Quarterly Report • Aug 25, 2015
Quarterly Report
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| three months ended 30 June | six months ended 30 June | ||||||
|---|---|---|---|---|---|---|---|
| 2015 | 2014 | Change from previous year |
2015 | 2014 | Change from previous year |
More details on page |
|
| Income statement | |||||||
| Total revenues1 € mn |
30,170 | 29,457 | 2.4% | 67,939 | 63,420 | 7.1% | 6 |
| Operating profit2 € mn |
2,842 | 2,770 | 2.6% | 5,697 | 5,494 | 3.7% | 7 |
| Net income2 € mn |
2,112 | 1,858 | 13.6% | 4,048 | 3,598 | 12.5% | 8 |
| thereof: attributable to shareholders € mn |
2,018 | 1,755 | 15.0% | 3,839 | 3,395 | 13.1% | 8 |
| Business segments3 | |||||||
| Property-Casualty | |||||||
| Gross premiums written € mn |
11,843 | 10,846 | 9.2% | 29,182 | 26,063 | 12.0% | 12 |
| Operating profit2 € mn |
1,745 | 1,345 | 29.7% | 3,030 | 2,835 | 6.9% | 13 |
| Net income2 € mn |
1,344 | 969 | 38.6% | 2,266 | 1,614 | 40.3% | 15 |
| Combined ratio | % 93.5 |
94.6 | (1.1)%-p | 94.1 | 93.6 | 0.4%-p | 13 |
| Life/Health | |||||||
| Statutory premiums € mn |
16,719 | 16,961 | (1.4)% | 35,540 | 34,124 | 4.2% | 20 |
| Operating profit2 € mn |
853 | 985 | (13.4)% | 1,957 | 1,864 | 5.0% | 22 |
| Net income2 € mn |
662 | 731 | (9.5)% | 1,401 | 1,360 | 3.0% | 25 |
| Margin on reserves bps |
58 | 79 | (20) | 70 | 76 | (6) | 24 |
| Asset Management | |||||||
| Operating revenues € mn |
1,548 | 1,607 | (3.6)% | 3,121 | 3,124 | (0.1)% | 31 |
| Operating profit2 € mn |
505 | 676 | (25.2)% | 1,060 | 1,321 | (19.8)% | 32 |
| Net income2 € mn |
329 | 419 | (21.4)% | 658 | 825 | (20.2)% | 32 |
| Cost-income ratio | % 67.4 |
57.9 | 9.4%-p | 66.0 | 57.7 | 8.3%-p | 32 |
| Corporate and Other | |||||||
| Total revenues € mn |
131 | 132 | (0.8)% | 270 | 270 | – | – |
| Operating result2 € mn |
(230) | (219) | (4.7)% | (331) | (442) | 25.1% | 34 |
| Net income (loss)2 € mn |
(205) | (249) | 17.4% | (254) | (117) | (116.6)% | 34 |
| Balance sheet as of 30 June4 | |||||||
| Total assets € mn |
841,648 | 805,787 | 4.5% | 841,648 | 805,787 | 4.5% | 39 |
| Shareholders' equity € mn |
60,687 | 60,747 | (0.1)% | 60,687 | 60,747 | (0.1)% | 38 |
| Non-controlling interests € mn |
2,824 | 2,955 | (4.4)% | 2,824 | 2,955 | (4.4)% | 38 |
| Share information | |||||||
| Basic earnings per share | € 4.44 |
3.87 | 14.8% | 8.45 | 7.48 | 12.9% | 108 |
| Diluted earnings per share | € 4.38 |
3.84 | 14.0% | 8.45 | 7.41 | 14.0% | 108 |
| Share price as of 30 June4 | € 139.70 |
137.35 | 1.7% | 139.70 | 137.35 | 1.7% | 1 |
| Market capitalization as of 30 June4 € mn |
63,843 | 62,769 | 1.7% | 63,843 | 62,769 | 1.7% | – |
| Other data | |||||||
| Standard&Poor's rating5 | AA Stable outlook |
AA Stable outlook |
– | AA Stable outlook |
AA Stable outlook |
– | – |
| Conglomerate solvency ratio4, 6 |
% 192 |
181 | 12%-p | 192 | 181 | 12%-p | 38 |
Total assets under management as of 30 June4 € Bn 1,811 1,801 0.5% 1,811 1,801 0.5% 29 thereof: third-party assets under management as of 30 June4 € Bn 1,323 1,313 0.8% 1,323 1,313 0.8% 29
1 Total revenues comprise statutory gross premiums written in Property-Casualty and Life/Health, operating revenues in Asset Management and total revenues in Corporate and Other (Banking).
2 The Allianz Group uses operating profit and net income as key financial indicators to assess the performance of its business segments and the Group as a whole.
3 The Allianz Group operates and manages its activities through four business segments: Property-Casualty, Life/Health, Asset Management and Corporate and Other. For further information, please refer to note 4 to the condensed consolidated interim financial statements.
4 2014 figures as of 31 December 2014.
5 Insurer financial strength rating, affirmed on 22 December 2014.
6 Solvency according to the E.U. Financial Conglomerates Directive. Off-balance sheet reserves are accepted by the authorities as eligible capital only upon request. Allianz SE has not submitted an application so far. Excluding off-balance sheet reserves, the solvency ratio as of 30 June 2015 would be 184% (31 December 2014: 172%).
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Development of the Allianz share price versus STOXX Europe 600 Insurance and EURO STOXX 50
| Security codes | WKN 840 400 |
|---|---|
| ISIN DE 000 840 400 5 |
|
| Bloomberg | ALV GR |
| Reuters | 0#ALVG.DEU |
The condensed consolidated interim financial statements are presented in millions of Euros (€ MN), 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. Previously published figures have been adjusted accordingly.
Pages 4 – 48
| A Interim Group Management Report |
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|---|---|---|
| -------------------------------------- | -- | -- |
29 Asset Management
38 Balance Sheet Review 45 Reconciliations
Second quarter 2015
Allianz SE and its subsidiaries (the Allianz Group) have operations in over 70 countries. The Group's results are reported by business segment: Property-Casualty insurance operations, Life/Health insurance operations, Asset Management, and Corporate and Other.
| € mn three months ended 30 June |
2015 | 2014 |
|---|---|---|
| Total revenues | 30,170 | 29,457 |
| Operating profit | 2,842 | 2,770 |
| Net income | 2,112 | 1,858 |
| Conglomerate solvency ratio1, 2 in % |
192 | 181 |
Growth dynamics in the global economy took different directions in the first half of this year. Most of the industrialized countries registered fairly solid growth. Following a weak start to the year, the U.S. economy got back into stride in the second quarter. The Eurozone experienced an acceleration in economic activity, benefiting from lower oil prices and the depreciation of the Euro. By contrast, major emerging markets like China showed signs of weakness or, in the case of Brazil and Russia, actually slipped into recession. Overall, global economic activity continued to trend moderately upwards.
Despite the European Central Bank's (ECB) ongoing bond purchasing program, yields on 10-year German government bonds rose significantly and closed the second quarter at 0.8%, 60 basis points higher than at the beginning of the quarter. Spreads on government bonds in the Eurozone periphery widened. This was most pronounced in Greece amid the standstill in negotiations with the ECB, the European Commission and the International Monetary Fund, the end of the second bail-out program on 30 June and the call for a referendum in Greece. The negotiations between Greece and its creditors were also reflected in increased volatility in equity markets. While many equity markets outside Europe registered gains in the second quarter, most markets in Europe declined. Additionally Asian emerging market equities were impacted by a plunge in Chinese indices. Following preceding strong losses, influenced not least by the divergent monetary policies of the ECB and the Federal Reserve Bank, the Euro stabilized in the second quarter. The U.S. Dollar to Euro exchange rate was 1.11 at the end of the second quarter (end of first quarter: 1.07).
2 2014 figure as of 31 December 2014.
1 Off-balance sheet reserves are accepted by the authorities as eligible capital only upon request. Allianz SE has not submitted an application so far. Excluding off-balance sheet reserves, the conglomerate solvency ratios as of 30 June 2015 and 31 December 2014 would be 184% and 172%, respectively.
From an insurance industry point of view, the first half of 2015 was rather mixed. On the one hand, loss activity was generally modest as global catastrophe losses were benign; top-line growth was more or less stable. On the other hand, despite the recent pickup, yields remained very low, keeping reinvestment yields well below running yields. Furthermore, pricing pressure continued to grow. The upshot is an increasing need to manage expenses. Unsurprisingly, industry consolidation is already in full swing.
Our total revenues increased 2.4 % to € 30.2 BN (internal growth1: (3.8)%). The increase in total revenues was driven by our Property-Casualty business segment. However, developments in our business segments Life/Health and Asset Management partly offset this growth.
Our operating profit grew € 72 mn – or 2.6% – to € 2,842 mn. This was mainly due to a strong underwriting result, as well as a net gain from the sale of the Fireman's Fund personal insurance business in our Property-Casualty business segment. Mainly a lower investment margin and reserve strengthening in South Korea in our Life/Health business segment as well as an increase in operating expenses – which was strongly driven by foreign currency translation effects – in our Asset Management business segment lowered the upswing.
Net income was up 13.6% to € 2,112 mn – a strong increase primarily due to an improvement in our non-operating result. Net income attributable to shareholders and non-controlling interests were at € 2,018 mn (2Q 2014: € 1,755 mn) and € 94 mn (2Q 2014: € 103 mn), respectively.
Our shareholders' equity was stable at € 60.7 BN, compared to 31 December 2014. In the same period, our conglomerate solvency ratio strengthened from 181% to 192%2.
� mn 2Q 2014 2Q 2015 40,000 30,000 20,000 10,000 30,1701 16,719 (6.0)% 11,843 +1.6% 1,548 131 29,4571 16,961 10,846 1,607 132 (17.7)% +0.0% (3.8)% Property-Casualty Life/Health Asset Management Corporate and Other Internal growth 1 Total revenues include € (72) mn (2Q 2014: € (89) mn) from consolidation for 2Q 2015.
Property-Casualty gross premiums written amounted to € 11.8 BN – an increase of € 1.0 BN compared to the second quarter of 2014. This equals a growth of 1.6% on an internal basis1, driven by favorable volume effects. We recorded strong growth at Allianz Worldwide Partners, in Turkey and at AGCS excl. Fireman's Fund.
Life/Health statutory premiums amounted to € 16.7 bn, a decrease of 6.0% on an internal basis1. An increase in unit-linked business stemming from Taiwan and Italy partly offset the drop in fixedindexed annuity sales in the United States and the decrease in traditional life business in Germany, as a result of the change in product strategy.
Asset Management operating revenues dropped by € 59 MN to € 1,548 MN. On an internal basis1, excluding the strong effects from foreign currency translation, mainly resulting from the appreciation of the U.S. Dollar against the Euro, operating revenues decreased by 17.7%. The main cause for this was a drop in our third-party assets under management (AuM) and the corresponding AuM-related income.
Total revenues in our Banking operations (reported in our Corporate and Other business segment) were almost flat at € 131 mn.
1 Internal total revenue growth excludes the effects of foreign currency translation as well as acquisitions and disposals. Please refer to page 46 for a reconciliation of nominal total revenue growth to internal total revenue growth for each of our segments and the Allianz Group as a whole.
2 Off-balance sheet reserves are accepted by the authorities as eligible capital only upon request. Allianz SE has not submitted an application so far. Excluding off-balance sheet reserves, the conglomerate solvency ratios as of 30 June 2015 and 31 December 2014 would be 184% and 172%, respectively.
3 Total revenues comprise statutory gross premiums written in Property-Casualty and in Life/Health, operating revenues in Asset Management, and total revenues in Corporate and Other (Banking).
29 Asset Management
36 Outlook
38 Balance Sheet Review 45 Reconciliations
In the first six months of 2015, our total revenues grew 7.1% compared to the corresponding period in 2014 and amounted to € 67.9 BN. On an internal basis1 total revenues increased slightly by 0.2 %. Volume driven growth in our Property-Casualty business segment was mostly offset by lower third-party AuM-driven revenues from our Asset Management business segment, and – to a lesser extent – by a decline in our Life/Health statutory premiums.
Our Property-Casualty operating profit increased by € 400 MN to € 1,745 MN, largely due to the strong underwriting result compared to the second quarter of 2014 and a net gain from the sale of the Fireman's Fund personal insurance business. Our investment result improved by € 35 MN to € 840 MN.
Life/Health operating profit decreased by € 132 mn to € 853 mn. This was driven by the German life business, mainly due to a lower investment margin as a result of negative fair value changes, and reserve strengthening in South Korea. It was partly offset by a higher investment spread margin due to an increased asset base in the United States and favorable foreign currency translation effects.
Asset Management operating profit went down 25.2% to € 505 MN, which is a contraction of 36.9% on an internal basis2, mainly due to lower third-party AuM-related revenues and – to a lesser extent – a dip of our third-party AuM margin. We also recorded a slight drop in administrative expenses, which was mostly driven by lower personnel expenses.
Our operating result in Corporate and Other decreased by € 10 mn to a loss of € 230 mn. An increase in the operating result of our Banking operations could only partially compensate for the drop of € 19 mn in Holding&Treasury.
Operating profit went up € 204 mn – or 3.7% – to € 5,697 mn. The main drivers for this were higher loadings and fees and a better investment margin in our Life/Health business segment and – in the second quarter – a strong underwriting result and a net gain from the sale of the Fireman's Fund personal insurance business in our Property-Casualty business segment. An improvement in the result of our Corporate and Other business segment also contributed to this development. However, operating profit in our Asset Management business segment declined, largely reflecting an increase in operating expenses, which was strongly driven by foreign currency translation effects.
2 Operating profit adjusted for foreign currency translation and (de-)consolidation effects.
1 Internal total revenue growth excludes the effects of foreign currency translation as well as acquisitions and disposals. Please refer to page 46 for a reconciliation of nominal total revenue growth to internal total revenue growth for each of our segments and the Allianz Group as a whole.
Our non-operating result increased by € 174 mn to € 137 mn, mainly driven by a higher non-operating investment result due to increased non-operating realized gains and losses (net) and higher non-operating income from financial assets and liabilities carried at fair value through income (net).
Non-operating income from financial assets and liabilities carried at fair value through income (net) increased by € 44 mn to € 13 mn, mainly due to favorable impacts from hedging-related activities.
Non-operating realized gains and losses (net) increased by € 181 mn to € 424 mn, driven by higher realized gains on equity investments and debt securities.
Non-operating impairments of investments (net) increased by € 20 mn to € 43 mn, mainly due to impairments on debt funds.
Our non-operating result increased by € 230 mn to € 76 mn. This was mainly driven by higher non-operating realized gains and losses (net) partly offset by the absence of a positive one-off effect from a pension revaluation of € 117 mn, as reported in the first quarter of 2014.
Income taxes decreased by € 7 mn to € 867 mn and the effective tax rate amounted to 29.1% (2Q 2014: 32.0%). This was mostly due to higher tax exempt income.
Income taxes were down by € 17 mn to € 1,725 mn, driven by higher tax exempt income compared to the first six months of 2014. The effective tax rate decreased to 29.9% (6M 2014: 32.6%).
Net income increased by € 254 mn to € 2,112 mn, driven primarily by our higher non-operating result. Net income attributable to shareholders and non-controlling interests amounted to € 2,018 mn(2Q 2014: € 1,755 mn) and € 94 mn (2Q 2014: € 103 mn), respectively. The largest non-controlling interests in net income related to Euler Hermes and PIMCO.
Basic earnings per share increased from € 3.87 to € 4.44 and diluted earnings per share increased from € 3.84 to € 4.38. For further information on earnings per share, please refer to note 39 to the condensed consolidated interim financial statements.
Net income grew by € 450 mn to € 4,048 mn, driven by both our higher non-operating result and operating result. Net income attributable to shareholders and non-controlling interests amounted to € 3,839 mn (6M 2014: € 3,395 mn) and € 209 mn (6M 2014: € 203 mn), respectively.
