MUNICH - Thursday, 08. August 2024 AETOSWire
Group Fully on Track for Full-Year Outlook, Powered by Strong Fundamentals
(BUSINESS WIRE)--August 8, 2024
2Q 2024:
Total business volume advances 7.6 percent to 42.6 billion euros
Operating profit reaches 3.9 billion euros driven by good results in all segments
Shareholders’ core net income stable at 2.5 billion euros
6M 2024:
Total business volume rises by 6.4 percent to 91.0 billion euros
Operating profit increases by 5.3 percent to 7.9 billion euros driven by all segments
Shareholders’ core net income advances 7.7 percent to 5.0 billion euros
Strong Solvency II capitalization ratio of 206 percent1
Outlook:
2024 operating profit target affirmed at 14.8 billion euros, plus or minus 1 billion euros2
Other:
Share buy-back of 1 billion euros executed by the end of July 2024
Decision to expand the total volume of the share buy-backs in the financial year 2024 to a total of 1.5 billion euros
Allianz has therefore resolved to repurchase additional shares in a volume of up to 500 million euros
1
Based
on quarterly dividend accrual; additional accrual to reflect FY
dividend would impact solvency II capitalization ratio by -6%-p as of
June 30, 2024.
2
As always, natural
catastrophes and adverse developments in the capital markets, as well as
factors stated in our cautionary note regarding forward-looking
statements may severely affect the operating profit and/or net income of
our operations and the results of the Allianz Group.
”Allianz
delivered strong results in the first six months of the year and we are
confident in our ability to achieve our full-year ambitions.
Our
performance demonstrates the core strengths and resilience of our
company, particularly as our results were achieved amid significant
natural catastrophe activity in the second quarter – and notably in our
home market. The way that Allianz responded to our customers affected by
the floods in Germany reflected the best possible blend of compassion,
speed, and expertise. Teams enabled by digital claims processing tools
visited nearly all affected properties within two weeks of the event,
which reassured our customers and limited damages.
These
excellent property and casualty outcomes were complemented by strong
delivery in our life/health, and asset management segments,
demonstrating how we translate our customer-centric strategy into
resilient earnings growth.”
- Oliver Bäte, Chief Executive Officer of Allianz SE
FINANCIAL HIGHLIGHTS
Total business volume
2Q
2024: Total business volume rose by 7.6 percent to 42.6 billion euros.
This increase was driven by strong momentum across all business
segments.
Adjusted for foreign currency translation and
consolidation effects, internal growth was 8.8 percent. The
Property-Casualty segment was the main driver, but all business segments
contributed positively.
6M 2024: Total business volume increased by 6.4 percent to 91.0 billion euros. All business segments contributed to this growth.
Adjusted for foreign currency translation and consolidation effects, internal growth was 7.5 percent.
Earnings
2Q
2024: Operating profit was very good at 3.9 (2Q 2023: 3.8) billion
euros. All segments contributed to this result. The Property-Casualty
business showed a strong underlying performance which largely offset the
impact of elevated natural catastrophes.
Shareholders’ core net income was stable at 2.5 (2.5) billion euros.
Net
income attributable to shareholders rose to 2.5 (2.3) billion euros
driven by operating profit growth, and higher non-operating result.
6M
2024: Operating profit was strong at 7.9 (6M 2023: 7.5) billion euros,
up by 5.3 percent, driven by all business segments. The Life/Health
segment achieved widespread growth across most regions. In Asset
Management, higher AuM-driven revenues were the main drivers while the
Property-Casualty business benefited from strong growth and underlying
performance.
Shareholders’ core net income advances 7.7 percent to 5.0 billion euros.
Net
income attributable to shareholders increased by 14.2 percent to 5.0
(4.4) billion euros driven by operating profit growth, and higher
non-operating result.
Core earnings per share (EPS)3 was 12.57 (6M 2023: 11.40) euros.
The annualized core return on equity (RoE)3 was 17.5 percent (full year 2023: 16.1 percent).
The
share buy-back program of up to 1 billion euros, announced on February
22, 2024, has been executed by the end of July 2024. The Board of
Management has decided to expand the total volume of the share buy-backs
in the financial year 2024 to a total of 1.5 billion euros and has
therefore resolved to repurchase additional shares in a volume of up to
500 million euros.
3
Core EPS and core RoE calculation based on shareholders‘ core net income.
