DGAP-News: Allianz SE / Key word(s): 9-month figures/Quarter Results
Allianz SE: Allianz on track for full-year target
06.11.2015 / 06:59
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* Nine-month operating profit stable at 8.15 billion euros
* Nine-month net income attributable to shareholders up 3.9 percent to 5.20
billion euros
* Quarterly operating profit down 7.5 percent to 2.45 billion euros
* Quarterly net income attributable to shareholders decreases by 15.4
percent to 1.36 billion euros
* Targeted shift in Life product mix improves profitability for new
business
* Strong Solvency II capitalization of 200 percent
Over the first nine months of the year, Allianz Group total revenues rose
3.5 percent to 95.5 (92.2) billion euros. Operating profit remained stable
at 8.15 (8.14) billion euros. Net income attributable to shareholders
increased 3.9 percent to 5.20 (5.00) billion euros.
"In a volatile financial market environment, Allianz's fundamentals
remained at a solid level in all business segments in the third quarter. We
expect the full year operating profit to grow and arrive in the upper end
of our target range of 10.0 to 10.8 billion euros," said Dieter Wemmer, CFO
of Allianz SE.
In the third quarter of 2015, Allianz Group maintained revenues at a high
level and achieved a solid operating profit, although both weakened
slightly compared to one year ago. Total quarterly revenues were 27.5
(third quarter of 2014: 28.8) billion euros, a decrease of 4.3 percent.
Operating profit was 2.45 (2.65) billion euros, down 7.5 percent. Net
income attributable to shareholders amounted to 1.36 (1.61) billion euros,
a decrease of 15.4 percent, in part due to one-off tax benefits in the
year-earlier quarter.
In the quarter, the segment Property and Casualty insurance saw revenues
increase while the operating profit was affected by lower investment and
underwriting results. In the Life and Health insurance segment, sales
shifted towards unit-linked and other capital efficient products while
statutory premiums for traditional products decreased. In the segment Asset
Management, operating profit continued to be impacted by the effects of
prior period outflows.
Solvency II capitalization was 200 percent as of September 30, 2015. This
represented an increase of 9 percentage points compared to December 31,
2014. Shareholders' equity increased by 0.9 percent to 61.3 billion euros
from 60.7 billion euros as of December 31, 2014.
Property and Casualty insurance with healthy operating profit
Gross premiums written in Property and Casualty insurance increased 2.4
percent to 11.52 (11.25) billion euros in the third quarter. Adjusted for
foreign exchange and consolidation effects, internal growth was 0.4
percent. Strong premium growth was recorded in particular in Turkey with
37.6 percent internal growth. At the global business line Allianz Worldwide
Partners, Allianz Global Assistance was the main driver of the 12.1 percent
internal growth, while in Spain premiums increased by 7.3 percent.
Australia continued its strong growth at 4.2 percent on an internal basis,
in particular in the areas of motor and property insurance.
Operating profit in the Property and Casualty segment was down 5.0 percent
to 1.35 (1.42) billion euros in the third quarter. This decline was mainly
driven by a lower investment result and further impacted by a weaker
underwriting result. The impact from natural catastrophes was 137 million
euros higher than in the previous year and totaled 144 million euros. The
combined ratio deteriorated by 0.6 percentage points to 94.1 (93.5)
percent.
"Our Property and Casualty business continued with a strong underwriting
margin despite an increase in weather related claims compared to the year
before, as well as several large claims," said Dieter Wemmer. "The overall
development of the segment is on track."
Life and Health insurance: shift in product mix improves new business
margin
Overall, premiums shifted further towards unit-linked and other capital
efficient products. This was particularly evident in core markets,
including Germany, France and Italy. As a result of this targeted shift,
the new business margin improved by 0.3 percentage points to 3.0 percent.
Also as a result, statutory premiums in Life and Health insurance were down
9.7 percent compared to elevated sales in the previous-year quarter,
amounting to 14.31 (15.85) billion euros. Operating profit decreased by 6.6
percent to 738 (790) million euros, hampered in part by a write-down of
deferred acquisition costs in South Korea.
The value of new business decreased slightly by 1.6 percent to 325 (330)
million euros. Compared to the second quarter, the value of new business
increased by 55 percent. This improvement is a further result of the
targeted shift away from capital intensive products.
"Our product mix in the Life and Health segment continues to move in the
right direction -- away from traditional and towards new products," said
Dieter Wemmer. "Our improved new business margin is clear evidence that the
execution of our strategy is paying off."
Asset Management third party net outflows slow further
In the third quarter, operating revenues of the segment Asset Management
reached 1.64 (1.62) billion euros, an increase of 1.1 percent. This
increase was driven by a high level of performance fees and the
significantly strengthened US dollar, which more than compensated for the
impact of lower average third-party assets under management.
