DGAP-News: Allianz SE / Key word(s): Quarter Results/Half Year Results
Allianz SE: Allianz reports strong second quarter results and confirms
full year outlook
08.08.2014 / 06:59
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*Total revenues rise 10.0 percent to 29.46 billion euros
*Operating profit climbs 17.1 percent to 2.77 billion euros
*Net income attributable to shareholders up 10.5 percent to 1.76 billion
euros
*Shareholders' equity grows by 9.8 percent to 55 billion euros vs. year-end
2013
*Allianz confirms operating profit outlook for 2014 of 10.0 billion euros,
plus/minus 0.5 billion euros - upper end of target range in reach
Allianz Group achieved strong results in the second quarter of 2014. Total
quarterly revenues increased 10.0 percent to 29.46 (second quarter of 2013:
26.78) billion euros. Operating profit climbed 17.1 percent to 2.77 (2.37)
billion euros. Net income attributable to shareholders amounted to 1.76
(1.59) billion euros, an increase of 10.5 percent.
In the first half of the year, Allianz Group reported the highest total
revenues in the company's history. Total revenues rose 7.8 percent to 63.42
(58.82) billion euros. Operating profit climbed 6.4 percent to 5.49 (5.16)
billion euros, while net income attributable to shareholders advanced 3.0
percent to 3.40 (3.30) billion euros in the first six months of the year.
In the second quarter, the segment Property and Casualty insurance again
contributed roughly half to Allianz Group's operating profit. The impact
from natural catastrophes was lower compared to the high level of the
second quarter of 2013 and the underwriting result improved. In the Life
and Health insurance segment, new life insurance sales continued their
momentum and statutory premiums in the quarter climbed more than 20
percent. Operating profit of the segment reached a new historic high. Asset
Management continued to perform within expectations.
The conglomerate solvency ratio rose 3 percentage points to 185 percent as
of June 30, 2014, from 182 percent at the end of 2013. Shareholders' equity
grew over the same period by 9.8 percent to 54.979 billion euros from
50.084 billion euros.
"The market environment continues to present challenges for customers and
financial service providers. Our well-diversified business model as well as
new solutions for customers enabled us to achieve already 55 percent of the
midpoint of the outlook range in the first six months of 2014", said
Michael Diekmann, Chairman of the Board of Management of Allianz SE. "In
view of these good half-year results, we maintain our outlook for the
operating profit for 2014 of 10 billion euros, plus or minus 500 million
euros, but expect the upper end of the target range to be in reach. As
always, this forecast is under the caveat that natural catastrophes and
capital market turbulence do not exceed expected levels."
Second quarter in detail:
Property and Casualty insurance operating profit up by 14.2 percent
Gross premiums written in Property and Casualty insurance reached 10.85
(10.75) billion euros, an increase of 0.9 percent. Unfavorable foreign
exchange effects continued in the second quarter. Excluding foreign
exchange and consolidation effects, internal growth stood at 2.6 percent.
Allianz United Kingdom recorded strong internal growth of 15.5 percent
across all business lines. Premiums of Allianz Germany grew by 6.0 percent
on an internal basis, benefiting from positive developments in motor and
commercial non-motor. Allianz Worldwide Partners and Allianz Global
Corporate & Specialty saw positive growth as well. On the other hand, the
businesses in Brazil, Russia and Turkey faced challenges which weighed on
top-line performance.
The segment's operating profit climbed 14.2 percent to 1.35 (1.18) billion
euros. An improved underwriting result of 516 (357) million euros drove
operating profit, supported by a benign natural catastrophe environment.
Impact of natural catastrophes in the second quarter amounted to 172 (549)
million euros, stemming mostly from storm "Ela" which hit Belgium, France
and Germany in June.
The quarterly combined ratio improved by 1.4 percentage points to 94.6
(96.0) percent. The loss ratio decreased by 1.1 percentage points to 66.2
(67.3) percent. The expense ratio improved 0.3 percentage points to 28.4
(28.7) percent.
"Our Property and Casualty business has seen another successful quarter
helped by a comparatively low impact from natural catastrophes and a strict
underwriting discipline," said Dieter Wemmer, Chief Financial Officer of
Allianz SE.
Life and Health insurance revenues and profits advance
In the second quarter, statutory premiums in Life and Health insurance
climbed 20.1 percent to 16.96 (14.13) billion euros. Excluding foreign
exchange and consolidation effects, internal growth stood at 20.9 percent.
The main contributors to premium growth came from the US, Germany and
Italy. Allianz Life in the US almost doubled its premiums to 3.35 (1.79)
billion euros thanks to strong sales of fixed-indexed annuities. Premiums
in Italy rose 17 percent to 3.1 billion euros. The success of the life
insurance product "Perspektive" in Germany continued, with a share in
retail business via agents rising to 27 percent. Single premium products
were in high demand in Germany, Italy, Switzerland, Asia-Pacific, and the
US.
The new business margin grew 0.7 percentage points in the second quarter of
2014 to 2.4 (1.7) percent. Over the same period the value of new business
doubled to 380 (190) million euros. Operating profit in Life and Health
insurance jumped 47 percent to 984 (669) million euros, a new historic
high.
