DGAP-News: Allianz SE / Key word(s): Quarter Results
Allianz SE: Allianz continues to grow in revenues and profits
26.02.2015 / 06:59
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*Revenues up 10.4 percent to 122.25 billion euros
*Operating profit grows 3.3 percent to 10.40 billion euros
*Net income attributable to shareholders rises 3.8 percent to 6.22 billion
euros
*New dividend policy leads to proposed dividend of 6.85 euros per share
*Operating profit outlook for 2015: 10.4 billion euros, plus/minus 400
million euros
Allianz Group again delivered very good results in 2014. For the first
time, revenues surpassed the 120 billion-euro mark. Based on preliminary
figures, Group total revenues rose 10.4 percent to 122.25 (previous year:
110.77) billion euros. Over the same period, the total number of customers
insured by Allianz increased by 2 million to 85 million.
Operating profit increased 3.3 percent to 10.40 (10.07) billion euros. The
result is in the upper end of the target range as forecast in November
2014. The projected range for the 2014 operating profit was 10.0 billion
euros, plus/minus 500 million euros. Net income attributable to
shareholders increased by 3.8 percent to 6.22 (6.00) billion euros.
"Geopolitical tensions, continued market volatility and a further decline
in interest rates in 2014 led to lower global economic growth than
expected," said Michael Diekmann, CEO of Allianz SE. "Despite these
challenges, Allianz achieved very good results in revenues, operating
profit and net income."
Operating profit in the Property and Casualty insurance segment increased
in 2014 compared to the previous year and delivered more than half of the
total Group operating profit. Strong internal growth, in particular in the
global insurance lines and the UK, drove premiums in this segment. Major
natural catastrophes were much lower than in the prior year.
In the Life and Health insurance segment, both statutory premiums and
operating profit grew at double-digit rates, reflecting a high demand for
Allianz products in the low-interest rate environment. Operating profit was
at the upper end of the forecast range following a better investment
result.
Asset Management generated lower operating profit in line with expectations
amid the change in management at PIMCO. Allianz Global Investors achieved a
record operating profit and experienced positive net inflows over the
course of 2014.
The conglomerate solvency ratio stood at 181 (182) percent at the end of
2014. Shareholders' equity reached a new high of 60.7 (50.1) billion euros
at year end.
Property and Casualty with strong internal growth
In the Property and Casualty insurance segment, gross written premiums
increased 3.7 percent to 48.32 (46.58) billion euros in 2014. Internal
growth reached 3.0 percent. The main internal growth drivers in 2014 were
the global lines as well as high growth in Allianz UK's retail business.
Strong demand for new products continued in 2014, including the modular
household cover products "PrivatSchutz" in Germany and "Allianz1" in Italy.
The acquisition of a part of the insurance business of the Italian
insurance company UnipolSai and the takeover of the general insurance
business of the Australian Territory Insurance Office expanded the Property
and Casualty business in key markets.
Operating profit and the combined ratio both benefitted in 2014 from a
benign natural catastrophe environment, but were impacted by certain
effects, including reserve strengthening in Brazil, at Fireman's Fund and
in Russia. In the United States, Allianz will realign the set-up of
Fireman's Fund by consolidating the corporate insurance activities and
divesting the retail insurance line. Retail insurance business in Russia
and Ukraine was readjusted in reaction to difficult economic conditions in
those markets.
Operating profit in the Property and Casualty segment rose 2.2 percent to
5.38 (5.27) billion euros, driven mainly by a better underwriting result
while the investment result remained stable. The combined ratio remained
unchanged at 94.3 percent.
"Strong volume-driven internal growth in the Property and Casualty segment
is supported by the continued high demand for our new modular products in
the core markets," said Dieter Wemmer, Chief Financial Officer of Allianz
SE. "Our acquisitions as well as the readjustments in the United States,
Russia and Brazil are important portfolio measures to continue the positive
development of our property and casualty business."
