Allianz Taiwan's strong capitalization boosts resilience: Moody’s

The insurer faces challenges due to its moderate overall market presence.

Allianz Taiwan’s underwriting profitability is improving albeit at a moderate pace versus its peers, which is attributed to the low product margin of its key single-premium investment-linked products, Moody's Investors Service said in a note.

Despite this, Moody’s projects its underwriting gains to maintain improvement as it widens its scale paired with a commendable product mix shift. 

“Specifically, the insurer has successfully incorporated protection riders to its investment-linked products,” the agency said.

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Allianz Taiwan maintains its leading market position in investment-linked products, benefiting from strong asset management expertise and technology capabilities as part of Allianz SE.

The insurer's strong risk-based capitalisation, supported by fee-based investment-linked products, robust fund options, and low reliance on spread gains, enhances its resilience to market fluctuations.

However, Allianz Taiwan faces challenges due to its moderate overall market presence, weak product diversification, and moderate underwriting profitability.