Solvency II capitalization ratio
The
Solvency II capitalization ratio was 206 percent4 at the end of second
quarter 2024 compared with 203 percent at the end of the first quarter
2024.
4
Based on quarterly dividend accrual;
additional accrual to reflect FY dividend would impact solvency II
capitalization ratio by -6%-p as of June 30, 2024.
SEGMENTAL HIGHLIGHTS
“Allianz’s
results for the second quarter and the consistency of our performance
confirm our sustained momentum and the resilience of our business model.
In our Property-Casualty segment, we achieved a very good operating
profit. This shows our ability to deliver strong results even as we were
impacted by severe natural catastrophes in particular in Germany. Our
continuous focus on productivity is as well supporting our performance.
We have reached an excellent operating profit in our Life/Health
operations. Our strong new business generation and a healthy new
business margin speak for the attractiveness of our products.
In
Asset Management, continued net inflows of 14.1 billion euros in the
second quarter bring our net inflows for the first half to 48.4 billion
euros. Our third-party assets under management exceeded 1.8 trillion
euros for the first time since 1Q 2022. This is a good basis for future
profit growth.
“We look with confidence to the second half of
2024 and affirm our outlook for an operating profit of 14.8 billion
euros plus or minus 1 billion euros for the full year.”
- Claire-Marie Coste-Lepoutre, Chief Financial Officer of Allianz SE
Property-Casualty insurance: Strong operating profit
2Q
2024: Total business volume increased by 9.4 percent to 19.3 (17.6)
billion euros. Adjusted for foreign currency translation and
consolidation effects, internal growth was 10.5 percent. Very good
growth of 12 percent in Retail, SME & Fleet was the main driver
while Commercial lines advanced by 9 percent.
Operating profit
was 1.9 (2.0) billion euros – a resilient performance in light of
elevated natural catastrophe and weather losses.
The combined
ratio amounted to 93.5 percent (92.2 percent). The loss ratio was 69.2
percent (67.4 percent) as significantly higher claims from natural
catastrophes were partly offset by better run-off. The underlying
profitability has improved in line with expectations. The expense ratio
also developed favourably by 0.5 percentage points to 24.2 percent.
6M
2024: Total business volume increased by 7.3 percent to 44.8 (41.7)
billion euros. Adjusted for foreign currency translation and
consolidation effects, internal growth was 8.1 percent. In Retail, SME
& Fleet growth amounted to 9 percent while Commercial lines
contributed by 5 percent.
Operating profit rose by 3.3 percent to an excellent level of 4.0 (3.9) billion euros.
The
combined ratio came in at 92.7 percent (92.0 percent). The loss ratio
was 68.3 percent (67.2 percent) as higher claims from natural
catastrophes were partly offset by better run-off. The underlying
profitability has improved in line with expectations. The expense ratio
improved by 0.4 percentage points to 24.4 percent.
Life/Health insurance: Very good growth
2Q
2024: PVNBP, the present value of new business premiums, increased to
18.8 (17.7) billion euros, driven by higher volume in most entities.
Adjusted for one large contract in the prior year period, PVNBP is up by
14.7 percent.
Operating profit advanced to 1.4 (1.2) billion euros, driven by all regions.
Contractual
Service Margin (CSM) rose from 53.2 billion euros in the first quarter
to 53.6 billion euros, driven by good normalized CSM growth of 1.3
percent slightly offset by non-economic impacts.
The new business
margin (NBM) was strong at 5.8 percent (6.2 percent). The value of new
business (VNB) remained at a very good level of 1.1 (1.1) billion euros.
6M 2024: PVNBP rose to 41.1 (36.2) billion euros, supported by strong sales in capital efficient products.
Operating profit increased to 2.7 (2.5) billion euros due to positive developments in nearly all regions.
Contractual
service margin (CSM) rose to 53.6 billion euros from 52.6 billion euros
at the end of 2023, driven by a normalized CSM growth of 3.1 percent.
The
new business margin was strong at 5.7 percent (5.8 percent). The value
of new business rose to 2.4 (2.1) billion euros, primarily driven by
volume growth in most entities.
Asset Management: Good operating profit and strong net inflows
2Q
2024: Operating revenues increased to 2.0 billion euros, up 4.4 percent
adjusted for foreign currency translation effects. Higher AuM-driven
revenues more than offset lower performance fees.
Operating
profit rose to 742 (703) million euros, up 5.6 percent. Adjusted for
foreign currency translation effects, operating profit increased by 4.8
percent. The cost-income ratio (CIR) was stable at 62.4 percent (62.5
percent).
