DGAP-News: Allianz SE: Allianz stays well on course in second quarter 2013
DGAP-News: Allianz SE / Key word(s): Half Year Results/Quarter Results
Allianz SE: Allianz stays well on course in second quarter 2013
02.08.2013 / 06:59
*Revenues increase 6.3 percent to 26.8 billion euros
*Operating profit rises 5.2 percent to 2.4 billion euros
*Net income attributable to shareholders grows 26.8 percent to 1.6 billion
*Allianz confirms operating profit outlook for 2013 of 9.2 billion euros
plus/minus 0.5 billion euros - upper end of target range in reach
In the second quarter of 2013, Allianz Group again showed healthy growth.
Quarterly revenues of 26.8 billion euros were 6.3 percent above the 25.2
billion euros achieved in the second quarter of 2012. Operating profit rose
5.2 percent to 2.4 billion euros from 2.3 billion euros in the same quarter
the year before.
All three business segments of Allianz mastered the challenges in the
second quarter. Property and Casualty insurance produced stable revenues
and strong profits despite several natural catastrophes. In the Life and
Health insurance segment, revenues grew strongly by nearly ten percent,
whereas operating profit fell amid the changing interest rate environment.
Asset Management remained very strong. Despite high bond market volatility
and a sudden uptick in key interest rates, the segment saw net inflows and
once again recorded double-digit increases in operating profit for the
The result from non-operating items improved during the second quarter of
2013 to plus 132 million euros from minus 151 million euros the year before
due to lower impairments and higher realized gains. Income taxes rose to
824 million euros from 761 million euros the year before. The effective tax
rate for the second quarter of 2013 was 33 percent, compared to 36 percent
in the same period the previous year. Net income attributable to
shareholders amounted to 1.6 billion euros in the second quarter of 2013, a
year-on-year increase of 26.8 percent from 1.3 billion euros.
The conglomerate solvency ratio declined four percentage points to 177
percent on June 30, 2013, from 181 percent on December 31, 2012 (1). This
change was mainly due to the redemption of a two billion US-dollar
subordinated bond. Over the same period, shareholders' equity declined 5.0
percent to 47.866 billion euros from 50.388 billion euros. This difference
stems mainly from a dividend payment in May of 2.039 billion euros and from
a decrease in unrealized gains mainly related to debt securities.
'We can look back on a very successful first half year overall,' said
Michael Diekmann, CEO of Allianz SE. 'Although we faced record floods in
Central Europe, persistent low interest rates and erratic capital markets,
our business continued to grow profitably.'
'In view of our good half-year results, we are maintaining our operating
profit outlook for 2013 of 9.2 billion euros, plus or minus 500 million
euros, although based on our current projections we see the figure more
toward the upper end of this range,' Michael Diekmann added. 'As always,
this forecast is under the caveat that natural catastrophes and capital
market turbulence do not exceed expected levels.'
Property and Casualty insurance with high profitability
Revenues in the Property and Casualty insurance business rose to 10.8
billion euros for the second quarter of 2013, 0.3 percent up in a
year-on-year comparison from 10.7 billion euros. Strong growth in markets
such as Australia, Latin America and Turkey as well as at Allianz Worldwide
Partners offset declines in revenues especially from the industrial insurer
Allianz Global Corporate & Specialty and the reduction of crop insurance
business in the US. Excluding this crop business in the US, internal growth
amounted to 2.3 percent.
Operating profit rose 12.3 percent in the second quarter of 2013 to 1.2
billion euros from 1.1 billion euros in the previous year's second quarter.
Australia, France, Italy and the US made strong contributions to this
operating profit growth. Overall, the underwriting result increased to 357
million euros from 234 million euros, also driven by a favorable price
environment in Australia, France, Germany and the US.
The combined ratio for the second quarter of 2013 improved to 96.0 percent,
1.2 percentage points down from 97.2 percent the year before. For Allianz,
after reinsurance, the net impact of the June floods in Central Europe was
approximately 330 million euros. Together with floods in France and Canada
and hailstorms in Germany and Switzerland, the total impact from natural
catastrophes on the loss ratio was 5.3 percentage points. However, the loss
ratio ultimately improved to 67.3 percent from 69.4 percent for the
previous year's second quarter.
'Our efforts in recent years are paying off. We were able to help our
customers and maintain our profitability, even during the many natural
catastrophes in the second quarter,' said Dieter Wemmer, Chief Financial
Officer of Allianz SE. 'That includes the record June floods in Central
Europe - here we expect benefits to our customers to exceed 700 million
euros. We have received flood claims from over 50,000 customers and have
already settled more than 32,000 of them.'
Life and Health insurance solid
Life and Health insurance saw revenues grow 9.8 percent in the second
quarter of 2013 to 14.1 billion euros from 12.9 billion euros over the same
period the year before. France and Italy in particular showed very healthy
increases. Growth came largely from unit-linked products, continuing the
trend from the first quarter.
Operating profit reached 669 million euros from April to June, declining
18.2 percent from 818 million euros the year before. The difference stemmed
primarily from a lower investment result in Germany.
The new business margin in the second quarter of 2013 remained unchanged
from the previous year at 1.7 percent. The value of new business increased
due to higher volumes year-on-year by 16.6 percent to 190 million euros
from 163 million euros.
