02.08.2019 Allianz SE  DE0008404005

DGAP-News: Allianz SE: Allianz reports strong profitability in 2Q 2019. Operating profit outlook for full-year confirmed.


DGAP-News: Allianz SE / Key word(s): Half Year Results/Quarter Results
Allianz SE: Allianz reports strong profitability in 2Q 2019. Operating profit outlook for full-year confirmed.

02.08.2019 / 06:59
The issuer is solely responsible for the content of this announcement.

  • Internal revenue growth of 4.1 percent in 2Q 2019
  • 2Q 2019 operating profit up 5.4 percent to 3.2 billion euros
  • 2Q 2019 net income attributable to shareholders up 13.1 percent to 2.1 billion euros
  • 6M 2019 operating profit at 6.1 billion euros reaches 53 percent of full-year outlook midpoint
  • 6M 2019 net income attributable to shareholders rises 7.3 percent to 4.1 billion euros
  • Solvency II capitalization ratio at 213 percent at the end of 2Q 2019 compared to 218 percent at the end of 1Q 2019
  • Operating profit outlook for 2019 confirmed at 11.5 billion euros, plus or minus 500 million euros
Management Summary: Strong total revenues and profitability

After a successful start into 2019, Allianz Group continued with a very strong operating performance in the second quarter of the year. At the heart of this result is Allianz' focused strategy, strong execution, and its diversified business portfolio. Internal revenue growth, which adjusts for currency and consolidation effects, was 4.1 percent in the second quarter of 2019. Total revenues increased 6.1 percent to 33.2 (second quarter of 2018: 31.3) billion euros. Operating profit grew 5.4 percent to 3.2 (3.0) billion euros in the second quarter of 2019, largely driven by our Life/Health business segment with a good underlying performance and a one-off profit in the United States. Our Asset Management business segment's operating profit increased mainly as a result of higher assets under management driven revenues. A lower investment result led to a decrease in our Property-Casualty business segment's operating profit.

Net income attributable to shareholders increased 13.1 percent to 2.1 (1.9) billion euros in the second quarter of 2019 due to operating profit growth and an improved non-operating result. The latter improved as the second quarter of 2018 was burdened by a negative impact from the sale of our traditional life insurance portfolio in Taiwan.

Basic Earnings per Share (EPS) increased 10.2 percent to 9.76 (8.86) euros in the first half-year of 2019. Annualized Return on Equity (RoE) amounted to 14.7 percent (full year 2018: 13.2 percent). The Solvency II capitalization ratio decreased from 218 percent at the end of the first quarter 2019 to 213 percent at the end of the second quarter 2019. The decrease was predominantly driven by market movements and capital management actions, which were partially offset by positive operating Solvency II earnings.

In the first half-year of 2019, operating profit grew by 6.4 percent to 6.1 (5.8) billion euros, which is above the mid-point of our full-year target range. Our Life/Health business segment's operating profit increased, supported by a one-off profit in the United States. Property-Casualty business segment recorded an improved underwriting result while our Asset Management business segment operating profit was stable. Our operating profit growth was the main driver for the 7.3 percent increase of net income attributable to shareholders to 4.1 billion euros.

On February 14, 2019, Allianz announced a new share buy-back program of up to 1.5 billion euros.
6.2 million shares have been acquired by June 30, 2019, representing 1.5 percent of outstanding capital.