20 Life/Health Insurance Operations
38 Balance Sheet Review
45 Reconciliations
29 Asset Management
€ mn
| three months ended 30 June | six months ended 30 June | ||||
|---|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | ||
| Total revenues1 | 30,170 | 29,457 | 67,939 | 63,420 | |
| Premiums earned (net) | 17,263 | 16,700 | 35,535 | 33,386 | |
| Operating investment result | |||||
| Interest and similar income | 5,964 | 5,538 | 11,368 | 10,677 | |
| Operating income from financial assets and liabilities | |||||
| carried at fair value through income (net) | (1,330) | (22) | (647) | (272) | |
| Operating realized gains/losses (net) | 1,670 | 783 | 4,189 | 1,563 | |
| Interest expenses, excluding interest expenses from external debt | (96) | (102) | (199) | (199) | |
| Operating impairments of investments (net) | (113) | (50) | (202) | (347) | |
| Investment expenses | (265) | (232) | (502) | (431) | |
| Subtotal | 5,830 | 5,914 | 14,007 | 10,991 | |
| Fee and commission income | 2,673 | 2,537 | 5,317 | 4,945 | |
| Other income | 279 | 46 | 356 | 123 | |
| Claims and insurance benefits incurred (net) | (12,294) | (12,257) | (25,098) | (24,066) | |
| Change in reserves for insurance and investment contracts (net)2 | (3,560) | (3,598) | (9,699) | (7,038) | |
| Loan loss provisions | (17) | (15) | (24) | (24) | |
| Acquisition and administrative expenses (net), excluding acquisition-related expenses and one-off effects from pension revaluation |
(6,286) | (5,704) | (12,590) | (11,156) | |
| Fee and commission expenses | (949) | (830) | (1,890) | (1,613) | |
| Operating amortization of intangible assets | (5) | (5) | (9) | (9) | |
| Restructuring charges | (61) | 9 | (151) | 9 | |
| Other expenses | (32) | (26) | (60) | (56) | |
| Reclassification of tax benefits | – | – | 5 | – | |
| Operating profit | 2,842 | 2,770 | 5,697 | 5,494 | |
| Non-operating investment result | |||||
| Non-operating income from financial assets and liabilities carried at fair value through income (net) |
13 | (31) | (112) | (101) | |
| Non-operating realized gains/losses (net) | 424 | 243 | 742 | 369 | |
| Non-operating impairments of investments (net) | (43) | (24) | (63) | (89) | |
| Subtotal | 393 | 188 | 568 | 179 | |
| Income from fully consolidated private equity investments (net) | (6) | – | (4) | (5) | |
| Interest expenses from external debt | (213) | (206) | (425) | (411) | |
| Acquisition-related expenses | 3 | 1 | 10 | 6 | |
| One-off effects from pension revaluation | – | – | – | 117 | |
| Non-operating amortization of intangible assets | (41) | (20) | (68) | (39) | |
| Reclassification of tax benefits | – | – | (5) | – | |
| Non-operating items | 137 | (37) | 76 | (154) | |
| Income before income taxes | 2,979 | 2,733 | 5,773 | 5,339 | |
| Income taxes | (867) | (875) | (1,725) | (1,741) | |
| Net income | 2,112 | 1,858 | 4,048 | 3,598 | |
| Net income attributable to: | |||||
| Non-controlling interests | 94 | 103 | 209 | 203 | |
| Shareholders | 2,018 | 1,755 | 3,839 | 3,395 | |
| Basic earnings per share in € | 4.44 | 3.87 | 8.45 | 7.48 | |
| Diluted earnings per share in € | 4.38 | 3.84 | 8.45 | 7.41 |
1 Total revenues comprise statutory gross premiums written in Property-Casualty and in Life/Health, operating revenues in Asset Management and total revenues in Corporate and Other (Banking). 2 For the three months ended 30 June 2015, expenses for premium refunds (net) in Property-Casualty of € (59) MN (2Q 2014: € (72) MN) are included. For the six months ended 30 June 2015, expenses for premium refunds (net) in the business segment Property-Casualty of € (168) MN (6M 2014: € (131) MN) are included.
Risk management is an integral part of our business and supports our value-based management. For further information about our approach, please refer to the Risk and Opportunity Report in our Annual Report 2014. The Allianz Group's management feels comfortable with the Group's overall risk profile and has confidence in the effectiveness of its risk management framework to meet the challenges of a rapidly changing environment as well as day-to-day business needs. The risk profile described in the latest Risk and Opportunity Report remains largely unchanged. We consider the current state of the economy, combined with the persisting low interest rate environment in the Eurozone –fueled by an expansive monetary policy – as a rising risk for achieving our investment targets. Also, continuing geopolitical uncertainties represent risks we are monitoring closely. In addition, Allianz continues to be exposed to regulatory developments – especially the European solvency directive (Solvency II) and the designation of Allianz as a global systemically important insurer (a so-called G-SIIs).
Many countries within the Eurozone currently face weak economic growth and low inflation rates. However, there is a fair chance of economic recovery. The economic malaise is being addressed by the European Central Bank through its expansive monetary policy. As a result, financial markets are characterized by historically low interest rates and risk premia, prompting investors to look for higher yielding – and potentially higher risk – investments. In addition to sustained low interest rates, the challenges of implementing long-term structural reforms in key Eurozone countries, ongoing discussions about Greece and the uncertainty about the future path of monetary policy may lead to higher market volatility accompanied by a flight to quality and a scenario with falling equity and bond prices due to rising spread levels accompanied by even lower interest rates. Also, the potential for asset bubbles (as observed in the Chinese equity market) might spill over to other markets, contributing to increasing volatility.
The persisting geopolitical risks, including the conflicts in the Middle East as well as between Russia and Ukraine and the resulting international sanctions against Russia, are manageable for the Allianz Group since our direct investment exposure to this region remains relatively small in the context of our overall investment portfolio. Nevertheless, we are monitoring these developments since a significant deterioration may lead to spillover effects on global financial markets, triggering indirect effects that may have a negative impact on our business and risk profile. Over the past years, Allianz Group and its operating entities have developed operational contingency plans for various crisis scenarios. We continue to conduct scenario analyses on a regular basis to bolster our financial and operational resilience to strong shock scenarios. In addition, we continue to optimize our product design and pricing in the Life/Health business segment with respect to guarantees and surrender conditions. Continuous monitoring as well as prudent risk positions and contingency planning remain priorities for our management.
In March 2014, the European Parliament approved the Solvency II "Omnibus II" directive, allowing the new risk-based solvency capital framework for the E.U. to proceed with a planned introduction date of January 2016. Although the European Commission's draft for the delegated regulation of Solvency II was approved and published in January 2015, the interpretation of some of the important final requirements remains unclear. This situation creates some uncertainty regarding Allianz's ultimate Solvency II capital requirements, especially under the application of our internal model in case the final rules deviate from our current understanding of these rules, e.g. the application of third country equivalence for the United States. Also the possibility of regulatory capital add-ons in the context of the approval process for Allianz's internal model, which was submitted to regulators in the second quarter, increases the uncertainty surrounding future Solvency capital requirements.
In addition to Solvency II uncertainty, the future capital requirements applicable for G-SIIs are also unclear, contributing to uncertainty in terms of the ultimate capital requirements for Allianz. Finally, the potential for a multiplicity of different regulatory regimes, capital standards and reporting requirements will increase operational complexity and costs.
In any case, the Solvency II regime will lead to higher volatility in solvency ratios compared to Solvency I, due to the market value balance sheet approach.
For information on events after the balance sheet date, please refer to note 41 to the condensed consolidated interim financial statements.
38 Balance Sheet Review 45 Reconciliations
Other information
For more information on recent organizational changes, please refer to note 4 to the condensed consolidated interim financial statements.
The Allianz Group's strategy is described in the Strategy and Steering chapter in our Annual Report 2014. There have been no material changes to our Group strategy.
For an overview of the products and services offered by the Allianz Group as well as of sales channels, please refer to the Business Operations and Markets chapter in our Annual Report 2014. Information on our brand can also be found in the Progress in Sustainable Development chapter in our Annual Report 2014.
On 1 April 2015, the Allianz Group closed the sale of the Fireman's Fund personal insurance business to ACE Limited. The sale was an integral part of the reorganization of Allianz Group's Property-Casualty insurance business in the United States.
second quarter 2015
Our Property-Casualty business offers a wide range of products and services for both private and corporate clients. Our offerings cover many insurance classes such as motor, accident/disability, property and general liability. We conduct business worldwide in more than 70 countries. We are also a global leader in travel insurance, assistance services and credit insurance. We distribute our products via a broad network of agents, brokers, banks and other strategic partners, as well as through direct channels.
| € mn three months ended 30 June |
2015 | 2014 |
|---|---|---|
| Gross premiums written | 11,843 | 10,846 |
| Operating profit | 1,745 | 1,345 |
| Net income | 1,344 | 969 |
| Loss ratio in % | 65.7 | 66.2 |
| Expense ratio in % | 27.8 | 28.4 |
| Combined ratio in % | 93.5 | 94.6 |
On a nominal basis, gross premiums written amounted to € 11,843 MN. Compared to the second quarter of 2014, we recorded a plus of € 997 MN, or 9.2%. Favorable foreign currency effects were at € 574 MN, mainly due to the appreciation of the U.S. Dollar, the British Pound and the Swiss Franc against the Euro.2 Consolidation/deconsolidation effects were positive at € 253 MN, largely due to the acquisition of a part of the insurance business of UnipolSai and the takeover of the Property-Casualty insurance business of the Territory Insurance Office in Australia.
On an internal basis, our gross premiums written increased by 1.6 %. We experienced a positive volume effect of 1.7 %, which was partly offset by a negative price effect of 0.2 %. We recorded strong growth at Allianz Worldwide Partners, in Turkey and at AGCS excl. Fireman's Fund.
Analyzing internal premium growth in terms of price and volume, we use four clusters based on 2Q 2015 internal growth over 2Q 2014:
Overall growth – both price and volume effects are positive.
Overall growth – either price or volume effects are positive.
Overall decline – either price or volume effects are negative.
Overall decline – both price and volume effects are negative.
2 Based on the average exchange rates in 2015 compared to 2014.
1 We comment on the development of our gross premiums written on an internal basis; meaning adjusted for foreign currency translation and (de-)consolidation effects, in order to provide more comparable information.
5 Executive Summary
29 Asset Management
36 Outlook
38 Balance Sheet Review 45 Reconciliations
Cluster 1
In Asia-Pacific, gross premiums increased to € 214 MN. The strong growth of 15.5 % on an internal basis was mainly driven by higher volumes in our motor and fire insurance business in Malaysia.
At Allianz Worldwide Partners, we recorded gross premiums of € 852 MN – up 9.4% on an internal basis. This mainly reflected positive volume effects in all our lines of business, in particular the U.S. travel business.
In Portugal, gross premiums went up to € 70 MN. The internal growth of 4.6% was largely due to positive price effects particularly in our workers compensation and motor business.
In Australia, gross premiums were at € 783 MN. The main contributors to the 2.7 % increase on an internal basis were positive effects from our domestic motor and property business.
In Turkey, gross premiums grew to € 309 MN. We expanded by 22.8% on an internal basis, driven by a strong volume growth in our motor third-party liability insurance business and favorable effects in our health insurance business.
In Latin America, gross premiums were at € 554 MN. The increase of 8.7% on an internal basis was largely due to strong volume growth in our motor business in Argentina. Lower volumes in our health business in Brazil partly offset these effects.
In Switzerland, gross premiums rose to € 189 MN. The internal growth of 5.9% resulted from positive volume effects in our motor and legal assistance businesses.
In Credit Insurance, gross premiums were at € 575 MN – an increase of 3.5% on an internal basis. Positive volume effects in our growth markets were partly offset by negative price effects.
At AGCS incl. FFIC, gross premiums stood at € 2,098 MN. The internal growth of 2.0% was entirely driven by positive volume effects, particularly from new business in our engineering lines and at ART. This was burdened by negative volume impacts from the former Fireman's Fund business portfolio.
In Central and Eastern Europe, gross premiums declined by 14.8% to € 465 MN on an internal basis. This was mostly driven by negative volume effects due to the downscaling of our motor business in Russia.
In Germany, gross premiums went down to € 1,755 MN. The decrease of 1.4% on an internal basis was mainly caused by volume losses in our APR (accident insurance with premium refunds) business. However, this was partially offset by price effects in our motor business.
In Italy, gross premiums decreased by 1.9% to € 1,204 MN on an internal basis. The main drivers were negative price and volume impacts from our motor and non-motor business, respectively.
On a nominal basis, gross premiums written grew by 12.0%. Adjusted for foreign currency translation and (de-)consolidation effects, this represents an increase of 2.8%. This included a positive volume effect of 2.4% and a positive price effect of 0.4%.
| three months ended 30 June |
six months ended 30 June |
||
|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 |
| 694 | 516 | 1,249 | 1,220 |
| 840 | 805 | 1,638 | 1,552 |
| 212 | 24 | 143 | 62 |
| 1,745 | 1,345 | 3,030 | 2,835 |
1 Consists of fee and commission income/expenses, other income/expenses and restructuring charges.
Operating profit increased by € 400 MN to € 1,745 MN. This was mainly driven by a higher underwriting result and the net gain of € 0.2 BN from the sale of the Fireman's Fund personal insurance business to ACE Limited.
Based on lower losses from natural catastrophes and lower administrative expenses, our underwriting result grew by € 178 MN to € 694 MN and our combined ratio improved by 1.1 percentage points to 93.5%.
| € mn | |||||
|---|---|---|---|---|---|
| three months ended 30 June |
six months ended 30 June |
||||
| 2015 | 2014 | 2015 | 2014 | ||
| Premiums earned (net) | 11,553 | 10,701 | 23,072 | 21,111 | |
| Accident year claims | (7,980) | (7,453) | (16,004) | (14,432) | |
| Previous year claims (run-off) | 388 | 367 | 761 | 619 | |
| Claims and insurance benefits incurred (net) |
(7,592) | (7,086) | (15,243) | (13,813) | |
| Acquisition and administrative expenses (net) |
(3,208) | (3,036) | (6,456) | (5,948) | |
| Change in reserves for insurance and investment contracts (net) (without |
|||||
| expenses for premium refunds)1 | (59) | (63) | (123) | (129) | |
| Underwriting result | 694 | 516 | 1,249 | 1,220 |
1 Consists of the underwriting-related part (aggregate policy reserves and other insurance reserves) of "change in reserves for insurance and investment contracts (net)". For further information, please refer to note 29 to the condensed consolidated interim financial statements.
Our accident year loss ratio stood at 69.1% – a 0.6 percentage point improvement compared to the previous year's second quarter. This was driven by a decrease in losses from natural catastrophes from € 172 MN to € 122 MN resulting in a lower impact on our combined ratio amounting to 1.1 percentage points compared to 1.6 percentage points in the same period of 2014.
Excluding losses from natural catastrophes, our accident year loss ratio was stable at 68.0%. This was the result of favorable developments in our global lines and Central and Eastern Europe, offset by an attritional loss ratio deterioration in our Property-Casualty portfolios in Australia and the United Kingdom.
The following operations contributed positively to the development of our accident year loss ratio:
Germany: 0.7 percentage points. This was heavily driven by lower losses from natural catastrophes, as the second quarter of 2014 had been affected by losses caused by the storm Ela. In addition, large losses remained below last year's level.
Reinsurance: 0.4 percentage points. This improvement was due to a lower impact from natural catastrophes and large single losses.
AGCS excl. FFIC: 0.4 percentage points. This was largely because of a lower impact from large losses that compensated for the higher losses from natural catastrophes.
Credit Insurance: 0.3 percentage points. This improvement was the result of an overall favorable loss development due to the absence of larger single losses.
The following operations contributed negatively to the development of our accident year loss ratio:
Australia: 0.9 percentage points. Australia's accident year loss ratio was heavily affected by claims from natural catastrophes, including storms and hail. Furthermore, attritional severity deteriorated in motor and property.
United Kingdom: 0.5 percentage points. This stemmed from an increased attritional severity in our motor portfolio and a higher impact from natural catastrophes compared to the second quarter of 2014.
Latin America: 0.2 percentage points. This was mainly driven by Brazil, but a comprehensive turn-around program is ongoing.
Our run-off result amounted to € 388 MN, compared to € 367 MN in the previous year's second quarter – resulting in an unchanged run-off ratio of 3.4%. This includes reserve releases across most of the portfolio and an offsetting 1.2% negative impact from a strengthening of reserves for the former Fireman's Fund portfolio – which is now integrated into AGCS.
Total expenses amounted to € 3,208 MN in the second quarter of 2015 compared to € 3,036 MN in the same period of the previous year. Our expense ratio improved significantly by 0.6 percentage points to 27.8%. This was mainly driven by a lower administrative expense ratio and partly due to one-off effects.
| € mn | |||||
|---|---|---|---|---|---|
| three months six months ended 30 June ended 30 June |
|||||
| 2015 | 2014 | 2015 | 2014 | ||
| Interest and similar income (net of interest expenses) |
961 | 922 | 1,804 | 1,762 | |
| Operating income from financial assets and liabilities carried at fair value through income (net) |
(29) | 1 | 33 | 16 | |
| Operating realized gains/losses (net) | 58 | 29 | 138 | 55 | |
| Operating impairments of investments (net) |
(5) | (1) | (7) | (6) | |
| Investment expenses | (87) | (74) | (162) | (144) | |
| Expenses for premium refunds (net)2 | (59) | (72) | (168) | (131) | |
| Operating investment income (net) | 840 | 805 | 1,638 | 1,552 |
1 The operating investment income (net) for our Property-Casualty business segment consists of the operating investment result – as shown in note 4 to the condensed consolidated interim financial statements – and expenses for premium refunds (net) (policyholder participation) as shown in note 29 to the condensed consolidated interim financial statements.
