DGAP-News: Allianz SE / Key word(s): Quarter Results
Allianz SE: Successful first quarter 2013 for Allianz
15.05.2013 / 06:59
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*Total revenues rise 6.6 percent to 32.0 billion euros
*Operating profit grows 19.9 percent to 2.8 billion euros
*Net income attributable to shareholders up 24.0 percent to 1.7 billion
euros
*Continued healthy capital position
*Allianz confirms operating profit outlook for 2013 of 9.2 billion euros
plus/minus 0.5 billion euros
Allianz Group continued its successful course from 2012 with a strong first
quarter in 2013. All key indicators rose over the reporting period.
With 32.0 billion euros Allianz achieved the highest quarterly total
revenues in its history, an increase of 6.6 percent from 30.1 billion euros
in the first quarter of 2012. Operating profit grew 19.9 percent in the
first quarter to 2.8 billion euros from 2.3 billion euros the year before.
All three business segments contributed to the growth in revenues and
operating profit. Property and Casualty insurance benefited in most regions
from rising prices and an improved underwriting result as well as a benign
natural catastrophe environment. In Life and Health insurance, revenues and
profits grew especially in the life insurance business in the Allianz core
markets France, Germany and Italy. Asset Management continued its
successful development, achieving another excellent quarter with high net
inflows.
Allianz's capital position also remained strong in the reporting period.
The conglomerate solvency ratio decreased by 14 percentage points to 183
percent on March 31, 2013, from 197 percent on December 31, 2012. Excluding
the negative impact of a change in accounting for pensions, the solvency
ratio would have strengthened 2 percentage points over the year-end figure.
Over the same period, shareholders' equity increased 3.1 percent to 51.950
billion euros from 50.388 billion euros. With reference to the good
capitalization of Allianz, in March 2013 the rating agency Standard &
Poor's confirmed its 'AA' rating and raised its outlook to 'stable' from
'negative'.
The result from non-operating items fell to minus 119 million euros from
minus 88 million euros in the same period of 2012. The previous year's
figure benefited from positive valuation effects from The Hartford
warrants. Income taxes rose to 877 million euros from 794 million euros.
The effective tax rate for the first quarter of 2013 was 33 percent
compared to 35 percent in the year before. Net income attributable to
shareholders reached 1.7 billion euros in the first quarter of 2013, a
year-on-year increase of 24.0 percent from 1.4 billion euros.
'This is a very encouraging start to the year. All segments are performing
strongly thanks to our efforts in the previous years. Our customers profit
as well, having received 25 billion euros in insurance benefits in the
first quarter,' said Dieter Wemmer, Chief Financial Officer of Allianz SE.
'We are well positioned to grow both internally and externally. For
example, with the agreed acquisition of the Turkish insurer Yapı Kredi
Sigorta, we expect to significantly strengthen our position in this
important developing market,' said Michael Diekmann, CEO of Allianz SE. 'We
are confident that we will continue to grow profitably during the rest of
2013. However, in view of the existing market risks and a possible higher
level of natural catastrophes, it would be inappropriate to simply
annualize the current quarter's operating profit. Therefore, we confirm our
operating profit outlook for 2013 of 9.2 billion euros plus or minus 0.5
billion euros.'
Property and Casualty insurance with one of the best quarters since the
start of the financial crisis
The Property and Casualty insurance business achieved revenues of 15.2
billion euros in the first quarter of 2013, up 2.7 percent from 14.8
billion euros in the previous year's first quarter. This development is
mainly due to positive price effects in many markets and product lines.
Germany, Turkey, Allianz Worldwide Partners and Latin America contributed
to most of the growth.
Operating profit reached 1.3 billion euros, up 11.5 percent from 1.2
billion euros in the previous year's first quarter. The underwriting result
rose to 540 million euros from 333 million euros, driven by an improvement
in the accident year loss ratio and positive price momentum.
At 94.3 percent, the quarterly combined ratio improved 1.9 percentage
points from 96.2 percent the previous year. Combined ratios in most markets
were well below 100 percent, also due to low impacts from natural
catastrophes. The loss ratio improved to 66.1 percent from 68.3 percent in
the previous year's first quarter. The expense ratio was 28.2 percent,
slightly above 27.9 percent for the first quarter of 2012. In particular,
higher costs as a result of last year's acquisition of the French insurance
company Gan Eurocourtage, a reduction of crop business in the United States
with a below-average expense ratio, and a regulatory change of fees in
Brazil drove this development.
Dieter Wemmer: 'For our Property and Casualty insurance this was one of the
best quarters in a number of years. We were successful both in our core
markets in industrialized countries and in growth markets. The lack of
major natural catastrophes certainly helped, but we also achieved excellent
results even in highly competitive markets like Italy and Spain.'
Life and Health insurance grows in revenue and profit
Revenues in Life and Health insurance grew 8.3 percent to 14.8 billion
euros in the first quarter of 2013 from 13.7 billion euros in the same
quarter the previous year.
Revenue growth was mainly driven by unit-linked products. Despite strong
competition and persistent low interest rates, premiums increased by double
digits in most core markets, including France, Germany, Italy and the
Asia-Pacific region. On the other hand, there were declines in premiums in
the United States due to product and commission changes implemented in 2012
for fixed-indexed and variable annuity products as well as in Poland due to
regulatory changes.
