluments 3,440 5,045 - -
Bonus 1,910 4,723 - -
Contributions to Employees’ Provident Fund 374 626 - -
Estimated monetary value of benefits-in-kind 236 471 - -
5,960 10,865 - -
Non-executive directors:
Fees 1,869 2,037 631# 720#
Other emoluments 750 642 337 221
Estimated monetary value of benefits-in-kind 16 11 6 11
2,635 2,690 974 952
Other key management personnel*

Short term employee benefits 13,086 12,583 - -
* Other key management personnel are defined as those persons other than the Directors of the Group and of the Company
having authority and responsibility for planning, directing and controlling the activities of the Group and of the Company
either directly or indirectly.
#
Inclusive of fees for non-executive directors of subsidiaries who are members of Board Committees of the Company
amounting to RM26,117 (2019: RM3,271).

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29.2 Key management personnel compensation (continued)
The number of executive and non-executive directors whose total remuneration and other emoluments received during the year
falls within the following bands is:
Number of directors
Group Company
2020 2019 2020 2019
Executive directors:
Below RM1,000,000 - - - -
RM1,000,000 and above 2 2 - -
Non-executive directors:
RM0 - - - -
Below RM100,000 2 1 2 2
RM100,001 – RM200,000 1 1 4 4
RM200,001 – RM300,000 1 1 - -
RM300,001 – RM400,000 2 4 1 1
RM400,001 – RM500,000 - - - -
RM500,001 – RM600,000 1 - - -
RM600,001 – RM700,000 - - - -
RM700,001 – RM800,000 1 1 - -
Reported under the Group’s Executive Directors included 1 Non-Independent Executive Directors who has resigned during the
financial year under review.
Reported under the Group and the Company’s Non-Executive Directors included 1 Independent Non-Executive Directors and
1 Independent Non-Executive Directors who have retired and resigned respectively during the financial year under review.
29.3 Chief Executive Officers remuneration
Group Company
2020 2019 2020 2019
RM’000 RM’000 RM’000 RM’000
Salaries and other emoluments 4,323 5,163 141 118

Bonus 2,088 5,118 178 395
Contributions to Employees’ Provident Fund 416 696 42 70
Estimated monetary value of benefits-in-kind 447 474 2 3
7,274 11,451 363 586
Amount included in employee benefits expense 6,827 10,977 361 583

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29.3 Chief Executive Officers remuneration (continued)
The remuneration of Chief Executive Officers (“CEO(s)”) of the Group and the Company including benefits-in-kind, amounted to
RM7,274,000 (2019: RM11,451,000) and RM363,000 (2019: RM586,000) respectively.
30. INTEREST EXPENSE
2020 2019
Interest expense on:

Lease liabilities 1,733 2,541
31. TAX EXPENSE
31.1 Recognised in profit or loss
Group Company
2020 2019 2020 2019
Note RM’000 RM’000 RM’000 RM’000
Current tax expense

Current year 159,885 129,191 458 886
(Over)/Under provision in prior years (3,300) (10,629) (27) 11
156,585 118,562 431 897
Deferred tax expense/(income)

Origination and reversal of temporary
differences 51,687 77,086 (15) (7)
Under/(Over) provision in prior year 1,033 4,018 (37) -
18.2 52,720 81,104 (52) (7)
Total tax expense 209,305 199,666 379 890

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31. TAX EXPENSE (CONTINUED)
31.2 Deferred tax recognised directly in other comprehensive income
2020 2019
Available-for-sale fair value reserve

At 1 January 24,415 3,565
Net gain arising from change in fair value during the year 18.2 16,193 20,850
At 31 December 40,608 24,415
Revaluation reserve
At 1 January 9,566 9,534
Net gain arising from change in fair value during the year (732) 32
At 31 December 8,834 9,566
31.3 Deferred tax recognised in insurance contract liabilities
2020 2019
Hedging reserve
At 1 January 1,677 -
Net (loss)/gain arising from change in fair value during the year 17(a) (327) 1,677
At 31 December 18.2 1,350 1,677
Available-for-sale fair value reserve

At 1 January 20,220 4,173
Net gain arising from change in fair value during the year 17(a) 11,104 16,047
At 31 December 31,324 20,220
Revaluation reserve
At 1 January 553 465
Net gain arising from revaluation during the year - 88
At 31 December 553 553

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31. TAX EXPENSE (CONTINUED)
31.4 Reconciliation of tax expense
2020 2019
Profit before tax 729,630 692,144
Tax at Malaysian tax rate of 24% (2019: 24%) 175,111 166,115

Tax rate differential of 16% (2019: 16%) in respect of life fund 10,818 12,212
Income not subject to tax (245,752) (229,135)
Section 110B tax and deferred tax credit set off (3,810) (18,047)
Non-deductible expenses 276,732 275,814
Other items (1,527) (682)
211,572 206,277
Over provision in prior years (2,267) (6,611)
Total tax expense 209,305 199,666
2020 2019
Profit before tax 274,824 196,963
Tax at Malaysian tax rate of 24% (2019: 24%) 65,958 47,271

Income not subject to tax (67,125) (47,957)
Non-deductible expenses 1,610 1,565
443 879
(Over)/Under provision in prior years (64) 11
Total tax expense 379 890
The income of the general business and life business shareholders’ fund is taxed at 24% (2019: 24%). The income tax provided in
the life fund for the current and previous financial years is in respect of investment income which is taxed at a reduced tax rate of
8% (2019: 8%) applicable for life insurance business and 24% (2019: 24%) on income other than investment income which is taxed
under Section 60(8) of the Income Tax Act, 1967 (“Act”).

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32. EARNINGS PER ORDINARY SHARE
(a) Basic earnings per ordinary share
The calculation of basic earnings per ordinary share at 31 December 2019 was based on the profit attributable to ordinary
shareholders adjusted for preference dividends of RM117,845,000 (2019: RM132,068,000) and the weighted average number of
ordinary shares in issue during the year of 176,889,000 (2019: 176,787,000).
Group 2020 2019
Profit attributable to ordinary shareholders (RM’000) 520,325 492,478

Adjustment:
- Preference dividends declared (117,845) (132,068)
Adjusted profit attributable to ordinary shareholders (RM’000) 420,480 360,410
Weighted average number of shares in issue (‘000) 176,889 176,787
Basic earnings per ordinary share (sen) 227.53 203.87

(b) Diluted earnings per ordinary share
The calculation of diluted earnings per ordinary share at 31 December 2020 was based on profit attributable to ordinary
shareholders and the weighted average number of ordinary shares in issue after adjusting for the effects of all dilutive potential
ordinary shares, calculated as follows:

Group 2020 2019
Profit attributable to equity shareholders (RM’000) 520,325 492,478

Weighted average number of shares in issue (‘000) 176,889 176,787
Effect of conversion of ICPS (‘000) 169,317 169,318
Diluted weighted average number of ordinary shares during the year (‘000) 346,206 346,105
Diluted earnings per ordinary share (sen) 150.29 142.29

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33. DIVIDENDS
Dividends recognised by the Company:
Sen per share Total amount

(single-tier) RM’000 Date of payment
2020
Interim 2020 preference dividend 69.60 117,845 18 February 2021
Interim 2020 ordinary dividend 58.00 102,595 18 February 2021
220,440
2019
Interim 2019 preference dividend 61.20 103,623 14 February 2020
Interim 2019 ordinary dividend 51.00 90,213 14 February 2020
Special 2019 preference dividend 16.80 28,445 14 February 2020
Special 2019 ordinary dividend 14.00 24,764 14 February 2020
247,045

34. OPERATING LEASES
34.1 Leases as lessor
The Group leases out its investment properties under operating leases (see Note 6). The future undiscounted lease payments to
be received are as follows:
2020 2019
RM’000 RM’000
Less than one year 90 151

Between 1 and 2 years 87 -
241 151

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35. CAPITAL COMMITMENTS
2020 2019

Contracted but not provided for 1,171 4,426
Software development
Contracted but not provided for 3,076 479
2020 2019

Contracted but not provided for - -
36. OPERATING SEGMENTS
Segment information is presented in respect of the Group’s business segments. Each business segment is managed separately based
on the Group’s management and internal reporting structure.
Performance is measured based on segment profit before tax, interest, depreciation and amortisation, as included in the internal
management reports that are reviewed by the Group’s Chief Executive Officer (the chief operating decision maker). Segment profit is
used to measure performance as management believes that such information is the most relevant in evaluating the results of certain
segments relative to other entities that operate within these industries.
Segment assets
The total segment asset is measured based on all assets (including goodwill) of a segment, as included in the internal management
reports that are reviewed by the Group’s Chief Executive Officer. Segment total asset is used to measure the return of assets of each
segment.
Segment capital expenditure
Segmental capital expenditure is the total cost incurred during the year to acquire segment assets that are expected to be used for
more than one period.
36.1 Business segments
The Group comprises the following main business segments:

Investment holding Investment holding
General insurance Underwriting of all classes of general insurance business
Life insurance Underwriting of all classes of life insurance and investment- linked business
36.2 Geographical segments
The Group operates predominantly in Malaysia and, accordingly, the Directors are of the opinion that the financial information
by geographical segments of the Group’s operations is not necessary to be presented.

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36. OPERATING SEGMENTS (CONTINUED)
Investment General Life Inter-segment

holding business business elimination Consolidated
Business segments RM’000 RM’000 RM’000 RM’000 RM’000
2020
External revenue 11,939 2,471,604 3,462,168 - 5,945,711
Revenue from other segments 280,238 14,053 92 (294,383) -
Total revenue 292,177 2,485,657 3,462,260 (294,383) 5,945,711
Segment results 269,058 446,146 308,809 (294,383) 729,630

Profit before tax 729,630
Tax expense (209,305)
Profit for the year 520,325
Segment assets 650,106 6,872,326 14,374,313 - 21,896,745

Segment liabilities 246,048 4,385,384 13,233,807 - 17,865,239
Capital expenditure 697 16,224 9,647 - 26,568

Depreciation of property, plant and equipment 316 8,562 5,123 - 14,001
Amortisation of intangible assets - 16,658 6,922 - 23,580
Reversal of allowance for impairment loss on receivables - (2,928) (4,647) - (7,575)
Amortisation of premiums - 5,904 7,264 - 13,168
Accretion of discounts - (1,698) (5,287) - (6,985)
2019
External revenue 14,298 2,312,678 3,207,398 - 5,534,374
Revenue from other segments 202,265 423 118 (202,806) -
Total revenue 216,563 2,313,101 3,207,516 (202,806) 5,534,374
Segment results 191,250 362,839 340,861 (202,806) 692,144

Profit before tax 692,144
Tax expense (199,666)
Profit for the year 492,478
Segment assets 612,259 6,459,334 12,638,479 - 19,710,072

Segment liabilities 267,138 4,105,877 11,663,488 - 16,036,503
Capital expenditure 295 42,344 7,880 - 50,519

Depreciation of property, plant and equipment 349 9,620 5,519 - 15,488
Amortisation of intangible assets - 13,474 6,636 - 20,110
Allowance for impairment loss on receivables - 224 2,783 - 3,007
Amortisation of premiums - 986 4,093 - 5,079
Accretion of discounts - (766) (4,574) - (5,340)

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37. RELATED PARTIES
37.1 Identity of related parties
For the purposes of these financial statements, parties are considered to be related to the Group or the Company if the Group or
the Company has the ability, directly or indirectly, to control or jointly control the party or exercise significant influence over the
party in making financial and operating decisions, or vice versa, or where the Group or the Company and the party are subject to
common control. Related parties may be individuals or other entities.
Related Parties Relationship

Allianz SE, Munich (“Allianz SE”) Holding company
Allianz Life Insurance Malaysia Berhad Subsidiary of the Company
Allianz General Insurance Company (Malaysia) Berhad Subsidiary of the Company
Allianz SE Insurance Management Asia Pacific Related company of AMB
Allianz Technology SE [Formerly known as Allianz Managed & Operations Services SE] Related company of AMB
Allianz Investment Management SE Related company of AMB
Allianz Investment Management Singapore Pte Ltd Related company of AMB
Allianz Global Investors Singapore Limited Related company of AMB
Allianz Global Investors Asia Pacific Limited Related company of AMB
Allianz Global Benefits GmbH Related company of AMB
Allianz Ayudhya Assurance Public Company Limited Related company of AMB
AWP Services Sdn Bhd Related company of AMB
Euler Hermes Singapore Services Pte Ltd Related company of AMB
Euler Hermes Deutschland AG, Singapore branch Related company of AMB
PT Asuransi Allianz Life Indonesia Related company of AMB
Allianz SE General Reinsurance Branch Labuan Related company of AMB
Allianz Global Corporate & Specialty SE Hong Kong Branch Related company of AMB
Allianz Global Corporate & Specialty SE Related company of AMB
Rapidpro Consulting Sdn Bhd Company connected to the CEO
of the Company
Related parties also include key management personnel defined as those persons having authority and responsibility for
planning, directing and controlling the activities of the Group or the Company either directly or indirectly and entity that provides
key management personnel services to the Group. The key management personnel include all the Directors of the Group and the
Company, and certain members of Senior Management Committee of the Group and the Company. There were no significant
transactions with the Group and the Company during the financial year other than key management personnel compensation as
disclosed in Note 29.2.

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37. RELATED PARTIES (CONTINUED)
37.2 The significant transactions with related parties are as follows:
Amount Amount
transacted for transacted for
the year ended the year ended
31 December 31 December
2020 2019
Trade
Holding company
Payment of reinsurance premium ceded, net of commission income (2,110) (2,134)
Related companies*
Payment of reinsurance premium ceded, net of commission income (242,260) (205,918)
Non-trade
Holding company
Payment of personnel expenses (1,921) (620)
Payment of global marketing expenses (2,657) (2,292)
Reimbursement of expenses made on behalf (51) (13)
Payment of license fees - (38)
Payment of training and other fees - (81)
Payment of fees for cyber insurance services (51) (16)
Payment of fees for Human Resource Transformation (“ HRT”) run services (174) (286)
Payment of fees for sharing of Global procurement (excluding Information Technology
(“IT”)) services and support (125) (94)
Payment for Employee Share Purchase Plan (2,263) (1,217)
Payment of business building and regional investment costs (3,051) (3,471)
Provision of regional audit services 91 405
Provision of regional underwriting service - 245
Payment of personnel expenses (4,095) (1,064)
Payment of global technical support fees (2,616) (1,858)
Payment for support of design and development of Global Digital Factory (63) (52)
Payment for the development of Allianz One Finance Programme (39) (34)
Payment of IT security services (263) (245)
Payment of HR consulting fee (17) -
Payment of training fees (54) -
Payment for reimbursement of expenses - (2)
Payment for the participation in the Allianz Employee Survey (8) -
Payment for Employee Share Participation Programs related admin costs (6) -

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37.2 The significant transactions with related parties are as follows (continued):
Amount Amount
2020 2019
Non-trade (continued)
Related companies*
Payment of service fees (1,794) (1,776)
Reimbursement of other expenses 1,946 12,746
Investment and redemption of funds (including fund management fees) 1,157 1,099
Payment of investment advisory fees (2,610) (2,722)
Performance attribution analysis (128) (20)
Payment of sharing of common expenses (204) (165)
Sharing of asset and investment manager database expenses (908) (474)
Reversal for/(Payment of) software licenses - 1,086
Reimbursement of life actuarial modeling services 1,525 1,252
Reimbursement for Market Data Management 291 -
Payment of Actuarial support center services (105) (98)
Payment of training and other fees - (35)
Payment of annual maintenance and support fees for software system (420) (363)
Payment for reimbursement of expenses - (2)
Payment of annual maintenance and support fee for software system (832) (1,114)
Payment of software license fees (8,268) (4,900)
Payment of professional fees - (12)
Reimbursement of intranet portal network cost 263 -
Sharing of expenses of HR Database Platform & e-Recruitment solution 6 -
Related party – Company connected to CEO of the Company

Payment of training and other fees (990) (1,845)
* Related companies are companies within the Allianz SE group.
Related party transactions have been entered into in the normal course of business under normal trade terms.
Significant related party balances related to the above transactions are disclosed in Notes 12, 13, 20 and 21.

