A)

Allianz Malaysia Berhad has again achieved new heights of success in 2013,
registering RM3.58 billion in gross written premiums (GWP) while maintaining
strong profitability. This significant achievement is a reflection of the dedication,
professionalism and collective commitment of the Allianz team.

The Company continuously strives to protect investors capital and provide

attractive returns and dividends whilst striking a balance between the dividend payout
and capital requirement of its insurance subsidiaries. Following the strong top line
growth in 2013, the Board in deciding the dividend has taken into consideration the
retention of capital to fund future business expansion. Hence, the Board is proposing a
first and final dividend of 2.50 sen per ordinary share under a single tier system
(2012: 6.50 sen less 25.0 percent tax) and a preference share dividend of 3.00 sen per
Irredeemable Convertible Preference Share under a single tier system (2012:7.80 sen).

B)

We adopted Top-Down Investing strategy, which is based on a big picture in the

economy and financial world and then break those components down into finer details
into this company.

A top-down approach to investing starts with analysis of the big picture, looking
at the overall economy and finance world before breaking down components into
finer details. At this stage investors/fund managers look at such factors as the rate at
which the economy (global as well as domestic) is likely to grow, the political
conditions and the regulatory environment, among others.

The Allianz Malaysia Berhad has strong financial analysis since the Allianz
Malaysia Berhad turned in a strong operating performance in 2013, posting a 15.9
percent rise in operating revenue to RM3.65 billion in the year under review from
RM3.15 billion in previous year. From this view, we know that Allianz has a revenue
growth from 2009 to 2013.

The Groups life and general insurance businesses have successfully maintained
their solid sales performance, resulting in an increase of 19.9 percent in Group
consolidated GWP to RM3.58 billion from RM2.98 billion in the previous year.
Hence, the people with high quality life, everyone know that how importance of
insurance function when the people faces incident or accident.

Thus, we expect that the products will increase rapidly and then make the large
profits and then make the high return to the shareholders and the stock price of the
company increase.
Unfortunately, there are three incident of airplane crash happened in year 2014, such
as MH370, MH17 and QZ8501. Allianz lead re-insurer in all cases. It was the lead re-
insurer to the AirAsia jet missing off the Indonesian coast with 162 people on board,
making it the third major airline accident it has been involved in this year ended 2014.
Shares in Malaysia-based budget carrier AirAsia tanked on 29 December following
news that flight QZ8501, with 162 people on board, was presumed to have crashed off
the Indonesian coast. AirAsia's stock was trading 8.16% lower at 1606 hrs in Kuala
Lumpur, after tumbling 13% in intra-day trade.

Therefore, we faced the loss of investment from these incidents, because the disaster
cannot expect in advance.
c)

Ratio Analysis 2009 2010 2011 2012 2013

Earnings per share(sen) 77.25 83.97 106.09 132.21 149.24
Current Ratio 1.0959 1.2254 1.2130 1.2505 1.2317
5765869 6847117 7932664 9190486 10758762
5261126 5587516 6539747 7349700 8734580

Dividend Payout 0.0259 0.0417 0.0495 0.0492 0.0168

Ratio 2.00 3.50 5.25 6.50 2.50
77.25 83.97 106.09 132.21 149.24

Retention Ratio 0.9741 0.09583 0.9505 0.099508 0.0274

1-0.0259 1-0.0417 1-0.0495 1-0.0492 1-0.0168

Return on asset 2.211% 2.259% 2.063% 1.887% 2.062%

Profit Margin 5.35% 5.15% 5.95% 6.59% 6.52%
 118887 129200 163636 207605 237921
2221617 2509037 2751805 3147600 3649389
Equity Multi-plier 11.23 5.44 4.843 4.99 5.31
5765869 6847117 7932771 9190486 10758762
504740 1259600 1628010 1840790 2024180

Total Asset 38.53% 36.64% 34.69% 34.25% 33.92%

Turnover 2221617 2509037 2751805 3147600 3649389
5765869 9190486 7932771 9190486 10758762
DuPont identity/ROE 26.6% 14.6% 11.3% 11.9% 12.3%
Return On Investment 151391? 184168? 232572? 272270? 319134?
? ? ? ? ?
(Earning
investment-
cost
investment)/co
st investment

The Groups balance sheet continued to improve as a result of 2013s strong

performance. Total assets grew by 17.1 percent to RM10.76 billion in 2013 as
compared to RM9.19 billion in 2012, while shareholders funds rose by 10.0 percent
to RM2.02 billion from RM1.84 billion the year before. The Groups insurance
subsidiaries remained well capitalised as at 31 December 2013 in compliance with
regulatory requirements.

The year saw the Groups profit before tax increasing 13.9 percent to RM339.2
million fromRM297.8 million in 2012, resulting in basic earnings per share increasing
to 149.24 sen from 132.21 sen in 2012. The Group achieved a higher return on equity
of 12.3 percent as compared to 11.9 percent in the previous year.

These strong results underscore the Groups sound business model and robust
practices which are based on the foundation of sustainability, risk diversification and
profitable long-term growth. By 31 December 2013, Allianzs market capitalisation
had risen by 71.3 percent to RM4.17 billion from RM2.44 billion in 2012. For
financial year 2013, the dividend payout ratio was 97% of earnings