DGAP-News: Allianz SE / Key word(s): Quarter Results
Allianz SE: Allianz with double-digit growth in revenues and net
income in third quarter of 2014
06.11.2014 / 22:30
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* Total revenues increase 14.5 percent to 28.78 billion euros
* Operating profit up 5.2 percent to 2.65 billion euros
* Net income attributable to shareholders grows by 11.2 percent to 1.61
billion euros
* Operating profit outlook confirmed: upper end of target range of 10.5
billion euros in reach
* New dividend policy increases pay-out ratio to 50 percent of Allianz
Group net income
In the third quarter of 2014, Allianz Group continued its strong
development from the first half of the year. Total quarterly revenues
increased 14.5 percent to 28.78 (third quarter of 2013: 25.14) billion
euros. Operating profit stood at 2.65 (2.52) billion euros, up 5.2 percent.
Net income attributable to shareholders increased 11.2 percent to 1.61
(1.45) billion euros.
The positive development is also evident over the first nine months of the
year. Total revenues rose 9.8 percent to 92.20 (83.97) billion euros.
Operating profit was up 6.0 percent to 8.14 (7.68) billion euros. Net
income attributable to shareholders increased 5.5 percent to 5.00 (4.74)
billion euros.
The segment Property and Casualty insurance again marked a strong quarter
both in revenues and operating profit. Operating profit for the segment
grew due to higher underwriting and investment results. In the Life and
Health insurance segment, statutory premiums increased by nearly 25
percent. In the segment Asset Management, operating profit reached its
highest quarterly level in 2014.
The conglomerate solvency ratio was 184 percent as of September 30, 2014.
This represented an increase of 3 percentage points compared to December
31, 2013. Shareholders' equity rose 16.2 percent to 58.2 billion euros from
50.1 billion euros as of December 31, 2013.
"Strong internal growth in the Property and Casualty segment, continued
high demand for life insurance products and good operating profit in the
Asset Management segment show that we are on the right track for 2014,"
said Dieter Wemmer, CFO of Allianz SE. "Our results confirm our outlook
that the upper end of the operating profit target range at 10.5 billion
euros is in reach."
Property and Casualty insurance operating profit up by 15.2 percent
Gross premiums written in Property and Casualty insurance increased 5.7
percent to 11.25 (10.65) billion euros in the third quarter. Adjusted for
foreign exchange and consolidation effects, internal growth of 4.7 percent
was driven in particular by the business development in the UK, by strong
growth in our global lines as well as in Germany. The acquisition of
specific distribution activities from Italian insurer Unipol contributed
0.8 percentage points to total premium growth.
Operating profit in the Property and Casualty segment rose 15.2 percent to
1.42 (1.23) billion euros in the third quarter of 2014. A better
underwriting result is reflected in the combined ratio, which improved in
the third quarter by 1.3 percentage points to 93.5 (94.8) percent. The loss
ratio decreased by 1.3 percentage points to 65.9 (67.2) percent,
benefitting from a benign natural catastrophes environment, partially
offset by a lower run-off result. At 27.6 (27.6) percent the expense ratio
is in line with the third quarter of 2013.
"Our Property and Casualty business has seen a successful quarter following
strong results in our core markets, supported by the absence of major
natural catastrophes," said Dieter Wemmer. "Our premium growth is mostly
volume driven, highlighting good demand for our products."
Life and Health insurance shows strong growth
Statutory premiums in Life and Health insurance climbed in the third
quarter to 15.85 (12.70) billion euros, representing an increase of 24.9
percent over the previous year's third quarter. Strong demand in Allianz
core markets Italy and the US as well as in Taiwan contributed to this
development.
In Italy and Taiwan, the increased sales in the third quarter were driven
by unit-linked products. In the US, fixed-indexed annuities once again
generated strong demand. In Germany, "Perspektive" continued its success
with 16,500 policies sold.
With 790 (769) million euros, operating profit increased by 2.8 percent
compared to the previous year's third quarter, reflecting a solid level.