"I am proud that the Allianz team has once again delivered a healthy performance," said Oliver Bäte, Chief Executive Officer of Allianz SE. "Sustainable performance is the result of our rigorous strategy execution that provides desired solutions for our customers. Our half-year results testify that Allianz is on track to achieve its full-year targets."
Property-Casualty insurance: Strong revenue growth and solid underwriting result
  • Total revenues grew by 7.3 percent to 13.4 billion euros in the second quarter of 2019. Adjusted for foreign currency translation and consolidation effects, internal growth totaled 4.3 percent. AGCS, Euler Hermes, and Germany were the main growth drivers.
  • Operating profit declined by 5.0 percent to 1.4 billion euros compared to the second quarter of 2018. This was driven by a lower investment result while the underwriting result remained stable.
  • The combined ratio was broadly flat at 94.3 percent in the second quarter of 2019, as a lower run-off result was partially offset by a strong improvement in our expense ratio.
"We are seeing a solid performance in our Property-Casualty segment despite a lower investment result," said Giulio Terzariol, Chief Financial Officer of Allianz SE. "Internal growth, supported by healthy rate changes, shows the strength of our business. Our underwriting remains disciplined while we keep on making progress with our productivity as shown by the improved expense ratio."

In the first half-year of 2019, total revenues increased to 32.9 (30.9) billion euros. Adjusted for foreign exchange and consolidation effects, internal growth amounted to 4.5 percent, mostly driven by AGCS, Germany, and Euler Hermes. Operating profit improved by 4.0 percent to 2.8 billion euros compared to the same period of the prior year due to a higher underwriting result as we recorded lower claims from natural catastrophes, as well as an improved expense ratio. The combined ratio for the first half-year improved by 0.4 percentage points to 94.0 percent.
Life/Health insurance: Double digit profit growth
  • PVNBP[1], the present value of new business premiums, went up to 15.2 (14.0) billion euros in the second quarter of 2019, mainly as a result of increased sales in the German and U.S. life insurance business. This was partly offset by weakened sales of unit-linked products in Italy and Taiwan.
    New business margin (NBM) increased to 3.6 (3.5) percent in the second quarter of 2019 due to a favorable business mix, driving the value of new business (VNB) up by 10.7 percent to 544 (491) million euros.
  • Operating profit grew to 1.2 (1.1) billion euros in the second quarter of 2019, mainly driven by the change in the DAC amortization period for the fixed index annuities in the United States, and by volume growth. This development was partly offset by a lower investment margin.
"Our Life/Health segment continued holding up very well in the low-interest rate environment, as shown by our dynamic sales," said Giulio Terzariol. "We kept on growing across geographies and in our preferred lines of business. Healthy new business margins will support our future operating profitability."

In the first half-year of 2019, the present value of new business premiums increased to 32.9 (29.0) billion euros largely because of the higher sales in the German and U.S. life insurance business. Operating profit went up to 2.3 (2.1) billion euros driven mainly by the favorable effect from the change in DAC amortization period in the United States. The new business margin increased to 3.5 (3.4) percent bringing the value of new business to 1,153 (980) million euros.
Asset Management: Strong net inflows also in the second quarter - assets under management at all time high
  • Third-party assets under management (AuM) grew by 44 billion euros to 1,591 billion euros in the second quarter of 2019 and again reached an all-time high. The increase was driven by positive market effects of 37.8 billion euros and net inflows of 20.3 billion euros. Unfavorable foreign currency translation effects of 14.4 billion euros had an offsetting impact.
  • Total assets under management increased to 2,163 billion euros, also reaching again an all-time high.
  • The cost-income ratio (CIR) improved by 0.5 percentage points to 61.1 percent compared to the second quarter of 2018. Operating profit increased to 678 (652) million euros in the second quarter of 2019 due to an increase in operating revenues, supported by higher average AuM. Adjusted for foreign currency translation effects, operating profit was stable.

"This quarter, Asset Management again delivered strong results," said Giulio Terzariol. "With third-party assets under management at a new record level of 1,591 billion euros, we are on track to reach our operating profit full-year target."

