Allianz Records 14 Percent Operating Profit Growth for Third Quarter 2024
Aschheim,
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3Q 2024:
Total business volume advances 17.3 percent to
Operating profit increases 13.6 percent and reaches
Shareholders' core net income reaches
9M 2024:
Total business volume rises 9.6 percent to
Operating profit increases by 7.9 percent to
Shareholders' core net income advances 12.3 percent to
Strong Solvency II capitalization ratio of 209 percent1
Outlook:
Following the strong performance in the first nine months of the year, Allianz expects the 2024 operating profit to be in the upper half of the target range of
The previously announced share buy-backs in the total volume of
1
Based on quarterly dividend accrual; additional accrual to reflect FY dividend would impact Solvency II capitalization ratio by -3%-p as of
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 continued our strong performance through the third quarter, achieving strong growth in business volume, operating profit, and net income, while reinforcing our financial strength.
Natural catastrophes have again tested Allianz's financial and operational resilience, tests which we have successfully passed, giving us the confidence to now expect an operating profit in the upper half of our target range. These events profoundly affected many of our customers, but they also presented us with another opportunity to demonstrate our purpose and deliver the security of being insured by Allianz.
Moreover, in a world where brand strength is increasingly important, Allianz has again been recognized as the world's leading insurance brand and has entered the Top 30
-
FINANCIAL HIGHLIGHTS
Total business volume
3Q 2024: Total business volume rose by 17.3 percent to
Adjusted for foreign currency translation and consolidation effects, internal growth was 19.1 percent. The main drivers were the Life/Health operations with good contribution also from our Property-Casualty business segment.
9M 2024: Total business volume increased by 9.6 percent to
Adjusted for foreign currency translation and consolidation effects, internal growth was 11.1 percent. All business segments contributed to this growth.
Earnings
3Q 2024: Operating profit was excellent at 3.9 (3Q 2023: 3.5) billion euros. The strong increase of 13.6 percent was primarily driven by the Property-Casualty business with good growth also in the Life/Health segment.
Shareholders' core net income advanced to 2.5
Net income attributable to shareholders rose to 2.5
9M 2024: Operating profit was strong at 11.8 (9M 2023: 11.0) billion euros, an increase of 7.9 percent. All business segments contributed, with our Property-Casualty business being the main driver.
Shareholders' core net income advanced 12.3 percent to
Net income attributable to shareholders increased by 16.7 percent to 7.5
Core earnings per share (EPS)3 was 19.11 (9M 2023: 16.62) euros.
The annualized core return on equity (RoE)3 was 17.5 percent (full year 2023: 16.1 percent).
Solvency II capitalization ratio
The Solvency II capitalization ratio increased to 209 percent4 at the end of the third quarter 2024 compared with 206 percent at the end of the second quarter 2024.
3
Core EPS and core RoE calculation based on shareholders' core net income.
4
Based on quarterly dividend accrual; additional accrual to reflect FY dividend would impact Solvency II capitalization ratio by -3%-p as of
SEGMENTAL HIGHLIGHTS
"Allianz's strong performance delivery in the third quarter underlines the proven resilience of our business model.
Our Property-Casualty business achieved excellent operating profit growth. We benefited from lower natural catastrophes compared to last year, which however remained at an elevated level. Continued pricing momentum and resolute business focus fuelled strong internal growth, in particular in our Retail, SME and Fleet segment.
The performance of our Life/Health operations was excellent. Allianz's ability for sustained value creation for shareholders and customers alike is evidenced by a very good operating profit and excellent new business growth at attractive margins.
Our Asset Management segment recorded continued net inflows and good growth in third-party Assets under Management. This fuelled AuM-driven revenues and positions us well for sustained earnings growth.
The strong performance throughout the first nine months of the year enables us to anticipate a full-year operating profit in the upper half of the target range of
-
Property-Casualty insurance: Strong internal growth
3Q 2024: Total business volume increased by 8.0 percent to 18.6
Operating profit surged by 36.2 percent to 2.0
The combined ratio improved to 93.5 percent (96.2 percent). The loss ratio developed favourably and reached 69.8 percent (71.0 percent), benefiting from lower natural catastrophe claims. The expense ratio improved to 23.7 percent (25.1 percent).
9M 2024: Total business volume increased by 7.5 percent to 63.3
Operating profit rose by 12.3 percent to an excellent level of 6.0
The combined ratio improved to 93.0 percent (93.5 percent). The loss ratio was 68.8 percent (68.5 percent), while the expense ratio improved by 0.7 percentage points to 24.2 percent.
