03.08.2018
Allianz SE DE0008404005
DGAP-News: Allianz SE: Allianz reports strong results for the second quarter of 2018 and confirms full-year outlook
DGAP-News: Allianz SE / Key word(s): Quarter Results/Half Year Results
Allianz SE: Allianz reports strong results for the second quarter of 2018
and confirms full-year outlook
03.08.2018 / 06:59
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
* Internal revenue growth of 6.5 percent in 2Q 2018
* 2Q 2018 operating profit grew 2.3 percent to 3.0 billion euros
* 2Q 2018 net income attributable to shareholders down 5.2 percent to 1.9
billion euros due to the previously announced negative impact from the
sale of a life portfolio in Taiwan
* Solvency II ratio increased to 230 percent
* Allianz Group is on track to meet its 2018 operating profit target
---------------------------------------------------------------------------
Management Summary: All segments record strong internal revenue growth
After a successful start into 2018, Allianz Group continued to achieve good
performance in the second quarter. Indicators remained close to or exceeded
the second-quarter 2017 levels, despite burdens from geopolitical
instabilities and currency fluctuations. Internal revenue growth, which
adjusts for currency and consolidation effects, was 6.5 percent with all
business segments recording strong growth. Total revenues grew 2.9 percent
to 30.9 (second quarter of 2017: 30.0) billion euros. Operating profit
increased 2.3 percent to 3.0 (2.9) billion euros. In the Asset Management
business segment the operating profit grew due to higher revenues, which
were driven by higher assets under management (AuM) and improved margins.
This more than compensated for the decline in operating profit from our
Life/Health business segment. Our Property-Casualty business operating
profit was stable. Net income attributable to shareholders decreased
slightly to 1.9 (2.0) billion euros: a negative impact from the sale of our
traditional life insurance portfolio in Taiwan was only partially offset by
lower income taxes.
Basic Earnings per Share (EPS) increased by 5 percent to 8.86 (8.45) euros
in the first half-year of 2018. Annualized Return on Equity (RoE) increased
to 13.8 percent (full year 2017: 11.8 percent). Allianz maintained its
strong capitalization, with the Solvency II capitalization ratio of 230
percent at the end of the quarter compared to 225 percent recorded at the
end of the first quarter of 2018.
In the first half-year of 2018 operating profit decreased 1.8 percent to 5.8
(5.9) billion euros, mostly driven by our Life/Health business segment due
to a normalization of the investment margin and due to unfavorable foreign
exchange. Operating profit in the Asset Management business grew thanks to
higher AuM-driven revenues. The Property-Casualty operating profit increased
slightly compared to prior year results. Overall, the operating profit for
the first six months is slightly above the mid-point of our full-year target
range. Lower income taxes compensated for the lower operating profit and
non-operating result: net income attributable to shareholders was therefore
stable at 3.8 (3.8) billion euros.
On 2 July 2018, Allianz Group announced a new share buy-back program, with a
volume of up to 1.0 billion euros. The program shall be finalized by 30
September 2018 and all repurchased shares will be cancelled.
"We remain on track to meet our 2018 operating profit target. I am thankful
for everyone on the Allianz team for making this happen across countries and
companies. This makes me confident that we will achieve our three-year
Renewal Agenda targets," said Oliver Bäte, Chief Executive Officer of
Allianz SE.
---------------------------------------------------------------------------
Property-Casualty insurance: Strong internal growth and good operating
performance
* Gross premiums written amounted to 12.1 (11.7) billion euros in the
second quarter of 2018. Adjusted for foreign exchange and consolidation
effects, internal growth totaled 7.3 percent, with price and volume
effects contributing 2.2 percent and 5.1 percent respectively. AGCS,
Allianz Partners, and Germany were the main growth drivers.
* The combined ratio rose to 94.1 (93.7) percent in the second quarter of
2018 reflecting a higher claims ratio from higher large losses and
higher weather-related events, partly offset by an improved expense
ratio.
* Operating profit was stable at 1,455 (1,446) million euros.
"The good results in property and casualty show the underlying strength of
our business. We have made progress with our productivity initiative as
shown by the expense ratio. We remain on track to meet our target of 94
percent in the combined ratio," said Giulio Terzariol, Chief Financial
Officer of Allianz SE.
In the first half-year of 2018, gross premiums written increased slightly to
30.0 (29.4) billion euros. Adjusted for foreign exchange and consolidation
effects, internal growth amounted to 5.9 percent, mostly driven by positive
developments at AGCS, in Germany, and at Allianz Partners. Operating profit
improved slightly by 0.9 percent to 2,729 million euros compared to the same
period of the prior year due to a higher underwriting result. The combined
ratio for the first half-year improved by 0.2 percentage points to 94.4
percent.
---------------------------------------------------------------------------
Life and Health insurance: New business further improved
* PVNBP, the present value of new business premiums, increased to 14.0
(13.6) billion euros in the second quarter of 2018, mainly due to higher
sales of capital-efficient products in the German life insurance
business.
* The new business margin (NBM) strengthened slightly to 3.5 (3.4) percent
due to a favorable business mix and a slightly higher interest rate
level. The value of new business (VNB) increased to 491 (469) million
euros in the quarter driven by the continued shift to capital-efficient
products.
* Operating profit decreased by 4.6 percent to 1,075 (1,128) million euros
due to a lower investment margin in Spain and in our German life
business. Negative foreign currency translation effects mainly from the
United States due to the weakening US Dollar also contributed to the
decrease.
"The positive results of our ongoing product mix shifting to
capital-efficient products demonstrate our ability to adapt to a highly
challenging interest rate environment. Our new business margin of 3.5
percent is well ahead of target and the value of new business increased to
491 million euro in the quarter, showing a good quarterly growth of five
percent," said Giulio Terzariol.