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37.2 The significant transactions with related parties are as follows (continued):
Amount Amount
2020 2019
Non-trade
Holding company
Provision of regional audit services 91 405
Subsidiaries
Dividend income 279,683 199,822
Reimbursement of other expenses 261 642
Reimbursement of expenses related to common resources 21,916 21,122
Interest income on subordinated loan 46 2,444
Rental of other premises (558) (537)
Reimbursement of life actuarial modeling services 324 232
Related companies*
Reimbursement of life actuarial modeling services 1,525 1,252
Reimbursement for Market Data Management 291 -

* Related companies are companies within the Allianz SE group.
Related party transactions have been entered into in the normal course of business under normal trade terms.
Significant related party balances related to the above transactions are disclosed in Notes 8, 13 and 21.

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38. RISK MANAGEMENT FRAMEWORK
As a provider of insurance services, the Group considers risk management to be one of its core competencies. It is an integrated part of
the Group’s business process. In order to protect the assets of the Group, the Group has established a risk management framework to
promote a strong risk management culture supported by a robust risk governance structure.
This framework ensures that risks are properly identified, analysed and evaluated. Risk appetite is defined by a risk strategy and limit
structure. Close monitoring and reporting allows the Group to detect deviations from its risk tolerance limits at an early stage.
The Allianz risk management practice consists of the following key areas:
(a) Risk underwriting and identification
A sound risk underwriting and identification framework including risk assessment, risk standards, and clear targets form the
foundation for adequate risk-taking and management decisions such as individual transaction approval, new product approval,
strategic or tactical asset allocation.
(b) Risk reporting and monitoring
The Group’s qualitative and quantitative risk reporting and controlling framework provides transparency and risk indicators to
senior management with regards to its overall risk profile and whether the profile is within delegated limits and authorities.
(c) Risk strategy and risk appetite
The Group’s risk strategy clearly defines its risk appetite. It ensures that returns are appropriate for the risks taken and that
the delegated authorities are in line with the Group’s overall risk-bearing capacity. The risk-return profile is improved through
integration of risk considerations and capital needs into management and decision-making process. This also keeps risk strategy
and business objectives consistent with each other and allows the Group to take opportunities within its risk appetite.
(d) Communication and transparency
Finally, a transparent and robust risk disclosure provides a basis for communicating this strategy to the Group’s internal and
external stakeholders, ensuring a sustainable positive impact on valuation and financing.
Risk governance structure
The Board of Directors of the Company (“the Board”) assumes the ultimate responsibility over the effectiveness of the Group’s risk
management and internal control systems by establishing and supervising the operation of the risk management framework. The Board
has delegated the responsibility to establish and supervise the operation of the risk management framework to the Risk Management
Committee (“RMC”) to discharge its oversight function effectively.
RMC bears the overall responsibility for effective risk identification, measurement, monitoring and control functions of the Group. RMC
also oversees the Senior Management’s activities in managing the key risk areas of the Group and to ensure that the risk management
process is in place and functioning effectively. The RMC is responsible for driving the risk management framework of the Group and
to report to the Board on its recommendations and/or decisions. Through structured reporting from the Risk Management Working
Committee (“RMWC”), RMC will consolidate the status of the risks and present them to the Board for consideration.
RMWC serves as and provides a platform for two way communications between the management and the RMC on matters of the
Group’s risk management framework and its strategies. RMWC is responsible in formulating risk management strategies, policies and
risk tolerance for RMC review and onward transmission of recommendation to the Board. RMWC determines the allocation of risks
by cascading and/or escalating to the relevant owners. RMWC also oversees the compliance of all risk management process by all
departments of the Group and provides pre-emptive recommendations to ensure timely action is taken in managing and mitigating the
identified risks.

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38. RISK MANAGEMENT FRAMEWORK (CONTINUED)
Asset and Liability Management (“ALM”) Framework
The Investment Committee (“IC”) has been tasked to manage business practices so that decisions and actions taken with respect
to assets and liabilities are coordinated. It involves various management activities and responsibilities, including the formulation of
long-term strategic goals and objectives and the management of various risks including liquidity risk, interest rate risk and market risk.
The ALM process chosen will reflect external and internal constraints.
• External constraints include supervisory and legislative requirements, the interests and expectations of policyholders and other
stakeholders. A significant constraint is the liquidity of the assets and liabilities which may compromise the ability to price, measure
and hedge exposures.
• Internal constraints such as asset allocation limits reflect the Group’s management philosophy or professional judgement
(although this may also be influenced by external constraints).
Governance and regulatory framework
The Group is required to comply with the requirements of the Financial Services Act, 2013, relevant laws and guidelines required by
BNM, including relevant guidelines from Life Insurance Association Malaysia (“LIAM”), Persatuan Insurans Am Malaysia (“PIAM”) and
Bursa Securities Malaysia Berhad.
The Group is also required to comply with all Allianz SE Group’s policies and standards. If there is any conflict with the local laws or
regulations, the local laws or regulations have priority while the stricter will apply where possible.
39. INSURANCE RISK
Insurance risk includes the risk of incurring higher claims costs than expected owing to the random nature of claims, frequency and
severity and the risk of change in the legal or economic conditions of insurance or reinsurance cover. This may result in the insurer
having either received too little premium for the risks it has agreed to underwrite and hence has not enough funds to invest and pay
claims, or that claims are in excess of those expected.
The Group seeks to minimise insurance risk through a formalised reinsurance arrangement with an appropriate mix and spread
of business between classes of business based on its overall strategy. This is complemented by observing formalised underwriting
guidelines and limits and standards applied to the security of reinsurers.

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39. INSURANCE RISK (CONTINUED)
39.1 Life insurance contracts
The insurance risk of Life insurance contracts consists of mortality/longevity/morbidity and calamity risks. Mortality/longevity/
morbidity risk represents the risk of loss attributable to positive or negative changes in the assumed medical prognosis for life
expectancy, occupational disability, illness and the need for long-term care as well as underestimation of these probabilities.
Calamity risk represents the risk of loss because of strong short-term fluctuation in the mortality rate, for example as a result of
war or epidemics.
The table below shows the concentration of actuarial liabilities by type of contract (with DPF and without DPF).
Gross Reinsurance
31 December 2020
Whole life 2,427,777 1,620,348 4,048,125 - 1,018 1,018 4,049,143
Endowment 587,384 2,950,119 3,537,503 - - - 3,537,503
Mortgage - 63,003 63,003 - (33,220) (33,220) 29,783
Riders and others 721,862 696,583 1,418,445 (240) (6,646) (6,886) 1,411,559
Total 3,737,023 5,330,053 9,067,076 (240) (38,848) (39,088) 9,027,988
Note 17(a) Note 17(a) Note 17(a)
31 December 2019
Whole life 2,415,937 1,448,107 3,864,044 - 1,103 1,103 3,865,147
Endowment 574,916 2,398,284 2,973,200 - - - 2,973,200
Mortgage - 66,000 66,000 - (34,652) (34,652) 31,348
Riders and others 709,596 491,470 1,201,066 - - - 1,201,066
Total 3,700,449 4,403,861 8,104,310 - (33,549) (33,549) 8,070,761
Note 17(a) Note 17(a) Note 17(a)
As all of the business is derived from Malaysia, the entire actuarial liabilities are in Malaysia. There is no investment contract
issued by ALIM during the current and previous financial years.

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39.1 Life insurance contracts (continued)
Key assumptions
Significant judgement is required in determining the liabilities and in the choice of assumptions. Assumptions in use are based on
past experiences, current internal data, external market indices and benchmarks which reflect current observable market prices
and other published information. Assumptions and prudent estimates are determined at the date of valuation. They are further
evaluated on a continuous basis in order to ensure realistic and reasonable valuations.
The key assumptions to which the estimation of liabilities is particularly sensitive are as follows:
• Mortality and morbidity rates

Experience study on mortality and morbidity rates is carried out on an annual basis. The actual claim experience is
compared against industrial mortality table and reinsurers’ mortality and morbidity risk charges. Mortality and morbidity
assumptions vary by product type and underwriting procedures.
ALIM can increase the mortality/morbidity risk charges in future years in line with emerging experience for investment-
linked and universal life contracts.
An appropriate allowance for provision of risk margin for adverse deviation from expected experience is made in the
valuation of non-participating life policies, the guaranteed benefits insurance liabilities of participating life policies, and
non-unit actuarial liabilities of investment-linked policies.
• Expenses
Expense assumption was set during initial pricing stage. Expense assumption is inflated annually to reflect higher cost of
underwriting, issuing and maintaining the policies. Expense assumption varies by premium term, distribution channel, policy
duration and underwriting procedures. The expense assumption is reviewed annually; it is compared to actual expense that
ALIM incurred.
• Persistency
Experience study on persistency (lapse, surrender, premium holiday, partial withdrawal) is carried out on an annual basis
using statistical method. Persistency assumptions vary by product type, distribution channel and policy duration.
• Discount rate
In the valuation of the total benefits insurance liabilities of participating life policies, ALIM has assumed a long term gross
rate of return of 3.75% - 5.75% per annum (2019: 4.25% - 6.25% per annum). The long term gross rate of return is derived
based on a basket of strategic asset allocations. ALIM calculates long term gross rate by assuming each asset class will
earn the targeted yield. The strategic asset allocation and targeted yield are reviewed annually in accordance to the ALIM’s
investment philosophy, market condition and the prevailing long term market return for each asset class.

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Key assumptions (continued)
• Discount rate (continued)

Malaysian Government Securities (“MGS”) spot rate is used in the valuation of non-participating life policies, the guaranteed
benefits insurance liabilities of participating life policies, and non-unit actuarial liabilities of investment-linked policies.
Risk-free discount rate for durations of less than 15 years is zero-coupon spot yields of MGS with matching duration.
Risk-free discount rate for durations of 15 years or more is zero-coupon spot yields of MGS with 15 years term to maturity.
Duration is the term to maturity of each future cash flow. The MGS zero-coupon spot yields are obtained from a recognised
bond pricing agency in Malaysia.
The valuation of actuarial liabilities as at 31 December 2020 has taken into account the COVID-19 impact.
The assumptions that have significant effects on the gross actuarial liabilities and reinsurance assets are listed below.
Mortality and morbidity Lapse and surrender

rates(1) rates Discount rate
2020 2019 2020 2019 2020 2019
Group % % % % % %
Type of business
With fixed and guaranteed terms
and with DPF contracts
Life insurance 60-70 60-70 3.0-20 2.0-20 3.75-5.75 4.25-6.25
Without DPF contracts MGS MGS
Life insurance 55-110 55-110 3.0-70 2.0-65 spot yield spot yield
(1)
Industry mortality and morbidity experience tables that were observed in Malaysia between year 1999 and 2003 or the
respective reinsurance risk rates.

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Sensitivities
The analysis below is performed for reasonable possible movements in key assumptions with all other assumptions held constant,
showing the impact on gross and net liabilities, profit after tax and equity. Sensitivities testing on individual assumptions are
meaningful to analyse the magnitude of reserve changes for each assumption. However, it should be studied with care as it
does not capture the possible correlation effect when all assumptions are being stressed simultaneously. It should be noted
that movements in these assumptions are non-linear. Sensitivity information will also vary according to the current economic
assumptions.
Impact on Impact on
profit after gross Impact on
tax/equity liabilities* net liabilities*
Group Change in assumptions RM’000 RM’000 RM’000
Life insurance contracts

31 December 2020
Mortality and morbidity rates +5% (4,220) 9,956 7,941
Discount rate -0.5% (13,325) 71,544 70,598
Expenses +10% (6,287) 12,034 12,034
Lapse and surrender rates -10% (639) 8,986 9,019
31 December 2019
Mortality and morbidity rates +5% (3,600) 9,289 7,143
Discount rate -0.5% (13,627) 73,385 72,385
Expenses +10% (6,198) 12,218 12,218
Lapse and surrender rates -10% (577) 7,387 7,419
The method used and key assumptions made for deriving sensitivity information did not change from the previous year.
The above illustration is only prepared for adverse scenario, where the key assumptions are being moved in an unfavourable
direction. In the sensitivity analysis above, changes in assumptions for life non-participating business would impact the profit
after tax and insurance contract liabilities. In respect of life participating insurance business, it would only impact the insurance
contract liabilities.
* The impact on gross and net liabilities only reflects the changes in the prescribed assumptions above without adjustment to
policyholders’ bonuses for the life participating business. Impact on insurance contract liabilities also reflects adjustments
for tax, where applicable.

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39.2 General insurance contracts
The insurance risk of general insurance contracts consists of premium and reserve risks. Premium risk represents the risk of loss
because of an unexpected high loss volume resulting in an insufficient coverage of premiums. Reserve risk represents the risk
of loss resulting from deviations between payments for incurred losses that have not yet been settled and the reserves set up to
cover these payments, or the use of an insufficient basis for the calculation of reserves.
The table below sets out the concentration of the general insurance risk based on the provision for outstanding claims (before
impairment of reinsurance assets) as at the end of the reporting period by type of contract.
2020 2019
Fire 366,739 (92,821) 273,918 360,755 (165,609) 195,146

Motor 1,493,730 (98,646) 1,395,084 1,368,723 (94,522) 1,274,201
Marine, aviation, cargo
and transit 169,843 (140,589) 29,254 208,890 (173,930) 34,960
Miscellaneous 694,243 (405,341) 288,902 615,876 (326,295) 289,581
Total 17(b) 2,724,555 (737,397) 1,987,158 2,554,244 (760,356) 1,793,888
Key assumptions
The principal assumption underlying the liability estimates is that the subsidiary’s future claims development will follow a similar
pattern to past claims development experience. This includes assumptions in respect of average claim costs, claim handling costs
and claim numbers for each accident year. Additional qualitative judgements are used to assess the extent to which past trends
may not apply in the future, for example one-off occurrence as well as internal factors such as portfolio mix, policy conditions and
claims handling procedures.
No discounting is made to the recommended claims and premium liability provisions as a prudent measure. In addition, no
explicit inflation adjustment has been made to claims amount payable in the future. However, implicit inflation is allowed for
future claims to the extent evident in past claims development. It is worthwhile to note that discounting is unlikely to result in any
material impact due to the short tail nature of almost all classes, coupled with the low prevailing interest rate environment.
The subsidiary has based its risk margin for adverse deviation (“PRAD”) for the unexpired risks reserves and insurance claims
at the minimum 75% confidence level of sufficiency, according to the requirement set by BNM under the RBC Framework for
Insurers. The valuation of claims and premium liabilities as at 31 December 2020 have taken into account the COVID-19 impact.
Sensitivities
Analysis of sensitivity around various scenarios provides an indication of the adequacy of the subsidiary’s estimation process
in respect of its insurance contracts. The table presented below demonstrates the sensitivity of the insurance contract liabilities
estimates to particular movements in assumptions used in the estimation process.

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39.2 General insurance contracts (continued)
Sensitivities (continued)
The analysis below is performed for reasonable possible movements in key assumptions with all other assumptions held constant,
showing the impact on gross and net liabilities, profit before tax and equity. The correlation of assumptions will have a significant
effect in determining the ultimate claims liabilities, but to demonstrate the impact due to changes in assumptions, assumptions
had to be changed on an individual basis. It should be noted that movements in these assumptions are non-linear.
Impact on Impact on Impact on Impact on

gross liabilities net liabilities profit after tax equity*
Group Change in assumptions RM’000 RM’000 RM’000 RM’000
31 December 2020
Average claim cost +10% 275,699 203,359 (154,553) (154,553)
Average number of
claims +10% 275,955 231,201 (175,713) (175,713)
Average claim
settlement period Increased by 6 months 27,423 20,615 (15,667) (15,667)
31 December 2019
Average claim cost +10% 254,536 181,949 (138,281) (138,281)
Average number of
claims +10% 300,307 237,923 (180,822) (180,822)
Average claim
settlement period Increased by 6 months 30,293 22,305 (16,952) (16,952)
* Impact on equity reflects adjustments for tax, where applicable.
The method used for deriving sensitivity information and key assumptions did not change from the previous year.

