Corporate | 5 August 2011 06:59
Allianz SE / Key word(s): Half Year Results/Quarter Results
05.08.2011 / 06:59
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* Revenues of 24.6 billion euros and high operating profit of 2.3 billion
euros
* Property and Casualty insurance and Asset Management strong, Life and
Health insurance on track
* Net income of 1.1 billion euros, despite current impairments on Greek
sovereign bonds
* Capitalization remains strong, solvency ratio unchanged at 180 percent
* 2011 operating profit target of 8.0 billion euros plus/minus 0.5 billion
euros confirmed
Allianz reported solid financial results for the second quarter of 2011
with major growth in key areas. Indicators remained close to or exceeded
the second-quarter 2010 levels, despite burdens from the euro debt crisis
and currency fluctuations.
Total revenues for Allianz Group reached 24.6 billion euros, just 3.2
percent off the strong 25.4 billion euros for the same period in 2010 and
0.9 percent off on an internal basis. Quarterly operating profit was 2.300
billion euros, reaching the level of the prior year's quarter of 2.302
billion euros, which was the highest operating profit since the financial
crisis.
At the heart of this result is the strong Allianz business portfolio.
Profitable growth for Property and Casualty insurance and continuing record
results in Asset Management added to the solid performance in the Life and
Health insurance business, which has returned to a normal level after
one-off effects.
Overall, Allianz Group generated a quarterly net income of 1.071 billion
euros, despite a net burden of 326 million euros due to current impairments
for Greek sovereign bonds and significantly adverse currency movements. The
quarter ended 7.4 percent below the second-quarter 2010 result of 1.157
billion euros.
Allianz also maintained its strong capitalization, with solvency remaining
at its first-quarter 2011 level of 180 percent. After dividend payments to
Allianz shareholders of 2.032 billion euros, shareholder equity stood at
42.6 billion euros at the end of the second quarter.
For the first half-year revenues amounted to 54.5 billion euros, compared
to 56.0 billion euros in 2010. Operating profit at 3.960 billion euros
remained close to last year's level of 4.034 billion euros. Net income was
1.986 billion euros and 2.760 billion euros in 2010.
'These are very satisfying results,' says Michael Diekmann, CEO of Allianz
SE. 'Our geographic and business segment diversification is keeping us at
stable profitability levels. I think that the results - be it in the second
quarter or for the half-year - are remarkably solid considering the high
level of natural catastrophe events, the uncertainty of the capital
markets, currency fluctuations and, last but not least, the current
impairment of our Greek sovereign bond portfolio. Therefore, I am confident
we can achieve our 2011 operating profit target of 8.0 billion euros, plus
or minus 0.5 billion euros.'
Property and Casualty insurance premiums and profitability increase
The Property and Casualty insurance business booked a 2.4 percent increase
in gross written premiums over the second quarter of 2011 to 10.2 billion
euros from 10.0 billion euros the year before. Internal growth amounted to
3.7 percent for the quarter.
In addition to the rise in volume came an increase in profitability.
Quarterly operating profit grew 15.9 percent to 1.329 billion euros from
1.147 billion euros in 2010. The combined ratio of 95.0 percent was among
the best since late 2008. Positive impacts on the claims ratio included a
lower natural catastrophe load in the second quarter, especially compared
to the first quarter 2011.
'Our very good Property and Casualty insurance results demonstrate our
continuous focus on profitable growth,' says Oliver Bäte, Chief Financial
Officer of Allianz SE. 'The accident year loss ratio excluding natural
catastrophes is continuing the downward trend it has shown in recent
quarters, and increased rates are now reflected both in top and bottom
lines.'
Life and Health insurance with another solid quarter
External market factors strongly influenced Life and Health insurance.
Revenues amounted to 13.0 billion euros, 8.1 percent off the 14.1 billion
euros in the second quarter of 2010. The second-quarter level was more
normal than 2010 during which one-off effects boosted sales in countries
like Italy and demand for single-premium products in Germany. Those two
effects accounted for nearly the entire difference in revenues.
Operating profit amounted to 679 million euros, 17.6 percent below 824
million euros the year before, reflecting the burden of current impairments
on Greek sovereign bonds. The new business margin of 2.5 percent and the
value of new business of 242 million euros both reached a high level.
'The Life and Health segment remains on track, as indicated by our robust
sales and the healthy value and margin of our new business,' says Oliver
Bäte. 'Life insurance in particular is a long-term business, designed to
endure a variety of market effects and cyclical variations.'
Asset Management performance continuing at record levels
Asset Management remains a driver for strong Group profitability. Net fee
and commission income for the quarter progressed to 1.297 billion euros
from 1.188 billion euros the year before, an increase of 9.2 percent.
Operating profit rose to 528 million euros in the second quarter, 2.3
percent higher than 516 million euros in the previous year; excluding
foreign currency exchange effects, the increase amounts to 14.5 percent.
With 1,508 billion euros in assets under management on June 30, 2011,
Allianz managed to grow its business 5.4 percent from 1,430 billion euros
the year before.
Third-party assets under management reached 1,151 billion euros. Allianz
Global Investors recorded net inflows of 21.1 billion euros for the
quarter, compared to 22.6 billion euros in 2010. The cost income ratio for
the Group stood at a healthy 59.5 percent, up 2.9 percentage points from
56.6 percent the year before.