In the first half-year of 2018 PVNBP increased to 29.0 (28.4) billion euros
largely because of the higher sales of our capital-efficient products in the
German life business and of our unit-linked insurance products without
guarantees in Taiwan. Operating profit dropped to 2,144 (2,282) million
euros as a result of less favorable market conditions and unfavorable
foreign currency translation effects in the United States. The NBM increased
to 3.4 (3.3) percent bringing the VNB to 980 (922) million euros.
---------------------------------------------------------------------------
Asset Management: Continued growth in revenues and operating profit - Total
assets under management at highest level ever
* Third-party assets under management (AuM) grew by 35 billion euros (2.5
percent) to 1,464 billion euros compared to the end of the first quarter
of 2018. This increase was driven by favorable foreign currency
translation effects. Third-party net outflows amounted to 9.2 billion
euros. Total AuM reached a record 1,993 billion euros.
* The cost-income ratio (CIR) improved by 0.9 percentage points to 61.6
percent in the second quarter of 2018, as the increase in revenues
outpaced an increase in expenses.
* Operating profit increased by 11.6 percent to 652 (584) million euros in
the second quarter of 2018. This was driven by an increase in operating
revenues, supported by both higher average AuM and an improved margin.
Adjusted for foreign currency translation effects, operating profit was
18.8 percent higher.
"The combination of higher assets under management, higher margins and a
lower cost-income ratio lead to a double-digit profit growth. While we had
net outflows for the quarter, we recorded inflows for the months of June and
July. We are very pleased with the performance of our Asset Management
business," said Giulio Terzariol.
In the first half-year of 2018, operating revenues grew by 4.6 percent to
3.3 billion euros, mainly due to increased average third-party AuM at PIMCO
and an increase in third-party AuM-driven margins at both PIMCO and
AllianzGI. As operating expenses only went up 2.7 percent, the CIR decreased
by 1.2 percentage points to 61.7 percent. Operating profit rose 7.9 percent
to 1,247 (1,156) million euros. Furthermore, favorable foreign currency
effects and third-party inflows, outweighed negative market effects
resulting in third-party AuM of 1,464 billion euros - an increase of 17
billion euros compared to year-end 2017.
Allianz Group - key figures 2nd quarter
and first half year of 2018
2Q 2Q 6M 6M
2018 2017 2018 2017
Total revenues EUR 30.9 30.0 67.3 66.2
bn
- Property-Casualty EUR 12.1 11.7 30.0 29.4
bn
- Life/Health EUR 17.1 16.7 34.2 33.6
bn
- Asset Management EUR 1.7 1.6 3.3 3.1
bn
- Corporate and Other EUR 0.1 0.1 0.1 0.3
bn
- Consolidation EUR -0.1 -0.1 -0.3 -0.2
bn
Operating profit / loss EUR 2,997 2,928 5,753 5,860
mn
- Property-Casualty EUR 1,455 1,446 2,729 2,705
mn
- Life/Health EUR 1,075 1,128 2,144 2,282
mn
- Asset Management EUR 652 584 1,247 1,156
mn
- Corporate and Other EUR -196 -224 -378 -265
mn
- Consolidation EUR 11 -5 12 -18
mn
Net income EUR 1,995 2,093 4,025 4,013
mn
- attributable to non-controlling EUR 104 99 196 203
interests mn
- attributable to shareholders EUR 1,891 1,994 3,830 3,810
mn
Basic earnings per share EUR 4.41 4.45 8.86 8.45
Diluted earnings per share EUR 4.38 4.45 8.78 8.44
Additional KPIs
- Group Return on equity1,2 % 13.7% 11.8% 13.8% 11.8%
- PropertyCasualty/ Combined ratio % 94.1% 93.7% 94.4% 94.6%
- Life/Health / New buisness margin % 3.5% 3.4% 3.4% 3.3%
- Life/Health/ Value of new Business EUR 491 469 980 922
mn
- Asset Management/ Cost-income ratio % 61.6% 62.5% 61.7% 62.9%
06/30- 12/31-
/2018 /2017
Shareholders' equity1 EUR - - 60.3 65.6
bn
Solvency II capitalization ratio3 % - - 230% 229%
Third-party assets under management EUR - - 1,464 1,448
bn
Please note: The figures 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.
1 Excluding non-controlling interests.
2 Excluding unrealized gains/losses on
bonds, net of shadow accounting. RoE
for 2Q 2018 and 6M 2018 is annualized.
For 2Q 2017 and 6M 2017, the return on
equity for the full year 2017 is shown.
Annualized figures are not a forecast
for full year numbers.
3 Risk capital figures are group
diversified at 99.5% confidence level.
Munich, August 3, 2018
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 EUR/USD 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.
Other
The figures regarding the net assets, financial position and results of
operations have been prepared in conformity with International Financial
Reporting Standards. This Quarterly and Half-Year Earnings Release is not an
Interim Financial Report within the meaning of International Accounting
Standard (IAS) 34. PVNBP is shown after minorities unless otherwise stated
This is a translation of the German Quarterly and Half-Year Earnings Release
of the Allianz Group. In case of any divergences, the German original is
binding.
.
---------------------------------------------------------------------------
03.08.2018 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
---------------------------------------------------------------------------
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: [email protected]
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; Regulated
Unofficial Market in Tradegate Exchange
End of News DGAP News Service
---------------------------------------------------------------------------
710015 03.08.2018
|
Weitere Ad-hoc und Unternehmensrelevante Mitteilungen zu
Allianz SE ISIN: DE0008404005 können Sie bei EQS abrufen
Versicherungen , 840400 , ALV , XETR:ALV