Group Affirms Full-year Outlook
May 15, 2024
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Oliver Bäte, Chief Executive Officer of
Allianz SE (Photo: Allianz SE)
1Q 2024:
- Total business volume advances 5.3 percent to 48.4 billion
euros
- Operating profit increases 6.8 percent to 4.0 billion euros
driven by the Property-Casualty business segment, supported by good
results in the Asset Management and the Life/Health business
segments
- Shareholders’ core net income rises to 2.5 billion euros, up by
15.7 percent
- Strong Solvency II capitalization ratio of 203 percent1
Outlook:
- 2024 operating profit target maintained at 14.8 billion euros,
plus or minus 1 billion euros2
Other:
- 1 billion euros share buy-back started, 0.5 billion euros
completed
1
Excluding the application of transitional
measures for technical provisions and with quarterly dividend
accrual.
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’s strong results demonstrate the quality of our
fundamentals, the value of consistency in the execution of our
strategy, and the advantage of the broad talents and skillsets that
are represented across our organization.
Our 5 percent business volume growth and double-digit increase
in shareholders’ net income signal a strong start to the year. In
our Property-Casualty business, solid top-line growth and
bottom-line increase reflect the balance of growth and underwriting
discipline. The Life/Health new business development confirmed the
attractiveness of our broad product portfolio. In our Asset
Management operations, net flows in the first quarter already
exceeded last year’s full-year levels, underscoring the quality of
our business and its value to clients.
Our proven track record of profitability, resilience, and
consistent capital management make us the trusted partner of
choice, especially in times of heightened uncertainty and
accelerated change.”
- Oliver Bäte, Chief Executive Officer of Allianz SE
FINANCIAL HIGHLIGHTS
Total business volume
1Q 2024: Total business volume rose by 5.3 percent to 48.4
billion euros, driven by all business segments. The
Property-Casualty business segment recorded good price-driven
growth, while the increase in the Life/Health business segment was
primarily due to favorable sales momentum in the United States and
Italy. Growth in the Asset Management business segment benefited
from higher Assets under Management (AuM) and higher performance
fees.
Internal growth was 7.5 percent, with contribution from all
business segments.
Earnings
1Q 2024: Operating profit was strong at 4.0 (1Q 2023: 3.7)
billion euros, up by 6.8 percent, driven by the Property-Casualty
business segment and was broadly equally split between an increased
operating insurance service result and a higher operating
investment result. The operating profit was also supported by the
Asset Management business segment due to higher net fee and
commission income, while the Life/Health business segment achieved
a good operating profit on last year’s level.
Shareholders’ core net income increased to 2.5 (2.2) billion
euros due to a higher operating profit and non-operating
result.
Net income attributable to shareholders rose to 2.5 (2.0)
billion euros.
Core earnings per share (EPS)3 were 6.42 (5.43) euros.
The annualized core return on equity (RoE)3 was 17.4 percent
(full year 2023: 16.1 percent).
3
Core EPS and core RoE calculation based on
shareholders‘ core net income.
Solvency II capitalization ratio
The Solvency II capitalization ratio was 203 percent at the end
of 1Q 2024 compared with 206 percent at the end of 2023.
SEGMENTAL HIGHLIGHTS
“Allianz’s strong performance in the first quarter demonstrates
our unwavering commitment to value creation:
- In our Property-Casualty operations strong price-driven
internal growth and strict underwriting discipline contributed to a
very good increase in our operating profit. Benign natural
catastrophes and higher investment income also supported the
result.
- The widespread new business growth across our Life/Health
segment underlined the quality of our global franchise in a
competitive environment. Together with an attractive new business
margin, this puts us in a very good position for continued value
creation.
- In our Asset Management operations, strong third-party
net inflows and exceptional performance fees demonstrated that we
successfully managed a volatile capital markets environment. An
increase in our third-party AuM and our competitive cost-income
ratio position us well for profitable growth.
We had a very good start into the year and our ability to create
value for our shareholders is supported by a strong Solvency II
ratio of 203 percent. We confirm our full-year outlook of an
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: Very good operating
profit
1Q 2024: Total business volume increased by 5.7 percent to 25.5
(24.1) billion euros. Adjusted for foreign currency translation and
consolidation effects, internal growth was 7.5 percent. The main
driver was very good growth of 9 percent in Retail, SME &
Fleet. Commercial lines advanced by 4 percent.