2 Refers to policyholder participation, mainly from APR (accident insurance with premium refunds) business, and consists of the investment-related part of "change in reserves for insurance and investment contracts (net)". For further information, please refer to note 29 to the condensed consolidated interim financial statements.
Operating investment income (net) increased by € 35 MN to € 840 MN due to higher interest and similar income, partly offset by a less favorable foreign currency result net of hedging.
Interest and similar income (net of interest expenses) grew by € 39 MN to € 961 MN. This was mainly driven by higher income from equities. The average asset base1 grew by 9.1% from € 103.9 BN in the second quarter of 2014 to € 113.4 BN in the second quarter of 2015.
Operating income from financial assets and liabilities carried at fair value through income (net) decreased by € 30 MN to a loss of € 29 MN following a negative development in the foreign currency result net of hedging.
Operating realized gains and losses (net) went up by € 29 MN to € 58 MN, largely due to higher realizations on debt instruments from the APR business in Germany compared to the second quarter in the previous year.
Expenses for premium refunds (net) were down by € 13 MN to € 59 MN compared to the second quarter of the previous year. This improvement was mainly generated by lower policyholder participation from our APR business.
38 Balance Sheet Review 45 Reconciliations
| € mn | three months ended 30 June |
ended 30 June | six months | ||
|---|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | ||
| Fee and commission income | 358 | 302 | 715 | 608 | |
| Other income | 237 | 11 | 251 | 39 | |
| Fee and commission expenses | (336) | (280) | (680) | (571) | |
| Other expenses | (7) | (8) | (14) | (14) | |
| Restructuring charges | (40) | – | (130) | (1) | |
| Other result | 212 | 24 | 143 | 62 |
We recorded a € 0.2 BN net gain from the sale of the Fireman's Fund personal insurance business, which is reported as other income.
Operating profit rose by € 195 MN to € 3,030 MN, which includes the aforementioned net sales gain of € 0.2 BN in the second quarter of 2015, partly offset by restructuring charges of € 93 MN for the Fireman's Fund reorganization, mainly in the first quarter of 2015. The operating investment income (net) increased by € 86 MN to € 1,638 MN.
Our combined ratio worsened by 0.4 percentage points to 94.1%. This was the result of a 0.4 percentage points higher impact from natural catastrophes as well as a deterioration in the attritional loss ratio. This negative development in the combined ratio was partially compensated for by a lower expense ratio and a higher contribution from run-off.
Net income was at € 1,344 MN – an increase of € 374 MN – mostly driven by the strong operating profit growth.
Net income grew by € 651 MN to € 2,266 MN benefiting from a lower one-off expense from the pension revaluation.
| € mn | three months six months |
||||
|---|---|---|---|---|---|
| ended 30 June | ended 30 June | ||||
| 2015 | 2014 | 2015 | 2014 | ||
| Gross premiums written1 | 11,843 | 10,846 | 29,182 | 26,063 | |
| Ceded premiums written | (1,660) | (936) | (3,159) | (2,163) | |
| Change in unearned premiums | 1,369 | 791 | (2,951) | (2,789) | |
| Premiums earned (net) | 11,553 | 10,701 | 23,072 | 21,111 | |
| Interest and similar income | 983 | 939 | 1,847 | 1,792 | |
| Operating income from financial assets and liabilities carried at fair value through income (net) |
(29) | 1 | 33 | 16 | |
| Operating realized gains/losses (net) | 58 | 29 | 138 | 55 | |
| Fee and commission income | 358 | 302 | 715 | 608 | |
| Other income | 237 | 11 | 251 | 39 | |
| Operating revenues | 13,159 | 11,983 | 26,056 | 23,621 | |
| Claims and insurance benefits incurred (net) |
(7,592) | (7,086) | (15,243) | (13,813) | |
| Change in reserves for insurance and investment contracts (net) |
(118) | (135) | (291) | (260) | |
| Interest expenses | (21) | (17) | (43) | (29) | |
| Operating impairments of investments (net) |
(5) | (1) | (7) | (6) | |
| Investment expenses | (87) | (74) | (162) | (144) | |
| Acquisition and administrative expenses (net), excluding one-off effects from pension revaluation |
(3,208) | (3,036) | (6,456) | (5,948) | |
| Fee and commission expenses | (336) | (280) | (680) | (571) | |
| Restructuring charges | (40) | – | (130) | (1) | |
| Other expenses | (7) | (8) | (14) | (14) | |
| Operating expenses | (11,413) | (10,638) | (23,026) | (20,787) | |
| Operating profit | 1,745 | 1,345 | 3,030 | 2,835 | |
| Non-operating items | 130 | 85 | 130 | (491) | |
| Income before income taxes | 1,876 | 1,430 | 3,160 | 2,343 | |
| Income taxes | (532) | (461) | (894) | (729) | |
| Net income | 1,344 | 969 | 2,266 | 1,614 | |
| Loss ratio2 in % | 65.7 | 66.2 | 66.1 | 65.4 | |
| Expense ratio3 in % | 27.8 | 28.4 | 28.0 | 28.2 | |
| Combined ratio4 in % | 93.5 | 94.6 | 94.1 | 93.6 |
1 For the Property-Casualty business segment, total revenues are measured based upon gross premiums written.
2 Represents claims and insurance benefits incurred (net) divided by premiums earned (net).
3 Represents acquisition and administrative expenses (net), excluding one-off effects from pension revaluation, divided by premiums earned (net).
4 Represents the total of acquisition and administrative expenses (net), excluding one-off effects from pension revaluation, and claims and insurance benefits incurred (net) divided by premiums earned (net).
| € mn | ||||||||
|---|---|---|---|---|---|---|---|---|
| Gross premiums written | Premiums earned (net) | Operating profit (loss) | ||||||
| internal1 | ||||||||
| three months ended 30 June | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 |
| Germany | 1,755 | 1,784 | 1,760 | 1,784 | 1,958 | 1,972 | 385 | 324 |
| Switzerland | 189 | 153 | 162 | 153 | 411 | 350 | 47 | 48 |
| Austria | 222 | 222 | 222 | 222 | 208 | 209 | 23 | 25 |
| German Speaking Countries | 2,166 | 2,159 | 2,143 | 2,159 | 2,577 | 2,531 | 455 | 397 |
| Italy2 | 1,204 | 1,012 | 992 | 1,012 | 1,182 | 970 | 263 | 245 |
| France | 913 | 904 | 913 | 904 | 993 | 976 | 131 | 108 |
| Benelux | 263 | 261 | 263 | 261 | 267 | 267 | 31 | 20 |
| Turkey | 309 | 257 | 316 | 257 | 235 | 227 | 21 | 15 |
| Greece | 26 | 27 | 26 | 27 | 21 | 22 | 5 | 3 |
| Africa | 18 | 14 | 18 | 14 | 16 | 14 | – | (1) |
| Western&Southern Europe3 | 2,734 | 2,475 | 2,528 | 2,475 | 2,714 | 2,475 | 452 | 393 |
| Latin America | 554 | 524 | 569 | 524 | 407 | 437 | (22) | 4 |
| Spain | 518 | 501 | 518 | 501 | 470 | 454 | 60 | 64 |
| Portugal | 70 | 67 | 70 | 67 | 71 | 68 | 7 | 7 |
| Iberia&Latin America | 1,142 | 1,092 | 1,157 | 1,092 | 948 | 959 | 44 | 75 |
| Allianz Global Corporate&Specialty4 | 2,098 | 1,265 | 1,795 | 1,760 | 1,166 | 744 | 227 | 102 |
| AGCS excl. Fireman's Fund | 1,534 | 1,265 | 1,340 | 1,263 | 874 | 744 | 125 | 102 |
| Fireman's Fund | 564 | – | 455 | 497 | 292 | – | 102 | – |
| Reinsurance PC5 | 936 | 684 | 918 | 684 | 1,023 | 756 | 227 | 130 |
| Reinsurance PC excl. San Francisco RE | 936 | 684 | 918 | 684 | 1,023 | 756 | 219 | 130 |
| San Francisco RE | – | – | – | – | – | – | 9 | – |
| United Kingdom | 808 | 694 | 716 | 694 | 583 | 587 | 37 | 49 |
| Credit Insurance | 575 | 530 | 549 | 530 | 390 | 365 | 123 | 124 |
| Ireland | 123 | 116 | 123 | 116 | 104 | 94 | (5) | 8 |
| United States6 | – | 497 | – | – | – | 420 | – | (32) |
| Global Insurance Lines&Anglo Markets | 4,540 | 3,785 | 4,101 | 3,783 | 3,265 | 2,968 | 608 | 382 |
| Russia | 46 | 148 | 56 | 148 | 65 | 139 | 3 | (83) |
| Poland | 103 | 103 | 101 | 103 | 88 | 87 | 4 | 5 |
| Hungary | 62 | 61 | 62 | 61 | 57 | 57 | 8 | 7 |
| Slovakia | 77 | 74 | 77 | 74 | 66 | 67 | 13 | 11 |
| Czech Republic | 80 | 74 | 80 | 74 | 69 | 61 | 7 | 6 |
| Romania | 51 | 46 | 51 | 46 | 42 | 38 | 5 | 2 |
| Bulgaria | 26 | 23 | 26 | 23 | 18 | 14 | 2 | 1 |
| Croatia | 19 | 22 | 19 | 22 | 17 | 19 | 3 | 2 |
| Ukraine | 1 | 4 | 1 | 4 | 1 | 2 | – | – |
| Central and Eastern Europe7 | 465 | 555 | 473 | 555 | 422 | 484 | 43 | (52) |
| Asia-Pacific | 214 | 165 | 190 | 165 | 131 | 107 | 28 | 16 |
| Australia8 | 783 | 704 | 723 | 704 | 593 | 536 | 80 | 105 |
| Middle East and North Africa | 23 | 19 | 19 | 19 | 15 | 12 | 4 | 2 |
| Growth Markets | 1,485 | 1,442 | 1,405 | 1,442 | 1,162 | 1,140 | 155 | 71 |
| Allianz Worldwide Partners9 | 852 | 689 | 753 | 689 | 887 | 628 | 31 | 28 |
| Consolidation10 | (1,075) | (795) | (1,071) | (792) | – | – | – | – |
| Total | 11,843 | 10,846 | 11,016 | 10,846 | 11,553 | 10,701 | 1,745 | 1,345 |
1 This reflects gross premiums written on an internal basis, adjusted for foreign currency translation and (de-)consolidation effects.
4 Effective 1 January 2015, Fireman's Fund Insurance Company was integrated into AGCS Group. Previous period figures were not adjusted. The sale of the renewal rights for the personal insurance business was effective 1 April 2015. 2Q 2015 figures include the net gain on the sale of the personal insurance business to ACE Limited of € 0.2 BN.
2 Effective 1 July 2014, the Allianz Group acquired parts of the insurance business of UnipolSai Assicurazioni S.p.A., Bologna. 3 Contains € 1 MN and € 2 MN operating profit for 2015 and 2014, respectively, from a management holding located in Luxembourg.
5 The results from the run-off portfolio included in San Francisco Reinsurance Company Corp., a former subsidiary of Fireman's Fund Insurance Company, have been reported within Reinsurance PC since 1 January 2015.
5 Executive Summary
29 Asset Management
38 Balance Sheet Review 45 Reconciliations
6 Previous period figures for United States were not adjusted and include the prior year's business of 9 The reportable segment Allianz Worldwide Partners includes the Global Assistance business as well as
Fireman's Fund Insurance Company. 7 Contains income and expense items from a management holding and consolidations between countries in this region.
the business of Allianz Worldwide Care and the reinsurance business of Allianz Global Automotive in addition to income and expenses from a management holding. At year-end 2014, our French International Health business was reclassified from Life/Health to the Property-Casualty business segment.
8 Effective 1 January 2015, the Allianz Group acquired the Property-Casualty insurance business of the Territory Insurance Office (TIO business), Darwin.