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Claims development table
The following tables show the estimate of cumulative incurred claims, including both claims notified and IBNR for each successive
accident year at the end of each reporting period, together with cumulative payments to date.
While the information in the tables provides a historical perspective on the adequacy of the unpaid claims estimate established in
previous years, users of these financial statements are cautioned against extrapolating redundancies or deficiencies of the past
on current unpaid loss balances.
The management of the subsidiary believes that the estimate of total claims outstanding as of 31 December 2020 is adequate.
However, due to the inherent uncertainties in the reserving process, it cannot be assured that such balances will ultimately prove
to be adequate.
Gross general insurance claims liabilities as at 31 December 2020:
Before
Group 2013 2013 2014 2015 2016 2017 2018 2019 2020 Total
Accident year RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At end of accident year 1,145,412 1,251,432 1,349,116 1,430,684 1,471,640 1,465,757 1,509,464 1,429,139
One year later 1,182,773 1,193,164 1,278,469 1,368,219 1,406,527 1,380,596 1,453,938 -
Two years later 1,119,096 1,154,151 1,256,084 1,352,452 1,362,861 1,372,723 - -
Three years later 1,096,339 1,141,005 1,235,679 1,325,371 1,336,934 - - -
Four years later 1,167,402 1,141,354 1,224,698 1,254,542 - - - -
Five years later 1,157,674 1,135,385 1,203,126 - - - - -
Six years later 1,132,788 1,103,220 - - - - - -
Seven years later 1,108,045 - - - - - - -
Current estimate of
cumulative claims
incurred 1,108,045 1,103,220 1,203,126 1,254,542 1,336,934 1,372,723 1,453,938 1,429,139

01
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Claims development table (continued)
Gross general insurance claims liabilities as at 31 December 2020 (continued):
Before
Group 2013 2013 2014 2015 2016 2017 2018 2019 2020 Total
At end of accident year 344,439 375,685 387,586 514,882 561,727 541,747 575,409 498,001
One year later 729,326 771,098 861,538 924,136 979,473 946,706 886,123 -
Two years later 857,382 924,769 1,013,855 1,054,371 1,104,992 1,052,957 - -
Three years later 916,928 986,338 1,070,252 1,116,845 1,145,041 - - -
Four years later 1,065,902 1,017,591 1,092,007 1,134,220 - - - -
Five years later 1,072,513 1,024,854 1,102,559 - - - - -
Six years later 1,077,989 1,029,103 - - - - - -
Seven years later 1,081,856 - - - - - - -
Cumulative payments
to-date 1,081,856 1,029,103 1,102,559 1,134,220 1,145,041 1,052,957 886,123 498,001
Gross general
insurance claims
liabilities (direct and
facultative) 98,700 26,189 74,117 100,567 120,322 191,893 319,766 567,815 931,138 2,430,507
Gross general insurance
claims liabilities
(treaty inwards,
MNRB, Business
outside Malaysia,
MMIP and other
adjustment) 40,359
Best estimate of claims
liabilities 2,470,886
Claims handling
expenses 25,714
PRAD at 75% confidence
level 227,975
Gross general
insurance claims

02
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Gross general insurance claims liabilities as at 31 December 2019:
Before
Group 2012 2012 2013 2014 2015 2016 2017 2018 2019 Total
At end of accident year 951,237 1,145,412 1,251,432 1,349,116 1,430,684 1,471,640 1,465,757 1,509,464
One year later 848,149 1,182,773 1,193,164 1,278,469 1,368,219 1,406,527 1,380,596 -
Two years later 835,047 1,119,096 1,154,151 1,256,084 1,352,452 1,362,861 - -
Three years later 834,615 1,096,339 1,141,005 1,235,679 1,325,371 - - -
Four years later 824,626 1,167,402 1,141,354 1,224,698 - - - -
Five years later 822,964 1,157,674 1,135,385 - - - - -
Six years later 811,411 1,132,788 - - - - - -
Seven years later 770,745 - - - - - - -
Current estimate of
cumulative claims
incurred 770,745 1,132,788 1,135,385 1,224,698 1,325,371 1,362,861 1,380,596 1,509,464

01
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Gross general insurance claims liabilities as at 31 December 2019 (continued):
Before
Group 2012 2012 2013 2014 2015 2016 2017 2018 2019 Total
One year later 544,612 729,326 771,098 861,538 924,136 979,473 946,706 -
Two years later 648,982 857,382 924,769 1,013,855 1,054,371 1,104,992 - -
Three years later 711,572 916,928 986,338 1,070,252 1,116,845 - - -
Four years later 731,860 1,065,902 1,017,591 1,092,007 - - - -
Five years later 740,708 1,072,513 1,024,854 - - - - -
Six years later 741,565 1,077,989 - - - - - -
Cumulative payments
to-date 743,512 1,077,989 1,024,854 1,092,007 1,116,845 1,104,992 946,706 575,410
Gross general
insurance claims
liabilities (direct and
facultative) 100,624 27,233 54,799 110,531 132,691 208,526 257,870 433,890 934,055 2,260,219
Gross general insurance
claims liabilities
(treaty inwards,
MNRB, Business
outside Malaysia,
MMIP and other
adjustment) 44,839
Claims handling
expenses 23,858
level 225,328
Gross general
insurance claims

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Net general insurance claims liabilities as at 31 December 2020:
Before
Group 2013 2013 2014 2015 2016 2017 2018 2019 2020 Total
At end of accident year 875,651 971,458 1,101,455 1,200,101 1,279,931 1,316,381 1,288,646 1,275,378
One year later 817,971 932,778 1,073,872 1,123,821 1,228,773 1,250,031 1,262,739 -
Two years later 799,099 906,323 1,049,986 1,097,165 1,198,917 1,224,761 - -
Three years later 798,047 897,675 1,021,432 1,075,612 1,173,951 - - -
Four years later 791,855 888,196 1,014,846 1,069,385 - - - -
Five years later 768,990 882,916 1,003,396 - - - - -
Six years later 749,930 857,984 - - - - - -
Seven years later - - - - - - -
Current estimate of
cumulative claims
incurred 749,930 857,984 1,003,396 1,069,385 1,173,951 1,224,761 1,262,739 1,275,378

01
02
03
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Net general insurance claims liabilities as at 31 December 2020 (continued):
Before
Group 2013 2013 2014 2015 2016 2017 2018 2019 2020 Total
One year later 572,157 638,954 746,891 817,863 896,008 888,891 839,564 -
Two years later 667,310 743,920 872,368 925,817 998,910 983,920 - -
Three years later 704,910 790,073 918,932 972,070 1,034,851 - - -
Four years later 724,817 809,772 934,819 988,580 - - - -
Five years later 729,683 815,609 943,446 - - - - -
Six years later 733,554 817,744 - - - - - -
Cumulative payments
to-date 735,919 817,744 943,446 988,580 1,034,851 983,920 839,564 478,287
Net general insurance
claims liabilities
(direct and
facultative) 15,503 14,012 40,240 59,950 80,805 139,099 240,841 423,174 797,091 1,810,716

claims liabilities
(treaty inwards,
MNRB, Business
outside Malaysia,
MMIP and other
adjustments) 36,755
Claims handling
expenses 25,715
level 116,550
claims liabilities 1,989,736

02
03
04
05
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Net general insurance claims liabilities as at 31 December 2019:
Before
Group 2012 2012 2013 2014 2015 2016 2017 2018 2019 Total
At end of accident year 675,019 875,651 971,458 1,101,455 1,200,101 1,279,931 1,316,381 1,288,646
One year later 616,026 817,971 932,778 1,073,872 1,123,821 1,228,773 1,250,031 -
Two years later 611,364 811,555 906,323 1,049,986 1,097,165 1,198,917 - -
Three years later 612,798 799,099 897,675 1,021,432 1,075,612 - - -
Four years later 605,242 798,047 888,196 1,014,846 - - - -
Five years later 605,079 791,855 882,916 - - - - -
Six years later 594,527 768,990 - - - - - -
Current estimate of
cumulative claims
incurred 571,478 768,990 882,916 1,014,846 1,075,612 1,198,917 1,250,031 1,288,646

01
02
03
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06
Net general insurance claims liabilities as at 31 December 2019 (continued):
Before
Group 2012 2012 2013 2014 2015 2016 2017 2018 2019 Total
One year later 424,771 572,157 638,954 746,891 817,863 896,008 888,891 -
Two years later 497,895 667,310 743,920 872,368 925,817 998,910 - -
Three years later 533,335 704,910 790,073 918,932 972,070 - - -
Four years later 546,263 724,817 809,772 934,819 - - - -
Five years later 551,615 729,683 815,609 - - - - -
Six years later 553,220 733,553 - - - - - -
Cumulative payments
to-date 554,799 733,553 815,609 934,819 972,070 998,910 888,891 551,634
claims liabilities
(direct and
facultative) 15,079 16,349 35,437 67,308 80,027 103,542 200,007 361,140 737,012 1,615,901
claims liabilities
(treaty inwards,
MNRB, Business
outside Malaysia,
MMIP and other
adjustments) 41,020
Claims handling
expenses 23,857
level 115,696
claims liabilities 1,796,474

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40. FINANCIAL RISKS
Exposure to credit, liquidity, market (currency risk, interest rate risk, equity price risk) and operational risk arises in the normal course
of the Group’s and the Company’s business. The Group and the Company are guided by its risk management framework as well as
policies and guidelines from the holding company, Allianz SE which set out its general risk management philosophy. Through financial
risk management, business strategies are evaluated to ensure their appropriateness to the strategic, operational and financial risks
tolerance.
40.1 Credit risk
Credit risk is the risk of a financial loss to the Group and the Company if a counterparty to a financial instrument fails to meet its
contractual obligations. The Group’s exposure to credit risk arises principally from the reinsurance assets, insurance receivables
and the investment/placement in fixed income instruments and bank balances. The Company’s exposure to credit risk arises
principally from subordinated loan to subsidiary. Financial loss may materialise when the counterparties failed to meet payment
obligations for various reasons.
The Group has credit policies in place to mitigate the credit risk from underwriting of insurance business and it is monitored on
an on-going basis. Reinsurance is mainly to local insurers or offshore reinsurers, and if the Group has to place overseas, only
counterparties that have a credit rating that is acceptable based on Allianz Guidelines for Reinsurance Security are used.
With effect from 12 September 2008, all new bond investment must carry a minimum rating of AA- by rating agencies
established in Malaysia or a minimum rating of BBB- by any internationally recognized agency as outlined in the Group’s
Investment Mandate which is approved by the Board of Directors.
The Group and the Company consider rating of BBB and above as investment grades and ratings below BBB as non-investment
grades. Assets which are not rated by rating agencies are classified as non-rated.

40. FINANCIAL RISKS (CONTINUED)
40.1 Credit risk (continued)
Credit exposure by credit rating
The table below provides information regarding the credit risk exposure of the Group by classifying financial assets according to the credit rating agencies’
credit ratings of counterparties. AAA is the highest possible rating. Financial assets that fall outside the range of AAA to BBB are classified as speculative
grade.
Neither past-due nor impaired

Non- Investment- Past-due
investment Non- linked but not
AAA AA A BBB grade rated funds impaired Total
2020
LAR
Other loans - - - - - 84,722 - - 84,722
Fixed and call deposits 71,937 687,175 - - - - 123,565 - 882,677
AFS financial investments
Malaysian government
securities - - - - - 2,864,805 - - 2,864,805
guaranteed bonds - - - - - 2,315,457 - - 2,315,457
Unquoted bonds of
corporations in Malaysia 718,121 688,311 25,744 3,749 - 9,806 - - 1,445,731
ANNUAL REPORT 2020

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Credit exposure by credit rating (continued)
ANNUAL REPORT 2020

grade (continued).

2020 (continued)
FVTPL - HFT financial

investments
securities - - - - - 1,315,429 125,122 - 1,440,551
guaranteed bonds - - - - - 799,002 29,396 - 828,298
Unquoted bonds of
corporations in Malaysia 464,274 554,209 31,907 - - 2,074 460,828 - 1,513,292
FVTPL - DUIR financial
investments
securities - - - - - 1,307,299 - - 1,307,299
guaranteed bonds - - - - - 534,025 - - 534,025
Unquoted bonds of
corporations in Malaysia 960,127 983,136 5,269 5,182 - 51,014 - - 2,004,728
grade (continued).

2020 (continued)
investments (continued)
Unquoted bonds of
corporations outside
Malaysia - - 7,878 75,569 - 42,280 - - 125,727
Negotiable certificates of
deposits and structured
deposits 73,148 - - - - - - - 73,148
Derivative financial assets
Collateralised interest
rate swap 59,496 - - - - - - - 59,496
Cross currency swap 5,366 - - - - - - - 5,366
Forward purchase
agreements 16,876 - - - - - - - 16,876
Reinsurance assets - 410,289 92,936 796 - 90,296 - - 594,317
#
Insurance receivables - 2,371 37,409 9 - 129,770 - 30,092 199,651
Other receivables and
deposits - - - - - 154,652 6,433 - 161,085
Cash and cash equivalents 674,825 306,200 4,211 - - 336 190,391 - 1,175,963
3,044,170 3,631,691 205,354 85,305 - 9,700,967 935,735 30,092 17,633,314
ANNUAL REPORT 2020

#
Net of balances which are past due and impaired of RM55,865,000 which has been fully provided (See Note 40.1(ii)).
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01
02
03
04
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The table below provides information regarding the credit risk exposure of the Company by classifying financial assets according
to the credit rating agencies’ credit ratings of counterparties. AAA is the highest possible rating. Financial assets that fall outside
the range of AAA to BBB are classified as speculative grade.
Non-
investment Non-
AAA AA A BBB grade rated Total
Company RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
2020
Fixed and call deposits 6,461 16,163 - - - - 22,624
Other receivables and deposits - - - - - 286,414 286,414
Cash and cash equivalents 11,059 - - - - - 11,059
17,520 16,163 - - - 286,414 320,097

grade.

2019
LAR
guaranteed loans - - - - - 190,504 - - 190,504
Other loans - - - - - 87,864 - - 87,864
Fixed and call deposits 263,674 352,558 - - - - 113,313 - 729,545
AFS financial investments
securities - - - - - 2,554,680 - - 2,554,680
guaranteed bonds - - - - - 1,846,320 - - 1,846,320
Ringgit denominated
bonds by foreign issuers
outside Malaysia 25,389 - - - - - - - 25,389
Unquoted bonds of
corporations in Malaysia 798,049 500,881 30,786 3,749 - - - - 1,333,465
Structured deposits and
negotiable certificate of
deposits with licensed
financial institutions 20,348 - - - - - - - 20,348
ANNUAL REPORT 2020

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01
246
ANNUAL REPORT 2020

grade (continued).

2019 (continued)
FVTPL - HFT financial

investments
securities - - - - - 1,028,505 87,808 - 1,116,313
guaranteed bonds - - - - - 751,953 33,778 - 785,731
Ringgit denominated
outside Malaysia 1,525 - - - - - 3,554 - 5,079
Unquoted bonds of
corporations in Malaysia 532,489 390,289 30,955 - - 2,102 414,524 - 1,370,359
investments
securities - - - - - 780,944 - - 780,944
guaranteed bonds - - - - - 565,583 - - 565,583
Ringgit denominated
outside Malaysia 10,155 - - - - - - - 10,155
Unquoted bonds of
corporations in Malaysia 1,077,094 683,145 20,414 5,181 - 50,448 - - 1,836,282
grade (continued).

