Higher Payout Ratio, Increased Dividend Per Share Plus New
Share Buy-back Announced
February 23, 2024
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Oliver Bäte, Chief Executive Officer of
Allianz SE (Photo: Allianz SE)
12M 2023:
- Total business volume rises 5.5 percent to 161.7 billion
euros
- Operating profit increases 6.7 percent to 14.7 billion euros
primarily driven by the Life/Health business segment
- Shareholders’ core net income excellent at 9.1 billion euros,
up by 30.3 percent
4Q 2023:
- Total business volume advances 7.8 percent to 39.6 billion
euros
- Operating profit surges by 17.0 percent to 3.8 billion euros
driven by the Life/Health business segment, supported by solid
results in all other business segments
- Shareholders’ core net income of 2.4 billion euros, up by 46.4
percent
- Strong Solvency II capitalization ratio of 206 percent1 after
proposed dividend pay-out
Outlook:
- 2024 operating profit target at 14.8 billion euros, plus or
minus 1 billion euros2
Other:
- Management to propose a dividend per share of 13.80 euros, an
increase of 21.1 percent from 2022
- Regular dividend payout ratio increased to 60 percent (from 50
percent). This new dividend policy shall already apply to the
dividend for fiscal year 2023
- In addition to this, a renewed share buy-back program of up to
1 billion euros announced
Note: The financial results are based on the new IFRS 9 (Financial
Instruments) and IFRS 17 (Insurance Contracts) accounting
standards, which have been adopted as of January 1, 2023.
Comparative periods have been adjusted to reflect the application
of these new accounting standards.
1
Excluding the application of transitional
measures for technical provisions.
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 extended our track record of delivering a record
operating profit and core net income, consolidating our leading
position as one of the world’s most resilient global insurers and
active asset managers.
Our results demonstrate the trust that our customers place in
Allianz, and in the resilience and potential of our business model
and our people. Our Property-Casualty business saw strong
growth while we supported our customers affected by elevated levels
of natural catastrophes. Our Life/Health segment delivered
profitable growth as we developed attractive solutions to protect
our customers from the effects of inflation on their savings, and
in our Asset Management business we achieved robust net
inflows in a volatile capital market environment.
The discipline of our strategy, execution, and capital
management bolsters our operating profit outlook for 2024, our new
dividend policy, and our renewed share buy-back program. In the
coming year, we will continue to focus on unlocking the benefits of
our scale to further increase our productivity, and on converting
our excellent customer experience into profitable customer
growth.”
- Oliver Bäte, Chief Executive Officer of
Allianz SE
FINANCIAL HIGHLIGHTS
Total business volume
12M 2023: Total business volume rose by 5.5 percent to 161.7
billion euros, driven by the Property-Casualty business segment due
to positive price and volume effects, supported by the Life/Health
business segment mainly as a result of strong growth in the United
States. This was partially offset by lower revenues in the Asset
Management business segment.
Internal growth, which adjusts for foreign currency translation
and consolidation effects, was at 8.0 percent, primarily driven by
the Property-Casualty and Life/Health business segments.
4Q 2023: Total business volume rose by 7.8 percent to 39.6
billion euros, driven by all business segments. The increase in the
Life/Health business segment was primarily driven by the United
States and Italy. Growth in the Property-Casualty business segment
was mainly price driven, while our Asset Management business
segment benefited from higher performance fees.
Internal growth was 10.9 percent, driven by all business
segments.
Earnings
12M 2023: Operating profit increased 6.7 percent to 14.7 (12M
2022: 13.8) billion euros. This was mainly due to our Life/Health
business segment while the result of our Property-Casualty business
segment increased slightly amid higher claims from natural
catastrophes. Operating profit from our Asset Management business
segment softened slightly as a result of foreign currency
translation effects.
Shareholders’ core net income grew to 9.1 (7.0) billion euros.
This was driven by an improved operating profit in the current
period, as well as by an improved non-operating result due to the
one-time AllianzGI US Structured Alpha provision captured in the
prior-year period. Net income attributable to shareholders advanced
to 8.5 (6.4) billion euros, up by 33.0 percent.
Core earnings per share (core EPS)3 increased to 22.61 (16.96)
euros.
Core return on equity (RoE)3 grew to 16.0 percent (12.7
percent).