'Life insurance remains under pressure from two sides: low interest rates
and increased regulatory demands that are limiting our investment options.
The environment is very difficult for savers. Allianz is responding to
these conditions by providing our clients with innovative products and the
chance of higher returns while retaining the very security they expect from
us,' said Dieter Wemmer.
Asset Management going strong
The Asset Management segment again produced strong results. Revenues grew
21.2 percent to 1.8 billion euros in the second quarter of 2013 from 1.5
billion euros for the same period in 2012.
In the second quarter of 2013, operating profit grew 39.8 percent to 804
million euros from 575 million euros the year before, driven by higher net
fee and commission income. The cost-income ratio improved to 55.7 percent
from 61.6 percent.
On June 30, 2013, total assets under management were 1,863 billion euros,
6.6 percent up from 1,748 billion euros at the end of the second quarter of
2012. Over the same period, third-party assets under management rose to
1,456 billion euros from 1,354 billion euros. The quarter saw third-party
net inflows of 6.9 billion euros, compared to 18.6 billion euros the year
'Our Asset Management business has frequently demonstrated its ability to
handle changing situations. With these good results, the segment shows why
it is an important pillar of our diversified business model, ensuring
attractive returns for our customers and shareholders,' said Dieter Wemmer.
(1) Restated pro forma to reflect change in accounting for pensions.
Allianz Group - Key figures 2nd quarter and 1st half year of 2013
2Q 2013 2Q 2012
Total revenues [Euro bn] 26.8 25.2
Operating profit / loss [Euro mn] (1,2) 2,367 2,250
Property-Casualty [Euro mn] 1,179 1,050
Life/Health [Euro mn] 669 818
Asset Management [Euro mn] 804 575
Corporate and Other[Euro mn] -274 -180
Consolidation [Euro mn] -11 -13
Income before income taxes [Euro mn] (1) 2,499 2,099
Income taxes [Euro mn] -824 -761
Net income / loss [Euro mn] (1) 1,675 1,338
Property-Casualty [Euro mn] 1,001 817
Life/Health [Euro mn] 474 507
Asset Management [Euro mn] 488 345
Corporate and Other[Euro mn] -277 -266
Consolidation [Euro mn] -11 -65
Net income [Euro mn] (1) 1,675 1,338
attributable to non-controlling interests [Euro mn] 87 86
attributable to shareholders [Euro mn] 1,588 1,252
Basic earnings per share [Euro] (1) 3.50 2.77
Diluted earning per share [Euro](1) 3.47 2.72
Property/Casualty: Combined ratio 96.0% 97.2%
Life/Health: Margin on reserves(3) 58 75
Asset Management: Cost-income ratio 55.7% 61.6%
6M 2013 6M 2012
Total revenues [Euro bn] 58.8 55.2
Operating profit / loss [Euro mn] (1,2) 5,164 4,583
Property-Casualty [Euro mn] 2,498 2,233
Life/Health [Euro mn] 1,524 1,643
Asset Management [Euro mn] 1,704 1,188
Corporate and Other[Euro mn] -513 -454
Consolidation [Euro mn] -49 -27
Income before income taxes [Euro mn] (1) 5,177 4,344
Income taxes [Euro mn] -1,701 -1,555
Net income / loss [Euro mn] (1) 3,476 2,789
Property-Casualty [Euro mn] 2,018 1,653
Life/Health [Euro mn] 1,102 1,132
Asset Management [Euro mn] 1,056 724
Corporate and Other[Euro mn] -674 -642
Consolidation [Euro mn] -26 -78
Net income [Euro mn] (1) 3,476 2,789
attributable to non-controlling interests [Euro mn] 181 160
attributable to shareholders [Euro mn] 3,295 2,629
Basic earnings per share [Euro] (1) 7.27 5.81
Diluted earning per share [Euro] (1) 7.18 5.78
Property/Casualty: Combined ratio 95.1% 96.7
Life/Health: Margin on reserves(3) 66 77
Asset Management: Cost-income ratio 54.3% 59.5%
Shareholders' equity [Euro bn](1,4) 47.9 50.4
Conglomerate solvency ratio(5) 177% 197%
Third-party assets under management [Euro bn] 1,456 1,438
(1) All prior period figures herein have been restated to reflect the
retrospective application of the amended standard IAS 19 - Employee
Benefits, effective as of 01/01/13
(2) As of the first quarter of 2013 all restructuring charges are presented
within operating profit. All prior period figures herein have been adjusted
to conform to the current accounting presentation
(3) Operating profit (annualized) divided by average net reserves
(4) Excluding non-controlling interests
(5) Including off-balance sheet reserves (06/30/13: EUR 2.3bn, 12/31/12:
EUR 2.2 bn). The solvency ratio excluding off-balance sheet reserves would
amount to 168% as of 06/30/13 and 188% as of 12/31/12. The conglomerate
solvency ratio decreased by approximately 16%-p as of 01/01/13 due to
amendments to IAS 19
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
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.
End of Corporate News
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Company: Allianz SE
Phone: +49 (0)89 38 00 - 41 24
Fax: +49 (0)89 38 00 - 38 99
Indices: DAX-30, EURO STOXX 50
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
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