Allianz SE / Quarter Results
06.08.2010 07:01
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* Quarterly revenues grow at double-digit rate to 25.4 billion euros
* Net income of 1.1 billion euros, reflecting lower harvesting
* Property-Casualty operating profit up 28 percent
* Life/Health with strong internal revenue growth of 16 percent
* Asset Management contributes 21.2 percent to Group net income
* Solvency ratio increases to 170 percent
Allianz Group today reported its results for the second quarter of 2010,
which reflect a very good performance throughout the first half of the
year. Total quarterly revenues grew by 14.5 percent to 25.4 billion euros,
from 22.2 billion euros in the second quarter of 2009. Internal growth for
quarterly revenues amounted to 10.8 percent. Operating profit jumped by
22.7 percent to 2.2 billion euros, compared to 1.8 billion euros in the
same period of last year.
All three business segments contributed positively to quarterly net income
of 1.1 billion euros, which reflects a low level of harvesting. Net income
in the second quarter of last year amounted to 1.9 billion euros, supported
by high realized gains.
Strong first half-year
Total revenues for the first six months of 2010 amounted to 56.0 billion
euros, and were 12.2 percent higher than 49.9 billion euros in the same
period of 2009. Half-year operating profit grew by 21.7 percent from 3.2
billion euros to 3.9 billion euros. Half-year net income jumped by 39.5
percent from 1.9 billion euros to 2.7 billion euros.
Allianz Group's capital position remains strong with a solvency ratio of
170 percent as of June 30, 2010, following 168 percent at the end of first
quarter 2010. Shareholders' equity increased by 0.7 percent to 43.8 billion
euros as of June 30, 2010, from 43.5 billion euros at the end of March.
Michael Diekmann, CEO of Allianz SE: 'We had a very good half-year with
double-digit growth in both revenues and operating profit. In a first
half-year marked by exceptionally high natural catastrophe losses, our
success shows that our diversified approach across business segments and
regions is helping us to ensure stable results. In addition, our strong
capitalization and conservative capital management underline the
reliability for which Allianz is renowned.'
Property-Casualty operating profit up 28.2 percent
In the Property and Casualty business gross premiums written increased to
10.0 billion euros in the second quarter. Compared to 9.5 billion euros in
the second quarter of 2009, premiums increased by 4.5 percent. Adjusted for
currency effects, premiums rose by 0.5 percent. An improved underwriting
result and higher investment income contributed to a significant increase
in quarterly operating profit of 28.2 percent to 1.1 billion euros,
following 895 million euros in the second quarter of last year.
The combined ratio improved to 96.3 percent, compared to 98.9 percent in
second quarter 2009 and 100.4 percent in first quarter 2010. Claims from
natural catastrophes amounted to 255 million euros, and made up 2.6
percentage points of the combined ratio. This compares to 1.1 percentage
points in second quarter 2009. A higher run-off ratio of 4.2 percent had a
positive effect on the combined ratio.
Gross premiums written for the first six months of 2010 grew by 2.3 percent
to 23.9 billion euros, compared to 23.4 billion euros in the first half of
2009. Half-year operating profit remained stable at 1.86 billion euros. The
half-year combined ratio improved to 98.4 percent, following 98.8 percent
in the first six months of 2009.
'While in the second quarter soft market conditions persisted in many
insurance markets, positive price effects were observed in several of our
core markets. In addition, our quarterly operating profit growth shows
progress in terms of underwriting, claims management and productivity,'
said Oliver Bäte, Chief Financial Officer of Allianz SE.
Life/Health segment performed strongly again
The Life/Health segment achieved a quarterly revenue of 14.1 billion euros,
growing 20 percent, compared to 11.8 billion euros in the second quarter of
last year. Internal growth amounted to 16.2 percent. The increase was
driven by generally strong demand for investment-oriented products, such as
unit-linked insurance and products with guarantees, as well as traditional
life insurance.
Quarterly operating profit amounted to 713 million euros, compared to 990
million euros in an exceptional second quarter 2009 when markets strongly
rebounded after the financial crisis. This translates into a
quarter-on-quarter decrease of 28 percent.
Half-year 2010 statutory premiums grew by 19 percent to 29.5 billion euros,
compared to 24.8 billion euros in the first half of 2009. Operating profit
for the first six months of 2010 increased by 9.6 percent from 1.4 billion
euros to 1.5 billion euros. Half-year operating investment income grew by
18 percent to 7.7 billion euros, compared to 6.6 billion euros in the same
period of last year.
