EQS-News: Allianz SE
/ Key word(s): Quarter Results
Group confirms full-year outlook 1Q 2023:
Outlook:
Other:
-------------------------------------- Note: The financial results are based on the new IFRS 9 (Financial Instruments) and IFRS 17 (Insurance Contracts) accounting standards, which have been adopted as of 1 January 2023. Comparative periods have been adjusted to reflect the application of these new accounting standards. 1 Excluding the application of transitional measures for technical provisions. 2 As always, natural catastrophes and adverse developments in the capital markets, as well as factors stated in our cautionary note regarding forward-looking statements may severely affect the operating profit and/or net income of our operations and the results of the Allianz Group. --------------------------------------- “We can be proud of our operating profit and bottom line, a reflection of our strength, our skills, and consistent execution of our strategy. We once again benefited from our diversified business mix and delivered particularly strong performance in the Property-Casualty segment, driven by robust pricing, continued underwriting discipline and focus on further productivity gains. Our strong profitability and capitalization underscore our aspiration to remain the trusted partner for our clients to secure their futures as they continue to navigate a time of hesitation and uncertainty.” - Oliver Bäte, Chief Executive Officer of Allianz SE
Total business volume
1Q 2023: Total business volumes rose by 3.9 percent to 46.0 billion euros, driven by the Property-Casualty business segment which benefited from higher prices and volumes. This result was partly offset by lower business volumes in the Life/Health business segment, primarily due to softer single-premium volumes, and a decrease in AuM-driven revenues in our Asset Management business segment.
Internal growth, which adjusts for foreign currency translation and consolidation effects, was strong at 3.5 percent, driven by the Property-Casualty business segment.
Earnings
1Q 2023: Operating profit jumped 24.2 percent to 3.7 (1Q 2022: 3.0) billion euros. This is due to a higher result of our US operations in the Life/Health business segment, and a stronger insurance service result in the Property-Casualty business segment. This was partly offset by the Asset Management business segment due to reduced AuM-driven revenues and a higher cost-income ratio.
Shareholders’ core net income was strong at 2.2 (1Q 2022: 0.4) billion euros due to both a higher operating profit and an improved non-operating result. Non-operating result in the prior year was impacted by a provision related to the AllianzGI US Structured Alpha matter.
Net income attributable to shareholders was 2.0 (1Q 2022: 0.5) billion euros, up substantially in part due to the aforementioned provision.
Core Earnings per Share (EPS)3 was 5.43 (1Q 2022: 1.02) euros.
The annualized Core Return on Equity (RoE)3 was 15.6 percent (full year 2022: 12.7 percent).
On May 10, 2023, Allianz has announced a new share buy-back program of up to 1.5 billion euros. The program shall start end-May 2023 and be finalized by December 31, 2023, at the latest. ----------------------------------- 3 EPS and RoE calculation based on shareholder‘s core net income -----------------------------------
Solvency II Capitalization Ratio
The Solvency II capitalization ratio was 206 percent at the end of 1Q 2023 compared with 201 percent at the end of 4Q 2022. Including the application of transitional measures for technical provisions, the Solvency II capitalization ratio was 232 percent at the end of the first quarter of 2023 compared with 230 percent at the end of 2022.
”Allianz’s first quarter results demonstrated strong performance and proven resilience across all segments. With the first-time application of IFRS 9 and 17, we delivered our results with even more clarity and transparency and proved our ability to create value.
We confirm our full-year outlook of operating profit of 14.2 billion euros, plus or minus 1 billion euros.” - Giulio Terzariol, Chief Financial Officer of Allianz SE Property-Casualty insurance: Dynamic growth
1Q 2023: Total business volume rose by 11.2 percent to 24.1 (21.7) billion euros. Adjusted for foreign currency translation and consolidation effects, internal growth was strong at 11.1 percent due to a volume effect of 5.0 percent, a price effect of 5.6 percent as well as a service effect of 0.5 percent. The main contributors to the increase were AGCS, Türkiye, Allianz Partners and Germany.
Operating profit surged by 22.7 percent to 1.9 (1.5) billion euros, due to a higher operating insurance service result that was partly offset by a slightly lower operating investment result.
