Allianz SE says it recorded €3.9 billion operating profit in the second quarter (Q2) of 2024 with total business volume growth of 7.6 percent or €42.6 billion, while shareholders’ core net income remained stable at €2.5 billion.
In a statement, the global insurers said the performance was driven by strong momentum across all business segments.
It stated that for the half year 2024 results, total business volume of the Company rose by 6.4 percent to €91.0 billion, Operating profit increased by 5.3 percent to €7.9 billion driven by all segments, and shareholders’ core net income advanced by 7.7 percent to €5.0 billion, with strong solvency II capitalization ratio of 206 percent.
Projecting on 2024 outlook, the company affirmed its operating profit target of €14.8 billion, plus or minus €1 billion.
Other activities of the year include share buy-back of €1 billion executed by the end of July 2024, and decision to expand the total volume of the share buy-backs in the financial year 2024 to a total of €1.5 billion.
Allianz resolved to repurchase additional shares in a volume of up to €500 million.
Oliver Bäte, Chief Executive Officer of Allianz SE, while commenting on the performance stated, “Allianz delivered strong results in the first six months of the year and we are confident in our ability to achieve our full-year ambitions.
“Our performance demonstrates the core strengths and resilience of our company, particularly as our results were achieved amid significant natural catastrophe activity in the second quarter – and notably in our home market.
“The way that Allianz responded to our customers affected by the floods in Germany reflected the best possible blend of compassion, speed, and expertise. Teams enabled by digital claims processing tools visited nearly all affected properties within two weeks of the event, which reassured our customers and limited damages.
“These excellent property and casualty outcomes were complemented by strong delivery in our life/health, and asset management segments, demonstrating how we translate our customer-centric strategy into resilient earnings growth.”
Total business volume in Q2 2024 rose by 7.6 percent to €42.6 billion. This increase was driven by strong momentum across all business segments.
Adjusted for foreign currency translation and consolidation effects, internal growth was 8.8 percent. The Property-Casualty segment was the main driver, but all business segments contributed positively.
Total business volume increased by 6.4 percent to €91.0 billion, and all business segments contributed to this growth.
Adjusted for foreign currency translation and consolidation effects, internal growth was 7.5 percent.
Operating profit was very good at €3.9 billion (2Q 2023: €3.8 billion). All segments contributed to this result. The Property-Casualty business showed a strong underlying performance which largely offset the impact of elevated natural catastrophes.
Shareholders’ core net income was stable at €2.5 billion.
Net income attributable to shareholders rose to €2.5 (€2.3) billion driven by operating profit growth, and higher non-operating result.
Operating profit was strong at €7.9 billion (6M 2023: €7.5 billion), up by 5.3 percent, driven by all business segments.
The Life/Health segment achieved widespread growth across most regions.
In Asset Management, higher AuM-driven revenues were the main drivers while the Property-Casualty business benefited from strong growth and underlying performance.
Shareholders’ core net income advances 7.7 percent to €5.0 billion.
Net income attributable to shareholders increased by 14.2 percent to €5.0 (€4.4) billion, driven by operating profit growth, and higher non-operating result.
Core earnings per share (EPS)3 was €12.57 (6M 2023: €11.40).
The annualised core return on equity (RoE)3 was 17.5 percent (full year 2023: 16.1 percent).
The share buy-back programme of up to €1 billion, announced on February 22, 2024, has been executed by the end of July 2024.
“The Board of Management has decided to expand the total volume of the share buy-backs in the financial year 2024 to a total of €1.5 billion, and has therefore resolved to repurchase additional shares in a volume of up to €500 million,” the firm stated.
The Solvency II capitalization ratio was 206 percent at the end of second quarter 2024 compared with 203 percent at the end of the first quarter 2024.
Claire-Marie Coste-Lepoutre, Chief Financial Officer of Allianz SE said, “Allianz’s results for the second quarter and the consistency of our performance confirm our sustained momentum and the resilience of our business model.
“In our Property-Casualty segment, we achieved a very good operating profit. This shows our ability to deliver strong results even as we were impacted by severe natural catastrophes in particular in Germany. Our continuous focus on productivity is as well supporting our performance.
“We have reached an excellent operating profit in our Life/Health operations. Our strong new business generation and a healthy new business margin speak for the attractiveness of our products.