Operating profit rose strongly by 10.4 percent to 2.1 (1.9)
billion euros. Growth was equally split between an increased
operating insurance service result and a higher operating
investment result.
The combined ratio remained at an excellent level of 91.9
percent (91.9 percent). The loss ratio was 67.3 percent (67.0
percent) as lower run-off was partly offset by benign claims from
natural catastrophes and a better attritional loss ratio. The
expense ratio improved by 0.3 percentage points to 24.6
percent.
Life/Health insurance: Strong new business growth
1Q 2024: PVNBP, the present value of new business premiums,
increased to 22.3 (18.5) billion euros, driven by higher volume in
most entities. Allianz Re as well as positive sales momentum in
Italy and the United States were the main contributors.
Operating profit remained strong at 1.3 (1.3) billion euros.
Contractual Service Margin (CSM) rose from 52.6 billion euros at
the end of 2023, to 53.2 billion euros as of March 31, 2024, with
strong normalized CSM growth of 1.7 percent. Performance was good
across our entities while Allianz Re also benefited from a large
contract.
The new business margin (NBM) increased to 5.7 percent (5.5
percent). The value of new business (VNB) surged to 1.3 (1.0)
billion euros due to volume growth throughout most entities as well
as an improved business mix.
Asset Management: Strong net inflows
1Q 2024: Operating revenues reached 2.0 billion euros, up 4.7
percent, driven by increased AuM and higher performance fees.
Adjusted for foreign currency translation effects, operating
revenues grew by 5.7 percent.
Operating profit increased to 773 (723) million euros, up by 7.0
percent. Adjusted for foreign currency translation effects,
operating profit rose by 8.1 percent. The cost-income ratio (CIR)
improved to 61.1 percent (62.0 percent).
Third-party assets under management amounted to 1.784 trillion
euros as of March 31, 2024, up by 71 billion euros from the end of
2023. The main contributor was strong net inflows of 34.2 billion
euros, with further positive contributions from currency
translation and market effects.
Total assets under management were 2.297 trillion euros at the
end of the first quarter 2024, up 73 billion euros from the end of
2023, in line with the results for the third-party assets under
management.
1Q 2024 RESULTS TABLE
Allianz Group - key figures 1st quarter
2024
1Q 2024
1Q 2023
Delta
Total business volume
€ bn
48.4
46.0
5.3%
- Property-Casualty
€ bn
25.5
24.1
5.7%
- Life/Health
€ bn
21.1
20.1
4.9%
- Asset Management
€ bn
2.0
1.9
4.7%
- Consolidation
€ bn
-0.2
-0.2
10.0%
Operating profit / loss
€ mn
3,986
3,731
6.8%
- Property-Casualty
€ mn
2,066
1,872
10.4%
- Life/Health
€ mn
1,327
1,320
0.5%
- Asset Management
€ mn
773
723
7.0%
- Corporate and Other
€ mn
-179
-176
1.6%
- Consolidation
€ mn
-2
-7
-72.8%
Net income
€ mn
2,631
2,160
21.8%
- attributable to non-controlling
interests
€ mn
156
128
21.7%
- attributable to shareholders
€ mn
2,475
2,032
21.8%
Shareholders’ core net income1
€ mn
2,513
2,173
15.7%
Core earnings per share2
€
6.42
5.43
18.2%
Additional KPIs
- Group
Core return on equity3
%
17.4%
16.1%
1.3%
-p
- Property-Casualty
Combined ratio
%
91.9%
91.9%
0.0%
-p
- Life/Health
New business margin
%
5.7%
5.5%
0.2%
-p
- Asset Management
Cost-income ratio
%
61.1%
62.0%
-0.8%
-p
03/31/2024
12/31/2023
Delta
Shareholders' equity4
€ bn
60.0
58.2
3.0%
Contractual service margin
(net)
€ bn
33.2
32.7
1.4%
Solvency II capitalization
ratio5
%
203%
206%
-3%
-p
Third-party assets under
management
€ bn
1,784
1,712
4.2%
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 1Q
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
reflects a quarterly dividend accrual and does not include the
application of transitional measures for technical provisions (the
impact of which, as of 1Q 2024, amounted to +20%-p).
RELATED LINKS
Media Conference May 15, 2024, 11 AM CEST: YouTube
English line
Analyst Conference May 15, 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 2Q 2024 August 8, 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 746 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 March 31, 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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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