2019 (continued)
investments (continued)
Unquoted bonds of
corporations outside
Malaysia - - 28,182 52,248 - 40,588 - - 121,018
Structured deposits
with licensed financial
institutions 892 - - - - 72,560 - - 73,452
Derivative financial assets
Collateralised interest rate
swap 36,804 - - - - - - - 36,804
Cross currency swap 4,412 - - - - - - - 4,412
Forward purchase
agreements 20,961 - - - - - - - 20,961
Reinsurance assets - 437,418 94,337 31 - 75,125 - - 606,911
#
Insurance receivables - 3,044 36,990 - - 137,976 - 17,342 195,352
deposits - - - - - 163,474 722 - 164,196
Cash and cash equivalents 887,462 522,913 1,658 - - 295 187,725 - 1,600,053
3,679,254 2,890,248 243,322 61,209 - 8,348,921 841,424 17,342 16,081,720
ANNUAL REPORT 2020

#
Net of balances which are past due and impaired of RM59,624,000 which has been fully provided (See Note 40.1(ii)).
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01
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The table below provides information regarding the credit risk exposure of the Company by classifying financial assets according
to the credit rating agencies’ credit ratings of counterparties. AAA is the highest possible rating. Financial assets that fall outside
the range of AAA to BBB are classified as speculative grade.
Non-
investment Non-
AAA AA A BBB grade rated Total
Company RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
2019
Fixed and call deposits 2,042 3,864 - - - - 5,906
Other receivables and deposits - - - - - 210,913 210,913
Subordinated loan - - - - - 54,300 54,300
Cash and cash equivalents 14,256 7,671 - - - - 21,927
16,298 11,535 - - - 265,213 293,046
The Group has not provided the credit risk analysis for the financial assets of the investment-linked funds. This is due to the fact
that, in investment-linked business, the liability to policyholders is linked to the performance and value of the assets that back
those liabilities and the shareholders have no direct exposure to any credit risk in those assets.
(i) Past-due but not impaired financial assets
Age analysis of financial assets past-due but not impaired
The Group maintains an ageing analysis in respect of insurance receivables only. The ageing of insurance receivables that
are past-due but not impaired as at the reporting date is as follows:
1 to 30 days 31 to 60 days 61 to 90 days > 91 days Total

Group RM’000 RM’000 RM’000 RM’000 RM’000
2020
Insurance receivables 8,638 5,768 6,849 8,837 30,092
2019
Insurance receivables 5,609 2,738 2,881 6,114 17,342

01
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06
(ii) Past-due and impaired financial assets
As at 31 December 2020, based on a combination of collective and individual assessment of receivables, there are
impaired insurance receivables amounting to RM55,865,000 (2019: RM59,624,000), reinsurance assets of RM2,578,000
(2019: RM2,586,000) and other receivables of RM742,000 (2019: RM4,558,000) respectively. No collateral is held as
security for any past-due or impaired financial assets. The Group records impairment allowance for insurance receivables
and other receivables in separate allowance for impairment accounts. A reconciliation of the allowance for impairment
losses for the aforesaid insurance receivables and other receivables are as follows:
Insurance receivables Reinsurance assets Other receivables

2020 2019 2020 2019 2020 2019
At 1 January 59,624 59,704 2,586 2,615 4,558 1,471

Impairment loss (reversed)/
recognised (2,415) 157 (8) (29) 2,045 3,087
Written off during the year (1,344) (237) - - (5,861) -
At 31 December 55,865 59,624 2,578 2,586 742 4,558
Note 12 Note 12 Note 9 Note 9 Note 13 Note 13
40.2 Liquidity risk
Liquidity risk is the risk of loss resulting from the danger that short-term current or future payment obligations cannot be met or
can only be met on the basis of altered conditions, along with the risk that in the case of a liquidity crisis of the Group and the
Company, refinancing is only possible at higher interest rates or that assets may have to be liquidated at a discount.
Besides monitoring the liquidity position of the Group and the Company on a daily basis, the investment strategies particularly
focus on the quality of investments and ensure a sufficient portion of liquid assets in the portfolio. Some other tools used by the
Group include ensuring that its assets and liabilities are adequately matched and drawing down of funds to meet claim payments
should the claim events exceed a certain amount as provided for in the reinsurance contracts.
Maturity profiles
The table below summarises the maturity profile of the Group’s and the Company’s financial liabilities at the end of the reporting
period based on remaining undiscounted contractual obligations, including interest/profit payable.
For insurance contract liabilities of life insurance and provision for claims of general insurance, maturity profiles are determined
based on estimated timing of net cash outflows from the recognised insurance liabilities.
Investment-linked funds’ liabilities are repayable or transferable on demand and are included in the “up to a year” column.
Repayments which are subject to notice are treated as if notice were to be given immediately.

02
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40.2 Liquidity risk (continued)
Maturity profiles (continued)
Non-derivative financial liabilities
Carrying Up to a Over No maturity

value year 1-3 years 3-5 years 5-15 years 15 years date Total
2020
Insurance contract
liabilities
With DPF 4,259,600 1,367,068 593,498 480,310 1,522,377 2,916,061 6,991 6,886,305
Without DPF 7,892,877 7,488,381 90,511 53,443 229,567 128,090 - 7,989,992
Provision for claims 1,992,729 1,221,487 624,000 121,576 25,666 - - 1,992,729
Lease liabilities 42,785 18,921 25,420 60 - - - 44,401
Insurance payables 489,117 473,125 14,012 1,980 - - - 489,117
Other payables and
accruals 727,362 727,362 - - - - - 727,362
Total liabilities 15,404,470 11,296,344 1,347,441 657,369 1,777,610 3,044,151 6,991 18,129,906
Company
2020
Other payables and
accruals 223,806 223,806 - - - - - 223,806
Derivative financial liabilities
The table below analyses the Group’s trading derivative financial liabilities and hedging derivative financial liabilities that will be
settled on a gross basis.
Up to a Over No maturity
year 1-3 years 3-5 years 5-15 years 15 years date Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
2020
Derivatives held for trading
Cross currency swaps - - - (301) - - (301)
Derivatives used for hedging

Forward purchase agreements
- Cash inflows - - - - - - -
- Cash outflows (39,982) (56,824) - - - - (96,806)
Net cash outflows (39,982) (56,824) - (301) - - (97,107)

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40.2 Liquidity risk (continued)
Maturity profiles (continued)
Non-derivative financial liabilities
Carrying Up to a Over No maturity

value year 1-3 years 3-5 years 5-15 years 15 years date Total
2019
Insurance contract
liabilities
With DPF 4,198,875 1,306,008 430,117 548,601 1,540,648 3,830,192 6,991 7,662,557
Without DPF 6,564,795 6,182,707 58,034 87,290 220,580 163,536 - 6,712,147
Provision for claims 1,872,966 1,184,299 573,917 94,135 20,615 - - 1,872,966
Lease liabilities 57,124 19,316 37,635 3,720 - - - 60,671
Insurance payables 424,051 399,759 24,076 216 - - - 424,051
Other payables and
accruals 675,200 675,200 - - - - - 675,200
Total liabilities 13,793,011 9,767,289 1,123,779 733,962 1,781,843 3,993,728 6,991 17,407,592
Company
2019
Other payables and
accruals 250,048 250,048 - - - - - 250,048
Derivative financial liabilities
The table below analyses the Group’s trading derivative financial liabilities and hedging derivative financial liabilities that will be
settled on a gross basis.
Up to a Over No maturity
year 1-3 years 3-5 years 5-15 years 15 years date Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
2019
Derivatives held for trading
Cross currency swaps - - - (1,244) - - (1,244)
Derivatives used for hedging

Forward purchase agreements
- Cash inflows - - - - - - -
- Cash outflows (59,275) (96,807) - - - - (156,082)
Net cash outflows (59,275) (96,807) - (1,244) - - (157,326)

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40.3 Market risk
Market risk is the risk of loss arising due to changes in market prices or pa¬rameters influencing market prices, and in particular
the resultant interest rate guar¬antee risks from asset liability management or from changes to participations. This includes
changes in market prices due to worsening of market liquidity. Market risk comprises of currency risk, interest rate risk and equity
price risk.
The following risk mitigation actions are in place to control and monitor such risk:
• Investment Committee actively monitors the investment activities undertaken by the Group.
• Investment Committee would recommend the initiatives after balancing competing and legitimate objective of various
stakeholders.
• The Investment Policy and Mandate which formulated the single counter limits, company limits and sector limits are in
place.
• Compliance to such limits is monitored monthly and reported to Risk Management Working Committee/Risk Management
Committee on a quarterly basis.
• Stress tests are performed as and when needed.
• Stop loss policy is in place.
The Group also issues investment-linked policies in a number of products. In the investment-linked business, the policyholders
bear the investment risk on the assets held in the investment-linked funds as the policy benefits are directly linked to the value of
the assets in the funds. The Group’s exposure to market risk on this business is limited to the extent that income arising from fund
management charges is based on the value of the assets in the funds.
40.3.1 Currency risk
Currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to the changes in
foreign exchange rates.
The Group’s primary transactions are carried out in Ringgit Malaysia (RM) and its exposure to foreign currency risk arises
principally with respect to US Dollar (USD), Singapore Dollar (SGD), Thai Baht (THB) and Indonesian Rupiah (IDR). As
the Group’s business is conducted primarily in Malaysia, the Group’s financial assets are also primarily maintained in
Malaysia as required under the Financial Services Act, 2013 and hence, primarily denominated in the same currency (RM)
as its insurance contract liabilities. Thus, the main foreign exchange risk from recognised assets and liabilities arises from
transactions other than those in which insurance contract liabilities are expected to be settled.
As the Group’s main foreign exchange risk from recognised assets and liabilities arises from reinsurance transactions for
which the balances are expected to be settled and realised in less than a year, the impact arising from sensitivity in foreign
exchange rates is deemed minimal as the Group has no significant concentration of foreign currency risk. All foreign
currency risk in investment-linked funds is borne by policyholders.

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40.3 Market risk (continued)
40.3.1 Currency risk (continued)
Exposure to foreign currency risk
The Group’s exposure to foreign currency risk, based on carrying amounts as at the end of the reporting period was:
Investment Investment-
Life fund linked funds Life fund linked funds
2020 2020 2019 2019
Group RM’000 RM’000 RM’000 RM’000
Financial assets
Denominated in
USD 124,853 9,794 120,157 10,448
SGD - 1,002 - 1,134
THB - 51 - 109
IDR - 19,175 - 18,226
Currency risk sensitivity analysis
It is estimated that a 10% (2019: 10%) strengthening of the Ringgit Malaysia (RM) against the following currencies at
the end of the reporting period would have decreased the insurance contract liabilities by the amounts shown below.
This analysis assumes that all other variables, in particular interest rates, remained constant and ignores any impact of
forecasted income and expenses.
Impact on Impact on
insurance insurance
contract contract
liabilities liabilities
2020 2019
Denominated in
USD (13,465) (13,061)
SGD (100) (113)
THB (5) (11)
IDR (1,918) (1,823)
It is estimated that a 10% (2019:10%) strengthening of the Ringgit Malaysia (RM) against the following currencies at the
end of the reporting period would have decreased the insurance contract liabilities by the amounts shown below.
This analysis assumes that all other variables, in particular interest rates, remained constant and ignores any impact of
forecasted income and expenses.

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40.3.2 Interest rate risk
The Group is affected by changes in market interest rate due to the change in interest rates will affect the value of mark
to market fixed income investments and also the valuation of the liabilities, resulting in the risk of not being able to meet
product guarantees.
Besides the uncertainty of the cash flows of the insurance funds and scarcity of the longer dated instruments, it is not
possible to hold assets that will perfectly match the policy liabilities.
Interest rate risk sensitivity analysis
The analysis below is performed for assumed movements of 100 bps in interest rate with all other variables held constant,
showing the impact on the profit after tax, equity and insurance contract liabilities.
Life insurance:

Impact on
insurance
Impact on Impact on contract
profit after tax equity* liabilities**
Group Change in variables RM’000 RM’000 RM’000
31 December 2020
Interest rate +100 basis points (125,482) (103,147) (476,094)
Interest rate -100 basis points 136,512 112,158 546,660
31 December 2019
Interest rate +100 basis points (69,698) (76,411) (480,977)
Interest rate -100 basis points 94,872 104,518 622,857
The impact on profit after tax would be dependent on whether the interest rate risk resides in shareholders’ fund, life non-
participating fund, life participating fund, or investment-linked funds. Where the interest rate risk resides in shareholders’
fund and life non-participating fund, the impact will be directly to profit after tax and equity of the Group. In respect of
life participating fund and investment-linked funds, impact arising from changes in interest rate risk would affect the
insurance contract liabilities.
** The impact on insurance contract liabilities only reflects the changes in the prescribed assumptions above without
any adjustment to policyholders’ bonuses for the life participating business. Impact on insurance contract liabilities
also reflects adjustments for tax, where applicable.
It should be noted that movements in these variables are non-linear.
The method used for deriving sensitivity information and significant variables did not change from the previous year.

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40.3.2 Interest rate risk (continued)
Interest rate sensitivity analysis (continued)
General insurance:
Impact on Impact on
profit after tax equity*
Group Change in variables RM’000 RM’000
31 December 2020
Interest rate + 100 basis points - (100,984)
Interest rate - 100 basis points - 100,984
31 December 2019
It should be noted that movements in these variables are non-linear.
40.3.3 Equity price risk
Equity price risk is the risk that fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices (other than those arising from changes in interest rates or foreign exchange rates), whether those changes
are caused by factors specific to the individual financial instrument of its issuer or factors affecting similar financial
instruments traded in the market.
The Group’s equity price risk exposures relate to financial assets and financial liabilities whose values will fluctuate as
a result of changes in market prices, principally investments securities not held for the account of the investment-linked
business.
The Group’s equity price risk policy requires it to prioritise capital preservation besides setting limits on overall portfolio,
single security and sector holdings. The Group complies with BNM stipulated limits during the financial year and has no
significant concentration of equity price risk.

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40.3.3 Equity price risk (continued)
Equity price risk sensitivity analysis
The analysis below is performed for reasonable possible movements in key variables with all other variables held constant,
showing the impact on profit after tax, equity and insurance contract liabilities. The correlation of variables will have a
significant effect in determining the ultimate impact on equity price risk, but to demonstrate the impact due to changes in
variables, variables had to be changed on an individual basis. It should be noted that movements in these variables are
non-linear.
Life insurance:
2020 2019
Impact on Impact on
Impact insurance Impact insurance
on profit Impact contract on profit Impact contract
Changes in after tax# on equity* liabilities** after tax# on equity* liabilities**
Group variables RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Market indices
Market value +10% - - 234,803 - - 182,429
Market value -10% - - (234,803) - - (182,429)

#
The impact on profit after tax would be dependent on whether the equity price risk resides in shareholders’ fund,
life non-participating fund, life participating fund or investment-linked funds. Where the equity price risk resides in
shareholders’ fund and life non-participating fund, the impact will be directly to profit after tax and equity of the
Group. In respect of life participating fund and investment-linked funds, impact arising from changes in equity price
risk would affect the insurance contract liabilities. The above sensitivity test would yield proxy results if market price
were to move in the opposite direction, with the Group.
** The impact on insurance contract liabilities only reflects the changes in the prescribed assumptions above without
any adjustment to policyholders’ bonuses for the life participating business. Impact on insurance contract liabilities
also reflects adjustments for tax, where applicable.
Only life participating fund, universal life fund and investment-linked funds invested in equity securities.

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40.4 Fair value of financial instruments
The Group’s and the Company’s basis in estimation of fair values for financial instruments is as follows:
- The fair values of structured deposits, negotiable certificate of deposits, collateralised forward starting interest rate swap,
collateralised interest rate swap, forward purchase agreements and cross currency swap are based on the indicative
market prices from the issuing banks.
- The fair values of quoted equity securities of corporations in and outside Malaysia and quoted unit trusts in Malaysia are
based on quoted market bid price as at the end of the reporting period.
- The unquoted equity securities of corporations in Malaysia are stated at cost. Where in the opinion of the Directors, there
is a decline other than temporary in value of unquoted equity securities, the allowance for impairment is recognised as an
expense in the financial year in which the decline is identified.
- The fair values of Malaysian government securities, Malaysian government guaranteed bonds, Ringgit denominated
bonds by foreign issuers outside Malaysia, unquoted bonds of corporations in and outside Malaysia are based on the
indicative market prices provided by its custodian bank.
- The fair values of unquoted unit trust in and outside Malaysia are based on the net asset values of the unit trusts as at the
date of the statements of assets and liabilities obtained from fund managers.
- The carrying amounts of policy loans, mortgage loans, automatic premium loans, fixed and call deposits, subordinated
loan, other secured loans, other financial liabilities and advance from holding company reasonably approximate their fair
values.
- The carrying amounts of cash and cash equivalents, insurance receivables, other receivables and deposits, insurance
payables, other payables and accruals reasonably approximate their fair values due to the relatively short term nature of
these financial instruments.
Estimation of the fair values of Malaysian government securities, Malaysian government guaranteed bonds, Ringgit denominated
bonds by foreign issuers outside Malaysia, unquoted bonds of corporations in and outside Malaysia are based on the indicative
market prices provided by the custodian bank which involve projections of the market yields based on past transactions. There
are elements of uncertainty in projecting the expected market yields and these uncertainties arise from changes in underlying risk
and overall economic conditions. As such, the projected market yields may be different from the actual market yields in future.
It was not practicable to estimate the fair value of the Group’s investment in unquoted equity securities of corporations in Malaysia
due to the lack of comparable quoted market prices and the inability to estimate fair value without incurring excessive costs.

