DGAP-News: Allianz SE: Allianz continues positive development in third quarter
DGAP-News: Allianz SE / Key word(s): Quarter Results
Allianz SE: Allianz continues positive development in third quarter of
08.11.2013 / 06:59
*Revenues stable at 25.1 billion euros
*Operating profit of 2.5 billion euros remains at high level
*Net income attributable to shareholders rises 6.3 percent to 1.4 billion
*Outlook: expected 2013 operating profit slightly above target range
In the third quarter of 2013, Allianz Group continued its good development
from the first half of the year despite negative foreign currency effects.
At 25.1 billion euros, revenues were close to the previous year's level of
25.2 billion euros, a decline of 0.2 percent. Operating profit was 2.5
billion euros, declining 0.7 percent from the previous year's third
quarter. Net income attributable to shareholders increased 6.3 percent to
over 1.4 billion euros from under 1.4 billion euros.
Operating profit in Property and Casualty insurance increased over the
reporting period despite storms in Europe in July and August. In the Life
and Health insurance segment, statutory premiums rose due to strong demand.
At the same time, the volatile investment environment put pressure on the
segment's profits. Asset Management produced good results despite
prevailing market volatility.
The conglomerate solvency ratio of 177 percent on September 30, 2013,
remained at the same high level as on June 30, 2013. Shareholders' equity
rose over the reporting period to 48,770 million euros from 47,866 million
euros on June 30, 2013.
'Given the positive development of the Allianz Group for the first nine
months of 2013, we now expect our operating profit for the full year to be
slightly above 9.7 billion euros, the upper end of our previously stated
target range,' said Michael Diekmann, CEO of Allianz SE.
Property and Casualty segment grows operating profit despite natural
Gross premiums written in Property and Casualty insurance reached 10.7
billion euros in the third quarter, 6.5 percent below the previous year's
figure of 11.4 billion euros. The decline stems mainly from the reduction
of crop business in the US. Unfavorable foreign exchange effects also added
to this development. At the same time, premiums grew significantly in
Central and Eastern Europe as well as for the industrial insurer Allianz
Global Corporate & Specialty (AGCS). Acquisitions in France and Belgium as
well as in Turkey also added to revenues.
Operating profit increased 6.4 percent to more than 1.2 billion euros in
the third quarter of 2013 from just under 1.2 billion euros, especially due
to positive developments in Italy, in the US and at AGCS. The underwriting
result rose to 501 million euros from 351 million euros.
The combined ratio improved during the reporting period by 1.4 percentage
points to 94.8 percent from 96.2 percent in the third quarter of 2012.
Natural catastrophes, especially storms in Germany and Ireland in July and
August, added 4.3 percentage points to the combined ratio. The net impact
amounted to a total of 464 million euros. The combined ratio benefited from
a better underlying loss development.
'This is the second quarter in a row that saw major natural catastrophes.
And yet, we were able to increase profits. After the first nine months in
2013, the Property and Casualty business is very much on track,' said
Dieter Wemmer, CFO of Allianz SE.
Revenues increase in Life and Health insurance
Statutory premiums in Life and Health insurance rose in the third quarter
to 12.7 billion euros from 11.9 billion euros. This represents an increase
of 6.6 percent from the previous year's third quarter. Demand was
especially healthy in Germany and Italy.
Operating profit was 769 million euros, a decrease of 5.6 percent from 815
million euros for the same quarter the year before. A lower investment
result in Germany and investment de-risking in Italy were the largest
drivers for this development. At the same time, operating profit grew in
France, Spain and the US.
The new business margin increased to 2.3 percent in the third quarter of
2013 from 1.6 percent for the same period in the previous year. The value
of new business increased by 44.3 percent to 215 million euros from 149
'Growth in revenues and new business margin in the third quarter makes me
confident about our Life and Health insurance segment,' said Dieter Wemmer.
'Our products clearly remain appealing to our customers. This is not least
because we combine attractive returns with high security in the ongoing low
interest rate environment.'
Asset Management achieves good results in difficult markets
Developments in Asset Management in the third quarter reflected capital
market volatility. Operating revenues reached 1.7 billion euros. They were
thus 7.7 percent below the previous year's level of 1.8 billion euros.