The transfer of certain entities from Asset Management contributed 22
million euros to this development.
The value of new business increased by 36.5 percent to 293 million euros
from 215 million euros the year before. The new business margin remains
stable at 2.4 percent in the third quarter of 2014 compared to the previous
year's quarter.
"Our product mix in the Life and Health segment is moving in the right
direction: away from traditional towards new products. Unit-linked
products are generating higher sales in several core markets," said Dieter
Wemmer. "Strong demand for our life insurance products continued in the
third quarter despite the summer break, a clear sign for the need for
retirement provisions. For example, in Italy, our newly launched
unit-linked products are well accepted and represent almost three quarters
of our bancassurance production."
Asset Management at target
In the third quarter, operating revenues of the segment Asset Management
reached 1.62 (1.66) billion euros, a decline of 2.6 percent. Operating
profit declined 5.0 percent to 694 (731) million euros. The cost-income
ratio was 57.1 (56.0) percent, slightly better than in the first two
quarters of 2014.
On September 30, 2014, total assets under management were 1,872 billion
euros compared to 1,738 billion euros at the beginning of 2014. At the end
of the third quarter, third-party assets under management amounted to 1,411
billion euros, up from 1,329 billion euros at the beginning of 2014. Strong
market movements and favorable currency effects have overcompensated the
net outflows.
The third quarter saw third-party net outflows of 47.4 billion euros,
compared to net outflows of 27.5 billion euros in the previous year's third
quarter. Net outflows at PIMCO amounted to 49.2 billion euros in the third
quarter of 2014. However, a substantial majority of these outflows occurred
in the last week of September following the change in investment management
leadership. The PIMCO Total Return Fund assets were 170.9 billion US
dollars as of October 31, 2014. The fund remains the largest actively
managed bond fund in the world. Outflows from the Total Return Fund slowed
considerably during the month of October, to approximately 27.5 billion US
dollars. Nearly half of these outflows occurred in the first five trading
days of October.
At 110 million euros, operating profit for Allianz Global Investors was
above 100 million euros for the first time since implementation of the new
structure for asset management in January 2012. For the seventh consecutive
quarter, Allianz Global Investors had third-party net inflows, amounting to
1.8 billion euros in the third quarter of 2014.
"Net outflow development after the resignation of Bill Gross is within our
expectation. PIMCO continues to deliver high performance and customer
service at world-class level," said Dieter Wemmer. "Investment performance
increased to 93 percent of PIMCO's assets under management outperforming
their benchmark on a three-year basis compared to 89 percent in the
previous quarter."
New dividend policy increases pay-out ratio to 50 percent
The board of management and the supervisory board of Allianz SE have
decided on a new allocation of net income in its dividend policy. Starting
with the financial year 2014, the intention is to propose an increased
regular pay-out to Allianz shareholders of 50 percent of Allianz Group net
income (attributable to shareholders). Until now the dividend policy
foresaw a pay-out ratio of 40 percent. In the interest of dividend
continuity, the objective is to keep the dividend per share at least at the
level paid in the previous year.
The dividend policy of Allianz Group continues to aim for a healthy balance
between an attractive yield and investments in profitable growth. To assure
capital discipline, the management further intends to evaluate and pay out
the unused budget earmarked for external growth every three years. The
first evaluation will take place at the end of 2016. The dividend policy is
subject to a sustainable Solvency II ratio above 160 percent.
"Our unchanged outlook for the full year 2014 and the newly established
multi-year dividend policy are visible demonstration of management
confidence about the future of Allianz Group," said Dieter Wemmer.
This dividend policy represents the current intention of the board of
management and the supervisory board and may be revised in the future.
Also, the decision regarding dividend payments in any given year is subject
to specific dividend proposals by the board of management and the
supervisory board, each of which may elect to deviate from this dividend
policy if appropriate under the then prevailing circumstances, as well as
to the approval of the annual general meeting.