10 Represents elimination of transactions between Allianz Group companies in different geographic regions.
| % | Combined ratio | Loss ratio | Expense ratio | |||
|---|---|---|---|---|---|---|
| three months ended 30 June | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 |
| Germany | 86.3 | 92.0 | 62.9 | 66.6 | 23.4 | 25.4 |
| Switzerland | 93.4 | 91.8 | 69.0 | 68.4 | 24.4 | 23.5 |
| Austria | 92.5 | 91.8 | 66.5 | 66.0 | 26.0 | 25.8 |
| German Speaking Countries | 87.9 | 92.0 | 64.2 | 66.8 | 23.7 | 25.1 |
| Italy2 | 85.8 | 82.8 | 59.2 | 55.9 | 26.6 | 27.0 |
| France | 95.3 | 97.0 | 66.8 | 67.0 | 28.6 | 30.0 |
| Benelux | 97.9 | 100.3 | 69.9 | 69.8 | 28.0 | 30.5 |
| Turkey | 99.8 | 101.2 | 76.4 | 78.6 | 23.4 | 22.7 |
| Greece | 78.4 | 91.5 | 50.0 | 55.5 | 28.4 | 36.0 |
| Africa | 105.1 | 112.9 | 60.4 | 56.8 | 44.7 | 56.2 |
| Western&Southern Europe3 | 91.7 | 92.2 | 64.4 | 63.8 | 27.3 | 28.4 |
| Latin America | 111.9 | 104.4 | 74.4 | 72.7 | 37.5 | 31.7 |
| Spain | 91.0 | 90.0 | 70.5 | 69.5 | 20.5 | 20.5 |
| Portugal | 94.5 | 94.3 | 70.6 | 70.9 | 23.9 | 23.4 |
| Iberia&Latin America | 100.2 | 96.9 | 72.2 | 71.1 | 28.0 | 25.8 |
| Allianz Global Corporate&Specialty4 | 110.9 | 97.4 | 80.6 | 70.3 | 30.3 | 27.1 |
| AGCS excl. Fireman's Fund | 94.8 | 97.4 | 67.4 | 70.3 | 27.4 | 27.1 |
| Fireman's Fund | 159.0 | – | 120.3 | – | 38.8 | – |
| Reinsurance PC5 | 83.2 | 86.4 | 55.6 | 59.1 | 27.6 | 27.3 |
| Reinsurance PC excl. San Francisco RE | 82.9 | 86.4 | 55.6 | 59.1 | 27.3 | 27.3 |
| San Francisco RE | – | – | – | – | – | – |
| United Kingdom | 98.4 | 96.4 | 68.6 | 63.9 | 29.8 | 32.5 |
| Credit Insurance | 75.7 | 75.0 | 45.2 | 44.4 | 30.5 | 30.6 |
| Ireland | 110.7 | 98.3 | 82.7 | 68.5 | 28.0 | 29.9 |
| United States6 | – | 121.1 | – | 81.9 | – | 39.2 |
| Global Insurance Lines&Anglo Markets | 95.8 | 95.1 | 66.5 | 64.6 | 29.4 | 30.5 |
| Russia | 106.7 | 165.3 | 60.9 | 118.1 | 45.9 | 47.2 |
| Poland | 100.4 | 99.0 | 66.7 | 64.2 | 33.7 | 34.8 |
| Hungary | 99.5 | 100.7 | 59.6 | 63.1 | 39.9 | 37.5 |
| Slovakia | 83.5 | 87.9 | 51.9 | 57.4 | 31.6 | 30.5 |
| Czech Republic Romania |
91.0 93.5 |
93.2 100.8 |
63.9 64.0 |
64.5 71.6 |
27.1 29.5 |
28.6 29.2 |
| Bulgaria | 92.7 | 96.9 | 56.6 | 68.1 | 36.2 | 28.8 |
| Croatia | 88.5 | 95.0 | 53.9 | 53.8 | 34.6 | 41.2 |
| Ukraine | 115.8 | 116.3 | 63.0 | 58.4 | 52.8 | 57.9 |
| Central and Eastern Europe7 | 96.0 | 116.0 | 60.8 | 79.0 | 35.2 | 37.0 |
| Asia-Pacific | 91.5 | 93.4 | 57.9 | 64.3 | 33.6 | 29.1 |
| Australia8 | 95.3 | 90.7 | 68.5 | 65.4 | 26.9 | 25.3 |
| Middle East and North Africa | 90.3 | 98.4 | 60.6 | 67.1 | 29.7 | 31.3 |
| Growth Markets | 95.1 | 101.8 | 64.4 | 71.1 | 30.7 | 30.7 |
| Allianz Worldwide Partners9 | 97.0 | 96.5 | 66.1 | 64.6 | 30.9 | 31.9 |
| Consolidation10 | – | – | – | – | – | – |
| Total | 93.5 | 94.6 | 65.7 | 66.2 | 27.8 | 28.4 |
| € mn | Premiums earned (net) | Operating profit (loss) | ||||||
|---|---|---|---|---|---|---|---|---|
| Gross premiums written | ||||||||
| internal1 | ||||||||
| six months ended 30 June | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 |
| Germany | 5,974 | 5,874 | 5,956 | 5,874 | 3,867 | 3,842 | 603 | 654 |
| Switzerland | 1,259 | 1,096 | 1,098 | 1,096 | 833 | 719 | 116 | 109 |
| Austria | 574 | 572 | 574 | 572 | 412 | 418 | 45 | 41 |
| German Speaking Countries | 7,806 | 7,543 | 7,628 | 7,543 | 5,113 | 4,980 | 764 | 805 |
| Italy2 | 2,379 | 1,973 | 1,951 | 1,973 | 2,358 | 1,928 | 511 | 459 |
| France | 2,443 | 2,346 | 2,436 | 2,412 | 1,986 | 1,952 | 247 | 235 |
| Benelux | 668 | 660 | 668 | 660 | 533 | 534 | 48 | 42 |
| Turkey | 627 | 547 | 605 | 547 | 474 | 441 | 46 | 39 |
| Greece | 54 | 58 | 54 | 58 | 41 | 45 | 8 | 10 |
| Africa | 63 | 56 | 63 | 56 | 34 | 30 | 5 | 3 |
| Western&Southern Europe3 | 6,233 | 5,639 | 5,776 | 5,705 | 5,426 | 4,928 | 867 | 792 |
| Latin America | 1,071 | 923 | 1,077 | 923 | 821 | 846 | (16) | 45 |
| Spain | 1,173 | 1,115 | 1,173 | 1,115 | 933 | 894 | 116 | 130 |
| Portugal | 196 | 184 | 196 | 184 | 140 | 135 | 12 | 12 |
| Iberia&Latin America | 2,440 | 2,221 | 2,445 | 2,221 | 1,894 | 1,875 | 112 | 187 |
| Allianz Global Corporate&Specialty4 | 4,480 | 2,853 | 3,902 | 3,759 | 2,491 | 1,465 | 272 | 245 |
| AGCS excl. Fireman's Fund | 3,454 | 2,853 | 3,066 | 2,847 | 1,722 | 1,465 | 282 | 245 |
| Fireman's Fund | 1,026 | – | 836 | 912 | 769 | – | (10) | – |
| Reinsurance PC5 | 3,040 | 2,252 | 3,012 | 2,252 | 2,011 | 1,504 | 349 | 292 |
| Reinsurance PC excl. San Francisco RE | 3,040 | 2,252 | 3,012 | 2,252 | 2,011 | 1,504 | 332 | 292 |
| San Francisco RE | – | – | – | – | – | – | 16 | – |
| United Kingdom | 1,555 | 1,332 | 1,388 | 1,332 | 1,144 | 1,147 | 77 | 78 |
| Credit Insurance | 1,226 | 1,142 | 1,172 | 1,142 | 793 | 744 | 239 | 236 |
| Ireland | 262 | 235 | 262 | 235 | 206 | 184 | 39 | 14 |
| United States6 | – | 912 | – | – | – | 825 | – | (9) |
| Global Insurance Lines&Anglo Markets7 | 10,564 | 8,727 | 9,735 | 8,721 | 6,645 | 5,870 | 974 | 856 |
| Russia | 127 | 379 | 173 | 379 | 133 | 290 | – | (133) |
| Poland | 212 | 215 | 210 | 215 | 171 | 173 | 5 | 9 |
| Hungary | 148 | 149 | 148 | 149 | 110 | 111 | 12 | 11 |
| Slovakia | 183 | 181 | 183 | 181 | 132 | 131 | 29 | 30 |
| Czech Republic | 161 | 148 | 161 | 148 | 130 | 118 | 16 | 20 |
| Romania | 106 | 99 | 106 | 99 | 81 | 73 | 8 | 4 |
| Bulgaria | 43 | 39 | 43 | 39 | 36 | 30 | 5 | 6 |
| Croatia | 53 | 51 | 53 | 51 | 36 | 38 | 5 | 5 |
| Ukraine | 3 | 9 | 4 | 9 | 2 | 4 | – | (1) |
| Central and Eastern Europe8 | 1,034 | 1,268 | 1,081 | 1,268 | 830 | 967 | 76 | (53) |
| Asia-Pacific | 426 | 348 | 378 | 348 | 259 | 207 | 54 | 39 |
| Australia9 | 1,469 | 1,278 | 1,343 | 1,278 | 1,178 | 1,056 | 112 | 156 |
| Middle East and North Africa | 48 | 39 | 40 | 39 | 31 | 24 | 6 | 3 |
| Growth Markets | 2,977 | 2,933 | 2,843 | 2,933 | 2,299 | 2,255 | 248 | 146 |
| Allianz Worldwide Partners10 | 2,453 | 1,474 | 2,246 | 2,059 | 1,696 | 1,204 | 65 | 49 |
| Consolidation11 | (3,290) | (2,473) | (3,283) | (2,533) | – | – | – | – |
| Total | 29,182 | 26,063 | 27,389 | 26,648 | 23,072 | 21,111 | 3,030 | 2,835 |
1 This reflects gross premiums written on an internal basis, adjusted for foreign currency translation and (de-)consolidation effects.
4 Effective 1 January 2015, Fireman's Fund Insurance Company was integrated into AGCS Group. Previous period figures were not adjusted. The sale of the renewal rights for the personal insurance business was effective 1 April 2015. 6M 2015 figures include the net gain on the sale of the personal insurance business to ACE Limited of € 0.2 BN.
2 Effective 1 July 2014, the Allianz Group acquired parts of the insurance business of UnipolSai Assicurazioni S.p.A., Bologna. 3 Contains € 3 MN and € 4 MN operating profit for 2015 and 2014, respectively, from a management holding located in Luxembourg.
5 The results from the run-off portfolio included in San Francisco Reinsurance Company Corp., a former subsidiary of Fireman's Fund Insurance Company, have been reported within Reinsurance PC since 1 January 2015.
%
38 Balance Sheet Review 45 Reconciliations
20 Life/Health Insurance Operations 33 Corporate and Other 36 Outlook
six months ended 30 June 2015 2014 2015 2014 2015 2014 Germany 92.1 91.3 67.6 65.7 24.4 25.6 Switzerland 91.3 90.4 68.1 67.6 23.2 22.8 Austria 93.4 93.9 66.8 67.4 26.6 26.6 German Speaking Countries 92.1 91.4 67.7 66.1 24.4 25.3 Italy2 84.6 83.3 58.0 56.7 26.6 26.6 France 95.0 95.3 66.7 67.0 28.3 28.3 Benelux 97.6 99.2 69.1 69.1 28.5 30.1 Turkey 100.4 98.7 76.6 75.8 23.8 22.9 Greece 85.2 81.1 53.1 47.3 32.1 33.7 Africa 92.2 93.5 58.4 55.3 33.8 38.3 Western&Southern Europe3 91.2 91.2 63.9 63.8 27.3 27.4 Latin America 108.9 103.0 73.4 71.4 35.5 31.5 Spain 91.3 89.6 70.7 69.1 20.5 20.5 Portugal 95.2 95.3 71.8 72.5 23.4 22.7 Iberia&Latin America 99.2 96.0 72.0 70.4 27.2 25.6 Allianz Global Corporate&Specialty4 104.9 94.7 73.5 67.4 31.4 27.3 AGCS excl. Fireman's Fund 93.6 94.7 65.5 67.4 28.2 27.3 Fireman's Fund 130.1 – 91.4 – 38.7 – Reinsurance PC5 87.3 84.1 58.5 56.2 28.8 28.0 Reinsurance PC excl. San Francisco RE 87.1 84.1 58.5 56.2 28.6 28.0 San Francisco RE – – – – – – United Kingdom 98.0 98.0 67.7 66.0 30.3 32.0 Credit Insurance 77.0 76.4 48.1 46.8 29.0 29.6 Ireland 87.9 99.6 58.8 67.8 29.0 31.8 United States6 – 114.3 – 76.4 – 37.8 Global Insurance Lines&Anglo Markets7 94.6 93.3 64.5 62.9 30.1 30.4 Russia 108.8 152.0 68.3 104.3 40.6 47.7 Poland 101.8 99.3 68.1 64.9 33.7 34.5 Hungary 101.3 102.9 59.8 62.6 41.5 40.3 Slovakia 83.2 82.0 52.5 51.4 30.7 30.6 Czech Republic 91.2 84.9 64.1 56.8 27.1 28.1 Romania 95.7 101.5 66.1 71.6 29.6 29.8 Bulgaria 89.9 83.7 56.6 57.6 33.3 26.1 Croatia 93.3 93.0 56.7 54.1 36.6 38.8 Ukraine 110.5 122.2 58.9 60.7 51.6 61.5 Central and Eastern Europe8 97.1 111.0 62.7 73.5 34.4 37.6 Asia-Pacific 91.8 89.0 60.0 59.6 31.8 29.4 Australia9 99.2 95.1 72.7 70.3 26.5 24.8 Middle East and North Africa 91.8 98.5 59.6 64.2 32.1 34.3 Growth Markets 97.5 101.4 67.5 70.6 30.0 30.8 Allianz Worldwide Partners10 97.1 96.6 66.1 64.4 31.0 32.2 Consolidation11 – – – – – – Total 94.1 93.6 66.1 65.4 28.0 28.2
6 Previous period figures for United States were not adjusted and include the prior year's business of Fireman's Fund Insurance Company.
10 The reportable segment Allianz Worldwide Partners includes the Global Assistance business as well as the business of Allianz Worldwide Care and the reinsurance business of Allianz Global Automotive in addition to income and expenses from a management holding. At year-end 2014, our French International Health business was reclassified from Life/Health to the Property-Casualty business segment.
Combined ratio Loss ratio Expense ratio
8 Contains income and expense items from a management holding and consolidations between countries in this region.
7 Contains € (2) MN and € 0 MN operating loss for 2015 and 2014, respectively, from AGF UK.
9 Effective 1 January 2015, the Allianz Group acquired the Property-Casualty insurance business of the Territory Insurance Office (TIO business), Darwin.
11 Represents elimination of transactions between Allianz Group companies in different geographic regions.
second quarter 2015
Allianz offers a broad range of life, health, savings and investment-oriented products, including individual and group life insurance contracts. Via our distribution channels – mainly tied agents, brokers and bank partnerships – we offer life and health products to both retail and corporate clients. As one of the worldwide market leaders in life business, we serve customers in more than 45 countries.
| Key figures life/health | ||
|---|---|---|
| € mn | ||
| three months ended 30 June | 2015 | 2014 |
| Statutory premiums1 | 16,719 | 16,961 |
| Operating profit1 | 853 | 985 |
| Net income1 | 662 | 731 |
| Margin on reserves (bps)1, 2 |
58 | 79 |
In the second quarter of 2015, our statutory premiums amounted to € 16,719 mn, a decrease of € 242 mn. On an internal basis4, premiums decreased by 6.0% or € 1,013 mn. This excludes favorable foreign currency translation effects of € 907 mn and adverse consolidation/ deconsolidation effects of € 137 mn from the transfer – effective 1 January 2014 – of our French International Health business to the reportable segment Allianz Worldwide Partners in the business segment Property-Casualty in the fourth quarter of 2014.
Overall, we recorded a drop in fixed-indexed annuity premiums in the United States and lower premiums in the traditional life business in Germany. This more than offset the premium growth in the unit-linked business stemming from Taiwan and Italy. As a result of the change in product strategy, premiums shifted towards unitlinked and capital efficient products.
In our German life business, premiums decreased 8.7 % to € 4,063 mn. This was due to lower single premium business, with reduced sales of traditional life products – comprising interest rate guarantees – and capitalization products partly offset by slightly increased business with regular premiums. Statutory premiums in our German health business grew 0.4% to € 816 mn. This was mainly because of premium rate increases in full health care coverage in January 2015 and was supported by a slight increase in our supplementary coverage insurance.
Premiums in the United States amounted to € 2,592 mn, representing a decline of 37.6 %. This was driven by lower fixed-indexed annuity sales due to the impact of pricing changes in response to the decreasing interest rate environment in the first half of 2015. We also recorded exceptionally high premiums resulting from an innovative index strategy and strong penetration into the broker and dealer channel in the second quarter of 2014.
1 In the fourth quarter of 2014, we transferred our French International Health business to the reportable segment Allianz Worldwide Partners effective 1 January 2014.
2 Represents annualized operating profit divided by the average of the current quarter-end and previous quarter-end net reserves, where net reserves equal reserves for loss and loss adjustment expenses, reserves for insurance and investment contracts and financial liabilities for unit-linked contracts less reinsurance assets.
3 Statutory premiums are gross premiums written from sales of life and health insurance policies as well as gross receipts from sales of unit-linked and other investment-oriented products, in accordance with the statutory accounting practices applicable in the insurer's home jurisdiction.
4 In the following section, we comment on the development of our statutory gross premiums written on an internal basis, i.e. adjusted for foreign currency translation and (de-)consolidation effects, in order to provide more comparable information.
5 Executive Summary
29 Asset Management 33 Corporate and Other
38 Balance Sheet Review 45 Reconciliations
Premiums in Italy increased 9.7% to € 3,366 mn. This was particularly due to the strong growth of our unit-linked business across all distribution channels. Along with a decrease in traditional life business, the share of unit-linked premiums of total statutory premiums increased significantly.
Premiums in France increased 0.9% to € 1,955 mn. This was largely attributable to our individual life business where we recorded growth in unit-linked products, while business resulting from cooperation between Allianz companies in France and Luxembourg decreased compared to the second quarter of 2014.
In Asia-Pacific, premiums grew 23.0 % to € 1,931 mn. This was mainly due to increased sales of single premium unit-linked products distributed via bancassurance in Taiwan.
In Switzerland, premiums totaled € 262 mn. The decrease of 18.7% was primarily driven by lower single premium business in group life.
In Benelux, we recorded premiums of € 543 mn, a decrease of 4.9 %. This was mainly because of lower single premium business associated with the cooperation between Allianz companies in France and Luxembourg.
Premiums in Spain increased 19.1 % to € 345 mn. We recorded strong growth in regular premiums in all business lines mainly driven by traditional life products distributed via the bancassurance channel. This growth was also supported by risk and unit-linked products.
Premiums in Central and Eastern Europe decreased 10.5 % to € 219 mn. This was mainly driven by lower unit-linked business in the Czech Republic and Hungary, partly offset by higher unit-linked business in Poland.
Statutory premiums were 4.2 % above the first half year of 2014 and amounted to € 35,540 mn. This represents a decrease of 0.5% on an internal basis. It was largely driven by decreased single premium fixed-indexed annuity sales in the United States, lower traditional life business in Germany and reduced business resulting from cooperation between Allianz companies in France and Luxembourg. This was largely offset by increased unit-linked business in Italy and Taiwan.
Premiums earned (net) decreased by € 288 mn to € 5,710 mn. This was in particular due to lower business with traditional life products in Germany and the transfer of our French International Health business to the reportable segment Allianz Worldwide Partners. Favorable foreign currency translation effects from most major currencies (U.S. Dollar and Asian currencies) partly compensated for the decrease.
Premiums earned (net) increased by € 188 mn to € 12,463 mn. This was mainly due to higher sales in Asia-Pacific. Favorable foreign currency translation effects from most major currencies also contributed to this growth.
PVNBP decreased by € 984 mn to € 15,170 mn. This was driven by a drop in our guaranteed savings&annuities line of business primarily due to some large contracts in the second quarter of 2014 in Italy and decreased fixed-indexed annuity sales in the United States. The PVNBP share of guaranteed savings&annuities decreased mainly in favor of the unit-linked without guarantee line of business, where we recorded an increase mainly in Italy.
three months ended 30 June 2015 [30 June 2014] in %
PVNBP increased by € 2,890 mn to € 34,145 mn. This was mainly driven by an increase in our unit-linked without guarantee line of business, where we recorded higher single premiums in Italy and Asia-Pacific. This was partly offset by a decrease in our guaranteed savings&annuities line of business in the second quarter of 2015. The PVNBP share of unit-linked without guarantee line of business increased to 25.1% of total PVNBP.