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40.4 Fair value of financial instruments (continued)
40.4.1 Fair value information
The table below analyses financial instruments carried at fair value.
Fair value of financial instruments carried at fair value

Total Carrying
Level 1 Level 2 Level 3 Total fair value amount
2020
Financial assets
Malaysian government securities - 5,612,655 - 5,612,655 5,612,655 5,612,655
Malaysian government guaranteed
bonds - 3,677,880 - 3,677,880 3,677,880 3,677,880
Quoted equity securities of
corporations in Malaysia 2,493,098 - - 2,493,098 2,493,098 2,493,098
corporations outside Malaysia 1,637 - - 1,637 1,637 1,637
Unquoted bonds of corporations in
Malaysia - 4,963,751 - 4,963,751 4,963,751 4,963,751
Unquoted bonds of corporations
outside Malaysia - 125,727 - 125,727 125,727 125,727
Quoted unit trusts in Malaysia 57,468 - - 57,468 57,468 57,468
Unquoted unit trusts in Malaysia - 726,308 - 726,308 726,308 726,308
Unquoted unit trusts outside Malaysia - 28,385 - 28,385 28,385 28,385
Structured deposits and negotiable
certificate of deposits with licensed
financial institutions - 73,148 - 73,148 73,148 73,148
Government guaranteed loans - - - - - -
Collateralised forward starting interest
rate swap - 59,496 - 59,496 59,496 59,496
Forward purchase agreements - 16,876 - 16,876 16,876 16,876
Cross currency swap - 5,366 - 5,366 5,366 5,366
2,552,203 15,289,592 - 17,841,795 17,841,795 17,841,795
Cross currency swap - 301 - 301 301 301
Lease liabilities - - - - 42,785 42,785
- 301 - 301 43,086 43,086

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40.4 Fair value of financial instruments (continued)
40.4.1 Fair value information (continued)
The table below analyses financial instruments carried at fair value. (continued)
Fair value of financial instruments carried at fair value

Total Carrying
Level 1 Level 2 Level 3 Total fair value amount
2019
Financial assets
Malaysian government securities - 4,451,937 - 4,451,937 4,451,937 4,451,937
Malaysian government guaranteed
bonds - 3,197,634 - 3,197,634 3,197,634 3,197,634
Ringgit denominated bonds by foreign
issuers outside Malaysia - 40,623 - 40,623 40,623 40,623
corporations in Malaysia 1,905,352 - - 1,905,352 1,905,352 1,905,352
corporations outside Malaysia 1,896 - - 1,896 1,896 1,896
Unquoted bonds of corporations in
Malaysia - 4,540,106 - 4,540,106 4,540,106 4,540,106
Unquoted bonds of corporations
outside Malaysia - 121,018 - 121,018 121,018 121,018
Quoted unit trusts in Malaysia 75,679 - - 75,679 75,679 75,679
Unquoted unit trusts in Malaysia - 619,221 - 619,221 619,221 619,221
Unquoted unit trusts outside Malaysia - 28,021 - 28,021 28,021 28,021
Structured deposits and negotiable
certificate of deposits with licensed
financial institutions - 93,800 - 93,800 93,800 93,800
Government guaranteed loans - - - - 191,506 190,504
Collateralised interest rate swap - 36,804 - 36,804 36,804 36,804
Forward purchase agreements - 20,961 - 20,961 20,961 20,961
1,982,927 13,154,537 - 15,137,464 15,328,970 15,327,968
Lease liabilities - - - - 58,023 58,023
- 1,244 - 1,244 59,267 59,267
Transfers between Level 1 and Level 2 fair values
There has been no transfer between Level 1 and Level 2 fair values during the financial year (2019: no transfer in either
direction).

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41. CAPITAL MANAGEMENT
The Group aims to maintain a robust capital management in both its general and life insurance businesses to sustain adequate
solvency levels to support business growth, dividend payment to shareholders, return on equity and maintaining capital adequacy
above the regulatory requirements. There are no significant changes to the Group’s capital management policies and processes during
the financial year.
The primary sources of capital of the Group and the Company are shareholder’s equity as disclosed in the statement of changes in
equity. Share Capital of the Group and the Company comprises ordinary share capital and ICPS.
Regulatory capital requirements
Under the Risk-Based Capital Framework for Insurers (“RBC Framework”) issued by BNM, insurance companies need to maintain a
capital adequacy level that commensurate with their risk profiles. All insurance companies are required to maintain a minimum Capital
Adequacy Ratio (“CAR”) of 130% and an internal target capital level required by BNM or level determined under the Internal Capital
Adequacy Assessment Process. The internal target capital level will include additional capacity to absorb unexpected losses beyond
those that are covered under the minimum required CAR.
The insurance subsidiaries of the Group have been in compliance with the said requirement by maintaining a CAR that is in excess of
minimum requirements.
42. CONTINGENT LIABILITIES
On 10 August 2016, the Malaysia Competition Commission (“MyCC”) commenced an investigation into an alleged infringement by
Persatuan Insurans Am Malaysia (“PIAM”) and all 22 general insurers including the Company’s general insurance subsidiary, Allianz
General Insurance Company (Malaysia) Berhad (“AGIC”) of Section 4(2)(a) of the Competition Act 2010 (“CA”). The alleged infringement
is in relation to the agreement reached between PIAM and the Federation Of Automobile Workshop Owners’ Association Of Malaysia
(“FAWOAM”) in relation to trade discount rates for parts for certain vehicle makes and labour hourly rates for PIAM Approved Repairers
Scheme workshops. These rates were applied by AGIC pursuant to a members’ circular issued by PIAM, which arose from Bank Negara
Malaysia’s (“BNM”)’s directive to PIAM to engage FAWOAM to resolve the issues of parts trade discounts and labour hourly rate.
On 22 February 2017, AGIC received MyCC’s notice of proposed decision (“Proposed Decision”) that AGIC and all the other 21 general
insurers who are members of PIAM have infringed one of the prohibitions under Part II of the CA. The Proposed Decision includes a
proposed financial penalty of RM213,454,814 on all the 22 general insurers. AGIC, as one of the members of PIAM, will have a share of
RM27,480,883 of the proposed penalty.
On 5 April and 25 April 2017, AGIC submitted the written representations as requested by MyCC. The first session for the Hearing of the
Oral Representation took place on 16 October 2017 (on preliminary issues) and 17 October 2017 (on PIAM’s Oral Representation).
The second session took place on 12 December 2017 and 14 December 2017 wherein other insurers had submitted their Oral
Representations. AGIC’s Oral Representation took place on 29 January 2018 and the remaining insurers submitted their Oral
Representations on 30 January 2018, bringing the Oral Representations of all insurers to a close. Due to the changes of the Members
of Commission who heard AGIC’s Oral Representation, AGIC’s solicitors had requested MyCC to hold de novo (new) proceedings in
relation to the AGIC’s Oral Representation before the new Members of Commission. AGIC’s Oral Representation sessions took place on
19 and 20 February 2019. PIAM had commenced its Oral Representation on 21 February 2019. BNM’s Oral Representation took place
on 13 May 2019 followed by Oral Representations by several counsel representing 6 insurers. The session on 14 May 2019 was vacated
and the Oral Representation by PIAM’s Competition Economist (RBB Economics) and the remaining insurers’ counsel were heard over
17 and 18 June 2019.
On 25 September 2020, AGIC’s solicitors received the Decision that parties have infringed the prohibition under section 4 of the CA and
which imposes on each of the 22 general insurers financial penalties for the said infringement.

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42. CONTINGENT LIABILITIES (CONTINUED)
In view of the impact of the Covid-19 pandemic, MyCC granted a reduction of 25% of the financial penalties imposed on the 22
general insurers and a moratorium period of up to 6 months for the payment of the financial penalties to be made by 6 equal monthly
instalments. The financial penalty imposed on AGIC, taking into account the 25% reduction amounts to RM18,549,595.97.
AGIC had on 13 October 2020 filed a Notice of Appeal with the Competition Appeal Tribunal (“CAT”) against the Decision, pursuant to
Section 52 of the CA (“Notice of Appeal”). On 23 October 2020, AGIC filed a Stay Application with the CAT pursuant to Section 53 of the
CA for the grant of a stay of the Decision particularly in respect of the financial penalty imposed on AGIC and at CAT’s request, a formal
Notice of Application was filed in relation to the stay of the Decision on 12 November 2020.
In response to AGIC’s Notice of Appeal, MyCC had filed a Statement in Reply (“SIR”) dated 20 November 2020 with the CAT. AGIC
then filed with the CAT on 11 December 2020 its Reply to the SIR to put on record that except for statements of fact, AGIC denies the
remaining contents of the SIR and also to reiterate that all issues raised by MyCC had already been addressed in AGIC’s Notice of
Appeal.
CAT in a letter dated 20 January 2021 informed all parties that the initial case management date for the Appeal and Hearing of the
Stay Application fixed for 27 January 2021 was rescheduled to 18 February 2021. The case management and Hearing date earlier fixed
for 18 February 2021 before the CAT has now been rescheduled to 25 February 2021 and this would be a virtual session.
The management of AGIC believes that the criteria to disclose the above as a contingent liability are met. Saved as disclosed above, the
Group does not have any other contingent assets and liabilities since the last annual balance sheet date.
43. MATERIAL LITIGATION
Virginia Surety Company Labuan Branch (“VSC”) had provided reinsurance support to Commerce Assurance Berhad (now known
as Bright Mission Berhad and which has since been wound up) (“CAB”) previously in respect of CAB’s Extended Warranty Program
(“EWP”).
AGIC took over the general insurance business of CAB on 1 January 2009 and this included the reinsurance business relating to the
EWP.
A dispute arose between both parties on the continuing subsistence of the reinsurance agreement from 1 October 2011 onwards.
AGIC’s legal position is that the reinsurance continued to remain in force from 1 October 2011 and determined only on 30 September
2013. This is disputed by VSC who claim that the treaty reinsurance lapsed on 30 September 2011.
On 11 December 2013, AGIC commenced arbitration proceedings against VSC seeking, inter alia:
(a) A declaration that the reinsurance subsisted until 30 September 2013;

(b) A declaration that VSC will pay and/or indemnify AGIC for its claims and losses arising from the reinsurance for the period from
1 October 2011 to 30 September 2013; and
(c) Damages to be assessed including for loss of profits and breach of contract.
The Closing Submissions and Reply Submissions were filed on 30 August 2017 and 27 September 2017 respectively and the Oral
Submissions took place on 12 October 2017 and 13 October 2017. Both parties then filed further written submissions bringing the
arbitration proceedings to an end.

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43. MATERIAL LITIGATION (CONTINUED)
An Arbitration Award dated 8 February 2018 was received on 20 February 2018. The award, made by 2 arbitrators of the Panel of
3 arbitrators, was in favour of VSC (“Award”) whilst the Dissenting Arbitrator found in favour of AGIC.
The Award ordered AGIC to pay the following:
(a) RM30,593.64 as reimbursement of payment in respect of the Kuala Lumpur Regional Centre for Arbitration’s administrative
expenses;
(b) RM425,324.32 as reimbursement of payment in respect of fees and expenses of the arbitral tribunal;
(c) RM668,160.69 for costs and expenses incurred by VSC; and
(d) USD10,969.31 as reimbursement for costs incurred in respect of VSC’s ex-employee.
AGIC’s Originating Summons – High Court
AGIC’s solicitors were of the view that there were reasonable grounds to seek a review of the Award, including to set aside the Award.
An Originating Summons was filed at the Kuala Lumpur High Court on 29 March 2018 to set aside the Award under Section 37(2)(b)(ii)
of the Arbitration Act 2005 (“Act”) and for a Reference of Questions of law under Section 42 of the Act. AGIC’s solicitors presented their
Oral Submissions at the Hearing on 18 February 2019. The Hearing continued on 13 March 2019 during which VSC’s solicitor presented
its oral arguments and Further Written Submissions. AGIC’s solicitors filed the response to VSC’s Further Written Submissions on 10 April
2019 and VSC filed its Reply Submissions on 17 April 2019. The Hearing continued and concluded on 18 April 2019. On 28 June 2019,
the Court declined the application to set aside the Award (“Decision”).
AGIC’s solicitors filed a Notice of Appeal to the Court of Appeal against the Decision on 15 July 2019 (“Appeal”). At the first case
management on 4 September 2019, the Court of Appeal fixed the next case management for 9 October 2019 and directed the filing
of the Record of Appeal by 26 September 2019.
Separately, VSC’s solicitors filed an Originating Summons dated 11 September 2019 (“VSC’s OS”) to recognise and enforce the Award
against AGIC, which if allowed, would have resulted in AGIC having to pay VSC all the costs ordered by the Award.
Update on VSC’s OS Application
At the first case management on VSC’s OS on 26 September 2019, AGIC’s solicitors informed the Court that as the Appeal was pending
before the Court of Appeal, VSC’s OS was premature. The Court then fixed the matter for further case management for VSC’s solicitors
to address the issue of holding over of VSC’sOS, pending the determination of the Appeal. AGIC’s solicitors filed a stay application on
VSC’s OS and on 7 November 2019, the Judge allowed AGIC’s stay application and ordered VSC’s enforcement proceedings be stayed
pending the final determination of the appeal at the Court of Appeal. As the Judge was of the view that VSC’S OS should be withdrawn
and filed afresh (should VSC succeed in dismissing the appeal), and since VSC agreed to withdraw the matter, the Judge ordered that
VSC’s OS be struck out with liberty to file afresh.