Third-party assets under management increased to 1.803
trillion euros as of June 30, 2024, up by 19 billion euros from the end
of the first quarter 2024, reaching the highest level since the first
quarter 2022. The main driver were net inflows of 14.1 billion euros
with further positive contribution from favorable foreign currency
translation effects.
Total assets under management rose to 2.309
trillion euros at the end of the second quarter of 2024, up 12 billion
euros from the end of the first quarter 2024 in line with the results
for the third-party assets under management.
6M 2024: Operating
revenues increased to 4.0 billion euros, up 5.1 percent adjusted for
foreign currency translation effects. The increase was largely driven by
higher AuM-driven revenues.
Operating profit rose to 1.5 (1.4)
billion euros, up 6.3 percent. Adjusted for foreign currency translation
effects, operating profit increased by 6.5 percent. The cost-income
ratio (CIR) improved to 61.8 percent (62.3 percent).
Third-party
assets under management increased by 91 billion euros from the end of
2023 to 1.803 trillion euros as of June 30, 2024. Strong net inflows of
48.4 billion euros were the main contributor.
2Q & 6M 2024 RESULTS TABLE
Allianz Group - key figures 2nd quarter and first half year 2024
2Q
2024
2Q
2023
Delta
6M
2024
6M
2023
Delta
Total business volume
€ bn
42.6
39.6
7.6%
91.0
85.6
6.4%
- Property-Casualty
€ bn
19.3
17.6
9.4%
44.8
41.7
7.3%
- Life/Health
€ bn
21.5
20.3
6.2%
42.7
40.4
5.5%
- Asset Management
€ bn
2.0
1.9
5.2%
4.0
3.8
4.9%
- Consolidation
€ bn
-0.2
-0.2
-4.5%
-0.3
-0.3
2.4%
Operating profit / loss
€ mn
3,926
3,783
3.8%
7,911
7,513
5.3%
- Property-Casualty
€ mn
1,915
1,983
-3.4%
3,981
3,855
3.3%
- Life/Health
€ mn
1,379
1,202
14.7%
2,705
2,521
7.3%
- Asset Management
€ mn
742
703
5.6%
1,516
1,426
6.3%
- Corporate and Other
€ mn
-112
-111
1.1%
-291
-287
1.4%
- Consolidation
€ mn
2
6
-66.6%
0
-2
-92.4%
Net income
€ mn
2,661
2,486
7.0%
5,293
4,647
13.9%
- attributable to non-controlling interests
€ mn
149
150
-0.9%
305
278
9.5%
- attributable to shareholders
€ mn
2,513
2,337
7.5%
4,988
4,369
14.2%
Shareholders’ core net income1
€ mn
2,536
2,517
0.8%
5,049
4,690
7.7%
Core earnings per share2
€
6.15
5.97
3.0%
12.57
11.40
10.2%
Additional KPIs
- Group
Core return on equity3
%
–
–
–
17.5%
16.1%
1.4%
-p
- Property-Casualty
Combined ratio
%
93.5%
92.2%
1.3%
-p
92.7%
92.0%
0.7%
-p
- Life/Health
New business margin
%
5.8%
6.2%
-0.4%
-p
5.7%
5.8%
-0.1%
-p
- Asset Management
Cost-income ratio
%
62.4%
62.5%
-0.1%
-p
61.8%
62.3%
-0.5%
-p
06/30/2024
12/31/2023
Delta
Shareholders' equity4
€ bn
55.5
58.2
-4.7%
Contractual service margin (net)
€ bn
33.7
32.7
2.9%
Solvency II capitalization ratio5
%
206%
206%
0%
-p
Third-party assets under management
€ bn
1,803
1,712
5.3%
Please
note: The figures are presented in millions of Euros, unless otherwise
stated. Due to rounding, numbers presented may not add up precisely to
the totals provided and percentages may not precisely reflect the
absolute figures.
1_
Presents the portion of
shareholders’ net income before non-operating market movements and
before amortization of intangible assets from business combinations
(including any related income tax effects).
2_
Calculated
by dividing the respective period’s shareholders' core net income,
adjusted for net financial charges related to undated subordinated bonds
classified as shareholders' equity, by the weighted average number of
shares outstanding (basic core EPS).
3_
Represents
the annualized ratio of shareholders’ core net income to the average
shareholders’ equity at the beginning and at the end of the period.