1 PVNBP before non-controlling interests.
The objective of the Life/Health operating profit sources analysis is to explain movements in IFRS results by analyzing underlying drivers of performance on a Life/Health business segment consolidated basis.
| € mn | three months ended 30 June |
six months ended 30 June |
|||
|---|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | ||
| Loadings and fees | 1,411 | 1,287 | 2,852 | 2,559 | |
| Investment margin | 834 | 922 | 1,836 | 1,592 | |
| Expenses | (1,624) | (1,657) | (3,283) | (3,178) | |
| Technical margin | 295 | 269 | 596 | 539 | |
| Impact of change in DAC | (63) | 163 | (44) | 352 | |
| Operating profit | 853 | 985 | 1,957 | 1,864 |
Our operating profit decreased by € 132 mn to € 853 mn. This was driven by the German life business, mainly due to a lower investment margin as a result of negative fair value changes, and reserve strengthening in South Korea. It was partly offset by a higher investment spread margin due to an increased asset base in the United States and favorable foreign currency translation effects.
Our operating profit increased by € 92 mn to € 1,957 mn. This was mainly due to higher loadings and fees in the first half year of 2015 – a result of increased sales in Asia-Pacific and increased fees earned in Italy. It was also because of a higher investment spread margin, due to an increased asset base, and favorable interest rate movements in the United States. Unfavorable impacts of change in DAC – largely due to the higher DAC amortization associated with our variable annuity business in the United States – partly offset this increase.
Loadings and fees includes premium and reserve based fees, unitlinked management fees and policyholder participation in expenses.
| € mn | three months ended 30 June |
six months ended 30 June |
|||
|---|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | ||
| Loadings from premiums | 932 | 865 | 1,883 | 1,723 | |
| Loadings from reserves | 287 | 266 | 571 | 532 | |
| Unit-linked management fees | 192 | 156 | 398 | 303 | |
| Loadings and fees | 1,411 | 1,287 | 2,852 | 2,559 | |
| Loadings from premiums as % of statutory premiums |
5.6 | 5.1 | 5.3 | 5.0 | |
| Loadings from reserves as % of average reserves1, 2 |
0.1 | 0.1 | 0.1 | 0.1 | |
| Unit-linked management fees as % of average unit-linked reserves2, 3 |
0.2 | 0.1 | 0.3 | 0.3 |
1 Aggregate policy reserves and unit-linked reserves.
2 Yields are pro-rata.
3 Unit-linked management fees, excluding Asset Management fees, divided by unit-linked reserves.
Our loadings and fees increased by € 124 mn to € 1,411 mn. This was driven by favorable foreign currency translation effects, sales growth in Taiwan and increased unit-linked management fees in Italy.
The increase in loadings from premiums by € 67 mn to € 932 mn was largely due to increased premiums in Taiwan, favorable foreign currency translation effects and the positive impact of lower volumes of products with sales inducements in the United States. Loadings from premiums as a percentage of statutory premiums increased by 47 basis points, mainly due to a higher weight of regular premiums in Germany.
The increase in loadings from reserves by € 21 mn to € 287 mn was primarily due to favorable foreign currency translation effects.
The growth in unit-linked management fees by € 36 mn to € 192 mn was largely driven by higher assets under management in Italy.
Our loadings and fees increased by € 293 mn to € 2,852 mn. This was primarily due to higher sales in Asia-Pacific, the positive impact of lower volumes of products with sales inducements in the United States and increased unit-linked management fees earned in Italy. Favorable foreign currency translation effects supported the increase.
29 Asset Management
38 Balance Sheet Review 45 Reconciliations
The investment margin is defined as IFRS investment income net of expenses, less interest credited to IFRS reserves and policyholder participation (including policyholder participation beyond contractual and regulatory requirements mainly for the German life business).
| € mn | |||||
|---|---|---|---|---|---|
| three months ended 30 June |
six months ended 30 June |
||||
| 2015 | 2014 | 2015 | 2014 | ||
| Interest and similar income | 4,846 | 4,472 | 9,272 | 8,631 | |
| Operating income from financial assets and liabilities carried at fair value through income (net) |
(1,272) | (37) | (688) | (305) | |
| Operating realized gains/losses (net) | 1,606 | 754 | 4,044 | 1,581 | |
| Interest expenses | (25) | (24) | (52) | (48) | |
| Operating impairments of investments (net) |
(108) | (49) | (195) | (340) | |
| Investment expenses | (245) | (232) | (472) | (427) | |
| Other1 | (33) | 112 | 191 | 219 | |
| Technical interest | (2,379) | (2,161) | (4,661) | (4,323) | |
| Policyholder participation | (1,556) | (1,913) | (5,604) | (3,394) | |
| Investment margin | 834 | 922 | 1,836 | 1,592 | |
| Investment margin2, 3 in basis points |
21 | 25 | 46 | 44 |
1 Other comprises the delta of out-of-scope entities, which are added here with their respective operating profit and different line item definitions compared to the financial statements, such as interest paid on deposits for reinsurance, fee and commission income and expenses excluding unit-linked management fees.
2 Investment margin divided by the average of current end-of-period and previous end-of-period aggregate policy reserves.
3 Yields are pro-rata.
Our investment margin decreased by € 88 mn to € 834 mn. This was mainly due to a lower operating investment result and higher policyholder participation ratio in Germany as well as reserve strengthening in South Korea. Partly offset by a higher investment spread margin due to an increased asset base in the United States and positive foreign currency translation effects this resulted in a decrease to 21 basis points in the investment margin as a percentage of reserves.
In Germany, higher realized gains on debt and equity investments partly compensated for a negative valuation impact related to duration management derivatives due to increased interest rates and unfavorable impacts from the net of foreign currency effects and financial derivatives to manage respective foreign currency fluctuations. In addition, a different pattern of investment result led to a higher policyholder participation ratio in our German life business.
Our investment margin increased by € 244 mn to € 1,836 mn. This was largely driven by a higher investment spread margin, due to an increased asset base, and favorable interest rate movements in the United States, aside from positive foreign currency translation effects.
Expenses include acquisition expenses and commissions (excluding commission clawbacks, which are allocated to the technical margin) as well as administrative and other expenses.
| € mn | three months ended 30 June |
six months ended 30 June |
|||
|---|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | ||
| Acquisition expenses and commissions | (1,185) | (1,238) | (2,434) | (2,389) | |
| Administrative and other expenses | (439) | (419) | (849) | (789) | |
| Expenses | (1,624) | (1,657) | (3,283) | (3,178) | |
| Acquisition expenses and commissions as % of PVNBP 1 |
(7.8) | (7.7) | (7.1) | (7.6) | |
| Administrative and other expenses as % of average reserves2, 3 |
(0.1) | (0.1) | (0.2) | (0.2) |
1 PVNBP before non-controlling interests.
2 Aggregate policy reserves and unit-linked reserves.
3 Yields are pro-rata.
Our expenses decreased by € 33 mn to € 1,624 mn. Lower expenses due to decreased business in the United States and fewer expenses in France more than offset higher expenses due to increased sales in Taiwan and adverse foreign currency translation effects.
Our expenses increased by € 105 mn to € 3,283 mn. This was largely due to an increase in line with sales growth in Italy and Taiwan.
Technical margin comprises risk result (risk premiums less benefits in excess of reserves less policyholder participation), lapse result (surrender charges and commission clawbacks) and reinsurance result.
Our technical margin improved from € 269 mn to € 295 mn. This was driven by a favorable development of the disability result in Switzerland and a positive base effect – the total effect of the first six months of 2014 was recorded in the second quarter of 2014 – of a regulatory change ("Lebensversicherungsreformgesetz") for the German life business to increase policyholder participation in the technical margin.
Our technical margin increased from € 539 mn to € 596 mn, mainly driven by an improved risk margin in Switzerland.
Impact of change in DAC (deferred acquisition costs) includes effects of change in DAC, unearned revenue reserves (URR) and value of business acquired (VOBA), and is the net impact of deferral and amortization of acquisition costs and front-end loadings on operating profit and therefore deviates to the financial statements.
| € mn | three months ended 30 June |
six months ended 30 June |
||||
|---|---|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | |||
| Capitalization of DAC | 440 | 558 | 897 | 1,004 | ||
| Amortization, unlocking and true-up of DAC |
(503) | (395) | (941) | (652) | ||
| Impact of change in DAC | (63) | 163 | (44) | 352 | ||
The impact of change in DAC turned from € 163 mn to minus € 63 mn. This was primarily driven by our business in the United States, with lower capitalization of DAC due to decreased sales in our fixedindexed annuity business and a higher DAC amortization in relation to our variable annuity business as a result of increased interest rates.
The impact of change in DAC turned from € 352 mn to minus € 44 mn. This change was largely due to higher DAC amortization associated with our variable annuity business and a lower capitalization of DAC in the fixed-indexed annuity business in the United States.
| € mn | three months ended 30 June |
six months ended 30 June |
|||
|---|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | ||
| Guaranteed savings&annuities | 643 | 727 | 1,401 | 1,358 | |
| Protection&health | 119 | 177 | 343 | 353 | |
| Unit-linked without guarantee | 91 | 81 | 214 | 154 | |
| Operating profit | 853 | 985 | 1,957 | 1,864 |
The operating profit decrease in the guaranteed savings&annuities line of business was largely driven by a lower operating investment result in Germany.
Operating profit in the protection&health line of business declined, mainly driven by South Korea.
Operating profit in the unit-linked without guarantee line of business increased, primarily due to higher fees earned in Italy.
Our operating profit in the unit-linked without guarantee line of business increased, primarily due to higher unit-linked management fees in Italy. Growth in the guaranteed savings&annuities line of business was mainly driven by Italy, due to higher realized gains.
In the second quarter of 2015, our annualized margin on reserves dropped from 79 to 58 basis points. This was mainly due to the decreased investment margin.
Our annualized margin on reserves decreased to 70 basis points (6M 2014: 76 basis points) in the first six months of 2015.
Net income
Our net income decreased by € 70 mn to € 662 mn. This was mainly driven by lower operating profit and slightly offset by higher nonoperating income due to a risk capital hedge in the United States. The effective tax rate was 29.2% (2Q 2014: 29.6%).
Our net income increased by € 41 mn to € 1,401 mn. This was mainly driven by higher operating profit in the first quarter of 2015. The effective tax rate was 29.9% (6M 2014: 29.3%).
| € mn | ||||
|---|---|---|---|---|
| three months ended 30 June |
six months ended 30 June |
|||
| 2015 | 2014 | 2015 | 2014 | |
| Statutory premiums2 | 16,719 | 16,961 | 35,540 | 34,124 |
| Ceded premiums written | (263) | (225) | (417) | (386) |
| Change in unearned premiums | (62) | (57) | (135) | (240) |
| Statutory premiums (net) | 16,394 | 16,679 | 34,989 | 33,497 |
| Deposits from insurance and investment contracts |
(10,684) | (10,680) | (22,526) | (21,222) |
| Premiums earned (net) | 5,710 | 5,999 | 12,463 | 12,275 |
| Loadings and fees | 1,411 | 1,287 | 2,852 | 2,559 |
| Loadings from premiums | 932 | 865 | 1,883 | 1,723 |
| Loadings from reserves | 287 | 266 | 571 | 532 |
| Unit-linked management fees | 192 | 156 | 398 | 303 |
| Investment margin (net of policyholder participation) |
834 | 922 | 1,836 | 1,592 |
| Expenses | (1,624) | (1,657) | (3,283) | (3,178) |
| Acquisition expenses and commissions |
(1,185) | (1,238) | (2,434) | (2,389) |
| Administrative and other expenses | (439) | (419) | (849) | (789) |
| Technical margin | 295 | 269 | 596 | 539 |
| Operating profit before change in DAC | 916 | 822 | 2,001 | 1,512 |
| Impact of change in DAC3 | (63) | 163 | (44) | 352 |
| Capitalization of DAC | 440 | 558 | 897 | 1,004 |
| Amortization, unlocking and true-up of DAC |
(503) | (395) | (941) | (652) |
| Operating profit | 853 | 985 | 1,957 | 1,864 |
| Non-operating items | 81 | 54 | 43 | 58 |
| Income before income taxes | 935 | 1,039 | 2,000 | 1,923 |
| Income taxes | (273) | (308) | (599) | (562) |
| Net income | 662 | 731 | 1,401 | 1,360 |
| Margin on reserves4 in basis points | 58 | 79 | 70 | 76 |
1 Profit sources are based on in-scope operating entities with coverage of 97.0% of statutory premiums in the first half year of 2015. Operating profit from operating entities that are not in scope is included in investment margin.
2 Statutory premiums are gross premiums written from sales of life and health insurance policies as well as gross receipts from sales of unit-linked and other investment-oriented products, in accordance with the statutory accounting practices applicable in the insurer's home jurisdiction.
3 Impact of change in DAC includes effects of change in DAC, URR and VOBA, and is the net impact of deferral and amortization of acquisition costs and front-end loadings on operating profit and therefore deviates from the financial statements.
4 Represents annualized operating profit divided by the average of (a) the current quarter-end and previous quarter-end net reserves and (b) the current quarter-end and previous year-end net reserves, where net reserves equal reserves for loss and loss adjustment expenses, reserves for insurance and investment contracts and financial liabilities for unit-linked contracts less reinsurance assets.
€ mn
| Life/Health | Guaranteed savings&annuities |
Protection &health |
Unit-linked without guarantee |
|||||
|---|---|---|---|---|---|---|---|---|
| three months ended 30 June | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 |
| Loadings from premiums | 932 | 865 | 449 | 416 | 408 | 385 | 75 | 65 |
| Loadings from reserves | 287 | 266 | 244 | 236 | 25 | 19 | 18 | 11 |
| Unit-linked management fees | 192 | 156 | 81 | 63 | – | – | 110 | 93 |
| Loadings and fees | 1,411 | 1,287 | 774 | 714 | 433 | 404 | 203 | 169 |
| Investment margin (net of policyholder participation) | 834 | 922 | 857 | 857 | (38) | 48 | 15 | 18 |
| Acquisition expenses and commissions | (1,185) | (1,238) | (722) | (829) | (317) | (314) | (146) | (95) |
| Administrative and other expenses | (439) | (419) | (279) | (286) | (120) | (99) | (40) | (34) |
| Expenses | (1,624) | (1,657) | (1,001) | (1,114) | (438) | (413) | (185) | (129) |
| Technical margin | 295 | 269 | 121 | 128 | 150 | 123 | 25 | 18 |
| Operating profit before change in DAC | 916 | 822 | 751 | 585 | 107 | 162 | 58 | 75 |
| Capitalization of DAC | 440 | 558 | 276 | 401 | 99 | 127 | 66 | 31 |
| Amortization, unlocking and true-up of DAC | (503) | (395) | (383) | (259) | (87) | (112) | (33) | (25) |
| Impact of change in DAC2 | (63) | 163 | (108) | 142 | 12 | 15 | 33 | 6 |
| Operating profit | 853 | 985 | 643 | 727 | 119 | 177 | 91 | 81 |
1 Profit sources are based on in-scope operating entities with coverage of 97.0% of statutory premiums in the first half year of 2015. Operating profit from operating entities that are not in scope is included in investment margin.
2 Impact of change in DAC includes effects of change in DAC, URR and VOBA, and is the net impact of deferral and amortization of acquisition costs and front-end loadings on operating profit and therefore deviates from the financial statements.
| € mn | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Life/Health | Guaranteed savings&annuities |
Protection &health |
Unit-linked without guarantee |
||||||
| six months ended 30 June | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |
| Loadings from premiums | 1,883 | 1,723 | 939 | 861 | 794 | 737 | 150 | 124 | |
| Loadings from reserves | 571 | 532 | 487 | 472 | 50 | 39 | 34 | 21 | |
| Unit-linked management fees | 398 | 303 | 159 | 125 | – | – | 239 | 179 | |
| Loadings and fees | 2,852 | 2,559 | 1,585 | 1,458 | 844 | 776 | 423 | 324 | |
| Investment margin (net of policyholder participation) | 1,836 | 1,592 | 1,772 | 1,492 | 32 | 74 | 32 | 26 | |
| Acquisition expenses and commissions | (2,434) | (2,389) | (1,519) | (1,600) | (634) | (607) | (281) | (183) | |
| Administrative and other expenses | (849) | (789) | (542) | (534) | (225) | (189) | (81) | (66) | |
| Expenses | (3,283) | (3,178) | (2,062) | (2,133) | (859) | (796) | (362) | (249) | |
| Technical margin | 596 | 539 | 238 | 238 | 306 | 261 | 52 | 40 | |
| Operating profit before change in DAC | 2,001 | 1,512 | 1,533 | 1,055 | 323 | 315 | 145 | 142 | |
| Capitalization of DAC | 897 | 1,004 | 572 | 741 | 199 | 204 | 127 | 59 | |
| Amortization, unlocking and true-up of DAC | (941) | (652) | (705) | (439) | (179) | (166) | (58) | (48) | |
| Impact of change in DAC2 | (44) | 352 | (133) | 302 | 20 | 38 | 69 | 12 | |
| Operating profit | 1,957 | 1,864 | 1,401 | 1,358 | 343 | 353 | 214 | 154 |
1 Profit sources are based on in-scope operating entities with coverage of 97.0% of statutory premiums in the first half year of 2015. Operating profit from operating entities that are not in scope is included in investment margin.