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43. MATERIAL LITIGATION (CONTINUED)
Update on AGIC’s Appeal
At the case management on AGIC’s Appeal on 9 October 2019, a further case management was fixed on 20 November 2019. On 20
November 2019, a further case management was fixed on 13 January 2020, pending the High Court’s substantive Grounds of Decision
(“Grounds”). At the case management on 13 January 2020, the Court of Appeal fixed a further case management on 19 February 2020,
as AGIC’s solicitors had yet to receive the Grounds. On 17 February 2020, the Court of Appeal wrote to parties’ solicitors to give notice
that the case management fixed for 19 February 2020 was rescheduled to 26 February 2020. On 26 February 2020, the Court of Appeal
was informed that AGIC’s solicitors had yet to receive the Grounds. As such, a further case management was fixed for 8 April 2020. Just
before the effective date of the Movement Control Order, the High Court notified that the Grounds were ready for collection but since
AGIC’s solicitors were unable to collect the Grounds, at the e-review of the matter on 8 April 2020, a new date for case management
was fixed for 15 May 2020. On 15 May 2020, AGIC’s solicitors informed the Court of Appeal that the Grounds had since been collected
and the Court of Appeal directed for the Memorandum of Appeal and Supplementary Record of Appeal to be filed before the next
case management fixed for 9 July 2020. On 9 July 2020, the Court of Appeal fixed a further case management date on 19 August 2020
as the Notes of Proceedings were still pending. At the case management on 19 August 2020, the Court of Appeal fixed the Appeal for
Hearing on 2 February 2021 and there will be a further Case Management on 26 January 2021 for the Court to monitor compliance
with all appeal directions. On 26 January 2021, the Court of Appeal was updated that all appeal directions had been complied with
and the Court of Appeal then directed that the Hearing on 2 February 2021 be conducted virtually via Zoom. On 2 February 2021, the
Hearing of the Appeal was adjourned to a date to be fixed later as several other cases were also fixed for hearing that day.
44. AMENDMENTS TO MFRS 4 - APPLYING MFRS 9, FINANCIAL INSTRUMENTS WITH MFRS 4, INSURANCE CONTRACTS
Group
MFRS 9, Financial Instruments replaces the guidance in MFRS 139, Financial Instruments: Recognition and Measurement on the
classification and measurement of financial assets and financial liabilities and on hedge accounting, effective for annual periods
beginning on or after 1 January 2018.
The Group has applied the temporary exemption under Amendments to MFRS 4 - Applying MFRS 9, Financial Instruments with MFRS 4,
Insurance Contracts (“the Amendments”) which enables eligible entities to defer the implementation date of MFRS 9 to annual periods
beginning before 1 January 2023 at the latest. Hence, the Group has not adopted MFRS 9 for the financial year beginning on or after
1 January 2018.
The Amendments allow entities to avoid temporary volatility in profit or loss that might result from adopting MFRS 9, Financial
Instruments before the forthcoming new insurance contracts standard.
The Amendments provide 2 different approaches for the Group:
(i) temporary exemption from MFRS 9 for entities that meet specific requirements; and
(ii) the overlay approach. Both approaches are optional
The temporary exemption enables eligible entities to defer the implementation date of MFRS 9 to annual periods beginning before
1 January 2023 at the latest. An entity may apply the temporary exemption from MFRS 9 if its activities are predominantly connected with
insurance whilst the overlay approach allows an entity to adjust profit or loss for eligible financial assets by removing any accounting
volatility to other comprehensive income that may arise from applying MFRS 9.
The Group’s business activity is predominantly insurance as the liabilities connected with the Group’s insurance businesses made up
approximately 90% of the Group’s total liabilities. Hence, the Group qualifies for the temporary exemption from applying MFRS 9 and
will defer and adopt MFRS 9 together with MFRS 17, Insurance Contracts for the financial year beginning on or after 1 January 2023.

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(CONTINUED)
Group (continued)
The following additional disclosures, required by Amendments to MFRS 4 for entity qualified and elected the temporary exemption from
applying MFRS 9, present the Group’s financial assets by their contractual cash flows characteristics, which indicate if they are SPPI:
Financial assets All other

with SPPI financial
cash flows assets Total*
Fair value as at 31 December 2020 RM’000 RM’000 RM’000
Investments (Note 10) 7,508,670 11,136,211 18,644,881

Malaysian government securities and government guaranteed bonds 5,180,262 4,110,273 9,290,535
Unquoted bonds of corporations 1,445,731 3,643,747 5,089,478
Quoted equity securities and unit trusts - 2,552,203 2,552,203
Unquoted equity securities and unit trusts - 756,840 756,840
Negotiable certificates of deposits and structured deposits - 73,148 73,148
Fixed and call deposits with licensed banks 882,677 - 882,677
Derivative financial assets - 81,738 81,738
Other receivables and deposits 161,085 - 161,085
Cash and cash equivalents 1,175,963 - 1,175,963
8,845,718 11,217,949 20,063,667

with SPPI financial
Fair value as at 31 December 2019 RM’000 RM’000 RM’000
Investments (Note 10) 6,700,251 9,297,232 15,997,483

Malaysian government securities and government guaranteed bonds 4,401,000 3,248,571 7,649,571
Unquoted bonds of corporations 1,358,854 3,342,893 4,701,747
Quoted equity securities and unit trusts - 1,982,927 1,982,927
Negotiable certificates of deposits and structured deposits 20,348 73,452 93,800
Government guaranteed loans 190,504 - 190,504
Fixed and call deposits with licensed banks 729,545 - 729,545
Other receivables and deposits 164,196 - 164,196
Cash and cash equivalents 1,600,053 - 1,600,053
8,464,500 9,359,409 17,823,909
* Insurance receivables, reinsurance assets, policy loans, automatic premium loans and deferred acquisition cost have been
excluded from the above assessment as they will be under the scope of MFRS 17, Insurance Contracts. Other than the financial
assets listed in the table above and the assets that are within the scope of MFRS 17, Insurance Contracts, all other assets in the
statement of financial position are non-financial assets.

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(CONTINUED)
Group (continued)

with SPPI financial
Changes in fair value during the year RM’000 RM’000 RM’000
Investments
Malaysian government securities and government guaranteed bonds 117,451 99,421 216,872
Unquoted bonds of corporations 21,377 86,142 107,519
Quoted equity securities and unit trusts - 36,201 36,201
Negotiable certificates of deposits and structured deposits (50) (1,935) (1,985)
Government guaranteed loans - - -
Fixed and call deposits with licensed banks - - -
Other receivables and deposits - - -
Cash and cash equivalents - - -
Total financial assets 138,778 247,089 385,867

with SPPI financial
Changes in fair value in the previous year RM’000 RM’000 RM’000
Investments
Malaysian government securities and government guaranteed bonds 243,060 178,503 421,563
Unquoted bonds of corporations 29,586 117,014 146,600
Quoted equity securities and unit trusts - 60,511 60,511
Negotiable certificates of deposits and structured deposits (107) (97) (204)
Government guaranteed loans - - -
Fixed and call deposits with licensed banks - - -
Other receivables and deposits - - -
Cash and cash equivalents - - -
Total financial assets 272,539 395,218 667,757

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(CONTINUED)
Group (continued)
Financial assets with SPPI cash flows at 31 December 2020 *
Non- Investment-
Gross carrying amounts investment Non- linked
under MFRS 139 by AAA AA A BBB grade rated funds Total
credit risk rating grades RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Investments
securities and
government guaranteed
bonds - - - - - 5,180,262 - 5,180,262
Unquoted bonds of
corporations 718,121 688,311 25,744 11,097 - 9,806 - 1,453,079
deposits - - - - - - - -
Government guaranteed
loans - - - - - - - -
Fixed and call deposits with
licensed banks 71,937 687,175 - - - - 123,565 882,677
deposits - - - - - 154,652 6,433 161,085
Cash and cash equivalents 674,825 306,200 4,211 - - 336 190,391 1,175,963
1,464,883 1,681,686 29,955 11,097 - 5,345,056 320,389 8,853,066
* Credit risk of these financial assets is considered low for the purpose of MFRS 9.

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(CONTINUED)
Group (continued)
Financial assets with SPPI cash flows at 31 December 2019 *
Non- Investment-
Gross carrying amounts investment Non- linked
under MFRS 139 by AAA AA A BBB grade rated funds Total
credit risk rating grades RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Investments
securities and
government guaranteed
bonds - - - - - 4,401,000 - 4,401,000
Unquoted bonds of
corporations 823,438 500,881 30,786 11,097 - - - 1,366,202
deposits 20,348 - - - - - - 20,348
Government guaranteed
loans - - - - - 190,504 - 190,504
Fixed and call deposits with
licensed banks 263,674 352,558 - - - - 113,313 729,545
deposits - - - - - 163,474 722 164,196
Cash and cash equivalents 887,462 522,913 1,658 - - 295 187,725 1,600,053
1,994,922 1,376,352 32,444 11,097 - 4,755,273 301,760 8,471,848
* Credit risk of these financial assets is considered low for the purpose of MFRS 9.

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45. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR
The World Health Organisation (“WHO”) had on 11 March 2020 declared COVID-19 as a pandemic and it has caused one of the most
severe economic and financial market turmoil.
COVID-19 continues to disrupt economies and capital markets worldwide. As would be expected, COVID-19 had significant impact
on the Group’s performance, including new business premium, policyholder experience and impact on investment results from market
volatility and falling interest rate.
While the results for the year have largely remained resilient, the Group remains cautious in maintaining the same level of profitability
for next year amid ongoing uncertainties to the economy arising from the COVID-19 pandemic. The Group will continue to closely
monitor and respond to the impact of the pandemic.
On 27 March 2020, Bank Negara Malaysia (“BNM”) had announced a number of measures to assist policyholders to manage the
impact of the COVID-19 pandemic. On 29 January 2021, BNM set out additional measures to assist affected consumers to preserve
their protection coverage.
The relief measures that are extended to the Group’s policyholders included:
• Deferment of payment of life insurance premiums;

• Flexibilities to reinstate or preserve life insurance protection;
• Expediting claims processing;
• Flexibility to meet general insurance premiums; and
• 6 months interest free instalment repayment option.
Under the relief measures, affected policyholders are eligible to apply for deferment of payment of their life insurance premiums and
flexibilities are extended to the affected policyholders to reinstate or preserve their life insurance. The relief measures extended by the
Group have no significant impact to the financial performance of the Group for the financial year under review.

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Statement by Directors 05
Pursuant to Section 251 (2) of the Companies Act 2016 06
In the opinion of the Directors, the financial statements set out on pages 129 to 268 are drawn up in accordance with Malaysian Financial
Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia so as to give
a true and fair view of the financial position of the Group and of the Company as of 31 December 2020 and of their financial performance
and cash flows for the financial year then ended.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:
………………………….……………….……………..
Goh Ching Yin
Director
………………………………………………………
Peter Ho Kok Wai
Director
Kuala Lumpur
Date: 24 February 2021

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05 Statutory Declaration
06 Pursuant to Section 251 (1)(b) of the Companies Act 2016
I, Ong Eng Chow, the officer primarily responsible for the financial management of Allianz Malaysia Berhad, do solemnly and sincerely
declare that the financial statements set out on pages 129 to 268 are, to the best of my knowledge and belief, correct and I make this solemn
declaration conscientiously believing the declaration to be true, and by virtue of the Statutory Declarations Act, 1960.
Subscribed and solemnly declared by the abovenamed Ong Eng Chow, I/C No: 650421-71-5931, at Kuala Lumpur in the Federal Territory
on 24 February 2021.
…………..………………….….….….….….…..
Ong Eng Chow
Before me:
Gurdeep Singh A/L Jag Singh

No. W607
Pesuruhjaya Sumpah
Kuala Lumpur

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To the Members of Allianz Malaysia Berhad 06
Our opinion
In our opinion, the financial statements of Allianz Malaysia Berhad (“the Company”) and its subsidiaries (“the Group”) give a true and fair view
of the financial position of the Group and of the Company as at 31 December 2020, and of their financial performance and their cash flows
for the financial year then ended in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards
and the requirements of the Companies Act 2016 in Malaysia.
What we have audited
We have audited the financial statements of the Group and of the Company, which comprise the statements of financial position as at
31 December 2020 of the Group and of the Company, and the statements of profit or loss, statements of profit or loss and other comprehensive
income, statements of changes in equity and statements of cash flows of the Group and of the Company for the financial year then ended,
and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 129 to 268.
Basis for opinion
We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing.
Our responsibilities under those standards are further described in the “Auditors’ responsibilities for the audit of the financial statements”
section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence and other ethical responsibilities
We are independent of the Group and of the Company in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of
the Malaysian Institute of Accountants (“By-Laws”) and the International Ethics Standards Board for Accountants’ International Code of
Ethics for Professional Accountants (including International Independence Standards) (“IESBA Code”), and we have fulfilled our other ethical
responsibilities in accordance with the By-Laws and the IESBA Code.
Our audit approach
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements of
the Group and of the Company. In particular, we considered where the Directors made subjective judgements; for example, in respect of
significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of
our audits, we also addressed the risk of management override of internal controls, including among other matters, consideration of whether
there was evidence of bias that represented a risk of material misstatement due to fraud.
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the financial statements as a
whole, taking into account the structure of the Group and of the Company, the accounting processes and controls, and the industry in which
the Group and the Company operate.

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Independent Auditors’ Report
To the Members of Allianz Malaysia Berhad
06
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements
of the Group and of the Company for the current financial year. These matters were addressed in the context of our audit of the financial
statements of the Group and of the Company as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Key audit matters How our audit addressed the key audit matters
Valuation of actuarial liabilities – life insurance contract liabilities Our audit procedures included the following:
Refer to accounting policy in 2.16.5, 2.25.2 and Notes 17(a) and 39.1 of the We evaluated the design and tested key controls over the life actuarial
Financial Statements. reserving process, including controls over the reliability of data used in the
calculation of actuarial liabilities.
As at 31 December 2020, the Group’s life insurance contract liabilities
comprise actuarial liabilities of RM9,067 million, which account for We engaged our actuarial experts to assist us in assessing if the valuation
approximately 51% of the Group’s total liabilities. The actuarial liabilities methodologies used by the Group is in line with the valuation methods
have been estimated based on actuarial valuation methodologies as specified in the RBC Framework and liability adequacy test under MFRS 4
allowed under the Risk-Based Capital Framework (“RBC Framework”) ‘Insurance Contracts’. We also compared if the valuation methodologies
issued by Bank Negara Malaysia (“BNM”). are consistent with recognised actuarial practices from market experience.
We focused on management’s valuation of the actuarial liabilities as it We assessed the reasonableness of the key actuarial assumptions,
involves significant judgement about uncertain future outcomes, including particularly around mortality, morbidity, lapse, expense, and discount
assumptions on mortality, morbidity, expense, lapse and discount rates, as rates by:
well as actuarial valuation methodologies.
i. Reviewing the approach used by management to derive the
assumptions using our industry knowledge and experience;
ii. Comparing them with the Group’s actual historical experience, market
observable data (as applicable) and our views of current trends and
experience to-date.
We performed an independent review of model points on sample basis

to assess if the methodologies and assumptions reviewed have been
consistently applied.
We assessed the analysis of movements in actuarial liabilities to determine

whether the movements during the year are consistent with key actuarial
assumptions adopted by the Group and our knowledge of developments
in the life insurance business.
We assessed the appropriateness and adequacy of the Group’s disclosures

in relation to actuarial liabilities in the financial statements, including
sensitivity analysis of the key actuarial assumptions to different scenarios.
We also evaluated the Group’s assessment of COVID-19 on life insurance

contract liabilities, including key judgement used when determining
outstanding life insurance contract liabilities.
Based on the procedures performed, we found the methodologies and

key assumptions used by the Group in the valuation of actuarial liabilities
as at 31 December 2020 to be appropriate.

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Key audit matters (continued)
Key audit matters How our audit addressed the key audit matters
Valuation of general insurance contract liabilities Our audit procedures included the following:
Refer to accounting policy in 2.15.5, 2.25.1 and Notes 17(b) and 39.2 of the We evaluated the design and tested key controls over reserving process,
Financial Statements. including controls over the completeness and accuracy of premium data,
and settlement of claims that support key reserving calculations and
As at 31 December 2020, the Group has general insurance contract controls over the valuation of claims and premium liabilities.
liabilities of RM3,901 million, consisting of claims liabilities and premium
liabilities, which account for approximately 22% of the Group’s total We tested the underlying data used in estimation of general insurance
liabilities. contract liabilities to source documents.
Claims Liabilities We engaged our actuarial experts to assist us in reviewing and assessing
the methodologies, basis and key assumptions used in the valuation
We focused our audit on this area because of the level of subjectivity of claims liabilities and premium liabilities in accordance with the
inherent in estimating the impact of claims events that have occurred but requirements of the RBC Framework and liability adequacy test under
for which the ultimate outcome remains uncertain. MFRS 4 ‘Insurance Contracts’.
The valuation of general insurance claims liabilities involves a range of We reviewed and assessed the reasonableness of key actuarial
standard actuarial methodologies as allowed under the RBC Framework assumptions by referencing to the Group’s historical experiences, current
and relies on a number of assumptions including past claims development trends and our own industry knowledge.
experiences, management’s judgment on external factors and regulatory
changes, and internal factors such as portfolio mix and claims handling Our actuarial experts performed independent re-projections of claims
process. The estimation of claims liabilities is sensitive to various factors liabilities and unexpired risk reserves (“URR”) respectively for selected
and uncertainties as discussed in Note 2.25.1. major classes of business, focusing on the largest and most uncertain
claims reserves and URR. The re-projected claims liabilities and URR are
Premium Liabilities compared to those recorded by management and evaluated if they are
within reasonable range.
As at 31 December 2020, the Group has accounted for RM1,176 million of
gross premium liabilities, based on the higher of Unexpired Risk Reserves We also assessed the appropriateness and adequacy of the Group’s
(“URR”) of RM920 million and Unearned Premium Reserves (“UPR”) of disclosures in relation to the general insurance contract liabilities in the
RM1,176 million as required under the RBC Framework. financial statements, including the historical claims development and
sensitivity analysis of key assumptions used in the valuation of insurance
We focused on this area as the estimation of URR involves significant contract liabilities.
judgement in identifying best estimate values of future contractual cash
flows in consideration of the expected loss and expenses for policies in- Specific to current environment, we evaluated the Group’s assessment
force as at year-end at the required risk margin for adverse deviation. of COVID-19 on claims and premium liabilities, including key judgement
used when determining claims liabilities and URR.
Based on the procedures performed, we found the methodology and

key assumptions used by the Group in the valuation of general insurance
contract liabilities as at 31 December 2020 to be appropriate.