Allianz Group - Key figures 3rd quarter and first 9 months of 2014
3Q 2014 3Q 2013
Total revenues [Euro bn] 28.8 25.1
Operating profit / loss [Euro mn] 2,650 2,518
Property-Casualty [Euro mn] 1,422 1,235
Life/Health [Euro mn] (1) 790 769
Asset Management [Euro mn](1) 694 755
Corporate and Other[Euro mn] -248 -229
Consolidation [Euro mn] -9 -11
Income before income taxes [Euro mn] 2,319 2,277
Income taxes [Euro mn] -632 -746
Net income / loss [Euro mn] 1,687 1,530
Property-Casualty [Euro mn] 1,083 796
Life/Health [Euro mn](1) 530 562
Asset Management [Euro mn](1) 438 482
Corporate and Other[Euro mn] -311 -307
Consolidation [Euro mn] -52 -3
Net income [Euro mn] 1,687 1,530
attributable to non-controlling interests [Euro mn] 81 85
attributable to shareholders [Euro mn] 1,606 1,445
Basic earnings per share [Euro] 3.54 3.19
Diluted earning per share [Euro] 3.52 3.14
Ratios
Property/Casualty: Combined ratio 93.5% 94.8%
Life/Health: Margin on reserves [bps](1) 61 66
Asset Management: Cost-income ratio(1) 57.1% 55.7%
9M 2014 9M 2013
Total revenues [Euro bn] 92.2 84.0
Operating profit / loss [Euro mn] 8,144 7,682
Property-Casualty [Euro mn] 4,257 3,733
Life/Health [Euro mn](1) 2,655 2,293
Asset Management [Euro mn](1) 2,015 2,458
Corporate and Other[Euro mn] -689 -742
Consolidation [Euro mn] -94 -59
Income before income taxes [Euro mn] 7,658 7,453
Income taxes [Euro mn] -2,373 -2,447
Net income / loss [Euro mn] 5,285 5,007
Property-Casualty [Euro mn] 2,697 2,814
Life/Health [Euro mn](1) 1,891 1,664
Asset Management [Euro mn](1) 1,263 1,538
Corporate and Other[Euro mn] -429 -981
Consolidation [Euro mn] -137 -28
Net income [Euro mn] 5,285 5,007
attributable to non-controlling interests [Euro mn] 283 267
attributable to shareholders [Euro mn] 5,002 4,740
Basic earnings per share [Euro] 11.02 10.46
Diluted earning per share [Euro] 10.95 10.33
Ratios
Property/Casualty: Combined ratio 93.6% 95.0%
Life/Health: Margin on reserves [bps](1) 70 66
Asset Management: Cost-income ratio(1) 57.5% 54.7%
09/30/14 12/31/13
Shareholders' equity [Euro bn](2) 58.2 50.1
Conglomerate solvency ratio(3,4) 184% 182%
Third-party assets under management [Euro bn](1) 1,411 1,361
Please note: The condensed consolidated interim financial statements
are presented in millions of euros, unless otherwise stated. Due to
rounding, numbers presented may not add up precisely to the totals
provided and percentages may not precisely reflect the absolute
figures. Previously published figures have been adjusted accordingly
(1) Effective 1 January 2014, the Allianz Group allocated certain entities
from Asset Management to Life/Health and Banking
(2) Excluding non-controlling interests
(3) Including off-balance sheet reserves (12/31/13: Euro 2.3bn,
09/30/14: Euro 2.2bn). The solvency ratio excluding off-balance sheet
reserves would amount to 173% as of 12/31/13 and additionally adjusted
for the potential calls of hybrid capital of Euro 1.4bn in the coming
year 176% as of 09/30/14
(4) Hybrid capital has been adjusted by Euro 1.4bn due to potential calls
in 2015. Excluding this adjustment, the conglomerate solvency ratio
would be 190% as of 09/30/14
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/US-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.
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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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295688 06.11.2014
DGAP-News: Allianz SE: Allianz with double-digit growth in revenues and net income in third quarter of 2014
| Source: EQS Group AG