2 Impact of change in DAC includes effects of change in DAC, URR and VOBA, and is the net impact of deferral and amortization of acquisition costs and front-end loadings on operating profit and therefore deviates from the financial statements.
20 Life/Health Insurance Operations 36 Outlook
38 Balance Sheet Review 45 Reconciliations
| € mn | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Statutory premiums1 | Premiums earned (net) | Operating profit (loss) | Margin on reserves2 (BPS) | |||||||
| internal3 | ||||||||||
| three months ended 30 June | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 |
| Germany Life | 4,063 | 4,448 | 4,063 | 4,448 | 2,364 | 2,658 | 95 | 321 | 18 | 67 |
| Germany Health | 816 | 813 | 816 | 813 | 815 | 812 | 55 | 52 | 76 | 78 |
| Switzerland | 262 | 275 | 224 | 275 | 87 | 120 | 24 | 21 | 56 | 61 |
| Austria | 92 | 89 | 92 | 89 | 65 | 65 | (2) | 11 | (12) | 99 |
| German Speaking Countries | 5,232 | 5,624 | 5,194 | 5,624 | 3,331 | 3,654 | 172 | 405 | 26 | 68 |
| Italy | 3,366 | 3,069 | 3,366 | 3,069 | 111 | 108 | 102 | 77 | 66 | 59 |
| France4 | 1,955 | 2,075 | 1,955 | 1,938 | 785 | 911 | 165 | 93 | 75 | 46 |
| Benelux | 543 | 571 | 543 | 571 | 123 | 130 | 34 | 36 | 80 | 91 |
| Greece | 27 | 22 | 27 | 22 | 15 | 13 | (4) | (1) | (573) | (107) |
| Turkey | 243 | 205 | 248 | 205 | 47 | 35 | 14 | 8 | 187 | 144 |
| Africa | 19 | 14 | 19 | 14 | 11 | 6 | 1 | 2 | 161 | 240 |
| Western&Southern Europe | 6,153 | 5,955 | 6,158 | 5,818 | 1,093 | 1,203 | 312 | 215 | 73 | 57 |
| Latin America | 106 | 90 | 102 | 90 | 57 | 50 | 2 | 2 | 84 | 94 |
| Spain | 345 | 289 | 345 | 289 | 129 | 123 | 49 | 46 | 236 | 253 |
| Portugal | 44 | 72 | 44 | 72 | 21 | 21 | 6 | 6 | 377 | 411 |
| Iberia&Latin America | 494 | 452 | 491 | 452 | 207 | 193 | 57 | 54 | 227 | 247 |
| United States | 2,592 | 3,352 | 2,092 | 3,352 | 286 | 232 | 297 | 202 | 117 | 108 |
| USA | 2,592 | 3,352 | 2,092 | 3,352 | 286 | 232 | 297 | 202 | 117 | 108 |
| Reinsurance LH | 158 | 142 | 90 | 142 | 96 | 102 | 13 | 18 | 295 | 380 |
| Global Insurance Lines&Anglo Markets | 158 | 142 | 90 | 142 | 96 | 102 | 13 | 18 | 295 | 380 |
| South Korea | 469 | 410 | 404 | 410 | 137 | 134 | (94) | 10 | (291) | 40 |
| Taiwan | 867 | 436 | 717 | 436 | 69 | 42 | 1 | – | 7 | –6 |
| Indonesia | 176 | 170 | 161 | 170 | 78 | 86 | 20 | 16 | 498 | 525 |
| Malaysia | 115 | 106 | 105 | 106 | 50 | 48 | 4 | 3 | 94 | 95 |
| Japan | – | – | – | – | 2 | 2 | – | – | –6 | –6 |
| Other | 303 | 206 | 248 | 206 | 179 | 135 | 26 | 18 | 226 | 214 |
| Asia-Pacific5 | 1,931 | 1,329 | 1,634 | 1,329 | 514 | 446 | (39) | 47 | (53) | 82 |
| Poland | 53 | 37 | 52 | 37 | 22 | 17 | 7 | 14 | 460 | 1,060 |
| Slovakia | 61 | 63 | 61 | 63 | 51 | 50 | 5 | 8 | 146 | 247 |
| Hungary | 28 | 43 | 28 | 43 | 13 | 12 | 5 | 3 | 457 | 348 |
| Czech Republic | 28 | 56 | 28 | 56 | 16 | 18 | 3 | 4 | 224 | 243 |
| Russia | 16 | 13 | 19 | 13 | 16 | 13 | 1 | – | 132 | –6 |
| Croatia | 16 | 18 | 16 | 18 | 16 | 18 | 5 | 5 | 519 | 569 |
| Bulgaria | 11 | 10 | 11 | 10 | 10 | 8 | 2 | 3 | 544 | 732 |
| Romania | 7 | 7 | 7 | 7 | 4 | 3 | 2 | 1 | 782 | 685 |
| Central and Eastern Europe5 | 219 | 248 | 222 | 248 | 146 | 141 | 28 | 37 | 304 | 422 |
| Middle East and North Africa | 51 | 39 | 43 | 39 | 38 | 27 | 7 | 6 | 335 | 357 |
| Global Life | – | – | – | – | – | – | (1) | – | –6 | –6 |
| Growth Markets | 2,201 | 1,615 | 1,899 | 1,615 | 698 | 614 | (4) | 90 | (5) | 133 |
| Consolidation7 | (111) | (179) | (111) | (179) | – | – | 6 | – | –6 | –6 |
| Total | 16,719 | 16,961 | 15,811 | 16,824 | 5,710 | 5,999 | 853 | 985 | 58 | 79 |
1 Statutory premiums are gross premiums written from sales of life and health insurance policies as well as gross receipts from sales of unit-linked and other investment-oriented products, in accordance with the statutory accounting practices applicable in the insurer's home jurisdiction.
3 Statutory premiums adjusted for foreign currency translation and (de-)consolidation effects. 4 In the fourth quarter of 2014, we transferred our French International Health business to the reportable
consolidations between countries in these regions.
segment Allianz Worldwide Partners in the business segment Property-Casualty effective 1 January 2014. 5 Contains income and expense items from management holdings, an associated entity in Asia-Pacific and
2 Represents annualized operating profit divided by the average of the current quarter-end and previous quarter-end net reserves, where net reserves equal reserves for loss and loss adjustment expenses, reserves for insurance and investment contracts and financial liabilities for unit-linked contracts less reinsurance assets.
6 Presentation not meaningful. 7 Represents elimination of transactions between Allianz Group companies in different geographic regions.
| € mn | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Statutory premiums1 | Premiums earned (net) | Operating profit (loss) | Margin on reserves2 (BPS) | |||||||
| internal3 | ||||||||||
| six months ended 30 June | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 |
| Germany Life | 8,851 | 9,427 | 8,851 | 9,427 | 5,501 | 5,588 | 519 | 596 | 50 | 63 |
| Germany Health | 1,630 | 1,621 | 1,630 | 1,621 | 1,630 | 1,621 | 108 | 76 | 76 | 58 |
| Switzerland | 1,369 | 1,226 | 1,195 | 1,226 | 327 | 354 | 41 | 42 | 53 | 63 |
| Austria | 210 | 206 | 210 | 206 | 168 | 154 | 21 | 23 | 84 | 105 |
| German Speaking Countries | 12,060 | 12,480 | 11,885 | 12,480 | 7,625 | 7,717 | 688 | 737 | 53 | 63 |
| Italy | 7,072 | 5,438 | 7,072 | 5,438 | 237 | 239 | 185 | 124 | 62 | 48 |
| France4 | 4,095 | 4,547 | 4,095 | 4,265 | 1,638 | 1,751 | 299 | 237 | 70 | 60 |
| Benelux | 1,330 | 1,654 | 1,330 | 1,654 | 254 | 260 | 72 | 67 | 87 | 87 |
| Greece | 54 | 46 | 54 | 46 | 29 | 27 | (6) | (1) | (402) | (70) |
| Turkey | 503 | 366 | 485 | 366 | 93 | 66 | 24 | 12 | 168 | 112 |
| Africa | 34 | 30 | 34 | 30 | 17 | 14 | 3 | 3 | 176 | 228 |
| Western&Southern Europe | 13,088 | 12,082 | 13,070 | 11,800 | 2,269 | 2,356 | 577 | 444 | 70 | 60 |
| Latin America | 194 | 162 | 185 | 162 | 84 | 77 | 7 | 3 | 130 | 63 |
| Spain | 747 | 642 | 747 | 642 | 230 | 224 | 95 | 94 | 238 | 265 |
| Portugal | 130 | 124 | 130 | 124 | 41 | 41 | 10 | 9 | 333 | 317 |
| Iberia&Latin America | 1,071 | 928 | 1,062 | 928 | 355 | 342 | 112 | 106 | 232 | 247 |
| United States | 5,291 | 5,908 | 4,308 | 5,908 | 567 | 459 | 461 | 372 | 97 | 100 |
| USA | 5,291 | 5,908 | 4,308 | 5,908 | 567 | 459 | 461 | 372 | 97 | 100 |
| Reinsurance LH | 293 | 267 | 142 | 267 | 212 | 184 | 30 | 29 | 329 | 302 |
| Global Insurance Lines&Anglo Markets | 293 | 267 | 142 | 267 | 212 | 184 | 30 | 29 | 329 | 302 |
| South Korea | 915 | 802 | 780 | 802 | 270 | 254 | (92) | 15 | (152) | 30 |
| Taiwan | 1,529 | 938 | 1,287 | 938 | 135 | 82 | 6 | 3 | 19 | 11 |
| Indonesia | 358 | 304 | 323 | 304 | 150 | 139 | 37 | 33 | 500 | 568 |
| Malaysia | 230 | 202 | 208 | 202 | 110 | 98 | 11 | 9 | 155 | 161 |
| Japan | – | – | – | – | 4 | 3 | 1 | – | 7 | –6 |
| Other Asia-Pacific5 |
602 3,634 |
422 2,668 |
495 3,093 |
422 2,668 |
398 1,065 |
296 872 |
52 21 |
38 98 |
240 15 |
229 86 |
| Poland | 103 | 86 | 102 | 86 | 42 | 35 | 12 | 18 | 397 | 658 |
| Slovakia | 124 | 128 | 124 | 128 | 100 | 99 | 16 | 16 | 247 | 258 |
| Hungary | 57 | 81 | 57 | 81 | 24 | 23 | 9 | 7 | 454 | 365 |
| Czech Republic | 62 | 89 | 63 | 89 | 33 | 37 | 7 | 7 | 233 | 256 |
| Russia | 24 | 28 | 33 | 28 | 24 | 28 | 4 | – | 414 | –6 |
| Croatia | 39 | 41 | 39 | 41 | 39 | 40 | 10 | 8 | 566 | 527 |
| Bulgaria | 28 | 19 | 28 | 19 | 19 | 16 | 7 | 6 | 741 | 830 |
| Romania | 13 | 12 | 13 | 12 | 7 | 7 | 4 | 3 | 1,010 | 776 |
| Central and Eastern Europe5 | 451 | 483 | 459 | 483 | 289 | 285 | 66 | 64 | 363 | 365 |
| Middle East and North Africa | 103 | 79 | 89 | 79 | 78 | 58 | 14 | 11 | 344 | 345 |
| Global Life | 2 | 2 | 2 | 2 | 2 | 1 | – | – | –6 | –6 |
| Growth Markets | 4,189 | 3,231 | 3,643 | 3,231 | 1,435 | 1,216 | 101 | 173 | 63 | 128 |
| Consolidation7 | (451) | (773) | (451) | (773) | – | – | (12) | 3 | –6 | –6 |
| Total | 35,540 | 34,124 | 33,660 | 33,842 | 12,463 | 12,275 | 1,957 | 1,864 | 70 | 76 |
1 Statutory premiums are gross premiums written from sales of life and health insurance policies as well as gross receipts from sales of unit-linked and other investment-oriented products, in accordance with the statutory accounting practices applicable in the insurer's home jurisdiction.
3 Statutory premiums adjusted for foreign currency translation and (de-)consolidation effects. 4 In the fourth quarter of 2014, we transferred our French International Health business to the reportable
2 Represents annualized operating profit divided by the average of the current quarter-end and previous year-end net reserves, where net reserves equal reserves for loss and loss adjustment expenses, reserves segment Allianz Worldwide Partners in the business segment Property-Casualty effective 1 January 2014. 5 Contains income and expense items from management holdings, an associated entity in Asia-Pacific and consolidations between countries in these regions.
6 Presentation not meaningful.
7 Represents elimination of transactions between Allianz Group companies in different geographic regions.
for insurance and investment contracts and financial liabilities for unit-linked contracts less reinsurance
assets.
| A | Interim Group Management Report | |||
|---|---|---|---|---|
| --- | -- | -- | --------------------------------- | -- |
5 Executive Summary
29 Asset Management
33 Corporate and Other
36 Outlook
38 Balance Sheet Review 45 Reconciliations
second quarter 2015
Allianz offers asset management products and services for thirdparty investors and the Allianz Group's insurance operations. We serve a wide range of retail and institutional clients worldwide with investment and distribution capacities in all major markets. Based on total assets under management, we are one of the largest asset managers in the world that manage thirdparty assets with active investment strategies.
| € mn | ||
|---|---|---|
| three months ended 30 June | 2015 | 2014 |
| Operating revenues | 1,548 | 1,607 |
| Operating profit | 505 | 676 |
| Cost-income ratio in % | 67.4 | 57.9 |
| Net income | 329 | 419 |
| Total assets under management as of 30 June in € bn |
1,811 | 1,814 |
| thereof: Third-party assets under management as of 30 June in € bn |
1,323 | 1,373 |
Total assets under management (AuM) amounted to € 1,811 BN as of 30 June 2015. Of this, € 1,323 BN related to third-party AuM and € 488 BN to Allianz Group assets.
We recorded net outflows of total AuM of € 88 BN in the first six months of 2015. Net outflows from third-party AuM amounted to € 85 BN, strongly driven by PIMCO in the United States, primarily from traditional fixed income products. However, since the end of 2014, third-party AuM net outflows have significantly decreased, amounting to € 62 BN in the first quarter and € 23 BN in the second quarter of 2015. AllianzGI recorded strong third-party net inflows in Europe, resulting in third-party net inflows for the tenth consecutive quarter.
Market and Other contributed € 6 BN to total AuM, with negative effects of € 12 BN at PIMCO and positive effects of € 18 BN at AllianzGI.
Third-party AuM were adjusted for AuM related to a joint venture. This was the main cause of the decline in total AuM of € 6 BN, which is reported as consolidation, deconsolidation and other adjustments.
We recorded favorable foreign currency translation effects of € 98 BN, mainly as a result of the depreciation of the Euro to the U.S. Dollar, which declined from 1.21 at the beginning of the year to 1.11 at the end of the second quarter.
1 Fixed income and equity definitions based on legal entity view as of 31 December 2014. Therefore, 2014 and 2015 figures are not comparable.
4 Multi-assets is a combination of several asset classes (e.g. bonds, stocks, cash and real property) used as an investment. Multi-assets class investments increase the diversification of an overall portfolio by distributing investments throughout several asset classes. 5 Other is composed of other asset classes than equity, fixed income and multi-assets, e.g. money markets,
2 From the first quarter of 2015, net flows represent the sum of new client assets, additional contributions from existing clients – including dividend reinvestment – withdrawals of assets from, and termination of, client accounts and distributions to investors. Reinvested dividends amounted to € 4.4 bn.
and from net realized capital gains to investors of open ended mutual funds and of closed end funds.
3 From the first quarter of 2015, Market and Other represents current income earned on, and changes in the fair value of, securities held in client accounts. It also includes dividends from net investment income commodities, real estate investment trusts, infrastructure investments, private equity investments, hedge funds, etc.
In the following section we focus on the development of third-party
As of 30 June 2015, the share of third-party AuM by business unit was 78.0% attributable to PIMCO and 22.0% to AllianzGI.