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There are no key audit matters to report for the Company.
Information other than the financial statements and auditors’ report thereon
The Directors of the Company are responsible for the other information. The other information comprises the Directors’ Report and Statement
on Risk Management and Internal Control, which we obtained prior to the date of this auditors’ report, and remaining parts of the annual
report, which is expected to be made available to us after that date. Other information does not include the financial statements of the Group
and of the Company and our auditors’ report thereon.
Our opinion on the financial statements of the Group and of the Company does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial statements of the Group and of the Company, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial statements of the Group and of the
Company or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditors’ report, we conclude
that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the financial statements
The Directors of the Company are responsible for the preparation of the financial statements of the Group and of the Company that give
a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the
requirements of the Companies Act 2016 in Malaysia. The Directors are also responsible for such internal control as the Directors determine
is necessary to enable the preparation of financial statements of the Group and of the Company that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements of the Group and of the Company, the Directors are responsible for assessing the Group’s and the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the Directors either intend to liquidate the Group or the Company or to cease operations, or have no realistic
alternative but to do so.
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements of the Group and of the Company as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with approved standards on auditing
in Malaysia and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.

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Auditors’ responsibilities for the audit of the financial statements (continued)
As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing, we exercise
professional judgement and maintain professional scepticism throughout the audit. We also:
(a) Identify and assess the risks of material misstatement of the financial statements of the Group and of the Company, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(b) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and of the Company’s internal
control.
(c) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by the Directors.
(d) Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s or on the
Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention
in our auditors’ report to the related disclosures in the financial statements of the Group and of the Company or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report.
However, future events or conditions may cause the Group or the Company to cease to continue as a going concern.
(e) Evaluate the overall presentation, structure and content of the financial statements of the Group and of the Company, including the
disclosures, and whether the financial statements of the Group and of the Company represent the underlying transactions and events
in a manner that achieves fair presentation.
(f) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to
express an opinion on the financial statements of the Group. We are responsible for the direction, supervision and performance of the
group audit. We remain solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our audit.
We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding independence, and
to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where
applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the Directors, we determine those matters that were of most significance in the audit of the financial
statements of the Group and of the Company for the current financial year and are therefore the key audit matters. We describe these
matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.

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OTHER MATTERS
This report is made solely to the members of the Company, as a body, in accordance with Section 266 of the Companies Act 2016 in Malaysia
and for no other purpose. We do not assume responsibility to any other person for the content of this report.
________________________________ __________________________________
PRICEWATERHOUSECOOPERS PLT MANJIT SINGH A/L HAJANDER SINGH
LLP0014401-LCA & AF 1146 02954/03/2021 J
Chartered Accountants Chartered Accountant
Kuala Lumpur
24 February 2021

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Notice of Annual General Meeting 05
06
NOTICE IS HEREBY GIVEN that the 47th Annual General Meeting (“47th AGM”) of Allianz Malaysia Berhad (“Company”) will be
conducted fully virtual from the broadcast venue at Ballroom A, Level 2, Aloft Kuala Lumpur Sentral, 5 Jalan Stesen Sentral, Kuala Lumpur
Sentral, 50470 Kuala Lumpur (“Broadcast Venue”) on Wednesday, 23 June 2021 at 11.00 a.m. via TIIH Online website at https://tiih.online,
for the following purposes:-
AGENDA
Ordinary Business
1. To receive the Audited Financial Statements for the financial year ended 31 December 2020 and the
Directors’ and Auditors’ Reports thereon.
2. To approve the following payments to Non-Executive Directors of the Company and its insurance
subsidiaries:-
(a) Directors’ fees of RM1,868,976 for the financial year ended 31 December 2020. Ordinary Resolution 1
(b) Directors’ fees effective 1 January 2021 until the next Annual General Meeting of the Company:- Ordinary Resolution 2
(i) RM10,000 per month to each Non-Executive Director;

(ii) RM4,000 per month for each Audit Committee member;
(iii) RM3,000 per month for each Risk Management Committee member; and
(iv) RM2,000 per month for each Nomination and Remuneration Committee member.
(c) Directors’ benefits of up to an amount of RM1,263,500 from 24 June 2021 until the next Annual Ordinary Resolution 3
General Meeting of the Company.
3. To re-elect Solmaz Altin, who retires by rotation in accordance with Clause 19.1 of the Constitution of the Ordinary Resolution 4
Company and being eligible, offer himself for re-election.
4. To re-elect the following Directors who retire in accordance with Clause 19.7 of the Constitution of the
Company and being eligible, offer themselves for re-election:-
(a) Goh Ching Yin Ordinary Resolution 5
(b) Gerard Lim Kim Meng Ordinary Resolution 6
5. To re-appoint Messrs PricewaterhouseCoopers PLT as Auditors of the Company for the financial year Ordinary Resolution 7
ending 31 December 2021 and to authorise the Directors to fix their remuneration.

01 AGM Information
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05
Notice of Annual General Meeting
06
Special Business
To consider and if thought fit, to pass the following Ordinary Resolutions:-
6. Proposed Shareholders’ Mandate for Recurrent Related Party Transactions with Allianz SE Group Ordinary Resolution 8
“THAT pursuant to the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, approval
be and is hereby given to the Company and/or its subsidiaries to enter into the recurrent related party
transactions with Allianz SE Group as specified in Section 2.2 (A) of the Company’s Circular to Shareholders
dated 21 May 2021, provided that the transactions are in the ordinary course of business and are on terms
not more favourable than those generally available to the public and not to the detriment of the minority
shareholders.
AND THAT such authority shall take effect from the passing of this Ordinary Resolution and shall continue
in force until:-
(a) the conclusion of the next Annual General Meeting of the Company, at which time it will lapse, unless
by ordinary resolution passed at the said Annual General Meeting, the authority is renewed; or
(b) the expiration of the period within which next Annual General Meeting is required to be held
pursuant to Section 340 (2) of the Companies Act 2016 (but shall not extend to such extension as
may be allowed pursuant to Section 340 (4) of the Companies Act 2016); or
(c) revoked or varied by resolution passed by the shareholders in a general meeting;
whichever is the earlier;
AND THAT the Directors and/or any of them be and are hereby authorised to complete and do all such
acts and things including executing all documents as may be required to give effect to the transactions
contemplated and/or authorised by this Ordinary Resolution.”
7. Proposed Shareholders’ Mandate for Recurrent Related Party Transactions with Rapidpro Consulting Ordinary Resolution 9
Sdn Bhd
“THAT pursuant to the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, approval
be and is hereby given to the Company and/or its subsidiaries to enter into the recurrent related party
transactions with Rapidpro Consulting Sdn Bhd as specified in Section 2.2 (B) of the Company’s Circular to
Shareholders dated 21 May 2021, provided that the transactions are in the ordinary course of business and
are on terms not more favourable than those generally available to the public and not to the detriment of
the minority shareholders.
AND THAT such authority shall take effect from the passing of this Ordinary Resolution and shall continue
in force until:-
(a) the conclusion of the next Annual General Meeting of the Company, at which time it will lapse, unless
by ordinary resolution passed at the said Annual General Meeting, the authority is renewed; or

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(b) the expiration of the period within which next Annual General Meeting is required to be held
pursuant to Section 340 (2) of the Companies Act 2016 (but shall not extend to such extension as
may be allowed pursuant to Section 340 (4) of the Companies Act 2016); or
(c) revoked or varied by resolution passed by the shareholders in a general meeting;
whichever is the earlier;
AND THAT the Directors and/or any of them be and are hereby authorised to complete and do all such
acts and things including executing all documents as may be required to give effect to the transactions
contemplated and/or authorised by this Ordinary Resolution.”
8. To transact any other business for which due notice shall have been given.
By Order of the Board
NG SIEW GEK
MAICSA 7001251
CCM PC No. 201908001053
Company Secretary
Kuala Lumpur
21 May 2021
NOTES TO MEMBERS AND PROXIES
1. Registration for Remote Participation and Voting facilities (“RPV”)
1.1 The Company’s 47th AGM will be conducted fully virtual at the Broadcast Venue. Member(s), proxy(ies), attorney(s) or
authorised representative(s) WILL NOT BE ALLOWED to present physically at the Broadcast Venue on the day of the Meeting.
Members can attend, speak (posing questions to the Board via real time submission of typed texts) and vote (collectively,
“participate”) remotely at the 47th AGM via the RPV available on TIIH Online website at https://tiih.online.
1.2 Registration of RPV is open from the date of the Notice of 47th AGM on Friday, 21 May 2021 at 11.00 a.m. until such time before
the voting session ends at the 47th AGM on Wednesday, 23 June 2021.
1.3 Member(s), proxy(ies), attorney(s) or authorised representative(s) are required to register as a user with TIIH Online website
(first time registration only) prior to pre-register their attendance for the 47th AGM for verification of their eligibility to attend the
47th AGM using the RPV based on the Record of Depositors as at 15 June 2021.
1.4 Please follow the Procedures for RPV provided in the Administrative Details for the 47th AGM in order to participate in the
47th AGM remotely via RPV.
2. Submission of Questions Before and During Meeting
2.1 Members may submit questions to the Company prior to the 47th AGM via email to [email protected] or Tricor’s
TIIH Online website at https://tiih.online by selecting “e-Services” to login, no later than Tuesday, 22 June 2021 at 11.00 a.m.
2.2 Alternatively, Members may use the query box to transmit questions to Chairman/Board via RPV during live streaming.

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05
06
3. Appointment of Proxy/Proxies
3.1 For the purposes of determining a Member who shall be entitled to participate in the forthcoming 47th AGM of the Company,
the Company shall be requesting Bursa Malaysia Depository Sdn Bhd to issue a Record of Depositors as at 15 June 2021. Only a
depositor whose name appears in the Record of Depositors as at 15 June 2021 shall be entitled to participate in the 47th AGM or
appoint proxy/proxies to participate on his/her behalf.
3.2 Every Member including authorised nominees as defined under the Securities Industry (Central Depositories) Act 1991, and
Exempt Authorised Nominees which holds ordinary shares in the Company for multiple beneficial owners in one (1) securities
account, is entitled to appoint one (1) or more proxy to exercise all or any of his rights to participate instead of him at the 47th
AGM, and that such proxy need not be a Member.
3.3 Where a Member appoints more than one (1) proxy, the appointment shall be invalid unless he specifies the proportion of his
shareholdings to be represented by each proxy.
3.4 The instrument appointing a proxy shall be in writing under the hand of the Member or of his attorney duly authorised in writing
or if the Member is a corporation, shall either be executed under its common seal or under the hand of two (2) authorised officers,
one of whom shall be a director, or of its attorney duly authorised in writing.
3.5 The instrument of proxy shall be deposited at the Registered Office of the Company at Level 29, Menara Allianz Sentral,
203, Jalan Tun Sambanthan, Kuala Lumpur Sentral, 50470 Kuala Lumpur. The instrument of proxy can also be submitted
electronically through Tricor’s TIIH Online website at https://tiih.online. Please refer to the Administrative Details for the 47th
AGM for further information on proxy form submission. All proxy forms submitted must be received by the Company no later
than Tuesday, 22 June 2021 at 11.00 a.m., being twenty-four (24) hours before the appointed time for holding the 47th AGM.
3.6 A Member who has appointed a proxy or attorney or authorised representative to participate in the 47th AGM via RPV must
request for RPV at Tricor’s TIIH Online website at https://tiih.online. Please follow the Procedures for RPV registration in the
Administrative Details for the 47th AGM.
EXPLANATORY NOTES ON ORDINARY BUSINESS
1. Audited Financial Statements for the financial year ended 31 December 2020 (“FY 2020”)
The Audited Financial Statements for the FY 2020 and the Directors’ and Auditors’ Reports thereon are laid before the shareholders
pursuant to the provision of Section 340 (1)(a) of the Companies Act 2016 and are for discussion only. Hence, this item will not be put
for voting.
2. Directors’ Remuneration for Non-Executive Directors (excluding Nominee Directors of Allianz SE) (“NEDs”)
Pursuant to Section 230(1)(b) of the Companies Act 2016 which requires fees and any benefits payable to the Directors of listed
company and its subsidiaries to be approved at a general meeting, the proposed payment of Directors’ fees and Directors’ benefits to
the NEDs under Ordinary Resolutions 1, 2 and 3 include remuneration payable to NEDs by the Company and its insurance subsidiaries,
namely Allianz Life Insurance Malaysia Berhad (“Allianz Life”) and Allianz General Insurance Company (Malaysia) Berhad (“Allianz
General”).
(a) Directors’ fees for FY 2020
The respective Boards of the Company and its insurance subsidiaries having reviewed the recommendations of the Nomination
and Remuneration Committee (“NRC”), recommended the following Directors’ fees payable to the NEDs for the FY 2020, for the
shareholders’ approval:-
Company Allianz Life Allianz General Grand Total

Directors’ Fees
#
RM631,077 RM571,965 RM665,934 RM1,868,976
(2019: RM719,781) (2019: RM603,119) (2019: RM713,294) (2019: RM2,036,194)

#
Excluding Service Tax.

01
02
03
04
06
The Director’s fee payable to each of the NEDs and the members of the Board Committees for the FY 2020 are the same as that
of the previous financial year.
All the NEDs have abstained from the deliberation and voting on their respective fees at the respective NRC and Board Meetings,
where applicable.
(b) Directors’ Fees to NEDs and Board Committee members, effective 1 January 2021 to the next annual general meeting
(“AGM”)
The Directors’ remuneration was last reviewed in 2016, following the issuance of the Directors’ Remuneration Report 2015 by
the Financial Institutions Directors’ Education Forum on 7 December 2015. The then Remuneration Committee recommended a
3-year step-up plan (financial years 2016 to 2018) for Directors’ remuneration.
The Board approved that a review on the Directors’ fees shall be carried out once in every 3 years. Therefore, an independent
consultant, KPMG Management & Risk Consulting Sdn Bhd (“KPMG”) was engaged by the Board in March 2020 to conduct
remuneration review for the Directors (“Board Remuneration Review”).
Arising from the Board Remuneration Review, the NRC recommended and the Board approved the following proposed fees for
the NEDs with effect from 1 January 2021 and the revised remuneration shall be applicable until the financial year 2023, subject
to the shareholders’ approval:-
Current Directors’ Fees Proposed Directors’ Fees

per annum (RM) per annum (RM)
Chairman Member Chairman Member
Company 155,526 132,012
120,000 120,000
Insurance Subsidiaries 144,417 117,108
Audit Committee 74,616 37,308 48,000 48,000
Risk Management Committee 37,308 18,654 36,000 36,000
NRC 44,436 22,218 24,000 24,000
The Board also proposed that the payment of the Directors’ fees for the financial year ending 31 December 2021 (“FY 2021”)
onwards be made on a monthly basis instead of in arrears after every AGM, subject to the shareholders’ approval at the 47th
AGM. The Board is of the view that it is just and equitable for the NEDs be paid on a monthly basis upon services rendered by them
to the Company and its insurance subsidiaries:-
Fee Annually (RM) Monthly (RM)

Director’s Fee 120,000 10,000
Audit Committee Fee 48,000 4,000
Risk Management Committee Fee 36,000 3,000
NRC Fee 24,000 2,000
The Ordinary Resolution 2, if passed, will allow the Company and its insurance subsidiaries to make payment of fees to the NEDs
and the Board Committee members on a monthly basis from 1 January 2021 to the next AGM of the Company.

