Allianz achieves 3.5 billion euros operating profit in 2Q

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Allianz Group has announced that it achieved 3.5 billion euros operating profit in the second quarter of 2022.

In a statement made available to Nigerian NewsDirect on Thursday, the group revealed that “Total revenues surged 8.2 percent to 37.1 (2Q 2021: 34.3) billion euros, driven by the Property-Casualty business segment with broad volume growth and positive price effects.

“Growth was supported further by the Life/Health business, which benefited from positive foreign currency translation effects and the acquisition of Aviva operations in Poland. The Asset Management business segment was stable, benefiting from higher assets under management (AuM)-driven revenues.”

Chief Executive Officer, Allianz SE, Oliver Bäte said, the company’s operating profit and group solvency ratio proved resilient against heightened volatility and a fundamentally weaker economic environment.

Bäte said, “Allianz delivered another quarter of robust financial performance, driven by strong growth in our Property-Casualty business.

“We are well-positioned to manage the impact of high inflation and the economic pressures that are particularly evident in Europe.

“Allianz will continue to deploy our advantages of stability and scale for the benefit of our customers and shareholders.”

The statement further revealed that “Internal revenue growth, which adjusts for foreign currency translation and consolidation effects, stood at 3.6 percent.

“Operating profit increased 5.3 percent to 3.5 (3.3) billion euros, driven by improved underwriting and investment results in the Property-Casualty segment. Growth was partially offset by the Life/Health business segment, reflecting the impact of volatile market conditions and a lower investment margin in Germany and the United States. Lower operating profit from the Asset Management business segment following adverse market movements and cautionary investor sentiment also had an offsetting effect.

“Net income attributable to shareholders was 1.7 (2.2) billion euros, as a lower non-operating investment result more than offset the decrease in income taxes and higher operating profit.

“Annualized Return on Equity (RoE) was 6.7 percent (full year 2021: 10.6 percent). Excluding the impact of the provision related to the AllianzGI U.S. Structured Alpha proceedings, the annualized RoE was 11.1 percent (full year 2021: 14.9 percent). Basic Earnings per Share (EPS) was 5.28 (6M 2021: 11.47) euros, down by 54.0 percent.

“6M 2022: Operating profit increased 1.2 percent to 6.7 (6.7) billion euros, driven by higher operating profit in the Property-Casualty and Asset Management business segments. Operating profit growth was driven by positive developments in operating investment income and a modest rise in underwriting results in the Property-Casualty business as well as higher AuM-driven revenues in the Asset Management business. Growth in overall operating profit was largely offset by a decline in operating profit in the Life/Health business segment mainly due to unfavorable market developments.

“Net income attributable to shareholders was 2.3 (4.8) billion euros, down from the prior-year period mostly due to a provision booked in the first quarter in relation to the AllianzGI U.S. Structured Alpha proceedings.”

According to the group, “The Solvency II capitalization ratio was 200 percent at the end of the second quarter of 2022 compared with 199 percent at the end of the first quarter of 2022. Including the application of transitional measures for technical provisions, the Solvency II capitalization ratio was 227 percent at the end of the second quarter of 2022 compared with 226 percent at the end of the first quarter of 2022.”

On his part, Chief Financial Officer, Allianz SE, Giulio Terzariol, disclosed: “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.

“Our Property-Casualty business showed robust internal growth again, driven by sound volume growth and healthy pricing across business lines and geographies. Supported by a good combined ratio, our operating profit benefited also from a higher reinvestment yield and an accelerated investment result.”

Terzariol added: “In our Life/Health segment, good growth, particularly in our capital-efficient business lines, contributed to a significant expansion of the new business margin. This bodes well for a sustained operating profitability in this segment.

“Our Asset Management operating profit showed good resilience in a business environment characterized by inflation-related uncertainties and capital market turbulence. We continue to steer our clients through these challenging terrains.

“Having reached the halfway mark of our full-year outlook, we remain confident about our long-term growth trajectory. We confirm our full-year outlook of operating profit of 13.4 billion euros, plus or minus 1 billion euros.”