Oliver Bäte: 'The very good performance of our Asset Management business
has an even greater weight when considering foreign currency exchange
effects. Adjusted for this, figures for the quarter show 21.3 percent
growth in net fee and commission income, 14.5 percent growth in operating
profit and total assets under management up by 11.1% These are outstanding
results. '
Allianz Group - Key figures 2nd quarter and 1st half year 2011
2Q 2011 2Q 2010(1)
Total revenues [Euro bn] 24.6 25.4
Operating profit / loss [Euro mn] 2,300 2,302
Property/Casualty [Euro mn] 1,329 1,147
Life/Health [Euro mn] 679 824
Asset Management [Euro mn] 528 516
Corporate and Other[Euro mn] -205 -155
Consolidation [Euro mn] -31 -30
Income before income taxes [Euro mn] 1,614 1,705
Income taxes [Euro mn] -543 -548
Net income / loss [Euro mn] 1,071 1,157
Property/Casualty [Euro mn] 952 837
Life/Health [Euro mn] 214 560
Asset Management [Euro mn] 289 230
Corporate and Other[Euro mn] -363 -471
Consolidation [Euro mn] -21 1
Net income [Euro mn] 1,071 1,157
attributable to non-controlling interests [Euro mn] 71 68
attributable to shareholders [Euro mn] 1,000 1,089
Basic earnings per share [Euro] 2.21 2.41
Diluted earning per share [Euro] 2.17 2.37
Ratios
Property/Casualty: Combined ratio 95.0% 96.3%
Life/Health: Cost-income ratio 95.9% 95.4%
Asset Management: Cost-income ratio 59.5% 56.6%
6M 2011 6M 2010(1)
Total revenues [Euro bn] 54.5 56.0
Operating profit /loss [Euro mn] 3,960 4,034
Property/Casualty [Euro mn] 1,992 1,859
Life/Health [Euro mn] 1,381 1,659
Asset Management [Euro mn] 1,056 982
Corporate and Other [Euro mn] -428 -406
Consolidation [Euro mn] -41 -60
Income before income taxes [Euro mn] 3,100 3,696
Income taxes [Euro mn] -1,114 -936
Net income / loss [Euro mn] 1,986 2,760
Property/Casualty [Euro mn] 1,509 1,428
Life/Health [Euro mn] 696 1,136
Asset Management [Euro mn] 598 373
Corporate and Other [Euro mn] -815 -247
Consolidation [Euro mn] -2 70
Net income [Euro mn] 1,986 2,760
attributable to non-controlling interests 129 106
attributable to shareholders 1,857 2,654
Basic earnings per share [Euro] 4.11 5.88
Diluted earnings per share [Euro] 4.07 5.84
Ratios
Property/Casualty: Combined ratio 98.1% 98.4%
Life/Health: Cost-income ratio 96.0% 95.6%
Asset Management: Cost-income Ratio 59.0% 57.4%
06/30/11 12/31/10
Shareholders' equity [Euro bn](2) 42.6 44.5
Conglomerate solvency ratio (3) 180% 173%
Third-party assets under management [Euro bn] 1,151 1,164
(1) 2Q 2010 and 6M 2010 figures have been restated to reflect a change in
Allianz Group's accounting policy
(2) Excluding non-controlling interests
(3) Including off-balance sheet reserves (06/30/11: EUR 2.1bn, 12/31/10:
EUR 2.1 bn). The solvency ratio excluding off-balance sheet reserves would
amount to 171% as of 06/30/11 and 164% as of 12/31/10
These assessments are, as always, subject to the disclaimer provided below.
Cautionary Note Regarding Forward-Looking Statements
The statements contained herein may include statements of future
expectations and other forward-looking statements that are based on
management's current views and assumptions and involve known and unknown
risks and uncertainties that could cause actual results, performance or
events to differ materially from those expressed or implied in such
statements. In addition to statements which are forward-looking by reason
of context, the words 'may', 'will', 'should', 'expects', 'plans',
'intends', 'anticipates', 'believes', 'estimates', 'predicts', 'potential',
or 'continue' and similar expressions identify forward-looking statements.
Actual results, performance or events may differ materially from those in
such statements due to, without limitation, (i) general economic
conditions, including in particular economic conditions in the Allianz
Group's core business and core markets, (ii) performance of financial
markets, including emerging markets, and including market volatility,
liquidity and credit events (iii) the frequency and severity of insured
loss events, including from natural catastrophes and including the
development of loss expenses, (iv) mortality and morbidity levels and
trends, (v) persistency levels, (vi) the extent of credit defaults, (vii)
interest rate levels, (viii) currency exchange rates including the
euro/U.S. dollar exchange rate, (ix) changing levels of competition, (x)
changes in laws and regulations, including monetary convergence and the
European Monetary Union, (xi) changes in the policies of central banks
and/or foreign governments, (xii) the impact of acquisitions, including
related integration issues, (xiii) reorganization measures, and (xiv)
general competitive factors, in each case on a local, regional, national
and/or global basis. Many of these factors may be more likely to occur, or
more pronounced, as a result of terrorist activities and their
consequences. The company assumes no obligation to update any
forward-looking statement.
No duty to update
The company assumes no obligation to update any information contained
herein.
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Language: English
Company: Allianz SE
Königinstr. 28
80802 München
Germany
Phone: +49 (0)89 38 00 - 41 24
Fax: +49 (0)89 38 00 - 38 99
E-mail: investor.relations@allianz.com
Internet: www.allianz.com
ISIN: DE0008404005
WKN: 840400
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
Standard), Hamburg, Hannover, München, Stuttgart;
Terminbörse EUREX
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