"We see a continued momentum to buy life insurance products serving the
need for old age provisions," said Dieter Wemmer. "While life insurance
still is burdened by increased regulation and the low interest environment,
Allianz has reacted with innovative products reflecting the current
challenges and these products are in high demand."
Asset Management remains on track
In the second quarter of 2014, Asset Management recorded operating revenues
of 1.61 (1.82) billion euros, a decline of 11.5 percent. Operating profit
decreased by 16.0 percent to 675 (804) million euros for the quarter. These
developments include the negative impact of a transfer of entities to other
business segments and unfavorable foreign exchange effects. Without these
effects, operating revenues would have declined by 5.8 percent while
operating profit would have decreased by 9.7 percent.
Total assets under management rose 4.4 percent to 1,814 billion euros at
the end of the second quarter of 2014 from 1,738 billion euros at the
beginning of 2014. Over the same period, third-party assets under
management grew 3.3 percent to 1,373 billion euros from 1,329 billion
euros.
The development in assets under management was supported by market value
increases, which outweighed third-party net outflows of 17.2 billion euros
in the second quarter of 2014, compared to third party net inflows of 6.0
billion euros in the previous year's second quarter.
"Asset Management performed within expectations," said Dieter Wemmer. "With
3.2 billion euros, Allianz Global Investors recorded the highest quarterly
third-party net inflows of its history, while outflows at PIMCO continued
to slow. The key for future results is the investment performance, which is
at a very high level: 89 percent of PIMCO's assets under management
outperformed their benchmarks on a three-year basis."
Allianz Group - Key figures 2nd quarter and 1st half year of 2014
2Q 2014 2Q 2013
Total revenues [Euro bn] 29.5 26.8
Operating profit / loss [Euro mn] 2,771 2,367
Property-Casualty [Euro mn] 1,346 1,179
Life/Health [Euro mn] (1) 984 669
Asset Management [Euro mn] (1) 675 804
Corporate and Other[Euro mn] -219 -174
Consolidation [Euro mn] -15 -11
Income before income taxes [Euro mn] 2,732 2,499
Income taxes [Euro mn] -874 -824
Net income / loss [Euro mn] 1,858 1,675
Property-Casualty [Euro mn] 969 1,001
Life/Health [Euro mn] (1) 731 474
Asset Management [Euro mn] (1) 419 488
Corporate and Other[Euro mn] -248 -277
Consolidation [Euro mn] -13 -11
Net income [Euro mn] 1,858 1,675
attributable to non-controlling interests [Euro mn] 103 87
attributable to shareholders [Euro mn] 1,755 1,588
Basic earnings per share [Euro] 3.87 3.50
Diluted earning per share [Euro] 3.84 3.47
Ratios
Property/Casualty: Combined ratio 94.6% 96.0%
Life/Health: Margin on reserves(1) 79 58
Asset Management: Cost-income ratio (1) 58.0% 55.7%
6M 2014 6M 2013
Total revenues [Euro bn] 63.4 58.8
Operating profit / loss [Euro mn] 5,494 5,164
Property-Casualty [Euro mn] 2,835 2,498
Life/Health [Euro mn] (1) 1,864 1,524
Asset Management [Euro mn] (1) 1,321 1,704
Corporate and Other[Euro mn] -441 -513
Consolidation [Euro mn] -85 -49
Income before income taxes [Euro mn] 5,339 5,177
Income taxes [Euro mn] -1,741 -1,701
Net income / loss [Euro mn] 3,598 3,476
Property-Casualty [Euro mn] 1,614 2,018
Life/Health [Euro mn] (1) 1,360 1,102
Asset Management [Euro mn] (1) 825 1,056
Corporate and Other[Euro mn] -117 -674
Consolidation [Euro mn] -84 -26
Net income [Euro mn] 3,598 3,476
attributable to non-controlling interests [Euro mn] 203 181
attributable to shareholders [Euro mn] 3,395 3,295
Basic earnings per share [Euro] 7.48 7.27
Diluted earning per share [Euro] 7.41 7.18
Ratios
Property/Casualty: Combined ratio 93.6% 95.1%
Life/Health: Margin on reserves(1) 76 66
Asset Management: Cost-income ratio (1) 57.7% 54.3%
06/30/14 12/31/13
Shareholders' equity [Euro bn](2) 55.0 50.1
Conglomerate solvency ratio(3) 185% 182%
Third-party assets under management [Euro bn] (1) 1,373 1,361
(1) Effective January 1, 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(06/30/14:Euro2.2bn, 12/31/13:Euro
2.3bn) The solvency ratio excluding off-balance sheet reserves would amount
to 177% as of 06/30/14 and 173% as of 12/31/13
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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08.08.2014 Dissemination of a Corporate News, transmitted by DGAP - a
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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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281389 08.08.2014
DGAP-News: Allianz SE: Allianz reports strong second quarter results and confirms full year outlook
| Source: EQS Group AG