At the beginning of 2015 we enhanced our asset class reporting from a legal entity view to a more granular asset class split composed of fixed income, equities, multi-assets, and other. Furthermore, we replaced the retail and institutional asset split by an investment vehicle view, comprised of mutual funds and separate accounts.1
Based on the asset class split on 30 June 2015, the share of fixed income amounted to 74%, reflecting the high share of fixed income assets at PIMCO. 12% in equity assets was due to the notable equity share at AllianzGI. Multi-assets and other accounted for 11% and 4%, respectively.
as of 30 June 2015 [31 December 2014] in %
1 Based on the location of the asset management company.
2 "America" consists of the United States, Canada and Brazil (approximately € 747 BN, € 16 BN and € 2 BN third-party AuM as of 30 June 2015, respectively).
The regional allocation of third-party AuM shifted slightly in favor of Europe, mainly due to strong net outflows at PIMCO in the United States, combined with a negative market effect. This was only partially offset by positive foreign currency translation effects in the first six months of 2015.
AuM.
1 Mutual funds are investment vehicles (in the United States, investment companies subject to the U.S. code; in Germany, vehicles subject to the "Standard-Anlagerichtlinien des Fonds" Investmentgesetz) where the money of several individual investors is pooled into one account to be managed by the asset manager, e.g. open-end funds, closed-end funds. Separate accounts are investment vehicles where the money of a single investor is directly managed by the asset manager in a separate dedicated account (e.g. public or private institutions, high net worth individuals and corporates).
38 Balance Sheet Review 45 Reconciliations
% PIMCO AllianzGI 12/31/2014 6/30/2015 12/31/2014 6/30/2015 100 80 60 40 20 0 (20) (40) 84 (16) 88 (12) 64 (36) 55 (45)
Outperforming third-party assets under management
Underperforming third-party assets under management
1 The investment performance is based on Allianz Asset Management account-based, asset-weighted three-year investment performance of third-party assets versus the primary target including all accounts managed by portfolio managers of Allianz Asset Management. For some retail funds, the net of fee performance is compared to the median performance of the corresponding Morningstar peer group (first and second quartile mean outperformance). For all other retail funds and for all institutional accounts, the gross of fee performance (revaluated based on closing prices) is compared to the respective benchmark based on different metrics.
The overall three-year rolling investment performance of our Asset Management business remained at a high level, with 81% of our thirdparty assets outperforming their respective benchmarks (31 December 2014: 84%). 84% of PIMCO third-party assets and 64% of AllianzGI third-party assets outperformed their respective benchmarks.
Our operating revenues declined by € 59 MN – or 3.6% – to € 1,548 MN. Before the positive effect from foreign currency translation, which was mainly driven by the sharp appreciation of the U.S. Dollar against the Euro, operating revenues decreased by 17.7 % on an internal basis1. Compared to the second quarter of 2014, average third-party AuM were almost flat, but fell by 16.4% if we exclude the positive foreign currency translation effect.
Net fee and commission income was down by € 42 MN – or 2.6% – to € 1,559 MN. This equals a decrease of 17.7% before foreign currency translation effects. The downturn was mostly driven by our AuMdriven revenues, which dropped by 16.9 % before foreign currency translation effects. This was mostly due to lower average third-party AuM and – to a lesser extent – a slight decline in our third-party AuMdriven margin. Our performance fees fell by € 15 MN – or € 23 MN excluding foreign currency translation effects. This was driven by PIMCO, while AllianzGI recorded an increase in performance fees.
Our income from financial assets and liabilities carried at fair value through income (net) was down by € 13 MN, mainly due to valuation effects, mostly driven by foreign currency translation on certain assets.
Operating revenues went down slightly by € 3 MN – or 0.1 % – to € 3,121 MN. On an internal basis1, operating revenues fell by 14.3 %, mainly because of a decline of 15.4% in third-party AuM-driven revenues but also by a slight dip in our third-party AuM-driven margin.
1 Operating revenues/operating profit adjusted for foreign currency translation and (de-)consolidation effects. In the second quarter of 2015 the average exchange rate of the U.S. Dollar to Euro was 1.11 (2Q 2014: 1.37), in the first six months of 2015, the average exchange rate was 1.12 (first six months of 2014: 1.37).
Our operating profit reduced by € 171 MN – or 25.2 % – to € 505 MN. Before positive foreign currency translation effects, operating profit dropped by 36.9 % on an internal basis1. This was mainly due to decreased AuM-driven revenues and – to a lesser extent – lower margins and performance fees. In the fourth quarter of 2014, PIMCO introduced the Special Performance Award (SPA) to secure performance and retain talent. Therefore the SPA also had an impact on operating profit in the second quarter of 2015.
Administrative expenses rose by € 111 MN – or 11.9% – to € 1,043 MN, only driven by foreign currency translation effects. Adjusted for these, administrative expenses decreased by 5.7%. The main cause for this development were lower personnel expenses, driven by a drop of 16.2% in variable compensation, despite the impact of the SPA in the second quarter of 2015.
Our cost-income ratio went up 9.4 percentage points to 67.4 %. However, adjusted for foreign currency translation effects and the effect from the SPA, our cost-income ratio would be at 65.1%. Before foreign currency translation effects, this reflects a decrease in operating expenses, which is overcompensated by the drop in operating revenues.
Operating profit decreased by € 261 MN – or 19.8 % – to € 1,060 MN, which equals a drop of 31.9% on an internal basis1. This was mainly due to lower AuM-driven revenues and the impact of the SPA on our operating expenses.
Our cost-income ratio rose by 8.3 percentage points.
In the second quarter of 2015, our net income dropped by € 90 MN – or 21.4% – to € 329 MN. For the first half of 2015, the decrease was € 167 MN – or 20.2%. Before foreign currency translation effects, this equals a drop of 33.6% for the second quarter and 32.6% for the first half of 2015, respectively. These developments are largely consistent with our operating profit development.
| 2015 | 2014 | 2015 | 2014 |
|---|---|---|---|
| 1,915 | 1,891 | 3,786 | 3,716 |
| 52 | 67 | 111 | 86 |
| 8 | 15 | 17 | 31 |
| 1,975 | 1,972 | 3,914 | 3,833 |
| (377) | (313) | (731) | (620) |
| (39) | (58) | (58) | (95) |
| (416) | (371) | (788) | (716) |
| 1,559 | 1,601 | 3,126 | 3,117 |
| (2) | (1) | (3) | (1) |
| 3 | |||
| 4 | |||
| 1,548 | 1,607 | 3,121 | 3,124 |
| (1,043) | (932) | (2,060) | (1,805) |
| – | 1 | – | 3 |
| (1,043) | (931) | (2,060) | (1,802) |
| 505 | 676 | 1,060 | 1,321 |
| – | (3) | (27) | (17) |
| 505 | 673 | 1,034 | 1,304 |
| (176) | (254) | (375) | (479) |
| 329 | 419 | 658 | 825 |
| 67.4 | 57.9 | 66.0 | 57.7 |
| (9) 1 |
three months ended 30 June 5 2 |
six months ended 30 June (4) 2 |
1 Represents interest and similar income less interest expenses.
2 Represents operating expenses divided by operating revenues.
1 Operating revenues/operating profit adjusted for foreign currency translation and (de-)consolidation effects. In the second quarter of 2015 the average exchange rate of the U.S. Dollar to Euro was 1.11 (2Q 2014: 1.37), in the first six months of 2015, the average exchange rate was 1.12 (first six months of 2014: 1.37).
5 Executive Summary
29 Asset Management 33 Corporate and Other
38 Balance Sheet Review 45 Reconciliations
second quarter 2015
Corporate and Other encompasses the reportable segments Holding&Treasury, Banking and Alternative Investments. Holding&Treasury includes the management of and support for the Allianz Group's businesses through its strategy, risk, corporate finance, treasury, financial reporting, controlling, communication, legal, human resources, technology and other functions. Our banking products offered in Germany, Italy, France, the Netherlands and Bulgaria complement our insurance product portfolio. We also provide global alternative investment management services in the private equity, real estate, renewable energy and infrastructure sectors, mainly on behalf of the Allianz Group.
| € mn three months ended 30 June |
2015 | 2014 |
|---|---|---|
| Operating revenues | 416 | 416 |
| Operating expenses | (646) | (635) |
| Operating result | (230) | (219) |
| Net income (loss) | (205) | (249) |
| € mn | ||
|---|---|---|
| three months ended 30 June | 2015 | 2014 |
| Holding & Treasury | ||
| Operating revenues | 87 | 95 |
| Operating expenses | (351) | (340) |
| Operating result | (264) | (245) |
| Banking | ||
| Operating revenues | 280 | 277 |
| Operating expenses | (254) | (260) |
| Operating result | 26 | 17 |
| Alternative Investments | ||
| Operating revenues | 48 | 45 |
| Operating expenses | (40) | (36) |
| Operating result | 8 | 8 |
1 Consolidation included. For further information about our Corporate and Other business segment, please refer to note 4 to the condensed consolidated interim financial statements.
Our operating result decreased by € 10 mn to a loss of € 230 mn. A € 19 mn decline in our operating result in Holding&Treasury was only partly compensated for by a € 9 mn improvement in Banking. Alternative Investments' operating profit remained unchanged at € 8 mn.
Our net loss improved by € 43 mn to a loss of € 205 mn due to higher realized gains.
Our operating result strengthened by € 111 mn to a loss of € 331 mn. This improvement was primarily due to a € 148 mn increase in other income recorded in the first quarter and was related to the adapted cost allocation scheme for the pension provisions between the German subsidiaries and Allianz SE.1
Our net loss more than doubled from € 117 mn to € 254 mn, mainly due to lower positive one-off effects from a pensions revaluation with our German subsidiaries,2 which were only partly offset by higher realized gains.
Our operating loss increased by € 19 mn to € 264 mn. Unfavorable developments in administrative expenses and operating income from financial assets and liabilities carried at fair value through income (net) were only partly offset by a decrease in interest expenses and an improvement in our net fee and commission result.
Administrative expenses (net), excluding acquisition-related expenses, were up by € 47 mn to € 208 mn. A large part of this increase was related to higher pension costs induced by lower discount rates, while the remainder was driven by numerous smaller effects.
Operating income from financial assets and liabilities carried at fair value through income (net) dropped by € 20 mn to a loss of € 13 mn. This decrease was equally driven by both lower fair values of certain fund investments and a negative net effect (after hedges) resulting from foreign currency movements.
Our net interest result turned from a loss of € 10 mn to income of € 21 mn. Interest and similar income increased by € 4 mn to € 78 mn. The absence of income from associated companies, which is recognized within the insurance business segments from 2015 onwards as well as a decrease in interest income from debt securities were more than offset by higher dividend income. Our interest expenses, excluding interest expenses from external debt, decreased by € 28 mn to € 57 mn as a result of lower internal borrowing and lower interest rates.
Our net fee and commission result increased by € 17 mn to a loss of € 47 mn. This reduction in losses was mainly due to higher revenues generated by our internal IT service provider.
Investment expenses remained unchanged at € 17 mn.
Our operating result improved by € 85 mn to a loss of € 407 mn. This improvement was driven by the first quarter benefiting from a positive effect of € 148 mn in other income, as described earlier. Lower interest expenses – down from € 162 mn to € 128 mn – also contributed to this improved operating result. These positive effects were partly offset by an increase in administrative expenses from € 316 mn to € 390 mn. This was mainly due to higher pension costs as a result of lower discount rates.
Our operating result increased by € 9 mn to € 26 mn. This increase was largely driven by lower expenses for variable remuneration schemes.
Our net interest, fee and commission result remained flat at € 125 mn (2Q 2014: € 128 mn). Our net interest result dipped by € 2 mn to € 82 mn as a € 13 mn decrease in interest and similar income was largely offset by decreased interest expenses. Both developments reflect lower interest yields. Our fee and commission result stood unchanged at € 44 mn.
Administrative expenses were down by € 16 mn to € 84 mn, mainly due to lower expenses for variable remuneration schemes.
Our loan loss provisions remained rather flat at € 17 mn (2Q 2014: € 15 mn).
Our operating income from financial assets and liabilities carried at fair value through income (net), including trading income, remained the same at € 3 mn.
1 For further information on the adapted cost allocation scheme for the pension provisions, please refer to note 4 to the condensed consolidated interim financial statements.
2 Respective offsetting effects were recorded within our other business segments, mainly within Property-Casualty. For further information on the one-off effects from pension revaluation, please refer to note 4 to the condensed consolidated interim financial statements.
38 Balance Sheet Review 45 Reconciliations
2015 to 2014 first half-year comparison
Our operating result increased by € 23 mn to € 58 mn. While the first quarter contributed with a higher operating profit due to higher management and performance fees – which were driven by growth in assets under management and positive market developments – the second quarter benefited from lower administrative expenses.
Our operating profit stood unchanged at € 8 mn as an uptick in administrative expenses was offset by an increase in fee and commission income. Both developments were in line with increased assets under management.
Our operating profit went up from € 16 mn to € 19 mn. This was mainly due to the net effect of € 17 mn higher fee and commission income and € 12 mn increased administrative expenses. Both developments were in line with increased assets under management.
− Global economic activity is likely to expand moderately in 2015. − Operating profit outlook expected to be at upper end of target range.
As we move into the second half of 2015, the economic picture is somewhat mixed. On the one hand, economic activity in industrialized countries is likely to remain quite solid. In the United States, private consumption is being boosted by the improved labor market situation. In the Eurozone, the economic recovery is likely to continue this year, supported by the depreciation of the Euro and lower energy prices. We expect growth in most member states to outpace last year's performance. Supported by brighter economic conditions in the Eurozone and a favorable environment for private consumption, the German economy could expand by 2% in 2015. On the other hand, growth prospects for many major emerging market countries remain subdued – in many cases not solely for cyclical, but also for structural reasons. The Brazilian and Russian economies will shrink in real terms this year. Overall, global output is likely to grow by about 2.5% in 2015 – as in 2014. Industrialized countries will register GDP growth of close to 2%, while emerging markets will see their lowest economic expansion since the Great Recession of 2009, with a GDP increase of just below 4%. Inflation is likely to remain subdued at a global level, not least due to the still dire unemployment situation in many industrialized countries, which keeps the lid on wages.
For the remainder of this year, financial markets will primarily be driven by monetary policy, further developments in the Greek debt crisis, and geopolitical tensions. Despite lowering the probability of Grexit, the third bailout program is unlikely to draw a line under the Greek crisis as too many pitfalls remain. At the end of the day it is by no means certain that, when the bailout program expires in 2018, Greece will have regained access to the capital market on the scale needed. Risks stemming from the instability of Greek politics are even more serious. Flawed implementation of the reform and consolidation program would once again raise the question of whether Greece can stay in the Euro.
Regarding monetary policy, barring major downside surprises in economic data, the Federal Reserve Bank is likely to start pushing up interest rates later this year. In contrast, the European Central Bank will most likely stick to its very expansionary monetary policy stance, keeping key interest rates at the very low current levels and continuing
its bond purchasing program with a monthly volume of € 60 BN. With short-term rates practically at zero and the ECB's bond purchasing program exerting downward pressure on European government benchmark bond yields, there are limited prospects of markedly higher yields on longer-term bonds. We expect yields on 10-year German and U.S. government bonds to climb only modestly to slightly above 1% and 2.5%, respectively, by the end of 2015. In the second half of 2015 a number of factors, including a rate hike by the Fed, will weigh on the Euro. However, with the economic recovery in the Eurozone on a firmer footing, the Euro will gain support. All in all, we expect the Euro to move sideways against the U.S. Dollar.
2015 is on course to be another year of solid growth for the insurance industry. In advanced markets, economic activity is gaining momentum, boosting demand for insurance; and in emerging markets, despite more challenging economic conditions than in the past, pent-up demand for insurance underpins strong growth. However, the outlook for profitability remains subdued as the headwinds of low investment returns and regulatory changes continue to blow.
In the property-casualty sector, 2014 was a solid year. Global premium revenue grew by 4.5% (in nominal terms, adjusted for foreign currency translation effects) with the notable exception of Western Europe where markets barely grew at all. For 2015, we expect growth to strengthen in Western Europe, too, as almost all markets will return to positive growth. Most other markets will continue to expand solidly, with an improved economy as a supporting factor but rate developments as a possible drag. As in previous years, we expect very strong performances in emerging Asia where governments' efforts, particularly in China, to raise insurance penetration across the board pay off. Overall, we expect global premium revenue to rise by 4–5% in 2015 (in nominal terms, adjusted for foreign currency translation effects). Underwriting profitability should remain more or less stable as reduced pricing power is offset by low claims inflation. However, low investment returns will have a negative impact on overall profitability.