Operating profit declined 13.5 percent to 600 (694) million euros. Impacted
by current and prior-period net outflows, the cost-income ratio weakened
year-on-year to 63.3 (57.1) percent but strengthened when compared to the
second quarter level of 67.4 percent.
On September 30, 2015, total assets under management were 1,746 billion
euros compared to 1,801 billion euros at the end of 2014. Third-party
assets under management amounted to 1,259 billion euros, down from 1,313
billion euros at the end of 2014. In addition to the net outflows, volatile
capital markets contributed to the decrease.
The third quarter saw third-party net outflows in the Asset Management
segment slow further and amounted to 14.8 billion euros, compared to net
outflows of 47.4 billion euros in the previous year's third quarter. Net
outflows at PIMCO amounted to 16.0 billion euros in the third quarter while
Allianz Global Investors recorded net inflows of 1.3 billion euros.
"Net outflows at PIMCO nearly halved compared to the previous quarter and
have reached the lowest quarterly level since the start of net outflows in
the third quarter of 2013," said Dieter Wemmer. "At Allianz Global
Investors, third party net inflows continued for the eleventh consecutive
quarter."
Allianz Group - Key figures 3rd quarter and first 9 months of 2015 (1)
3Q 2015 3Q 2014
Total revenues [Euro bn] 27.5 28.8
Operating profit / loss [Euro mn] 2,452 2,650
Property-Casualty [Euro mn] 1,352 1,422
Life/Health [Euro mn] 738 790
Asset Management [Euro mn] 600 694
Corporate and Other[Euro mn] -246 -248
Consolidation [Euro mn] 8 -9
Income before income taxes [Euro mn] 2,159 2,319
Income taxes [Euro mn] -720 -632
Net income / loss [Euro mn] 1,440 1,687
Property-Casualty [Euro mn] 1,019 1,083
Life/Health [Euro mn] 547 530
Asset Management [Euro mn] 374 438
Corporate and Other[Euro mn] -354 -311
Consolidation [Euro mn] -146 -52
Net income [Euro mn] 1,440 1,687
attributable to non-controlling interests [Euro mn] 81 81
attributable to shareholders [Euro mn] 1,359 1,606
Basic earnings per share [Euro] 2.99 3.54
Diluted earning per share [Euro] 2.98 3.52
Ratios
Property/Casualty: Combined ratio 94.1% 93.5%
Life/Health: Margin on reserves [bps] 52 61
Asset Management: Cost-income ratio 63.3% 57.1%
9M 2015 9M 2014
Total revenues [Euro bn] 95.5 92.2
Operating profit / loss [Euro mn] 8,149 8,144
Property-Casualty [Euro mn] 4,382 4,257
Life/Health [Euro mn] 2,695 2,655
Asset Management [Euro mn] 1,661 2,015
Corporate and Other[Euro mn] -577 -689
Consolidation [Euro mn] -11 -94
Income before income taxes [Euro mn] 7,932 7,658
Income taxes [Euro mn] -2,444 -2,373
Net income / loss [Euro mn] 5,488 5,285
Property-Casualty [Euro mn] 3,285 2,697
Life/Health [Euro mn] 1,948 1,891
Asset Management [Euro mn] 1,033 1,263
Corporate and Other[Euro mn] -609 -429
Consolidation [Euro mn] -168 -137
Net income [Euro mn] 5,488 5,285
attributable to non-controlling interests [Euro mn] 290 283
attributable to shareholders [Euro mn] 5,198 5,002
Basic earnings per share [Euro] 11.44 11.02
Diluted earning per share [Euro] 11.43 10.95
Ratios
Property/Casualty: Combined ratio 94.1% 93.6%
Life/Health: Margin on reserves [bps] 64 70
Asset Management: Cost-income ratio 65.1% 57.5%
09/30/15 12/31/14
Shareholders' equity [Euro bn](2) 61.3 60.7
Conglomerate solvency ratio(3) 195% 181%
Third-party assets under management [Euro bn] 1,259 1,313
1. In 4Q 2014 the French International Health business was reclassified
from L/H France to Allianz Worldwide Partners (P/C) effective 01/01/14.
2. Excluding non-controlling interests.
3. Including off-balance sheet reserves (12/31/14: EUR 2.3bn, 09/30/15:
EUR 2.4bn). The solvency ratio excluding off-balance sheet reserves
would amount to 172% as of 12/31/14 and 187% as of 09/30/15.
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: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime
Standard), Hamburg, Hanover, Munich, Stuttgart;
Terminbörse EUREX
End of News DGAP News Service
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409505 06.11.2015
DGAP-News: Allianz SE: Allianz on track for full-year target
| Source: EQS Group AG