In the first half-year of 2019, operating revenues grew by 1.9 percent to 3.3 billion euros, supported by higher AuM-driven revenues. As performance fees decreased and investments in business growth were made, the cost-income ratio went up by 0.6 percentage points to 62.3 percent. Operating profit rose by 0.4 percent to 1,251 (1,247) million euros. On an internal basis, operating profit decreased by 4.9 percent. Furthermore, favorable market effects, third-party net inflows, as well as the acquisition of Gurtin Municipal Bond Management resulted in third-party assets under management of 1,591 billion euros - an increase of 155 billion euros or 10.8 percent, compared to year-end 2018.
[1] PVNBP is shown after non-controlling interests, unless otherwise stated.

Allianz Group - key figures 2nd quarter and first half year of 2019            
      2Q 2019 2Q 2018 Delta 6M 2019 6M 2018 Delta
Total revenues   EUR bn 33.2 31.3 6.10% 73.5 68.2 7.70%
- Property-Casualty1   EUR bn 13.4 12.5 7.30% 32.9 30.9 6.70%
- Life/Health   EUR bn 18.1 17.1 5.70% 37.4 34.2 9.30%
- Asset Management   EUR bn 1.7 1.7 2.80% 3.3 3.3 1.90%
- Corporate and Other   EUR bn 0.1 0.1 -4.40% 0.1 0.1 -19.50%
- Consolidation   EUR bn -0.1 -0.1 7.80% -0.3 -0.3 -4.00%
Operating profit / loss   EUR mn 3,159 2,997 5.40% 6,121 5,753 6.40%
- Property-Casualty   EUR mn 1,383 1,455 -5.00% 2,838 2,729 4.00%
- Life/Health   EUR mn 1,231 1,075 14.50% 2,327 2,144 8.50%
- Asset Management   EUR mn 678 652 4.10% 1,251 1,247 0.40%
- Corporate and Other   EUR mn -131 -196 -33.00% -296 -378 -21.80%
- Consolidation   EUR mn -2 11 n.m. 1 12 -89.80%
Net income   EUR mn 2,265 1,995 13.50% 4,316 4,025 7.20%
- attributable to non-controlling interests   EUR mn 125 104 20.50% 207 196 6.00%
- attributable to shareholders   EUR mn 2,140 1,891 13.10% 4,109 3,830 7.30%
Basic earnings per share   EUR 5.11 4.41 15.90% 9.76 8.86 10.20%
Diluted earnings per share   EUR 5.1 4.38 16.30% 9.75 8.78 11.00%
Additional KPIs                
- Group Return on equity2,3 % 15.00% 13.20% 1.80% 14.70% 13.20% 1.50%
- Property-Casualty Combined ratio % 94.30% 94.10% 0.20% 94.00% 94.40% -0.40%
- Life/Health New business margin % 3.60% 3.50% 0.10% 3.50% 3.40% 0.10%
- Life/Health Value of new business EUR mn 544 491 10.70% 1,153 980 17.60%
- Asset Management Cost-income ratio % 61.10% 61.60% -0.50% 62.30% 61.70% 0.60%
            06/30/2019 12/31/2018  
Shareholders' equity3   EUR bn       68.4 61.2 11.70%
Solvency II capitalization ratio4   %       213% 229% -17%
Third-party assets under management   EUR bn       1,591 1,436 10.80%
  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 Total revenues comprise gross premiums written and fee and commission income.
2 Represents the annualized ratio of net income attributable to shareholders to the average shareholders' equity excluding unrealized gains/losses on bonds, net of shadow accounting, at the beginning and at the end of the period. Annualized figures are not a forecast for full year numbers. For 2Q 2018 and 6M 2018, the return on equity for the respective full year is shown.
3 Excluding non-controlling interests.
4 Risk capital figures are group diversified at 99.5% confidence level.

These assessments are, as always, subject to the disclaimer provided below.