Life/Health insurance: Excellent new business momentum
3Q 2024: PVNBP, the present value of new business premiums, increased strongly by 35.4 percent to 19.5
Operating profit advanced to 1.4
Contractual Service Margin (CSM) rose from
The new business margin (NBM) was attractive at 6.1 percent (6.2 percent) and the value of new business (VNB) advanced to 1.2
9M 2024: PVNBP advanced to 60.6
Operating profit increased to 4.1
Contractual Service Margin (CSM) rose from
The new business margin was very good at 5.8 percent (5.9 percent). The value of new business advanced to 3.5
5
Includes gross CSM of
Asset Management: Strong net inflows and higher third-party AuM
3Q 2024: Operating revenues reached
Operating profit amounted to 782
Third-party assets under management increased to
9M 2024: Operating revenues increased to
Operating profit rose to 2.3
Third-party assets under managementincreased by
3Q & 9M 2024 RESULTS TABLE
3Q 2024
3Q 2023
Delta
9M 2024
9M 2023
Delta
Total business volume
€ bn
42.8
36.5
17.3%
133.9
122.1
9.6%
- Property-Casualty
€ bn
18.6
17.2
8.0%
63.3
58.9
7.5%
- Life/Health
€ bn
22.4
17.5
28.0%
65.0
57.9
12.3%
- Asset Management
€ bn
2.0
2.0
0.3%
6.0
5.8
3.3%
- Consolidation
€ bn
-0.2
-0.2
-11.3%
-0.5
-0.5
-2.4%
Operating profit / loss
€ mn
3,938
3,468
13.6%
11,849
10,981
7.9%
- Property-Casualty
€ mn
1,969
1,446
36.2%
5,950
5,301
12.3%
- Life/Health
€ mn
1,376
1,308
5.2%
4,082
3,830
6.6%
- Asset Management
€ mn
782
788
-0.8%
2,298
2,214
3.8%
- Corporate and Other
€ mn
-185
-71
158.3%
-475
-358
32.7%
- Consolidation
€ mn
-5
-4
21.7%
-5
-6
-13.2%
Net income
€ mn
2,611
2,130
22.6%
7,904
6,776
16.6%
- attributable to non-controlling interests
€ mn
141
108
29.7%
445
386
15.2%
- attributable to shareholders
€ mn
2,471
2,021
22.2%
7,459
6,390
16.7%
Shareholders' core net income1
€ mn
2,534
2,060
23.0%
7,583
6,750
12.3%
Core earnings per share2
€
6.54
5.22
25.4%
19.11
16.62
15.0%
Additional KPIs
- Group
Core return on equity3
%
-
-
-
17.5%
16.1%
1.4%
-p
- Property-Casualty
Combined ratio
%
93.5%
96.2%
-2.7%
-p
93.0%
93.5%
-0.5%
-p
- Life/Health
New business margin
%
6.1%
6.2%
-0.1%
-p
5.8%
5.9%
-0.1%
-p
- Asset Management
Cost-income ratio
%
61.0%
60.5%
0.5%
-p
61.5%
61.7%
-0.2%
-p
Delta
Shareholders' equity4
€ bn
57.8
58.2
-0.8%
Contractual service margin (net)5
€ bn
34.3
32.7
4.9%
Solvency II capitalization ratio6
%
209%
206%
3%
-p
Third-party assets under management
€ bn
1,840
1,712
7.5%
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_
Presents the portion of shareholders' net income before non-operating market movements and before amortization of intangible assets from business combinations (including any related income tax effects).
2_
Calculated by dividing the respective period's shareholders' core net income, adjusted for net financial charges related to undated subordinated bonds classified as shareholders' equity, by the weighted average number of shares outstanding (basic core EPS).
3_
Represents the annualized ratio of shareholders' core net income to the average shareholders' equity at the beginning and at the end of the period. Shareholders' core net income is adjusted for net financial charges related to undated subordinated bonds classified as shareholders' equity. From the average shareholders' equity, undated subordinated bonds classified as shareholders' equity, unrealized gains and losses from insurance contracts and other unrealized gains and losses are excluded. Annualized figures are not a forecast for full year numbers. For 9M 2023, the core return on equity for the respective full year is shown. Due to an adjustment of prior periods comparative figures for the balance sheet, the core RoE changed by +0.1%-p compared to the published figure as of
4_
Excluding non-controlling interests. In 1Q 2024 Allianz reclassified certain minority interests between equity and liabilities. Prior periods comparative figures for the balance sheet have been adjusted with a minor impact on shareholders' equity only (reduced by
5_
Includes net CSM of
6_
Risk capital figures are group diversified at 99.5% confidence level. Solvency II capitalization ratio is based on quarterly dividend accrual; additional accrual to reflect FY dividend would impact solvency II capitalization ratio by -3%-p as of
RELATED LINKS
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About Allianz
* Including non-consolidated entities with Allianz customers.
**As of
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
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
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