Life and Health insurance: operating profit at upper end of target range
Statutory premiums in the Life and Health insurance business grew in 2014
by 18.6 percent to 67.33 (56.78) billion euros. The main sources of premium
growth were the Allianz entities in the United States, Italy and Germany.
Fixed-indexed annuity products were the main growth driver in the United
States, where total statutory premiums increased by 4.5 billion euros. The
life product "Perspektive" has now sold more than 93,000 policies in
Germany since it was introduced in 2013. The unit-linked single-premium
product "Progetto Reddito" continued its success in Italy and generated
over 1 billion euros in gross written premiums in 2014.
Operating profit in the Life and Health segment increased 22.8 percent to
3.33 (2.71) billion euros. The new business margin rose to 2.4 (2.1)
percent. The value of new business increased over the same period to 1,378
(952) million euros, reflecting enhanced profitability management.
"The growth in market share in the Life and Health insurance segment
reflects the success of our products designed for the interest rate
environment," said Dieter Wemmer. "However, low interest rates in the euro
zone and the United States will put pressure on new business margins and
volume in the coming quarters."
Asset Management: net outflows offset by market returns and foreign
currency effects
Revenues in the segment declined overall by 10.8 percent to 6.39 (7.16)
billion euros. This includes the allocation of certain entities from Asset
Management to Life/Health and Banking.
Operating profit was down 17.6 percent to 2.60 (3.16) billion euros. This
development is driven by lower third-party average assets under management
and high non-recurring performance fees from one private fund in 2013.
Total assets under management reached 1,801 (1,770) billion euros as of
December 31, 2014, increasing 1.8 percent. Third-party assets under
management declined over the same period to 1,313 (1,361) billion euros.
The third-party net outflows of 226 billion euros were offset to a large
extent by a strong market return and favorable foreign currency exchange
effects.
The three-year outperformance ratio of Asset Management remained
outstanding at 84 (85) percent as of December 31, 2014. The cost-income
ratio increased to 59.2 (55.9) percent.
A new investment management team is now in place at PIMCO following the
exit of the company's founder Bill Gross in September 2014. Third-party net
outflows reached their highest point after the announcement of his
departure, amounting to a total of 236 billion euros for the full year.
Allianz Global Investors, the second pillar of Allianz Asset Management,
saw net inflows for the eighth consecutive quarter and surpassed 400
million euros in operating profit for the first time since the set-up of
the new structure in 2012.
"After weekly net outflows at PIMCO peaked around the end of the third
quarter of 2014, we saw a clear trend of receding outflows that has
continued in 2015," said Dieter Wemmer. "PIMCO's strong and stable
investment management team and their continued excellent investment
performance will be the basis for further stabilization in 2015. PIMCO's
Total Return Fund recently regained its five-star rating from the
investment research company Morningstar. This is evidence that we are on
the right track."
New dividend policy amounts to proposed dividend of 6.85 euros
The clarification of capital requirements under the new regulation Solvency
II allowed a redefinition of the Allianz SE dividend policy. In November
2014, the Management Board and the Supervisory Board passed the new policy.
Starting with fiscal year 2014, 50 percent of net income attributable to
shareholders will be paid out, compared to 40 percent previously. Following
the new policy, the Management Board has proposed to the Supervisory Board
of Allianz SE a dividend of 6.85 euros per share, an increase of 29 percent
compared to the previous year. For fiscal year 2013, Allianz paid a
dividend of 5.30 euros in accordance with the previous policy.
"The revised dividend policy reflects our successful efforts to prepare
Allianz for the future," said Michael Diekmann. "We expect the economic
environment to remain challenging in 2015. Our current operating profit
outlook for 2015 is 10.4 billion euros, plus/minus 400 million euros."
