Allianz 2Q Net Profit Slumped as Market Turbulence Hit Asset Management -- Update
By Ed Frankl
Allianz SE said Friday that second-quarter net profit tumbled
but operating profit rose, confirming full-year guidance despite
its asset-management business struggling amid turbulent
The German insurer and asset manager said net income in the
three months to the end of June was 1.71 billion euros ($1.75
billion), down from EUR2.23 billion a year earlier.
However, operating profit rose 5.3% to EUR3.50 billion, driven
by improved underwriting and investment results in the
property-and-casualty segment, Allianz said.
It means the company missed net profit expectations of EUR1.83
billion, but overcame operating profit estimates of EUR3.29
billion, according to analysts' consensus provided by the
Growth was hit by the asset-management division, after "adverse
market movements and cautionary investor sentiment" led to
operating profit there falling 6.6%, the company said.
Third-party assets under management dropped EUR109 billion to
EUR2.319 trillion, Allianz said, blaming conditions characterized
by inflation-related uncertainties and capital-market
The Munich-based company said there was a positive impact on AuM
of EUR87.7 billion from foreign-exchange effects, but that was more
than offset by market impact of EUR159.2 billion and net outflows
of EUR33.8 billion. Analysts had expected net outflows of just
Operating profit at its life-and-health segment also suffered,
dropping by 12.5%, though it rose at P&C by more than a fifth,
the company said.
Revenue at the company as a whole rose 8.2% to EUR37.1 billion,
driven by the P&C business, which had volume growth and higher
pricing, the company said.
The combined ratio, a profitability measure, at the P&C
segment improved to 93.6% from 93.9% last year, though it still
missed consensus expectations of 93.0%.
The company's solvency ratio, a measure of financial strength,
matched consensus at 200% at the end of June, stable after 199% in
Having reached operating profit of EUR6.73 billion in the first
half of the year, Allianz also confirmed its full-year outlook of
operating profit of EUR13.4 billion, plus or minus EUR1
"Our numbers highlight the strength and endurance of Allianz. In
a quarter marked by heightened inflation and market volatility, we
achieved a very strong operating profit in the second quarter,
which emphasizes our ability to successfully navigate
rapidly-evolving situations," Chief Financial Officer Giulio
Write to Ed Frankl at firstname.lastname@example.org
(END) Dow Jones Newswires
August 05, 2022 02:59 ET (06:59 GMT)
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