DGAP-News: Allianz SE: Allianz starts 2014 with strong first quarter
DGAP-News: Allianz SE / Key word(s): Quarter Results
Allianz SE: Allianz starts 2014 with strong first quarter
14.05.2014 / 06:59
*Total revenues of 33.96 billion euros
*Operating profit of 2.72 billion euros
*Net income attributable to shareholders of 1.64 billion euros
*Continued healthy capital position
*Allianz confirms operating profit outlook for 2014 of 10.0 billion euros,
plus/minus 0.5 billion euros
Allianz Group began 2014 with a strong first quarter. At 33.96 billion
euros, Allianz achieved the highest total quarterly revenues in the
company's history. Compared to the previous year's first quarter figure of
32.05 billion euros, revenues increased by 6.0 percent. Operating profit
reached 2.72 billion euros, 2.6 percent below the previous year's record
figure of 2.80 billion euros. Net income attributable to shareholders was
1.64 billion euros, a decrease of 3.9 percent from 1.71 billion euros the
In Property and Casualty insurance, operating profit grew strongly,
benefitting from an improved underwriting result after a lower impact from
natural catastrophes. Revenues increased in the Life and Health insurance
segment due to strong new life sales, and operating profit remained at a
high level. Following exceptionally high results in the previous year,
Asset Management performed within expectations.
The conglomerate solvency ratio rose by two percentage points to 184
percent as of March 31, 2014, from 182 percent at the end of 2013.
Shareholders' equity grew over the same period by 6.9 percent to 53.525
billion euros from 50.084 billion euros.
"In the first three months, Allianz achieved results comparable to last
year's highs. This is an encouraging start for the year. While it is hard
to predict what kind of economic and political volatility lies ahead in the
current environment, we are well prepared for the rest of 2014," said
Dieter Wemmer, Chief Financial Officer of Allianz SE.
Property and Casualty insurance increases profitability
In the first quarter of 2014, gross premiums written in Property and
Casualty insurance reached 15.22 billion euros, an increase of 0.1 percent
year-on-year from 15.20 billion euros. Excluding foreign exchange and
consolidation effects, internal growth was 1.9 percent. Strong internal
premium growth came especially from Germany and Turkey as well as from
Allianz Global Corporate & Specialty and Allianz Worldwide Partners.
The segment's operating profit rose 12.9 percent to 1.49 billion euros in
the first quarter of 2014 from 1.32 billion euros over the same period last
year. Growth in operating profit stemmed mainly from a better underwriting
result of 705 million euros after 540 million euros in the first quarter of
2013. This improvement was helped by lower natural catastrophe claims and a
continued positive pricing environment.
The quarterly combined ratio improved by 1.7 percentage points to 92.6
percent from 94.3 percent in the previous year's first quarter. Impacts
from natural catastrophes were mainly limited to winter storms in the US
and floods in the UK. Germany, France and the corporate and credit
insurance areas recorded lower claims than last year.
The loss ratio fell year-on-year to 64.6 percent from 66.1 percent. Over
the same period, the expense ratio decreased to 28.0 percent from 28.2
percent partly due to operational improvements in various units.
"Our Property and Casualty business has continued on last year's successful
course with very good results. The segment contributed more than half of
the Allianz Group's total operating profit this quarter," said Dieter
Wemmer. "Not every quarter will have this low of an impact from natural
catastrophes, but claims are also down overall, so I am very confident."
Life and Health insurance with increased revenues and stable profits
In Life and Health insurance, statutory premiums rose to 17.16 billion
euros in the first quarter of 2014 from 14.84 billion euros over the same
period the previous year. This represents an increase of 15.7 percent.
Excluding foreign exchange and consolidation effects, internal growth was
Premium growth came from all core markets. At 2.56 billion euros, Allianz
Life in the US alone attracted some one billion euros more in premiums in
the quarter than in the previous year's first quarter, an increase of 63.6
percent. Germany and the Benelux region also recorded double-digit growth
The new business margin grew 0.7 percentage points in the first quarter of
2014 to 2.5 percent from 1.8 percent over the same period the year before.