The Board of Management has decided to increase the payout ratio
to 60 percent from 50 percent and proposes a dividend per share of
13.80 euros for 2023, an increase of 21.1 percent from 2022.
On February 22, 2024, Allianz has announced a new share buy-back
program of up to 1 billion euros.
4Q 2023: Operating profit was strong at 3.8 (4Q 2022: 3.2)
billion euros, up by 17.0 percent, driven by the Life/Health
business segment, primarily due to a higher result in protection
and health and transitional impacts linked to the adoption of IFRS
17 in the United States in the prior year. The Asset Management
business segment benefited from higher revenues as a result of
higher performance fees.
Shareholders’ core net income increased to 2.4 (1.6) billion
euros due to a higher operating profit and non-operating result.
Net income attributable to shareholders doubled to 2.2 (1.1)
billion 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 percent at the end
of 2023 compared with 201 percent at the end of 2022. When
including the application of transitional measures for technical
provisions, the Solvency II capitalization ratio was 229 percent at
the end of 2023 compared with 230 percent at the end of 2022.
SEGMENTAL HIGHLIGHTS
“We’ve achieved another year of record results and all operating
segments finished the year above or close to their operating profit
target mid-points.
- In our Property-Casualty business we recorded strong
revenue growth, driven by healthy pricing and higher volumes.
Growth was spread across our entities, reflecting the strength of
our diversified global franchise. Our focus on technical excellence
helped us to successfully mitigate the impact of inflation on our
operating profit, which faced an above-average level of natural
catastrophes. Our investment result benefited from higher interest
rates.
- The operating profit in our Life/Health segment exceeded
our outlook mid-point and was also well above the prior year. Our
value creation is supported by a healthy new business margin that
we maintained by providing attractive solutions to our clients,
allowing us to record a solid new business development.
- In Asset Management, our operating profit was above our
outlook mid-point, and we achieved positive net inflows in a
volatile market environment. A competitive cost-income-ratio and an
increase in our third-party assets under management bode well for
future profitability.
We will continue to focus on generating attractive and
sustainable returns for all of our stakeholders while not
compromising on our resilience. We enter 2024 with confidence and
target a full-year operating profit of 14.8 billion euros, plus or
minus 1 billion euros.”
- Claire-Marie Coste-Lepoutre, Chief Financial
Officer of Allianz SE
Property-Casualty insurance: Strong business growth
12M 2023: Total business volume increased by 8.4 percent to 76.5
(70.6) billion euros. Adjusted for foreign currency translation and
consolidation effects, internal growth was excellent at 11.2
percent, supported by a price effect of 6.9 percent, a volume
effect of 4.0 percent and a service effect of 0.3 percent. Total
growth was spread among many entities with Allianz Partners, AGCS
and Germany being the main contributors.
Operating profit rose 1.2 percent to 6.9 (6.8) billion euros,
driven by a higher operating investment result, which was partly
offset by lower other operating and insurance service results.
The combined ratio increased by 0.6 percentage points to 93.8
percent (93.3 percent). The loss ratio went up 0.9 percentage
points to 69.3 percent mainly due to higher claims from natural
catastrophes and less run-off. This was partially offset by a
favorable impact from discounting and an improvement in the expense
ratio by 0.3 percentage points to 24.6 percent (24.9 percent)
driven by the acquisition cost ratio.
4Q 2023: Total business volume increased by 7.3 percent to 17.6
(16.4) billion euros. Adjusted for foreign currency translation and
consolidation effects, internal growth was very strong at 9.8
percent mainly due to a 7.6 percent price effect. The volume effect
was 1.8 percent, and the service effect was 0.5 percent. Total
growth was spread among many entities, while the primary
contributors were Germany, AGCS, Central and Eastern Europe and
Italy.
Operating profit rose slightly by 1.6 percent to 1.6 (1.6)
billion euros, due to a higher operating investment result which
was partly offset by lower other operating and insurance service
results.
The combined ratio went up 0.6 percentage points to 94.9 percent
(94.3 percent). The loss ratio went up 2.3 percentage points to
71.4 percent, reflecting higher claims from natural catastrophes,
which were partially offset by a better run-off result. The expense
ratio improved by 1.7 percentage points to 23.5 percent due to
lower acquisition cost and administrative expense ratios.
