Allianz Achieves Record Profits in First Half 2024
Group Fully on Track for Full-Year Outlook, Powered by Strong Fundamentals
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2Q 2024:
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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 minus1 billion euros 2
Other:
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Share buy-back of
1 billion euros executed by the end ofJuly 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 to500 million euros
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1 |
Based on quarterly dividend accrual; additional accrual to reflect FY dividend would impact solvency II capitalization ratio by -6%-p as of |
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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 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
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.”
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FINANCIAL HIGHLIGHTS |
Total business volume
2Q 2024: Total business volume rose by 7.6 percent to
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
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
Net income attributable to shareholders rose to 2.5
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
Net income attributable to shareholders increased by 14.2 percent to 5.0
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
|
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 |
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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 to48.4 billion euros . Our third-party assets under management exceeded1.8 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
-
Property-Casualty insurance: Strong operating profit
2Q 2024: Total business volume increased by 9.4 percent to 19.3
Operating profit was 1.9
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
Operating profit rose by 3.3 percent to an excellent level of 4.0
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
Operating profit advanced to 1.4
Contractual Service Margin (CSM) rose from
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
6M 2024: PVNBP rose to 41.1
Operating profit increased to 2.7
Contractual service margin (CSM) rose to
The new business margin was strong at 5.7 percent (5.8 percent). The value of new business rose to 2.4
Asset Management: Good operating profit and strong net inflows
2Q 2024: Operating revenues increased to
Operating profit rose to 742
Third-party assets under management increased to
Total assets under management rose to
6M 2024: Operating revenues increased to
Operating profit rose to 1.5
Third-party assets under managementincreased by
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2Q & 6M 2024 RESULTS TABLE |
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2Q
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2Q
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Delta |
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6M
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6M
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Delta |
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Total business volume |
€ bn |
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42.6 |
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39.6 |
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7.6% |
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91.0 |
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85.6 |
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6.4% |
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- Property-Casualty |
€ bn |
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19.3 |
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17.6 |
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9.4% |
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44.8 |
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41.7 |
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7.3% |
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- Life/Health |
€ bn |
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21.5 |
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20.3 |
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6.2% |
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42.7 |
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40.4 |
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5.5% |
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- Asset Management |
€ bn |
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2.0 |
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1.9 |
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5.2% |
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4.0 |
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3.8 |
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4.9% |
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- Consolidation |
€ bn |
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-0.2 |
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-0.2 |
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-4.5% |
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-0.3 |
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-0.3 |
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2.4% |
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Operating profit / loss |
€ mn |
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3,926 |
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3,783 |
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3.8% |
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7,911 |
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7,513 |
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5.3% |
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- Property-Casualty |
€ mn |
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1,915 |
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1,983 |
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-3.4% |
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3,981 |
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3,855 |
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3.3% |
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- Life/Health |
€ mn |
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1,379 |
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1,202 |
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14.7% |
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2,705 |
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2,521 |
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7.3% |
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- Asset Management |
€ mn |
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742 |
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703 |
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5.6% |
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1,516 |
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1,426 |
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6.3% |
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- Corporate and Other |
€ mn |
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-112 |
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-111 |
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1.1% |
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-291 |
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-287 |
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1.4% |
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- Consolidation |
€ mn |
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2 |
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6 |
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-66.6% |
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0 |
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-2 |
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-92.4% |
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Net income |
€ mn |
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2,661 |
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2,486 |
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7.0% |
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5,293 |
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4,647 |
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13.9% |
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- attributable to non-controlling interests |
€ mn |
|
149 |
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150 |
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-0.9% |
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|
305 |
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278 |
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9.5% |
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- attributable to shareholders |
€ mn |
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2,513 |
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2,337 |
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7.5% |
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4,988 |
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4,369 |
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14.2% |
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Shareholders’ core net income1 |
€ mn |
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2,536 |
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2,517 |
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0.8% |
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5,049 |
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4,690 |
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7.7% |
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Core earnings per share2 |
€ |
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6.15 |
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5.97 |
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3.0% |
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12.57 |
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11.40 |
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10.2% |
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Additional KPIs |
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- Group |
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Core return on equity3 |
% |
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– |
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– |
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– |
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17.5% |
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16.1% |
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1.4% |
-p |
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- Property-Casualty |
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Combined ratio |
% |
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93.5% |
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92.2% |
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1.3% |
-p |
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92.7% |
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92.0% |
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0.7% |
-p |
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- Life/Health |
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New business margin |
% |
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5.8% |
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6.2% |
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-0.4% |
-p |
5.7% |
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5.8% |
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-0.1% |
-p |
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- Asset Management |
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Cost-income ratio |
% |
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62.4% |
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62.5% |
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-0.1% |
-p |
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61.8% |
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62.3% |
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-0.5% |
-p |
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Delta |
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Shareholders' equity4 |
€ bn |
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55.5 |
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58.2 |
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-4.7% |
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Contractual service margin (net) |
€ bn |
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33.7 |
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32.7 |
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2.9% |
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Solvency II capitalization ratio5 |
% |
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206% |
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206% |
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0% |
-p |
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Third-party assets under management |
€ bn |
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1,803 |
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1,712 |
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5.3% |
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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. |
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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). |
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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). |
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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 |
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4_ |
Excluding non-controlling interests. In 1Q 2024 |
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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 |
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RELATED LINKS |
Results
The results and related documents can be found in the download center.
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UPCOMING EVENTS |
Financial Results 3Q 2024
Capital Markets Day
More information can be found in the financial calendar.
About
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* Including non-consolidated entities with |
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**As of |
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
No duty to update
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
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