Shareholders’ core net income is adjusted for net financial charges
related to undated subordinated bonds classified as shareholders’
equity. From the average shareholders’ equity, undated subordinated
bonds classified as shareholders’ equity, unrealized gains and losses
from insurance contracts and other unrealized gains and losses are
excluded. Annualized figures are not a forecast for full year numbers.
For 6M 2023, the core return on equity for the respective full year is
shown. Due to an adjustment of prior periods comparative figures for the
balance sheet, the core RoE changed by +0.1%-p compared to the
published figure as of 31 December 2023.
4_
Excluding
non-controlling interests. In 1Q 2024 Allianz reclassified certain
minority interests between equity and liabilities. Prior periods
comparative figures for the balance sheet have been adjusted with a
minor impact on shareholders’ equity only (reduced by EUR 0.2bn as of 31
December 2023).
5_
Risk capital figures are group
diversified at 99.5% confidence level. Solvency II capitalization ratio
is based on quarterly dividend accrual; additional accrual to reflect
FY dividend would impact solvency II capitalization ratio by -6%-p as of
30 June 2024.
RELATED LINKS
Media Conference
August 8, 2024, 11 AM CEST: YouTube English line
Analyst Conference
August 8, 2024, 2:30 PM CEST: YouTube English line
Results
The results and related documents can be found in the download center.
UPCOMING EVENTS
Financial Results 3Q 2024
November 13, 2024
Capital Markets Day
December 10, 2024
More information can be found in the financial calendar.
About Allianz
The
Allianz Group is one of the world's leading insurers and asset managers
with around 125 million* private and corporate customers in nearly 70
countries. Allianz customers benefit from a broad range of personal and
corporate insurance services, ranging from property, life and health
insurance to assistance services to credit insurance and global business
insurance. Allianz is one of the world’s largest investors, managing
around 741 billion euros** on behalf of its insurance customers.
Furthermore, our asset managers PIMCO and Allianz Global Investors
manage about 1.8 trillion euros** of third-party assets. Thanks to our
systematic integration of ecological and social criteria in our business
processes and investment decisions, we are among the leaders in the
insurance industry in the Dow Jones Sustainability Index. In 2023, over
157,000 employees achieved total business volume of 161.7 billion euros
and an operating profit of 14.7 billion euros for the group.
* Including non-consolidated entities with Allianz customers.
**As of June 30, 2024.
These assessments are, as always, subject to the disclaimer provided below.
Cautionary note regarding forward-looking statements
This
document includes forward-looking statements, such as prospects or
expectations, that are based on management's current views and
assumptions and subject to known and unknown risks and uncertainties.
Actual results, performance figures, or events may differ significantly
from those expressed or implied in such forward-looking statements.
Deviations
may arise due to changes in factors including, but not limited to, the
following: (i) the general economic and competitive situation in the
Allianz’s core business and core markets, (ii) the performance of
financial markets (in particular market volatility, liquidity, and
credit events), (iii) adverse publicity, regulatory actions or
litigation with respect to the Allianz Group, other well-known companies
and the financial services industry generally, (iv) the frequency and
severity of insured loss events, including those resulting from natural
catastrophes, and the development of loss expenses, (v) mortality and
morbidity levels and trends, (vi) persistency levels, (vii) the extent
of credit defaults, (viii) interest rate levels, (ix) currency exchange
rates, most notably the EUR/USD exchange rate, (x) changes in laws and
regulations, including tax regulations, (xi) the impact of acquisitions
including and related integration issues and reorganization measures,
and (xii) the general competitive conditions that, in each individual
case, apply at a local, regional, national, and/or global level. Many of
these changes can be exacerbated by terrorist activities.
No duty to update
Allianz
assumes no obligation to update any information or forward-looking
statement contained herein, save for any information we are required to
disclose by law.
Other
The figures regarding the net
assets, financial position and results of operations have been prepared
in conformity with International Financial Reporting Standards. This
Quarterly Earnings Release is not an Interim Financial Report within the
meaning of International Accounting Standard (IAS) 34. This is a
translation of the German Quarterly Earnings Release of the Allianz
Group. In case of any divergences, the German original is binding.
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Contacts
Frank Stoffel Tel. +49 89 3800 18124 email: frank.stoffel@allianz.com
Fabrizio Tolotti Tel. +49 89 3800 14819 email: fabrizio.tolotti@allianz.com
Johanna Oltmann Tel. +49 89 3800 13346 email: johanna.oltmann@allianz.com
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