01 AGM Information
02
03
04
05
06
(c) Directors’ benefits for the period from 24 June 2021 to the next AGM of the Company
The Directors’ benefits comprise allowances and benefits payable to the Chairman and members of the Board of the respective
companies as well as Board Committees.
The Board recommended the following for shareholders’ approval:-
(i) No change to the Chairman monthly fixed allowance; and

(ii) The meeting allowance be revised to as follows:-
Current Meeting Allowance (RM) Proposed Meeting Allowance (RM)

Chairman and Member Chairman Member
2,645 (per meeting) 3,500 (per meeting) 3,000 (per meeting)
The details of the Directors’ benefits are as below:-
Monthly fixed allowance

Chairman of the Board of the Company/Insurance subsidiaries: RM12,000 per month
Meeting allowance
Chairman of the Board/Board Committee: RM3,500 per meeting
Member of the Board/Board Committee: RM3,000 per meeting
Others
Company car and driver: Chairman of the Board of the Company
Medical, personal accident and Directors’ and Officers’ Liability insurance: Board Members of the Company and its insurance
subsidiaries
In determining the estimated total amount payable to the Chairman and the Directors for the period from 24 June 2021 to the
next AGM of the respective companies, the Company took into consideration, amongst others, the number of scheduled meetings
for the Board and Board Committees and the number of NEDs involved in these meetings.
The Ordinary Resolution 3, if passed, will allow the Company and its insurance subsidiaries to make payment to the NEDs on a
monthly basis and/or as and when incurred.
3. Re-election of Directors who retire in accordance with Clause 19.1 and Clause 19.7 of the Company’s Constitution
Clause 19.1 of the Company’s Constitution provides that an election of Directors shall take place each year at the AGM of the Company
where one-third (1/3) of the Directors for the time being, or if their number is not three (3) or a multiple of three (3), then the number
nearest one-third (1/3), shall retire from office and be eligible for re-election provided always that all Directors shall retire from office
once at least in each three (3) years. A retiring Director shall retain office until the close of the meeting at which he retires.
Solmaz Altin will retire at the 47th AGM pursuant to Clause 19.1 of the Constitution of the Company. He has indicated his willingness to
seek for re-election and abstained from the deliberation and voting of his re-election at the Board Meeting.

Pursuant to Clause 19.7 of the Company’s Constitution, any Director so appointed shall hold office only until the next following AGM
of the Company, and shall then be eligible for re-election but shall not be taken into account in determining the Directors who are to
retire by rotation at that meeting.

01
02
03
04
06
Goh Ching Yin and Gerard Lim Kim Meng were appointed in years 2020 and 2021 respectively, accordingly, they are standing for
re-election pursuant to Clause 19.7 of the Company’s Constitution at the 47th AGM. They have indicated their willingness to seek for
re-election and abstained from the deliberation and voting of their respective re-election at the NRC Meeting and Board Meeting,
where applicable.
The profile of Solmaz Altin, Goh Ching Yin and Gerard Lim Kim Meng, are set out in the Board of Directors’ Profile in this Annual Report.
4. Re-appointment of Auditors
The Audit Committee reviewed the proposed re-appointment of Messrs PricewaterhouseCoopers PLT (“PwC PLT”) (including of
engagement partner and concurring partner) as Auditors for the Company and its insurance subsidiaries for the FY 2021 and
concluded that PwC PLT met all the evaluation criteria as prescribed by the relevant authorities. The Audit Committee recommended
the proposed re-appointment of PwC PLT to the respective Boards of the Company and its insurance subsidiaries for consideration.
The Board having satisfied that PwC PLT met the evaluation criteria as prescribed by the relevant authorities, recommended the
proposed re-appointment of PwC PLT as Auditors of the Company for the FY 2021, for the shareholders’ approval.
EXPLANATORY NOTES ON SPECIAL BUSINESS
5. Proposed Shareholders’ Mandate for Recurrent Related Party Transactions

The Company is principally engaged in investment holding whilst the principal activities of its subsidiaries are underwriting of all classes
of general insurance business, life insurance and investment-linked businesses.
It is anticipated that the Company and its insurance subsidiaries will, in the ordinary course of business, enter into recurrent related party
transactions with classes of related parties as set out in Section 2.2 of the Company’s Circular to Shareholders dated 21 May 2021.
In view of time sensitivity and the frequent nature of such related party transactions, the Directors of the Company are seeking
shareholders’ approval for the proposed Ordinary Resolutions 8 and 9, to allow the Company and its insurance subsidiaries in their
ordinary course of business, to enter into recurrent related party transactions with the respective related parties as detailed in Section
2.2 of the Company’s Circular to Shareholders dated 21 May 2021, provided that such transactions are made on arm’s length basis and
are on terms not more favourable to the related parties than those generally available to the public and are not to the detriment of the
minority shareholders.
Detailed information in relation to the proposed shareholders’ mandate for recurrent related party transactions are set out in the
Company’s Circular to Shareholders dated 21 May 2021, issued together with this Annual Report.
ABSTENTION FROM VOTING
1. Directors who are shareholders of the Company will abstain from voting on Resolutions 1, 2 and 3.
2. Directors referred to in Resolutions 4 to 6, who are shareholders of the Company will abstain from voting on resolution with regard to
their respective re-election at the 47th AGM.
NOTE TO THE HOLDERS OF IRREDEEMABLE CONVERTIBLE PREFERENCE SHARES (“ICPS”)
The holders of ICPS shall be entitled to attend the 47th AGM via RPV but have no right to vote at the 47th AGM. The voting rights of the ICPS
holders are detailed in the Constitution of the Company published on the Company’s website at allianz.com.my/corporate-profile.

This page has been intentionally left blank.
Form of Proxy Allianz Malaysia Berhad 197201000819 (12428-W)
(Incorporated in Malaysia)
Privacy Notice: Number of Shares Held

The personal data collected shall be used for the purpose of enabling your proxy/proxies to attend the 47th Annual
General Meeting of the Company. We shall retain the personal data for record keeping purposes in accordance with the
CDS Account No.
Company’s retention policy. By submitting this Form of Proxy to us, you confirm that you have consented and have obtained
the consent of such proxy/proxies to enable us to process and retain the personal data provided in this form. If you or your
proxy/proxies have a residential address in any of the European Union (“EU”) member states, please reach out to us at: Contact No.
[email protected] in order for us to assess and comply with the EU Privacy Law - General Data Protection Regulation
otherwise our local Personal Data Protection Act, 2010 shall apply to you and your proxy/proxies.
I/We
(Full Name of Shareholder as per NRIC/Passport/Certificate of Incorporation)
NRIC/Passport/Company No. of

(Full Address)
being a member/members of ALLIANZ MALAYSIA BERHAD (“Company”) hereby appoint:
Full Name Proportion of Shareholdings
NRIC/Passport No. No. of Shares Held %
Address
and/or (delete as appropriate)
Full Name Proportion of Shareholdings
NRIC/Passport No. No. of Shares Held %
Address
or failing him/her, the Chairman of the Meeting as my/our proxy to attend and vote for me/us on my/our behalf at the 47th Annual General Meeting
(“47th AGM”) of the Company to be conducted fully virtual from the broadcast venue at Ballroom A, Level 2, Aloft Kuala Lumpur Sentral, 5 Jalan Stesen
Sentral, Kuala Lumpur Sentral, 50470 Kuala Lumpur (“Broadcast Venue”) on Wednesday, 23 June 2021 at 11.00 a.m. and at any adjournment thereof, to
vote as indicated below:-
ORDINARY RESOLUTIONS FOR AGAINST
1 Approval for payment of Directors’ fees for the financial year ended 31 December 2020
Approval for payment of Directors’ fees effective 1 January 2021 until the next Annual General Meeting
2
of the Company
Approval for payment of Directors’ benefits from 24 June 2021 until the next Annual General Meeting of
3
the Company
4 Re-election of Solmaz Altin as Director
5 Re-election of Goh Ching Yin as Director
6 Re-election of Gerard Lim Kim Meng as Director
Re-appointment of Messrs PricewaterhouseCoopers PLT as Auditors and authority to the Directors to fix
7
the Auditors’ remuneration
8 Proposed Shareholders’ Mandate for Recurrent Related Party Transactions with Allianz SE Group
9 Proposed Shareholders’ Mandate for Recurrent Related Party Transactions with Rapidpro Consulting Sdn Bhd
(Please indicate with an “X” in the appropriate boxes on how you wish your vote to be cast. If no specific direction as to voting is given, the proxy will vote or
abstain as he/she thinks fit.)
As witness my/our hand this day of 2021.
Signature of Shareholder/Common Seal

NOTES TO MEMBERS AND PROXIES 3. Appointment of Proxy/Proxies
3.1 For the purposes of determining a Member who shall be entitled to participate in the
1. Registration for Remote Participation and Voting facilities (“RPV”) forthcoming 47th AGM of the Company, the Company shall be requesting Bursa Malaysia
1.1 The Company’s 47th AGM will be conducted fully virtual at the Broadcast Venue. Depository Sdn Bhd to issue a Record of Depositors as at 15 June 2021. Only a depositor
Member(s), proxy(ies), attorney(s) or authorised representative(s) WILL NOT BE whose name appears in the Record of Depositors as at 15 June 2021 shall be entitled to
ALLOWED to present physically at the Broadcast Venue on the day of the Meeting. participate in the 47th AGM or appoint proxy/proxies to participate on his/her behalf.
Members can attend, speak (posing questions to the Board via real time submission of 3.2 Every Member including authorised nominees as defined under the Securities Industry
typed texts) and vote (collectively, “participate”) remotely at the 47th AGM via the RPV (Central Depositories) Act 1991, and Exempt Authorised Nominees which holds ordinary
available on TIIH Online website at https://tiih.online. shares in the Company for multiple beneficial owners in one (1) securities account, is
1.2 Registration of RPV is open from the date of the Notice of 47th AGM on Friday, 21 May entitled to appoint one (1) or more proxy to exercise all or any of his rights to participate
2021 at 11.00 a.m. until such time before the voting session ends at the 47th AGM on instead of him at the 47th AGM, and that such proxy need not be a Member.
Wednesday, 23 June 2021. 3.3 Where a Member appoints more than one (1) proxy, the appointment shall be invalid
1.3 Member(s), proxy(ies), attorney(s) or authorised representative(s) are required to unless he specifies the proportion of his shareholdings to be represented by each proxy.
register as a user with TIIH Online website (first time registration only) prior to pre- 3.4 The instrument appointing a proxy shall be in writing under the hand of the Member or
register their attendance for the 47th AGM for verification of their eligibility to attend of his attorney duly authorised in writing or if the Member is a corporation, shall either
the 47th AGM using the RPV based on the Record of Depositors as at 15 June 2021. be executed under its common seal or under the hand of two (2) authorised officers, one
1.4 Please follow the Procedures for RPV provided in the Administrative Details for the 47th of whom shall be a director, or of its attorney duly authorised in writing.
AGM in order to participate in the 47th AGM remotely via RPV. 3.5 The instrument of proxy shall be deposited at the Registered Office of the Company
at Level 29, Menara Allianz Sentral, 203, Jalan Tun Sambanthan, Kuala Lumpur
2. Submission of Questions Before and During Meeting Sentral, 50470 Kuala Lumpur. The instrument of proxy can also be submitted
2.1 Members may submit questions to the Company prior to the 47th AGM via email to electronically through Tricor’s TIIH Online website at https://tiih.online. Please refer
[email protected] or Tricor Investor & Issuing House Services Sdn Bhd to the Administrative Details for the 47th AGM for further information on proxy form
(“Tricor”)’s TIIH Online website at https://tiih.online by selecting “e-Services” to login, submission. All proxy forms submitted must be received by the Company no later than
no later than Tuesday, 22 June 2021 at 11.00 a.m. Tuesday, 22 June 2021 at 11.00 a.m., being twenty-four (24) hours before the appointed
2.2 Alternatively, Members may use the query box to transmit questions to Chairman/ time for holding the 47th AGM.
Board via RPV during live streaming. 3.6 A Member who has appointed a proxy or attorney or authorised representative to
participate in the 47th AGM via RPV must request for RPV at Tricor’s TIIH Online
website at https://tiih.online. Please follow the Procedures for RPV registration in the
Administrative Details for the 47th AGM.
Fold Here
AFFIX
STAMP
The Company Secretary

Allianz Malaysia Berhad 197201000819 (12428-W)
50470 Kuala Lumpur
Fold Here
Allianz Malaysia Berhad
197201000819 (12428-W)

50470 Kuala Lumpur
Tel: +603 2264 1188 / 2264 0688

Fax: +603 2264 1199
allianz.com.my
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LOOK

ANNUAL REPORT 2020

02 Message from Our Leadership

03 Our Commitment to Sustainability

04 Our Commitment to Good Corporate Governance

Please consider the environment prior to printing a copy of this report.

Implementation Plan: Inclusive Digital

HOW DO WE True Customer

Our internal purpose is: We secure your future

2 ANNUAL REPORT 2020

CORE VALUES KEY FINANCIAL FIGURES

ANNUAL REPORT 2020 3

2020 2019 2018 2017 2016

Operating Revenue (RM million) 5,945.71 5,534.37 5,181.93 4,800.99 4,678.49

Total Assets (RM million) 21,896.74 19,710.07 17,404.59 16,596.68 14,912.38

Shareholders’ Fund (RM million) 4,031.51 3,673.57 3,361.70 3,135.51 2,879.52

Market Capitalisation (RM million)# 5,130.47 5,578.62 4,480.33 4,639.45 3,500.25

Interim Dividend per Share

- Ordinary Share (sen) 58.00 65.00 40.00 12.00 9.00

- Preference Share (sen) 69.60 78.00 48.00 14.40 10.80

Total Amount of Dividend to the Shareholders

- Ordinary Share (RM’000) 102,595.53 114,976.97 70,675.38 21,021.95 15,633.66

- Preference Share (RM’000) 117,844.59 132,068.15 81,368.33 24,627.29 18,629.83

Return on Equity^ 13.5% 14.0% 11.6% 9.6% 11.3%

Operating Revenue Growth 7.4% 6.8% 7.9% 2.6% 3.5%

Gross Written Premium Growth 7.8% 9.3% 5.1% 2.5% 1.2%

4 ANNUAL REPORT 2020

Operating Revenue Gross Written Premium

Profit Before Tax Total Assets

Shareholders’ Fund Market Capitalisation

Basic earning per ordinary share Dividend per ordinary share

ANNUAL REPORT 2020 5

Allianz Malaysia Berhad

Allianz Life Insurance Allianz General Insurance

STOCK EXCHANGE LISTING COMPANY SECRETARY SHARE REGISTRAR

HEAD OFFICE PricewaterhouseCoopers PLT

6 ANNUAL REPORT 2020

Central Region Processing Hub Kajang

ONE ALLIANZ CALL CENTRE

ANNUAL REPORT 2020 7

Northern Region Processing Hub Kluang Kota Kinabalu

Bukit Mertajam Muar Tawau

PT 3357 P, Jalan Sultan Zainal Abidin

Unit No. R-6-02 & Kuching Central Land District

8 ANNUAL REPORT 2020

Ipoh Kota Kinabalu

Persiaran Southkey 1, Kota Southkey North Road 90000 Sandakan

Johor Darul Takzim Sarawak

Penang No. 6, Pusat Komersil Temerloh

ANNUAL REPORT 2020 9

Profit Before Tax

12 ANNUAL REPORT 2020

workforce, coupled with the efforts of the senior management team in

The Group remained fully operational despite the most challenging

Such seamless transition, coupled with the remarkable commitment

WE CARE AND WE BUILD RESILIENT COMMUNITIES

Putting customers and the community’s interests first, the

ANNUAL REPORT 2020 13

THE NATION’S HANDLING OF THE COVID-19 PANDEMIC