Life/Health insurance: Strong operating profit
12M 2023: PVNBP, the present value of new business premiums,
increased to 67.3 (66.2) billion euros, primarily due to higher
volume in the United States and Allianz Re, partially offset by
lower single premiums and economic impacts primarily from
discounting in Germany.
Operating profit increased to 5.2 (4.2) billion euros, above our
outlook mid-point, mainly driven by the United States, primarily
due to transitional impacts linked to the adoption of IFRS 17 in
the prior year period, as well as improved Protection and Health
performance in France and Asia Pacific. The contractual service
margin (CSM) release was fully in line with expectations at 5.0
(5.0) billion euros.
Contractual service margin (CSM) increased to 52.6 (52.2)
billion euros, mainly driven by a strong normalized growth of 4.9
percent supported by favorable economics with lower interest rates
and higher equity markets, which was partly offset by non-economic
variances, due to model and assumption changes.
The new business margin remained stable at 5.9 percent (5.9
percent). The value of new business increased to 4.0 (3.9) billion
euros, due to higher volumes in the United States and Allianz Re,
partially offset by business mix effects in the United States.
4Q 2023: PVNBP increased to 16.7 (15.2) billion euros, driven by
higher volumes in the United States and in Italy, partially offset
by foreign currency translation effects in the United States, Asia
Pacific, and Türkiye, as well as economic impacts primarily from
higher discounting in Germany and Italy.
Operating profit increased to 1.4 (1.1) billion euros. The main
contributors were the United States, Asia-Pacific and France. The
release of the contractual service margin (CSM) was 1.3 (1.4)
billion euros.
Contractual service margin (CSM) increased to 52.6 (52.1)
billion euros. New business and expected in-force return were
higher than in the previous quarter, which led to normalized growth
of 1.6 percent in the fourth quarter. Negative non-economic
movements, including experience variances and assumption changes,
were largely offset by positive economic developments.
The new business margin (NBM) changed to 5.9 percent (6.4
percent). The value of new business (VNB) remained stable at 1.0
(1.0) billion euros. Higher sales in the United States and Italy
were partially offset by foreign currency translation effects as
well as business mix effects in the United States.
Asset Management: Solid operating profit and resilient net
inflows
12M 2023: Operating revenues softened by 1.8 percent to 8.1
billion euros as higher performance fees were offset by lower
AuM-driven revenues. Adjusted for foreign currency translation
effects operating revenues grew 0.6 percent.
Operating profit was 3.1 (3.2) billion euros, exceeding the
mid-point of our outlook. It was down 2.2 percent from the
prior-year period but rose by 0.2 percent when adjusted for foreign
currency translation effects. The cost-income ratio (CIR) was
stable at 61.3 percent (61.2 percent).
Third-party assets under management were 1.712 trillion euros as
of December 31, 2023, up by 77 billion euros from the end of 2022.
Favorable market effects of 103.9 billion euros and net inflows of
21.5 billion euros more than offset negative currency translation
effects of 46.4 billion euros.
Total assets under management were 2.224 trillion euros at the
end of 2023, up 82 billion euros from the end of 2022, and in line
with the results in third-party asset management, including
positive market effects of 130.0 billion euros, net inflows of 3.1
billion euros and negative currency translation effects of 49.6
billion euros.
4Q 2023: Operating revenues reached 2.3 billion euros, up 10.1
percent, as performance fees increased significantly, and also
AuM-driven revenues went up. Adjusted for foreign currency
translation effects operating revenues grew 14.6 percent.
Operating profit increased in comparison to the prior-year
period to 912 (805) million euros. Adjusted for foreign currency
translation effects, operating profit rose by 18.1 percent. The
cost-income ratio (CIR) improved to 60.5 percent (61.6
percent).
Third-party assets under management were 1.712 trillion euros as
of December 31, 2023, up by 42 billion euros from the end of the
third quarter 2023. Of this, favorable market effects of 96.7
billion euros could more than offset negative currency translation
effects of 46.8 billion euros and net outflows of 6.5 billion
euros.
Total assets under management were 2.224 trillion euros at the
end of the fourth quarter, up 62 billion euros from the end of the
third quarter, and in line with the results for the third-party
assets under management, including positive market effects of 124.6
billion euros, negative currency translation effects of 50.6
billion euros and net outflows of 12.3 billion euros.
