Allianz SE / Forecast/Quarter Results
06.08.2008
Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Allianz Group continued to weather difficult market conditions during the
second quarter of 2008. Total revenues decreased to 22.0 billion euros,
compared to 24.3 billion euros in the same period of 2007. Operating profit
decreased by 36 percent to 2.1 billion euros, from 3.3 billion euros in
second quarter 2007. Quarterly net income amounted to 1.5 billion euros, or
28 percent less than 2.1 billion euros in second quarter 2007. For the
first half-year of 2008, Allianz Group delivered an operating profit of 4
billion euros. Half-year net income reached 2.7 billion euros.
The capital market crisis negatively affected revenue development in the
Life insurance business, and in particular unit-linked life insurance
products. In addition, net dealing income in the Banking segment was
negative. However, the operating profit of the insurance and asset
management business proved resilient during the second quarter of 2008. A
robust fixed-income business supported the Asset Management segment. The
Property & Casualty business, with a combined ratio of 93.5 percent, was on
target.
Allianz Group's capital base remains strong with a solvency ratio of 145
percent and shareholders equity amounting to 40.5 billion euros on June
30, 2008.
The Property and Casualty business remained on target in the second quarter
of 2008, with 1.7 billion euros operating profit compared to the historical
peak of 1.9 billion euros in the second quarter of 2007. Gross premiums
written amounted to 9.8 billion euros and were at the same level of the
previous year's second quarter. Revenue growth, adjusted for exchange rates
and consolidation effects, was 3.1 percent. The combined ratio, at 93.5
percent, was again in target range and only slightly above the 92.9 percent
level of second quarter 2007. The six-month expense ratio improved to 26.7
percent, compared to 28.3 percent in the first half-year of 2007.
In the Life and Health business, total premium income decreased by 10.9
percent to
10.7 billion euros, compared to 11.7 billion euros in second quarter 2007.
Sales of unit-linked products decreased in light of the weak stock markets
by 19 percent on a year-on-year basis. However, premiums from traditional
life products grew year-on-year by 8 percent. Germany, Switzerland, Spain
and Belgium achieved above-average growth. In Spain, sales continued to
benefit from tax advantages for insurance products. Segment operating
profit decreased, due to a decline in the investment result, by 7.3 percent
to 703 million euros, from 758 million euros in the second quarter of 2007.
Dresdner Bank was clearly affected by the weak markets. Operating revenues
amounted to 635 million euros, compared to 1.8 billion euros in the second
quarter of 2007. The strong decline was almost entirely based on negative
net dealing income of the investment bank amounting to 627 million euros.
Positive net dealing income of 351 million euros was achieved in the same
period of 2007. Direct effects of the financial markets crisis, such as
markdowns on the ABS trading book amounting to 286 million euros in the
second quarter of 2008, are included in this loss. Net interest income
remained stable at 703 million euros, compared with 701 million euros in
the second quarter of 2007. Net fee and commission income decreased by 22.3
percent, from 718 million euros in the previous years second quarter to
558 million euros.
As a result, operating profit decreased to -566 million euros, from 427
million euros in the second quarter of 2007. A robust performance by the
private & corporate clients division contributed to an operating profit of
121 million euros. Operating expenses decreased to 1.14 billion euros, from
1.28 billion euros in the previous year's second quarter.
In Asset Management, third-party assets under management amounted to 740
billion euros, compared to 765 billion euros at December 31, 2007. Internal
growth of third-party assets under management was 2.7 percent year-to-date.
The three-year compound annual growth rate for third-party assets under
management, at 9.4 percent, is within target. Third-party net inflows for
the first half-year of 2008 amounted to 33 billion euros. This was mainly
driven by Allianz Global Investors' robust fixed-income business. Operating
profit decreased by 13.5 percent, from 325 million euros in the previous
year's quarter to 281 million euros. Adjusted for exchange rate effects,
this corresponds to a decrease of 3.1 percent. The cost income ratio
reached 61.9 percent.
Outlook
Further deteriorating markets also affect Allianz although our underlying
fundamentals remain healthy. We expect this difficult market environment to
continue to 2009, therefore our 2006 long-term operating profit growth
target of 10 percent Compound Annual Growth Rate until 2009 cannot be
maintained. Due to expected market conditions accurate earnings
predictions, especially for Banking, are not feasible. But underlying
operating profitability in Insurance and Asset Management is stable enough
to generate a run rate before Banking of 9 plus billion euros in 2008 and
2009.
Allianz Group: Key figures 2nd Quarter 2008
[Eur bn] 2Q 2008 2Q 2007
Total revenues 22.0 24.3
Operating Profit 2.104 3.288
- Property/Casualty 1.683 1.894
- Life/Health 0.703 0.758
- Banking -0.568 0.448
thereof Dresdner Bank -0.566 0.427
- Asset Management 0.281 0.325
- Corporate 0.005 -0.010
- Consolidation 0 -0.127
Income before income taxes & minority interests 2.186 3.198
Income taxes -0.552 -0.858
Minority interests in earnings -0.092 -0.200
Net income 1.524 2.140
- Property/Casualty 1.822 1.380
- Life/Health 0.425 0.479
- Banking -0.552 0.411
thereof Dresdner Bank -0.545 0.395
- Asset Management 0.120 0.134
- Corporate -0.058 -0.008
- Consolidation -0.215 -0.256
Earning per share (basic) (Euro) 3.44 4.85
Ratios
Property/Casualty: Combined Ratio 93.5% 92.9%
Life/Health: Statutory Expense Ratio 12.2% 9.6%
Dresdner Bank: Cost-Income Ratio 178.7% 72.4%
Asset Management: Cost-Income Ratio 61.9% 59.2%
[Euro bn] 30.06.2008 31.12.2007
Shareholders´ equity 40.5 47.8
Third-party assets under management 740 765
These assessments are, as always, subject to the disclaimer provided below.
End of message.
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Information and Explaination of the Issuer to this News:
Cautionary Note Regarding Forward-Looking Statements:
Certain of the statements contained herein may be 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, (iii) the frequency and severity of insured loss events, (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 matters discussed herein may also involve risks
and uncertainties described from time to time in Allianz SEs filings with
the U.S. Securities and Exchange Commission. The company assumes no
obligation to update any forward-looking information contained herein.
No duty to update
The company assumes no obligation to update any information contained
herein.
DGAP 06.08.2008
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Language: English
Issuer: Allianz SE
Königinstr. 28
80802 München
Deutschland
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
Indices: DAX-30, EURO STOXX 50
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard),
Hannover, Düsseldorf, Stuttgart, München, Hamburg;
Terminbörse EUREX; Foreign Exchange(s) London, NYSE, SWX
End of News DGAP News-Service
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DGAP-Adhoc: Allianz Group: Outlook 2009 revised
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