Allianz Group - Preliminary key figures 4th quarter and fiscal year 2014(1)
4Q 2014 4Q 2013
Total revenues [Euro bn] 30.1 26.8
Operating profit / loss [Euro mn] 2,258 2,384
Property-Casualty [Euro mn] 1,125 1,534
Life/Health [Euro mn] 673 417
Asset Management [Euro mn] 588 703
Corporate and Other [Euro mn] -131 -261
Consolidation [Euro mn] 3 -9
Income before income taxes [Euro mn] 1,189 2,190
Income taxes [Euro mn](2) 128 -853
Net income / loss [Euro mn] 1,318 1,337
Property-Casualty [Euro mn] 751 1,003
Life/Health [Euro mn] 429 277
Asset Management [Euro mn] 358 387
Corporate and Other [Euro mn] -228 -353
Consolidation [Euro mn] 8 22
Net income [Euro mn] 1,318 1,337
attributable to non-controlling interests [Euro mn] 98 81
attributable to shareholders [Euro mn] 1,220 1,256
Basic earnings per share [Euro] 2.69 2.77
Diluted earning per share [Euro] 2.67 2.72
Ratios
Property/Casualty: Combined ratio 96.5% 92.2%
Life/Health: Margin on reserves [bps] 50 35
Asset Management: Cost-income ratio 64.3% 59.4%
12M 2014 12M 2013
Total revenues [Euro bn] 122.3 110.8
Operating profit /loss [Euro mn] 10,402 10,066
Property-Casualty [Euro mn] 5,382 5,267
Life/Health [Euro mn] 3,327 2,709
Asset Management [Euro mn] 2,603 3,161
Corporate and Other [Euro mn] -820 -1,004
Consolidation [Euro mn] -91 -68
Income before income taxes [Euro mn] 8,848 9,643
Income taxes [Euro mn](2) -2,245 -3,300
Net income / loss [Euro mn] 6,603 6,343
Property/Casualty [Euro mn] 3,448 3,817
Life/Health [Euro mn] 2,320 1,941
Asset Management [Euro mn] 1,621 1,925
Corporate and Other [Euro mn] -657 -1,334
Consolidation [Euro mn] -129 -6
Net income [Euro mn] 6,603 6,343
attributable to non-controlling interests [Euro mn] 381 347
attributable to shareholders [Euro mn] 6,221 5,996
Basic earnings per share [Euro] 13.71 13.23
Diluted earnings per share [Euro] 13.64 13.05
Dividend per share [Euro] 6.85(3) 5.30
Ratios
Property-Casualty: Combined ratio 94.3% 94.3%
Life/Health: Margin on reserves [bps] 65 58
Asset Management: Cost-income Ratio 59.2% 55.9%
12/31/14 12/31/13
Shareholders' equity [Euro bn](4) 60.7 50.1
Conglomerate solvency ratio (5)(6) 181% 182%
Third-party assets under management [Euro bn] 1,313 1,361
<pre>
Please note: The consolidated 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.
</pre>
(1) Effective 01/01/14, the Allianz Group allocated certain entities from
Asset Management to Life/Health and Banking. In 4Q 2014 the French
International Health business was transferred from L/H France to
Allianz Worldwide Partners (P/C) effective 01/01/14.
<pre>
(2) Thereof tax benefits for prior years allocated to policyholders of EUR
627mn, resulting from favorable Federal Fiscal Court decision in Germany.
Excluding this extraordinary effect the income taxes for 12M 2014 amounted
to EUR -2,872mn.
</pre>
(3) Proposal
(4) Excluding non-controlling interest
(5) As of 12/31/14 hybrid capital has been adjusted by EUR 0.4bn due to
potential calls in 2015. Excluding this adjustment, the conglomerate
solvency ratio would be 182%.
(6) Including off-balance sheet reserves (12/31/13: EUR 2.3bn, 12/31/14:
EUR 2.3bn). 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 EUR 0.4bn in 2015 to 172% as of
12/31/14.
<pre>
</pre>
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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326901 26.02.2015
DGAP-News: Allianz SE: Allianz continues to grow in revenues and profits
| Source: EQS Group AG