Earnings Release • May 21, 2019
Earnings Release
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| Munich, May 14, 2019 | [email protected] | +49 89 3800 3963 |
|---|---|---|
| [email protected] | +49 89 3800 17224 | |
| [email protected] | +49 89 3800 3892 | |
| [email protected] | +49 89 3800 18124 |
[email protected] www.allianz.com/investor-relations
Allianz Group continued its successful course from 2018 with a strong first quarter 2019. The results demonstrate the resilience of our business segments and continued progress in executing our Renewal Agenda. Internal revenue growth, which adjusts for currency and consolidation effects, was 7.5 percent. Total revenues grew 9.1 percent to 40.3 (2018: 36.9) billion euros. Operating profit increased by 7.5 percent to 3.0 (2.8) billion euros, mostly due to our Property-Casualty business segment as a result of strong premium growth, lower claims from natural catastrophes and an improved expense ratio. Our Life/Health business segment operating profit grew slightly as higher loadings and fees and favorable true-ups more than offset a lower investment margin. Higher expenses due to investments in business growth led to a small decline in the Asset Management business segment's operating profit.
Net income attributable to shareholders grew 1.6 percent to 2.0 (1.9) billion euros. Higher operating profit was largely offset by lower non-operating investment income and, to a lesser extent, higher taxes.
Basic Earnings per Share (EPS) increased 4.5 percent to 4.65 (4.46) euros. Annualized Return on Equity (RoE) amounted to 13.7 percent (full year 2018: 13.2 percent). The Solvency II capitalization ratio stood at a comfortable level of 218 percent at the end of the first quarter 2019, compared to 229 percent at year-end
2018, driven primarily by the effects of the current share buy-back program (minus 4 percentage points) and following previously announced regulatory and model changes (minus 4 percentage points).
On February 14, 2019, Allianz announced a new share buy-back program of up to 1.5 billion euros. 2.8 million shares have been acquired by March 31, 2019, representing 0.7 percent of outstanding capital.
"Allianz achieved strong results in the first quarter putting the group on track to meet its 2019 full-year targets," said Oliver Bäte, Chief Executive Officer of Allianz SE. "Our customers continue to seek quality and service, both of which we are consistently focusing on. Despite economic and political volatility, we are very well positioned to further develop our franchise."
"I am pleased by the healthy revenue growth of the Property-Casualty business segment in the quarter, which reflects the good positioning of our global franchise," said Giulio Terzariol, Chief Financial Officer of Allianz SE. "The strong combined ratio is well supported by our ongoing efforts to improve productivity."
"Growth in our Life and Health business was excellent and with continued strong new business margins," said Giulio Terzariol. "Increasing value of new business and operating profit show that we are on track to meet our full-year targets."
1 PVNBP is shown after non-controlling interests, unless otherwise stated.
"Our Asset Management business segment has shown good resilience also underpinned by our positive net inflow development," said Giulio Terzariol. "I am pleased that total assets under management reached the highest level ever at the end of the quarter since this bodes well for a strong revenue development."
| 1Q 2019 | 1Q 2018 | Delta | |||
|---|---|---|---|---|---|
| Total revenues1 | € bn | 40.3 | 36.9 | 9.1% | |
| - Property-Casualty1 | € bn | 19.5 | 18.3 | 6.3% | |
| - Life/Health | € bn | 19.3 | 17.1 | 12.9% | |
| - Asset Management | € bn | 1.6 | 1.6 | 1.0% | |
| - Corporate and Other | € bn | 0.1 | 0.1 | -31.9% | |
| - Consolidation | € bn | -0.1 | -0.2 | -14.0% | |
| Operating profit / loss | € mn | 2,962 | 2,756 | 7.5% | |
| - Property-Casualty | € mn | 1,455 | 1,274 | 14.2% | |
| - Life/Health | € mn | 1,096 | 1,069 | 2.5% | |
| - Asset Management | € mn | 573 | 595 | -3.7% | |
| - Corporate and Other | € mn | -164 | -182 | -9.7% | |
| - Consolidation | € mn | 4 | 1 | 304.1% | |
| Net income | € mn | 2,051 | 2,030 | 1.0% | |
| - attributable to non-controlling interests | € mn | 82 | 91 | -10.5% | |
| - attributable to shareholders | € mn | 1,969 | 1,939 | 1.6% | |
| Basic earnings per share | € | 4.65 | 4.46 | 4.5% | |
| Diluted earnings per share | € | 4.65 | 4.40 | 5.5% | |
| Additional KPIs | |||||
| - Group | Return on equity2,3 | % | 13.7% | 13.2% | 0.5% -p |
| - Property-Casualty | Combined ratio | % | 93.7% | 94.8% | -1.1% -p |
| - Life/Health | New business margin | % | 3.5% | 3.3% | 0.2% -p |
| - Life/Health | Value of new business | € mn | 609 | 489 | 24.5% |
| - Asset Management | Cost-income ratio | % | 63.7% | 61.9% | 1.8% -p |
| 03/31/2019 | 12/31/2018 | Delta | |||
| Shareholders' equity2 | € bn | 67.2 | 61.2 | 9.7% | |
| Solvency II capitalization ratio | % | 218% | 229% | -11% -p |
|
| Third-party assets under management | € bn | 1,548 | 1,436 | 7.8% |
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_ Total revenues comprise P/C GWP & fee and commission income. Prior year figures have been adjusted accordingly.
2_ Excluding non-controlling interests.
3_ Excluding unrealized gains/losses on bonds, net of shadow accounting. RoE for 1Q 2019 is annualized. For 1Q 2018, the return on equity for the respective full year is shown. Annualized figures are not a forecast for full year numbers.
These assessments, are as always, subject to the disclaimer provided below:
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 Group's core business and core markets, (ii) the performance of financial markets (in particular market volatility, liquidity, and credit events), (iii) the frequency and severity of insured loss events, including those resulting 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, most notably the EUR/USD exchange rate, (ix) changes in laws and regulations, including tax regulations, (x) the impact of acquisitions including and related integration issues and reorganization measures, and (xi) 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.
The Allianz Group assumes no obligation to update any information or forward-looking statement contained herein, save for any information we are required to disclose by law.
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.
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