“In Asset Management, continued net inflows of 14.1 billion euros in the second quarter bring our net inflows for the first half to 48.4 billion euros. Our third-party assets under management exceeded 1.8 trillion euros for the first time since 1Q 2022. This is a good basis for future profit growth.
“We look with confidence to the second half of 2024 and affirm our outlook for an operating profit of 14.8 billion euros plus or minus 1 billion euros for the full year.”
Property-Casualty insurance: Strong operating profit
Q2 2024: Total business volume increased by 9.4 percent to €19.3 (€17.6) billion. Adjusted for foreign currency translation and consolidation effects, internal growth was 10.5 percent. Very good growth of 12 percent in Retail, SME & Fleet was the main driver while Commercial lines advanced by 9 percent.
Operating profit was €1.9 (€2.0) billion – a resilient performance in light of elevated natural catastrophe and weather losses.
The combined ratio amounted to 93.5 percent (92.2 percent). The loss ratio was 69.2 percent (67.4 percent) as significantly higher claims from natural catastrophes were partly offset by better run-off. The underlying profitability has improved in line with expectations. The expense ratio also developed favourably by 0.5 percentage points to 24.2 percent.
6M 2024: Total business volume increased by 7.3 percent to €44.8 (€41.7) billion. Adjusted for foreign currency translation and consolidation effects, internal growth was 8.1 percent. In Retail, SME & Fleet growth amounted to 9 percent while Commercial lines contributed by 5 percent.
Operating profit rose by 3.3 percent to an excellent level of €4.0 (€3.9) billion.
The combined ratio came in at 92.7 percent (92.0 percent). The loss ratio was 68.3 percent (67.2 percent) as higher claims from natural catastrophes were partly offset by better run-off. The underlying profitability has improved in line with expectations. The expense ratio improved by 0.4 percentage points to 24.4 percent.
Life/Health insurance: Very good growth
2Q 2024: PVNBP, the present value of new business premiums, increased to €18.8 (€17.7) billion, driven by higher volume in most entities. Adjusted for one large contract in the prior year period, PVNBP is up by 14.7 percent.
Operating profit advanced to €1.4 (€1.2) billion, driven by all regions.
Contractual Service Margin (CSM) rose from €53.2 billion in the first quarter to €53.6 billion, driven by good normalized CSM growth of 1.3 percent slightly offset by non-economic impacts.
The new business margin (NBM) was strong at 5.8 percent (6.2 percent). The value of new business (VNB) remained at a very good level of €1.1 (€1.1) billion.
6M 2024: PVNBP rose to €41.1 (€36.2) billion, supported by strong sales in capital efficient products.
Operating profit increased to €2.7 (€2.5) billion due to positive developments in nearly all regions.
Contractual service margin (CSM) rose to €53.6 billion from €52.6 billion at the end of 2023, driven by a normalized CSM growth of 3.1 percent.
The new business margin was strong at 5.7 percent (5.8 percent). The value of new business rose to €2.4 (€2.1) billion, primarily driven by volume growth in most entities.
Q2 2024: Operating revenues increased to €2.0 billion, up €4.4 percent adjusted for foreign currency translation effects. Higher AuM-driven revenues more than offset lower performance fees.
Operating profit rose to €742 (€703) million, up 5.6 percent. Adjusted for foreign currency translation effects, operating profit increased by 4.8 percent.
The cost-income ratio (CIR) was stable at 62.4 percent (62.5 percent).
Third-party assets under management increased to €1.803 trillion as of June 30, 2024, up by €19 billion euros from the end of the first quarter 2024, reaching the highest level since the first quarter 2022. The main driver were net inflows of €14.1 billion with further positive contribution from favorable foreign currency translation effects.
Total assets under management rose to €2.309 trillion at the end of the second quarter of 2024, up €12 billion from the end of the first quarter 2024 in line with the results for the third-party assets under management.
6M 2024: Operating revenues increased to €4.0 billion, up 5.1 percent adjusted for foreign currency translation effects. The increase was largely driven by higher AuM-driven revenues.
Operating profit rose to €1.5 (€1.4) billion, up 6.3 percent. Adjusted for foreign currency translation effects, operating profit increased by 6.5 percent. The cost-income ratio (CIR) improved to 61.8 percent (62.3 percent).
Third-party assets under management increased by €91 billion from the end of 2023 to €1.803 trillion as of June 30, 2024, while strong net inflows of €48.4 billion were the main contributor.
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