Cautionary note regarding forward-looking statements
This document includes forward-looking statements, such as prospects or expectations, that are based on management's current views and assumptions and subject to known and unknown risks and uncertainties. Actual results, performance figures, or events may differ significantly from those expressed or implied in such forward-looking statements. Deviations may arise due to changes in factors including, but not limited to, the following: (i) the general economic and competitive situation in the Allianz Group's core business and core markets, (ii) the performance of financial markets (in particular market volatility, liquidity, and credit events), (iii) the frequency and severity of insured loss events, including those resulting 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, most notably the EUR/USD exchange rate, (ix) changes in laws and regulations, including tax regulations, (x) the impact of acquisitions including and related integration issues and reorganization measures, and (xi) the general competitive conditions that, in each individual case, apply at a local, regional, national, and/or global level. Many of these changes can be exacerbated by terrorist activities.

No duty to update
The Allianz Group assumes no obligation to update any information or forward-looking statement contained herein, save for any information we are required to disclose by law.

The figures regarding the net assets, financial position and results of operations have been prepared in conformity with International Financial Reporting Standards. This Quarterly Earnings Release is not an Interim Financial Report within the meaning of International Accounting Standard (IAS) 34.
This is a translation of the German Quarterly Earnings Release of the Allianz Group. In case of any divergences, the German original is binding.

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02.08.2019 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.

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Language: English
Company: Allianz SE
Königinstr. 28
80802 München
Phone: +49 (0)89 38 00 - 7555
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
EQS News ID: 850481

End of News DGAP News Service

850481  02.08.2019 


Die wichtigsten Finanzdaten auf einen Blick
  2015 2016 2017 2018 2019 2020 2021e
Umsatzerlöse1 125.190,00 122.416,00 126.149,00 130.557,00 142.369,00 140.455,00 0,00
EBITDA1,2 10.735,00 10.833,00 11.097,00 11.512,00 11.855,00 10.751,00 0,00
EBITDA-Marge3 8,57 8,85 8,80 8,82 8,33 7,65 0,00
EBIT1,4 10.735,00 10.833,00 11.097,00 11.512,00 11.855,00 10.751,00 0,00
EBIT-Marge5 8,57 8,85 8,80 8,82 8,33 7,65 0,00
Jahresüberschuss1 6.987,00 7.250,00 7.207,00 7.703,00 8.302,00 7.133,00 0,00
Netto-Marge6 5,58 5,92 5,71 5,90 5,83 5,08 0,00
Cashflow1,7 23.663,00 24.461,00 33.188,00 25.672,00 36.448,00 32.049,00 0,00
Ergebnis je Aktie8 14,55 15,18 15,23 17,30 18,83 16,32 19,30
Dividende8 7,30 7,60 8,00 9,00 9,60 9,60 10,50
Quelle: boersengefluester.de und Firmenangaben

  Geschäftsbericht 2020 - Kostenfrei herunterladen.  
1 in Mio. Euro; 2 EBITDA = Ergebnis vor Zinsen, Steuern und Abschreibungen; 3 EBITDA in Relation zum Umsatz; 4 EBIT = Ergebnis vor Zinsen und Steuern; 5 EBIT in Relation zum Umsatz; 6 Jahresüberschuss (-fehlbetrag) in Relation zum Umsatz; 7 Cashflow aus der gewöhnlichen Geschäftstätigkeit; 8 in Euro; Quelle: boersengefluester.de

Wirtschaftsprüfer: PricewaterhouseCoopers

WKN Kurs in € Einschätzung Börsenwert in Mio. €
840400 198,960 Kaufen 81.266,78
KGV 2022e KGV 10Y-Ø BGFL-Ratio Shiller-KGV
9,66 10,77 0,87 12,98
1,06 2,54 0,58 7,56
Dividende '20 in € Dividende '21e in € Div.-Rendite '21e
in %
9,60 10,50 5,28 04.05.2022
Q1-Zahlen Q2-Zahlen Q3-Zahlen Bilanz-PK
12.05.2022 05.08.2022 10.11.2021 04.03.2022
Abstand 60Tage-Linie Abstand 200Tage-Linie Performance YtD Performance 52 Wochen
0,42% -3,82% -0,87% -0,08%
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