11.05.2016
Allianz SE DE0008404005
DGAP-News: Allianz SE: Allianz starts 2016 with a strong first quarter
DGAP-News: Allianz SE / Key word(s): Quarter Results
Allianz SE: Allianz starts 2016 with a strong first quarter
11.05.2016 / 06:59
The issuer is solely responsible for the content of this announcement.
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* Total revenues down 6.4 percent to 35.4 billion euros
* 1Q operating profit fell by 3.5 percent to 2.8 billion euros
* Net income attributable to shareholders up 20.5 percent to 2.2 billion
euros
* Solvency II capitalization eased to 186 percent
* Operating profit outlook for 2016 of 10.5 billion euros, plus or minus
500 million euros confirmed
Allianz enjoys a strong start to 2016
Allianz Group achieved strong results in the first quarter of 2016 in a
continued challenging environment. Net income attributable to shareholders
rose by 20.5 percent to 2.2 billion euros, driven in part by non-operating
realized gains. In the Property and Casualty insurance segment, operating
profit showed a substantial improvement compared to the previous year,
largely due to lower claims stemming from natural catastrophes. The Life
and Health insurance segment recorded a decline of total revenues as a
result of changes to the product strategy. In Asset Management,
third-party net outflows continued to decrease compared to the prior year.
"The first quarter represented a great start to the year. We are well on
our way towards achieving our operating profit target in the range of 10.5
billion euros, plus or minus 500 million euros for the entire year," said
Dieter Wemmer, CFO of Allianz SE.
Group: rising return on equity
Revenues down 6.4% in 1Q
Total revenues in the first quarter fell by 6.4 percent to 35.4 (37.8)
billion euros, primarily reflecting the targeted shift toward
capital-efficient products as well as lower premiums from the unit-linked
business in Italy and Taiwan in the Life and Health segment.
Operating profit EUR2.8bn in 1Q
Operating profit decreased by 3.5 percent to 2.8 billion euros. In the Life
and Health segment, operating profit has been on track despite partial loss
recognition of 82 million euros in Korea and a lower contribution from
Germany after an exceptional first quarter in 2015. In Asset Management,
lower average third-party assets under management were the main driver for
a drop in operating profit. These effects were partly compensated by an
increase in operating profit in the Property and Casualty segment.
Annualized return on equity 15.7% in 1Q
The non-operating result improved by 339 million euros to 278 million euros
as a result of higher realizations, mainly on equity investments, as well
as a positive contribution from hedging-related activities. Net income
attributable to shareholders amounted to 2.2 billion euros, an increase of
20.5 percent. Basic Earnings per Share (EPS) rose 20.3 percent to 4.82
euros. Annualized Return on Equity (RoE) was at 15.7 percent (full year
2015: 12.5 percent). Annualized figures are not a forecast for full year
numbers.
Solvency II ratio 186 % at 31.3.2016
Solvency II capitalization eased to 186 percent at the end of the first
quarter compared to 200 percent at the end of 2015 due to capital market
developments, partly offset by risk management actions. The decrease was
also due in part to a changed regulatory tax treatment of the German life
sector that took effect on January 1, 2016.
Property and Casualty insurance: improved combined ratio
Management assessment
"The Property and Casualty insurance business continued on last year's
successful path with very good results. The segment contributed more than
half of the Allianz Group's total operating profit this quarter," said
Dieter Wemmer. "The business also benefitted from fewer natural
catastrophes in the quarter."
Gross premiums written down 0.5% in 1Q
In the Property and Casualty segment, gross premiums written reached 17.2
(17.3) billion euros in the first quarter of 2016, a slight decrease of 0.5
percent year-on-year due to negative foreign exchange effects. Adjusted for
foreign exchange and consolidation effects, internal growth was good at 2.7
percent, primarily driven by Allianz Global Corporate & Specialty (AGCS),
Turkey and Germany. Price and volume effects contributed 1.0 percent and
1.7 percent respectively.
Combined ratio 93.3% in 1Q
Operating profit grew 12.0 percent to 1.4 billion euros compared to the
prior-year quarter. The decrease in investment income was more than
compensated for by much lower claims from natural catastrophes as well as
lower restructuring expenses. The combined ratio improved by 1.3 percentage
points to 93.3 (94.6) percent compared to the year-earlier period.
Life and Health insurance: product shift improves margins
Management assessment
"The first quarter of 2016 is the third consecutive period with healthy and
stable new business margins. The launching of new capital-efficient
products became visible in the second half of 2015 and continued throughout
the first quarter of 2016," said Dieter Wemmer. "Repricing activities on
traditional products and the introduction of new capital-efficient products
helped to improve new business profitability across Europe and the United
States."
