Allianz SE / Key word(s): Quarter Results
10.11.2010 06:59
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*Revenues grow by 11.4 percent to 24.5 billion euros
*Operating profit increases by 2.3 percent to 2.1 billion euros
*Quarterly net income reflects higher tax expense
*Solvency ratio of 168 percent
*Full-year operating profit expected to reach upper end of target range
Allianz Group today announced strong results for the third quarter and
confirmed its operating profit outlook for 2010. Revenues in the third
quarter grew by 11.4 percent to 24.5 billion euros. In the same period of
2009, this figure was 22.0 billion euros. Internal growth(1) of revenues
amounted to 6.5 percent. Quarterly operating profit grew by 2.3 percent to
2.1 billion euros, from 2.0 billion euros in the third quarter of last
year. Quarterly net income of 1.3 billion euros was impacted by a higher
tax expense. Compared to 1.4 billion euros in third quarter 2009, net
income decreased by 8.8 percent.
Michael Diekmann, CEO of Allianz SE: 'We increased our nine-month operating
profit by 19.8 percent to 6.1 billion euros. With this strong performance,
I expect our full-year operating profit to trend towards the upper end of
our target range of around 7.2 billion euros plus or minus 500 million
euros. Also, for the first time since 2005 we are likely to end the year
with total revenues above 100 billion euros.'
Allianz Group's capital position remains solid with a solvency ratio of 168
percent as of September 30, 2010, following 170 percent at the end of
second quarter 2010. Shareholders' equity increased by 2.5 percent to 44.9
billion euros as of September 30, 2010, from 43.8 billion euros at the end
of June 2010.
Property-Casualty operating profit up 8.8 percent
In the Property and Casualty business, gross premiums written increased by
3.6 percent to 10.6 billion euros, compared to 10.2 billion euros in third
quarter 2009. Adjusted for currency effects, premiums decreased by 1.1
percent. Operating profit grew by 8.8 percent to 1.1 billion euros,
compared to 1.0 billion euros in third quarter 2009. As in the second
quarter of 2010, an improved underwriting result and higher operating
investment income contributed to the operating profit growth.
The combined ratio amounted to 97.1 percent, compared to 96.9 percent in
the same period of last year. Claims from natural catastrophes in the third
quarter amounted to 307 million euros, accounting for 3.0 percentage points
of the combined ratio. A run-off ratio of 3.4 percent offset the high
NatCat impact.
'For natural catastrophes during the first nine months, about 1.1 billion
euros were used worldwide to pay the claims of our policyholders and to
build provisions for these occurrences. Higher-than-expected NatCat impact
aside, the segment substantially improved its operating profit in the third
quarter. This was evidenced by improvements in the accident year loss ratio
excluding natural catastrophes. At 69.1 percent, it is below 70 percent for
the first time in eight quarters. In addition, prices in several core
markets continued to rise, and are expected to keep rising in 2011,' said
Oliver Bäte, Chief Financial Officer of Allianz SE.
Life/Health revenues grow by 16.4 percent
In the Life/Health segment, revenues grew by 16.4 percent to 12.6 billion
euros, compared to 10.8 billion euros in third quarter 2009. Adjusted for
currency effects, growth amounted to 11.7 percent. The increase was based
on continued demand for old age provisioning, including unit-linked
insurance as well as traditional life insurance.
Operating profit(2) amounted to 655 million euros, 30.2 percent lower than
the 939 million euros earned in third quarter 2009. This decrease reflects
last year's exceptionally high third quarter investment result when markets
strongly rebounded from the financial crisis.
'The Life/Health segment continued its good performance during the third
quarter. Our nine-month operating profit of 2.3 billion euros is already
within our full-year target range,' said Oliver Bäte.
Asset Management with 100 billion euros nine-month third-party net inflows
The Asset Management business achieved an operating profit of 521 million
euros. This translates into 41.6 percent growth, compared to 368 million
euros in third quarter 2009. Net fee and commission income increased by
42.6 percent to 1.24 billion euros, from 866 million euros. On an internal
basis, growth amounted to 31.9 percent. The cost-income ratio improved
further to 58.5 percent, compared to 59.1 percent in third quarter 2009.
Total assets under management grew by 25.5 percent to 1,443 billion euros
as of September 30, 2010, compared to 1.150 trillion euros at the end of
the third quarter 2009. This growth was supported by exceptionally strong
third-party net inflows of 40 billion euros during the third quarter of
2010.
Oliver Bäte: 'The segment's outstanding performance has continued. In the
third quarter, Asset Management contributed more than one-fifth of Group
net income. Nine-month operating profit has already outperformed the annual
target, and third-party net inflows during the first nine months reached
100 billion euros. At its current level, Assets under Management provide a
strong basis for future profitability.'
(1) Adjusted for foreign currency and consolidation effects
(2) We changed our accounting policy for fixed-indexed annuities as of July
1, 2010, which impacted the result of our U.S. business. Therefore the
prior quarter figures were restated.
Allianz Group - Key figures 3Q 2010*
3Q 2010 3Q 2009
Total revenues [Euro bn] 24.5 22.0
Operating profit / loss [Euro mn] 2,055 2,009
Property/Casualty [Euro mn] 1,122 1,031
Life/Health [Euro mn] 655 939
Asset Management [Euro mn] 521 368
Corporate and Other[Euro mn] -270 -295
Consolidation [Euro mn] 27 -34
Income from continuing operations before income taxes
[Euro mn] 1,932 1,917
Income taxes [Euro mn] -664 -527
Net income / loss from continuing operations [Euro mn] 1,268 1,390
Property/Casualty [Euro mn] 872 781
Life/Health [Euro mn] 445 661
Asset Management [Euro mn] 281 146
Corporate and Other [Euro mn] -454 -145
Consolidation [Euro mn] 124 -53
Net loss from discontinued operations, net of
income taxes [Euro mn] 0 0
Net income [Euro mn] 1,268 1,390
attributable to non-controlling interests 4 16
attributable to shareholders 1,264 1,374
Basic earnings per share [Euro] 2.80 3.06
from continuing operations [Euro] 2.80 3.06
from discontinued operations [Euro] 0.00 0.00
Diluted earnings per share [Euro] 2.78 3.05
from continuing operations [Euro] 2.78 3.05
from discontinued operations [Euro] 0.00 0.00
Ratios
Property/Casualty: Combined Ratio 97.1% 96.9%
Life/Health: Cost-income ratio 96.0% 93.6%
Asset Management: Cost-income ratio 58.5% 59.1%
09/30/2010 12/31/2009
Shareholders' equity** [Euro bn] 44.9 40.1
Conglomerate solvency ratio *** 168% 164%
Third-party assets under management [Euro bn] 1,131 926
* Figures prior to third quarter of 2010 have been restated to reflect a
change in Allianz Group's accounting policy. For further information please
refer to note 2 of our condensed consolidated interim financial statements
within the quarterly report.
** Excluding non-controlling interests
*** Including off-balance sheet reserves (12/31/2009: EUR 1,993mn,
09/30/2010: EUR 1,914mn) pro forma. The solvency ratio excluding
off-balance sheet reserves would amount to 159% as of 09/30/2010 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 Frankfurt (Prime Standard), Berlin,
Stuttgart, Hannover, Hamburg, München, Düsseldorf;
Terminbörse EUREX
End of Announcement DGAP News-Service
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DGAP-News: Allianz SE: Allianz achieves strong third quarter result
| Source: EQS Group AG