The combined ratio improved by 1.9 percentage points to 91.9 percent (93.8 percent). The loss ratio benefited from a higher discounting effect and lower claims from natural catastrophes. This was partly offset by a lower run-off result. The expense ratio improved by 0.5 percentage points to 24.9 percent (25.4 percent).
Life/Health insurance: Excellent new business margin
Operating profit increased to 1.3 (0.8) billion euros and benefited in particular from a higher result in the United States. The release of the Contractual Service Margin (CSM) was stable and in line with expectations.
The new business margin (NBM) increased to 5.5 percent (4.9 percent), driven by an improved business mix and higher interest rates. The value of new business (VNB) was stable at 1.0 (1.0) billion euros.
Asset Management: Positive net inflows
1Q 2023: Operating revenues were 1.9 billion euros, down by 8.1 percent. Higher performance fees were more than offset by lower AuM-driven revenues.
Operating profit was 723 (832) million euros, down 13.2 percent from the prior-year period. Adjusted for foreign currency translation effects, operating profit decreased by 16.0 percent. The cost-income ratio (CIR) rose to 62.0 percent (59.7 percent).
Third-party assets under management were 1.668 trillion euros as of March 31, 2023, up by 33 billion euros from the end of 2022. Positive net inflows of 14.9 billion euros and favorable market impacts of 42.2 billion euros were partially offset by negative foreign currency translation effects of 23.4 billion euros.
Total assets under management were 2.174 trillion euros at the end of the first quarter of 2023, reflecting the trend in the third-party assets under management.
Glossary Total business volume: Total business volume presents a measure for the overall amount of business generated during a specific reporting period. Total business volume in the Allianz Group comprises: Gross premiums written as well as fee and commission income in Property-Casualty; Statutory gross premiums written in Life/Health; and Operating revenues in Asset Management.
Shareholders’ core net income: Presents the portion of shareholders’ net income before non-operating market movements and before amortization of specific/certain acquisition-related intangible assets (including any related tax effects).
Operating insurance service result: Presents in profit or loss insurance revenue, insurance service expenses including incurred claims and other incurred insurance service expenses as well as the reinsurance service result. The following components are also included by Allianz: 1) Non-attributable acquisition, administrative and claims expenses of our operating entities which under IFRS 4 were also included in the underwriting result; 2) Adjustments for claims and expense variances where our operating entities share the technical results with the policyholders (only for insurance contracts under the variable fee approach); 3) Restructuring expenses that are shared with the policyholder.
Combined ratio: Represents the total of acquisition and administrative expenses, claims and insurance benefits incurred, and the reinsurance result divided by insurance revenue. Contractual Service Margin (CSM): Balance sheet liability, containing deferred discounted future profits of in-force long duration business. 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’s core business and core markets, (ii) the performance of financial markets (in particular market volatility, liquidity, and credit events), (iii) adverse publicity, regulatory actions or litigation with respect to the Allianz Group, other well-known companies and the financial services industry generally, (iv) the frequency and severity of insured loss events, including those resulting from natural catastrophes, and the development of loss expenses, (v) mortality and morbidity levels and trends, (vi) persistency levels, (vii) the extent of credit defaults, (viii) interest rate levels, (ix) currency exchange rates, most notably the EUR/USD exchange rate, (x) changes in laws and regulations, including tax regulations, (xi) the impact of acquisitions including and related integration issues and reorganization measures, and (xii) 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 Allianz assumes no obligation to update any information or forward-looking statement contained herein, save for any information we are required to disclose by law.
Other 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.
Privacy Note Allianz SE is committed to protecting your personal data. Find out more in our privacy statement.
12.05.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
Language: | English |
Company: | Allianz SE |
Koeniginstr. 28 | |
80802 Munich | |
Germany | |
Phone: | +49 (0)89 38 00 - 7555 |
E-mail: | investor.relations@allianz.com |
Internet: | www.allianz.com |
ISIN: | DE0008404005 |
WKN: | 840400 |
Indices: | DAX, 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: | 1631255 |
End of News | EQS News Service |
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1631255 12.05.2023 CET/CEST
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