4Q & 12M 2023 RESULTS TABLE
Allianz Group - preliminary key figures 4th quarter and
fiscal year 2023
4Q 2023
4Q 2022
Delta
12M 2023
12M 2022
Delta
Total business volume
€ bn
39.6
36.7
7.8%
161.7
153.3
5.5%
- Property-Casualty
€ bn
17.6
16.4
7.3%
76.5
70.6
8.4%
- Life/Health
€ bn
20.0
18.5
8.1%
77.9
75.3
3.5%
- Asset Management
€ bn
2.3
2.1
10.1%
8.1
8.2
-1.8%
- Consolidation
€ bn
-0.3
-0.2
21.8%
-0.8
-0.8
1.7%
Operating profit / loss
€ mn
3,765
3,216
17.0%
14,746
13,814
6.7%
- Property-Casualty
€ mn
1,608
1,583
1.6%
6,909
6,827
1.2%
- Life/Health
€ mn
1,362
1,056
29.0%
5,191
4,218
23.1%
- Asset Management
€ mn
912
805
13.2%
3,126
3,198
-2.2%
- Corporate and Other
€ mn
-115
-216
-46.6%
-474
-540
-12.3%
- Consolidation
€ mn
-1
-12
-91.8%
-7
112
n.m.
Net income
€ mn
2,255
1,180
91.1%
9,032
6,856
31.7%
- attributable to non-controlling
interests
€ mn
104
76
36.9%
491
435
12.8%
- attributable to shareholders
€ mn
2,151
1,104
94.9%
8,541
6,421
33.0%
Shareholders’ core net income1
€ mn
2,351
1,606
46.4%
9,101
6,984
30.3%
Core earnings per share2
€
6.00
3.99
50.3%
22.61
16.96
33.3%
Dividend per share
€
–
–
–
13.80
3
11.40
21.1%
Additional KPIs
- Group
Core return on equity4
%
–
–
–
16.0%
12.7%
3.3%
-p
- Property-Casualty
Combined ratio
%
94.9%
94.3%
0.6%
-p
93.8%
93.3%
0.6%
-p
- Life/Health
New business margin
%
5.9%
6.4%
-0.4%
-p
5.9%
5.9%
0.0%
-p
- Asset Management
Cost-income ratio
%
60.5%
61.6%
-1.1%
-p
61.3%
61.2%
0.2%
-p
12/31/2023
12/31/2022
Delta
Shareholders' equity5
€ bn
58.5
54.4
7.5%
Contractual service margin
(net)
€ bn
32.7
31.7
3.2%
Solvency II capitalization
ratio6
%
206%
201%
5%
-p
Third-party assets under
management
€ bn
1,712
1,635
4.7%
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_
Proposal.
4_
Represents the ratio of shareholders’ core
net income to the average shareholders’ equity at the beginning and
at the end of the year. 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.
5_
Excluding non-controlling interests.
6_
Risk capital figures are group diversified
at 99.5% confidence level. Including the application of
transitional measures for technical provisions, the Solvency II
capitalization ratio is 229% as of 31 December 2023.
RELATED LINKS
Media Conference February 23, 2024, 11 AM CET:
YouTube English line
Analyst Conference February 23, 2024, 2:30 PM CET:
YouTube English line
Results The results and related documents can be found
in the download center.
IFRS 9/17 More details about the new accounting
standards IFRS 9 and 17 can be found here.
UPCOMING EVENTS
Annual Report March 7, 2024
Annual General Meeting 2024 May 8, 2024
Financial Results 1Q 2024 May 15, 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 737 billion euros**
on behalf of its insurance customers. Furthermore, our asset
managers PIMCO and Allianz Global Investors manage about 1.7
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 December 31, 2023.
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.
Information is based on preliminary figures. Final results for
fiscal year 2023 will be released on March 7, 2024 (publication of
the Annual Report). This is a translation of the German
Quarterly and Full Year Earnings Release of the Allianz Group. In
case of any divergences, the German original is binding.
Privacy Note Allianz SE is committed to protecting
your personal data. Find out more in our privacy
statement.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240222534413/en/
Frank Stoffel Tel. +49 89 3800 18124 email:
frank.stoffel@allianz.com Fabrizio Tolotti Tel. +49 151 5995 6396
email: fabrizio.tolotti@allianz.com Johanna Oltmann Tel. +49 89
3800 13346 email: johanna.oltmann@allianz.com
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