Statutory premiums down 11.4% in 1Q
Statutory premiums decreased by 11.4 percent to 16.7 (18.8) billion euros
due to reduced sales of traditional products, primarily in Germany, and to
lower unit-linked single premiums in Italy and Taiwan. Adjusted for
foreign exchange and consolidation effects, statutory premiums fell by 11.1
percent.
Operating profit EUR0.9bn in 1Q
Operating profit declined by 16.0 percent to 0.9 billion euros in the first
three months of 2016. This was predominantly caused by a lower investment
margin in the German life business after a very high first quarter last
year, lower unit-linked performance fees in Italy, and by partial loss
recognition in Korea.
VNB EUR367mn and NBM 2.5% in 1Q
The value of new business (VNB) rose to 367 million euros in the first
quarter, an increase of 36.7 percent compared to the first quarter of 2015.
As a result of changes in product strategy, premiums shifted to
capital-efficient products. The new business margin went up by 1.0
percentage point to 2.5 percent compared to one year ago, enhanced by a
more favorable business mix with higher shares of capital-efficient
products and a lower share of guaranteed savings and annuities.
Asset Management: net outflows strongly reduced
Management assessment
"Net outflows of third-party assets under management at PIMCO slowed but
continued to weigh on assets under management, as did currency shifts,"
said Dieter Wemmer. "Although we anticipate a challenging environment for
the asset management industry, we continue to expect positive net flows at
PIMCO in the second half of the year, alongside steady net inflows at
Allianz Global Investors."
Operating profit EUR463mn in 1Q
In Asset Management, operating profit in the first quarter declined by 16.5
percent to 463 (555) million euros. Following the decline in average
third-party assets under management and a slight decrease in margin on
those assets, operating revenues sank 11.8 percent to 1.4 (1.6) billion
euros. This development was partly offset by lower operating expenses.
CIR at 66.6% in 1Q
The cost-income ratio (CIR) increased to 66.6 percent from 64.7 percent in
the year-earlier quarter, related primarily to the decrease in revenues at
PIMCO.
3P net outflows at EUR9bn in 1Q
Compared to December 31, 2015, third-party assets under management
decreased by 34 billion euros to 1,242 billion euros, mainly driven by
negative foreign currency translation effects. Third-party net outflows in
the first quarter of 2016 receded to 9 billion euros, compared to 62
billion euros in the first quarter of 2015. Net outflows were driven by
third-party net outflows at PIMCO, while Allianz Global Investors again
recorded third-party net inflows, which it has done now for more than three
years running.
Allianz Group - key figures 1st quarter 2016
1Q 2016 1Q 2015
Total revenues [Euro bn] 35.4 37.8
Property-Casualty [Euro bn] 17.2 17.3
Life/Health [Euro bn] 16.7 18.8
Asset Management [Euro bn] 1.4 1.6
Corporate and Other [Euro bn] 0.1 0.1
Consolidation [Euro bn] -0.1 -0.1
Operating profit / loss [Euro mn] 2,756 2,855
Property-Casualty [Euro mn] 1,439 1,285
Life/Health [Euro mn] 927 1,104
Asset Management [Euro mn] 463 555
Corporate and Other [Euro mn] -74 -101
Consolidation [Euro mn] 0 13
Net income [Euro mn] 2,294 1,937
attributable to non-controlling interests [Euro mn] 100 115
attributable to shareholders [Euro mn] 2,194 1,822
Basic earnings per share [Euro] 4.82 4.01
Diluted earning per share [Euro] 4.70 4.00
Additional KPIs
Group: Return on equity (1)(2) 15.7% 12.5%
Property/Casualty: Combined ratio 93.3% 94.6%
Life/Health: New Business Margin 2.5% 1.5%
Life/Health: Value of new business[Euro mn] 367 269
Asset Management: Cost-income ratio 66.6% 64.7%
03/31/16 12/31/15
Shareholders' equity [Euro bn](1) 67.4 63.1
Solvency II capitalization (3) 186% 200%
Third-party assets under management [Euro bn] 1,242 1,276
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 DAC. RoE for
1Q 2016 is annualized. For 2015, the return on equity for the full year is
shown. Annualized figures are not a forecast for full year numbers.
(3) Risk capital figures are group diversified at 99.5% confidence level.
Allianz Life included based on third country equivalence with 150% of
RBC CAL since September 30, 2015. Changed regulatory tax treatment of
German life sector reduces year-end SII ratio from 200% to 196% on
January 1, 2016.
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.
Other
The quarterly 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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11.05.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
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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: [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;
Terminbörse EUREX
End of News DGAP News Service
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