Over the same period the value of new business increased to 360 million
euros from 238 million euros.
Operating profit rose 2.9 percent to 880 million euros in the first three
months of 2014 from 855 million euros the year before. The transfer of
certain entities from Asset Management contributed 26 million euros to this
"Innovations in core markets like Germany and the US are lifting our life
insurance business to new heights. Customers are responding well to our new
products," said Dieter Wemmer. "Thus, for the first quarter, results were
within the top range of our expectations."
Asset Management on track
Operating revenues in Asset Management in the first quarter of 2014 were
1.52 billion euros, a decrease of 18.9 percent from 1.87 billion euros for
the first quarter of 2013, after the transfer of certain entities to other
business segments as of January 1, 2014. The first quarter of the previous
year had exceptionally high performance fees as the result of the closure
of a private fund.
Operating profit reached 646 million euros for the quarter, a decline of
26.3 percent from 877 million euros in the first quarter of 2013, after the
transfer of entities to other business segments. This reduction stemmed
from one-off performance fees in the first quarter of the previous year and
the weakening of the US-dollar. The non-recurrence of these performance
fees increased the cost-income ratio to 57.4 percent from 53.1 percent.
Total assets under management rose 1.6 percent to 1,765 billion euros at
the end of the first quarter of 2014 from 1,738 billion euros at the start
of 2014. Over the same period, third-party assets under management grew 1.0
percent to 1,342 billion euros from 1,329 billion euros.
The development in assets under management was supported by market value
increases, which outweighed third-party net outflows of 19.8 billion euros
in the first quarter of 2014, compared to net inflows of 41.8 billion euros
in the previous year's first quarter. While PIMCO recorded net outflows of
21.7 billion euros from January to March of 2014, AllianzGI saw net inflows
over the same period of 1.9 billion euros.
"As expected, the results in Asset Management came in lower, but the
business is in line with our target for the year," said Dieter Wemmer.
"Given its solid performance and the outperformance of both of our
insurance segments, we remain on track to achieve our operating profit
outlook for the full year of 10.0 billion euros, plus/minus 500 million
Allianz Group - Key figures 1st quarter 2014
1Q 2014 1Q 2013
Total revenues [Euro bn] 34.0 32.0
Operating profit / loss [Euro mn] 2,723 2,797
Property-Casualty [Euro mn] 1,489 1,319
Life/Health [Euro mn](1) 880 855
Asset Management [Euro mn](1) 646 900
Corporate and Other[Euro mn] -222 -239
Consolidation [Euro mn] -70 -38
Income before income taxes [Euro mn] 2,607 2,678
Income taxes [Euro mn] -867 -877
Net income / loss [Euro mn] 1,740 1,801
Property-Casualty [Euro mn] 645 1,017
Life/Health [Euro mn](1) 629 628
Asset Management [Euro mn](1) 406 568
Corporate and Other[Euro mn] 131 -397
Consolidation [Euro mn] -71 -15
Net income [Euro mn] 1,740 1,801
attributable to non-controlling interests [Euro mn] 100 94
attributable to shareholders [Euro mn] 1,640 1,707
Basic earnings per share [Euro] 3.61 3.77
Diluted earning per share [Euro] 3.55 3.69
Property/Casualty: Combined ratio 92.6% 94.3%
Life/Health: Margin on reserves(1) 73 74
Asset Management: Cost-income ratio(1) 57.4% 52.9%
Shareholders' equity [Euro bn](2) 53.5 50.1
Conglomerate solvency ratio(3) 184% 182%
Third-party assets under management [Eur bn](1) 1,342 1,361
(1) Effective 1 January 2014, the Allianz Group allocated certain
entities from Asset Management to Life/Health and Banking
(2) Excluding non-controlling interests
(3) Including off-balance sheet reserves (03/31/14: EUR 2.3bn, 12/31/13:
EUR2.3 bn). The solvency ratio excluding off-balance sheet reserves
would amount to 175% as of 03/31/14 and 173% as of 12/31/13
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
Standard), Hamburg, Hannover, München, Stuttgart;
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