Lower performance fees and negative foreign currency effects contributed to
Operating profit fell 11.1 percent to 754 million euros from 848 million
euros. The cost-income ratio was 55.7 percent, compared to 54.0 percent in
the third quarter of 2012.
On September 30, 2013, total assets under management were 1,811 billion
euros, 2.2 percent lower than 1,852 billion euros at the end of 2012. At
the end of the third quarter, third-party assets under management amounted
to 1,404 billion euros, compared to 1,438 billion euros at the end of the
year. The development in assets under management mainly reflects the impact
of a weaker US dollar.
The third quarter saw third-party net outflows of 26.7 billion euros,
compared to net inflows of 31.5 billion euros in the previous year's third
quarter. Outflows came mainly from traditional fixed-income products.
Overall, however, third-party net inflows for the first nine months
amounted to 22.8 billion euros.
'Our Asset Management business produced good results under difficult
conditions. This shows the importance of our broad geographic presence and
product diversification,' said Dieter Wemmer.
Allianz Group - Key figures 3rd quarter and first 9 months of 2013
3Q 2013 3Q 2012
Total revenues [Euro bn] 25.1 25.2
Operating profit / loss [Euro mn] (1,2) 2,519 2,538
Property-Casualty [Euro mn] 1,236 1,162
Life/Health [Euro mn] 769 815
Asset Management [Euro mn] 754 848
Corporate and Other[Euro mn] -230 -261
Consolidation [Euro mn] -10 -26
Income before income taxes [Euro mn] (1) 2,277 2,202
Income taxes [Euro mn] -746 -749
Net income / loss [Euro mn] (1) 1,531 1,453
Property-Casualty [Euro mn] 796 822
Life/Health [Euro mn] 562 539
Asset Management [Euro mn] 482 522
Corporate and Other[Euro mn] -307 -437
Consolidation [Euro mn] -2 7
Net income [Euro mn] (1) 1,531 1,453
attributable to non-controlling interests [Euro mn] 86 94
attributable to shareholders [Euro mn] 1,445 1,359
Basic earnings per share [Euro] (1) 3.19 3.00
Diluted earning per share [Euro] (1) 3.14 2.98
Property/Casualty: Combined ratio 94.8% 96.2%
Life/Health: Margin on reserves [bps](3) 66 73
Asset Management: Cost-income ratio 55.7% 54.0%
9M 2013 9M 2012
Total revenues [Euro bn] 84.0 80.5
Operating profit / loss [Euro mn] (1,2) 7,683 7,121
Property-Casualty [Euro mn] 3,734 3,395
Life/Health [Euro mn] 2,293 2,458
Asset Management [Euro mn] 2,458 2,036
Corporate and Other[Euro mn] -743 -715
Consolidation [Euro mn] -59 -53
Income before income taxes [Euro mn] (1) 7,454 6,546
Income taxes [Euro mn] -2,447 -2,304
Net income / loss [Euro mn] (1) 5,007 4,242
Property-Casualty [Euro mn] 2,814 2,475
Life/Health [Euro mn] 1,664 1,671
Asset Management [Euro mn] 1,538 1,246
Corporate and Other[Euro mn] -981 -1,079
Consolidation [Euro mn] -28 -71
Net income [Euro mn] (1) 5,007 4,242
attributable to non-controlling interests [Euro mn] 267 254
attributable to shareholders [Euro mn] 4,740 3,988
Basic earnings per share [Euro] (1) 10.46 8.81
Diluted earning per share [Euro] (1) 10.33 8.77
Property/Casualty: Combined ratio 95.0% 96.5%
Life/Health: Margin on reserves [bps](3) 66 75
Asset Management: Cost-income ratio 54.7% 57.4%
Shareholders' equity [Euro bn](1,4) 48.8 50.4
Conglomerate solvency ratio(5) 177% 197%
Third-party assets under management [Euro bn] 1,404 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 (09/30/13: EUR 2.3bn, 12/31/12:
EUR 2.2 bn). The solvency ratio excluding off-balance sheet reserves
would amount to 168% as of 09/30/13 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
Munich, November 8, 2013
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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