'Our Life/Health segment saw considerable top-line growth in the second
quarter based on increasing demand for both traditional and unit-linked
products, especially in Germany, Italy, France, the US and our growth
markets in Asia and Central and Eastern Europe. In addition, operating
profit is clearly on track,' said Oliver Bäte.
Asset Management exceeds 1.1 trillion euros in third-party AuM
The Asset Management segment more than doubled its quarterly operating
profit, by
110 percent to 516 million euros, compared to 246 million euros in the
prior year's second quarter. This was driven by an increase in net fee and
commission income to 1.2 billion euros. Compared to 752 million euros in
the same period of last year, net fee and commission income rose in total
by 58 percent, representing 48.9 percent growth on an internal basis.
Supported by the strong growth in performance fees, the cost-income ratio
improved to 56.6 percent, following 68.5 percent in the second quarter of
2009.
Net fee and commission income during the first six months of 2010 grew by
56 percent to 2.3 billion euros, from 1.5 billion euros in the same period
of 2009. Half-year operating profit more than doubled to 982 million euros.
Compared to the half-year 2009 figure of 457 million euros this translates
into an increase of 114.9 percent. Third-party net inflows for the
half-year amounted to 60 billion euros compared to 27.7 billion euros in
the first half of 2009.
Third-party assets under management amounted to 1.139 trillion euros on
June 30, 2010, following the previous historic high of 1.023 trillion euros
at the end of March.
Oliver Bäte: 'This quarter, Asset Management again delivered exceptional
performance. With positive net inflows for six consecutive quarters, we are
succeeding in growing our asset management business into a real performance
engine. The contribution of this business to Allianz Group net income has
grown significantly over time and accounted for 21,2 percent in the second
quarter.'
Outlook
Michael Diekmann, CEO of Allianz SE: 'We delivered an operating profit of
3.9 billion euros for the first half of 2010. Based on this very good
result, we are confident that we can achieve our outlook for operating
profit for the entire year of around 7.2 billion euros, with a fluctuation
range of plus or minus 500 million euros.'
Allianz Group - Key figures 2Q 2010
2Q 2010 2Q 2009
Total revenues [Euro bn] 25.4 22.2
Operating profit / loss [Euro mn] 2,191 1,786
Property/Casualty [Euro mn] 1,147 895
Life/Health [Euro mn] 713 990
Asset Management [Euro mn] 516 246
Corporate and Other[Euro mn] -155 -313
Consolidation [Euro mn] -30 -32
Income from continuing operations before income taxes
[Euro mn] 1,594 2,334
Income taxes [Euro mn] -509 -447
Net income / loss from continuing operations [Euro mn] 1,085 1,887
Property/Casualty [Euro mn] 837 758
Life/Health [Euro mn] 488 679
Asset Management [Euro mn] 230 111
Corporate and Other [Euro mn] -471 336
Consolidation [Euro mn] 1 3
Net loss from discontinued operations, net of
income taxes [Euro mn] 0 0
Net income [Euro mn] 1,085 1,887
attributable to non-controlling interests 68 18
attributable to shareholders 1,017 1,869
Basic earnings per share [Euro] 2.25 4.14
from continuing operations [Euro] 2.25 4.14
from discontinued operations [Euro] 0.00 0.00
Diluted earnings per share [Euro] 2.21 4.13
from continuing operations [Euro] 2.21 4.13
from discontinued operations [Euro] 0.00 0.00
Ratios
Property/Casualty: Combined Ratio 96.3% 98.9%
Life/Health: Cost-income ratio 96.0% 93.8%
Asset Management: Cost-income ratio 56.6% 68.5%
06/30/2010 12/31/2009
Shareholders' equity* [Euro bn] 43.8 40.2
Conglomerate solvency ratio ** 170% 164%
Third-party assets under management [Euro bn] 1,139 926
* Excluding non-controlling interests
** Including off-balance sheet reserves (12/31/2009: EUR 1,993mn,
06/30/2010: EUR 1,986mn) pro forma. The solvency ratio excluding
off-balance sheet reserves would amount to 161% as of 06/30/2010 and 155%
as of 12/31/2009.
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
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),
Düsseldorf, München, Hannover, Stuttgart, Hamburg;
Terminbörse EUREX
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DGAP-News: Allianz Group increases operating profit 22.7 percent to 2.2 billion euros in the second quarter of 2010
| Source: EQS Group AG