Operating profit was 855 million euros in the first three months of 2013, a
3.6 percent increase compared to 825 million euros achieved in the same
period last year. Operating profit was impacted by a decrease in the
operating investment result but benefited from lower acquisition and
administrative expenses.
Allianz achieved a new business margin of 1.8 percent, close to the level
of the first quarter of 2012 of 1.9 percent. The value of new business rose
to 238 million euros from 223 million euros.
'The Life and Health insurance segment continues to face challenges. We can
expect markets to stay difficult amid low interest rates, which affect both
savers and investors. However, despite that, we showed growth this quarter
in revenues and profits, which indicates the value of the products and
returns we offer,' said Dieter Wemmer.
Asset Management going strong
The Asset Management business had another outstanding quarter. Revenues
rose in the first quarter of 2013 to 1.9 billion euros from 1.4 billion
euros, an increase of 32.8 percent from the first quarter of 2012.
Operating profit reached 900 million euros, an increase of 46.8 percent
from 613 million euros in the previous year's first quarter. This was due
to increased performance fees, higher assets under management and greater
margins. The cost-income ratio further improved to 52.9 percent from 57.4
percent.
Total assets under management amounted to 1,934 billion euros at the end of
the first quarter of 2013, 17.0 percent up from 1,653 billion euros at the
end of the first quarter of 2012. Third-party assets under management
increased to 1,517 billion euros from 1,266 billion euros. Third-party net
inflows increased to 42.6 billion euros. In the previous year's first
quarter they amounted to 23.5 billion euros.
'Our Asset Management segment remained a dynamic source of high returns for
our customers, our shareholders and the Allianz Group once again in the
first quarter,' said Dieter Wemmer. 'The Allianz Group results affirm our
strategy of being broadly positioned across business segments and regions
worldwide.'
Allianz Group - Key figures 1st quarter 2013
1Q 2013 1Q 2012
Total revenues [Euro bn] 32.0 30.1
Operating profit / loss [Euro mn] (1), (2) 2,797 2,333
Property-Casualty [Euro mn] 1,319 1,183
Life/Health [Euro mn] 855 825
Asset Management [Euro mn] 900 613
Corporate and Other[Euro mn] -239 -274
Consolidation [Euro mn] -38 -14
Income before income taxes [Euro mn] 2,678 2,245
Income taxes [Euro mn] -877 -794
Net income / loss [Euro mn] 1,801 1,451
Property-Casualty [Euro mn] 1,017 836
Life/Health [Euro mn] 628 625
Asset Management [Euro mn] 568 379
Corporate and Other[Euro mn] -397 -376
Consolidation [Euro mn] -15 -13
Net income [Euro mn] 1,801 1,451
attributable to non-controlling interests [Euro mn] 94 74
attributable to shareholders [Euro mn] 1,707 1,377
Basic earnings per share [Euro] 3.77 3.04
Diluted earning per share [Euro] 3.69 3.03
Ratios
Property/Casualty: Combined ratio 94.3% 96.2%
Life/Health: Margin on reserves(3) 74 77
Asset Management: Cost-income ratio 52.9% 57.4%
03/31/13 12/31/12
Shareholders' equity [Euro bn](4) 52.0 50.4
Conglomerate solvency ratio(5) 183% 197%
Third-party assets under management [Euro bn] 1,517 1,438
(1) All prior period figures herein have been restated to reflect the
retrospective application of the amended standard IAS 19 - Employee
Benefits, effective as of 01/01/13
(2) As of the first quarter of 2013 all restructuring charges are presented
within operating profit. All prior period figures herein have been adjusted
to conform to the current accounting presentation
(3) Operating profit(annualized)divided by average net reserves
(4) Excluding non-controlling interests
(5) Including off-balance sheet reserves (03/31/13:EUR 2.2bn, 12/31/12:
EUR 2.2bn). The solvency ratio excluding off-balance sheet reserves would
amount to 174% as of 03/31/13 and 188% as of 12/31/12. Conglomerate
solvency ratio decreased by approximately 16%-p as of 01/01/13 due to
amendments to IAS 19.
These assessments are, as always, subject to the disclaimer provided below.
Cautionary Note Regarding Forward-Looking Statements
The statements contained herein may include prospects, 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. Actual results, performance or events may differ
materially from those expressed or implied in such forward-looking
statements.
Such deviations may arise due to, without limitation, (i) changes of the
general economic conditions and competitive situation, particularly in the
Allianz Group's core business and core markets, (ii) performance of
financial markets (particularly market volatility, liquidity and credit
events) (iii) frequency and severity of insured loss events, including from
natural catastrophes, and the development of loss expenses, (iv) mortality
and morbidity levels and trends, (v) persistency levels, (vi) particularly
in the banking business, the extent of credit defaults, (vii) interest rate
levels, (viii) currency exchange rates including the Euro/U.S. Dollar
exchange rate, (ix) changes in laws and regulations, including tax
regulations, (x) the impact of acquisitions, including related integration
issues, and reorganization measures, and (xi) 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.
No duty to update
The company assumes no obligation to update any information or
forward-looking statement contained herein, save for any information
required to be disclosed by law.
End of Corporate News
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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
Indices: DAX-30, EURO STOXX 50
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
Standard), Hamburg, Hannover, München, Stuttgart;
Terminbörse EUREX
End of News DGAP News-Service
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211113 15.05.2013
DGAP-News: Allianz SE: Successful first quarter 2013 for Allianz
| Source: EQS Group AG