1 The Information presented in the sections Economic outlook, Insurance industry outlook and Asset management industry outlook is based on our own estimates.
38 Balance Sheet Review 45 Reconciliations
In 2014, the life sector registered its highest growth since the outbreak of the financial crisis: Global premium revenue grew by 7.1% (in nominal terms, adjusted for foreign currency translation effects). However, this growth was rather uneven and driven by exceptional momentum in some markets such as Italy and Australia. This year, we expect premium growth to be more moderate but also more broad-based. In particular, we expect that growth in Eastern Europe will resume – albeit at a low level. However, emerging Asia will see another year of high, double-digit growth with China in the lead: Rising incomes and social security reforms remain strong engines for rising insurance demand. All in all, we expect global premium revenue to expand by 4 – 5% in 2015 (in nominal terms, adjusted for foreign currency translation effects).
Looking at profitability, the insurance industry faces some headwinds in 2015. Low yields continue to impact savings behaviors, investment returns remain under pressure, and regulatory burdens will increase further. Therefore, companies cannot afford to relax their efforts to adapt their business models to the new environment.
Markets have shown some volatility in recent months, a trend exacerbated by the ongoing Greek government debt crisis. With investors also anticipating an increase in U.S. interest rates we expect this volatility to continue in equity as well as in fixed income markets. However, if the longer-term trend is indeed towards moderately higher interest rates – especially in the United States – coupled with global demographic developments, bonds should remain attractive. This holds true in particular for liability-driven investors and for the growing number of retirees in the developed world looking for a stable stream of income. Due to continuous inflows, equities reached alltime highs in the first half of 2015 in many countries, making them vulnerable to negative economic developments.
A continuing improvement in economic conditions – in particular in the United States – as well as trends in client demand still represent a positive environment for further asset management industry growth. Nevertheless, the industry has to deal with several challenges that will also put pressure on profitability: flows into passive products as well as rising distribution or marketing costs will tighten operating margins. Increased regulatory oversight and reporting will also take their toll.
Therefore, several factors are of vital importance for an asset manager's ability to grow – notably above benchmark investment results and innovative client-focused investment solutions and products. In addition, appropriate responses to clients' needs as well as efficient operations and a sufficient business volume are important.
We are confident about staying on course towards profitable growth during the rest of 2015. Currently, we see no need to adjust our published Allianz Group operating profit outlook for 2015 of € 10.4 BN, plus or minus € 0.4 BN – but we expect it to be at the upper end of the target range at € 10.8 BN. However, unfavorable developments in the business environment can have adverse impacts on aspects of our performance. It would therefore be inappropriate to simply annualize the current half year's operating profit and net income to arrive at an expected result for the full year.
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 results of our operations.
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 statements.
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/U.S. 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.
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.
Compared to year-end, shareholders' equity decreased by € 60 mn to € 60,687 mn as of 30 June 2015. Mainly as a result of the higher interest rates in the second quarter, the fair value of debt securities decreased and led to € 2,470 mn lower unrealized gains in shareholders' equity. Realizations on both debt securities and equities also contributed to this development. In addition, shareholders' equity was lowered by the € 3,112 mn dividend payout in May 2015. However, these effects were largely offset by our net income attributable to shareholders of € 3,839 mn and the € 1,092 mn increase in foreign currency translation adjustments that resulted from the depreciation of the Euro against various currencies – in particular the U.S. Dollar, but also the Swiss Franc – over the first half of 2015.
The Allianz Group is a financial conglomerate within the scope of the E.U. Financial Conglomerates Directive and the related German law in force since 2005. The law requires that financial conglomerates calculate the capital available to meet their solvency requirements on a consolidated basis, which we refer to as "eligible capital".
Conglomerate solvency ratio Eligible capital Requirement
1 Off-balance sheet reserves are accepted by the authorities as eligible capital only upon request. Allianz SE has not submitted an application so far. Excluding off-balance sheet reserves, the conglomerate solvency ratio would be 184% as of 30 June 2015 (31 March 2015: 182%; 31 December 2014: 172%).
Compared to 31 December 2014, our conglomerate solvency ratio strengthened from 181% to 192%. The Group's eligible capital for solvency purposes went up by € 5.8 bn to € 55.7 bn, including off-balance sheet reserves of € 2.4 bn (31 December 2014: € 2.3 bn). This increase was mainly driven by our net income (net of accrued dividends) of € 1.9 bn and the issuance of a new subordinated bond (€ 1.5 bn). To a lesser extent, favorable foreign currency translation adjustments also contributed to this. The required funds were up by € 1.4 bn to € 29.0 bn, mainly because of higher aggregate policy reserves in the Life/Health business segment, but also due to the strong nominal growth in our Property-Casualty business segment. As a result, our eligible capital surpassed the minimum legally stipulated level by € 26.7 bn.
1 Off-balance sheet reserves are accepted by the authorities as eligible capital only upon request. Allianz SE has not submitted an application so far. Excluding off-balance sheet reserves, the conglomerate solvency ratios as of 30 June 2015 and 31 December 2014 would be 184% and 172%, respectively.
2 This does not include non-controlling interests of € 2,824 mn, € 3,103 mn and € 2,955 mn as of 30 June 2015, 31 March 2015 and 31 December 2014, respectively. For further information, please refer to note 20 to the condensed consolidated interim financial statements. Retained earnings include foreign currency translation adjustments of € (885) mn, € (219) mn and € (1,977) mn as of 30 June 2015, 31 March 2015 and 31 December 2014, respectively.
5 Executive Summary
38 Balance Sheet Review 45 Reconciliations
As of 30 June 2015, total assets amounted to € 841.6 bn and total liabilities were € 778.1 bn. Compared to year-end 2014, total assets and total liabilities increased by € 35.9 bn and € 36.1 bn, respectively.
The following section mainly focuses on our financial investments in debt instruments, equities, real estate and cash, since these reflect the major developments in our asset base.
The following portfolio overview covers the Allianz Group assets held for investment, which are mainly driven by our insurance businesses.
Compared to year-end 2014, our investment portfolio grew by € 17.0 bn to € 631.6 bn as of 30 June 2015, with no relative change in our overall asset allocation despite some major realizations.
Our direct gross exposure to equities amounted to € 46.5 bn – up by € 5.3 bn – as fair value increases resulting from the very positive market developments in the first quarter of 2015 more than offset realizations. The overall upswing in equity markets over the first six months of 2015 was accompanied by an increased hedged portion of this grown direct gross exposure against share price declines. Against the background of a virtually unchanged shareholders' equity these effects almost offset each other leading to a one percentage point downtick in equity gearing1, which amounted to 23%.
Our direct exposure to real estate increased by € 0.5 bn to € 11.8 bn mainly due to new investments.
Our cash and other investments decreased by € 1.0 bn to € 11.2 bn.
Our exposure to debt instruments increased by € 12.3 bn to € 562.0 bn. Positive foreign currency effects, new investments and reinvested interest flows more than offset fair value declines triggered by higher interest rates in the second quarter of 2015. This exposure still represented 89% of our investment portfolio.
The allocation of our well-diversified fixed income portfolio remained rather stable, with a modest increase in the share of corporate bonds accompanied by a minor reduction in the portion of covered bonds. About 94% of this portfolio of debt instruments was invested in investment-grade bonds and loans.2
Over the first half year, our government bond exposure was up by € 6.4 bn to € 215.7 bn and still accounted for 38% of our fixed income portfolio. The fair value increases seen in the first quarter largely disappeared over the second quarter as a result of the increase in interest rates. The slight increase in absolute terms was mainly driven by new investments and positive foreign currency effects. The allocation of our government and government-related direct bond exposure showed marginal changes in the portfolio weightings, all of which were below two percentage points. The portfolio shares of Italian, French and German government bonds decreased marginally, while the share of government bonds from Spain and the United States increased marginally. Our sovereign debt exposure in Italy and Spain equaled 5.1% and 1.6% of our fixed income portfolio, respectively. The corresponding unrealized gains (gross) amounted to € 3,916 mn in Italy and to € 212 mn in Spain. Our government bond exposure in Portugal remained limited, with small unrealized gains. We continued to have virtually no exposure to Greek or Ukrainian government bonds. The respective exposure to Russia was relatively small in the context of our overall portfolio and the greatest part of this exposure was denominated in U.S. Dollar.
1 Equity gearing is defined as the ratio of our equity holdings allocated to the shareholder after policyholder participation and hedges to shareholders' equity plus off-balance sheet reserves less goodwill.
2 Excluding self-originated German private retail mortgage loans. For 2%, no ratings were available.
Our covered bond exposure decreased by € 5.7 bn to € 102.0 bn, representing 18% (31 December 2014: 20%) of our fixed income portfolio. This decrease was mainly due to matured bonds which have not been reinvested within this asset class. It was also driven by lower fair values resulting from the increase in interest rates. 43% (31 December 2014: 44%) of this portfolio was German Pfandbriefe, backed by either public sector loans or mortgage loans. Almost unchanged, another 17 %, 9 % and 7 % of the covered bonds were attributable to France, Spain and Italy, respectively. Covered bonds provide a cushion against real estate price deterioration and payment defaults through minimum required security buffers and overcollateralization.
The value of our corporate bonds increased by € 9.8 bn to € 154.9 bn and in relative terms one percentage point to 28%. This was primarily driven by positive currency effects as well as new investments. The slight regional shift from Eurozone corporate bonds to North-American ones, as reported for 2014, continued in the first half year of 2015. This was again mainly driven by value increases in U.S. Dollar-denominated exposures due to the respective exchange rate movement and new investments.
Our exposure to bank securities – including exposure to subordinated securities in banks – remained almost unchanged at € 32.8 bn (31 December 2014: € 32.4 bn) and still represented 6 % of our fixed income portfolio. The exposure to subordinated securities in banks decreased from € 5.3 bn to € 4.9 bn.
Our exposure to asset-backed securities (ABS) remained almost unchanged at € 23.2 bn (31 December 2014: € 22.9 bn). This exposure still accounted for 4% of our fixed income portfolio. About 71% of our ABS portfolio was related to mortgage backed securities (MBS). MBS issued by U.S. agencies, which are backed by the U.S. government, accounted for 16% of the ABS portfolio. Overall, 97% of the ABS portfolio received an investment grade rating, with 87% rated "AA" or better.
| € mn | ||||
|---|---|---|---|---|
| three months ended 30 June |
six months ended 30 June |
|||
| 2015 | 2014 | 2015 | 2014 | |
| Operating investment result | ||||
| Interest and similar income (net)1 | 5,868 | 5,436 | 11,169 | 10,478 |
| Operating income from financial assets and liabilities carried at fair value through income (net) |
(1,330) | (22) | (647) | (272) |
| Operating realized gains/losses (net) | 1,670 | 783 | 4,189 | 1,563 |
| Operating impairments of investments (net) |
(113) | (50) | (202) | (347) |
| Investment expenses | (265) | (232) | (502) | (431) |
| Subtotal | 5,830 | 5,914 | 14,007 | 10,991 |
| Non-operating investment result | ||||
| Non-operating income from financial assets and liabilities carried at fair value through income (net) |
13 | (31) | (112) | (101) |
| Non-operating realized gains/losses (net) |
424 | 243 | 742 | 369 |
| Non-operating impairments of investments (net) |
(43) | (24) | (63) | (89) |
| Subtotal | 393 | 188 | 568 | 179 |
| Total investment income (net) | 6,224 | 6,102 | 14,574 | 11,170 |
1 Net of interest expenses (excluding interest expenses from external debt).
Our total investment income (net) increased by € 122 mn to € 6,224 mn as a significant decrease in the operating income from financial assets and liabilities carried at fair value through income (net) was more than offset by increases in realized gains and interest and similar income (net)1.
Our total investment income (net) increased by € 3,404 mn to € 14,574 mn. This increase was mainly related to first quarter developments. In total, operating and non-operating realized gains contributed most to this growth. In addition, the total investment income (net) benefited from higher interest and similar income (net)1.
Our operating investment income (net) declined by € 84 mn – or 1.4% – to € 5,830 mn. This was the net effect of a decrease in operating income from financial assets and liabilities carried at fair value
1 Net of interest expenses (excluding interest expenses from external debt).
5 Executive Summary
through income (net) and an increase in realized gains and, to a lesser extent, in interest and similar income (net)1.
Operating income from financial assets and liabilities carried at fair value through income (net) fell by € 1,308 mn to a loss of € 1,330 mn. This was mainly due to losses from the net of foreign currency translation effects and financial derivatives that are used to protect against equity and foreign currency fluctuations as well as to manage duration and other interest rate-related exposures. To a large extent, the deterioration was related to the increase in interest rates and only to a lesser extent to the appreciation of the Euro against the U.S. Dollar and several emerging market currencies.
Operating realized gains and losses (net) more than doubled to € 1,670 mn. This was due to higher realizations on both debt securities and equities to manage duration and the overall asset allocation.
Interest and similar income (net)1 increased by € 432 mn to € 5,868 mn. This increase was almost equally driven by higher interest income from debt securities, as a result of favorable currency effects and supported by a higher asset base, as well as by increased dividend income.
Our operating impairments of investments (net) increased from a low level of € 50 mn to € 113 mn. These impairments were largely related to equities.
Investment expenses were up by € 32 mn to € 265 mn. This was mainly due to higher management fees resulting from increased asset values.
Our operating investment income (net) went up by € 3,015 mn to € 14,007 mn. Of this increase, € 2,626 mn was attributable to higher operating realized gains while the remainder was driven by increased interest and similar income (net)1 and lower operating impairments of investments (net). These effects were only partly offset by a worsening in operating income from financial assets and liabilities carried at fair value through income (net) for the reasons described above.
Our non-operating investment income (net) more than doubled from € 188 mn to € 393 mn, primarily as a result of higher non-operating realized gains, mainly on equities.
Our non-operating investment income (net) grew by € 389 mn to € 568 mn, mainly because of higher non-operating realized gains.
Compared to year-end, the Property-Casualty asset base increased by € 2.1 bn to € 111.3 bn. This was largely driven by higher debt securities and to a lesser extent by equities. It was partly offset by slight decreases in cash and cash pool assets as well as loans and advances.
Composition of asset base – fair values1
| € bn | ||
|---|---|---|
| as of | as of | |
| 30 June | 31 December | |
| 2015 | 2014 | |
| Financial assets and liabilities carried at fair value through income |
||
| Equities | 0.4 | 0.4 |
| Debt securities | 0.1 | 0.1 |
| Other2 | – | – |
| Subtotal | 0.5 | 0.5 |
| Investments3 | ||
| Equities | 7.0 | 6.3 |
| Debt securities | 75.5 | 72.4 |
| Cash and cash pool assets4 | 4.6 | 5.6 |
| Other | 9.8 | 9.5 |
| Subtotal | 96.9 | 93.8 |
| Loans and advances to banks and customers | 14.0 | 15.0 |
| Property-Casualty asset base | 111.3 | 109.2 |
1 Loans and advances to banks and customers, held-to-maturity investments and real estate held for investment are stated at amortized cost. Investments in associates and joint ventures are stated at either amortized cost or equity, depending on – among other factors – our ownership percentage.
2 This comprises assets of € 0.1 bn and € 0.1 bn and liabilities of € (0.1) bn and € (0.1) bn as of 30 June 2015 and 31 December 2014, respectively.
3 These do not include affiliates of € 9.0 bn and € 8.9 bn as of 30 June 2015 and 31 December 2014, respectively.
4 Including cash and cash equivalents, as stated in our business segment balance sheet of € 3.3 bn and € 3.7 bn and receivables from cash pooling amounting to € 3.0 bn and € 4.2 bn, net of liabilities from securities lending and derivatives of € (0.1) bn and € (0.1) bn, as well as liabilities from cash pooling of € (1.7) bn and € (2.1) bn as of 30 June 2015 and 31 December 2014, respectively.
ABS within the Property-Casualty business segment asset base decreased by € 0.3 bn to € 3.7 bn as of 30 June 2015 and represented 3.3% (31 December 2014: 3.7%) of the business segment's asset base.
1 Net of interest expenses (excluding interest expenses from external debt).
| € bn | |||
|---|---|---|---|
| Gross | Ceded | Net | |
| As of 1 January 2015 | 58.9 | (6.6) | 52.3 |
| Balance carry forward of discounted loss reserves2 |
3.6 | (0.3) | 3.3 |
| Subtotal | 62.5 | (6.9) | 55.6 |
| Loss and loss adjustment expenses paid in current year relating to previous years |
(9.3) | 0.8 | (8.5) |
| Loss and loss adjustment expenses incurred in previous years |
(0.9) | 0.2 | (0.8) |
| Foreign currency translation adjustments and other changes |
2.1 | (0.6) | 1.5 |
| Changes in reserves for loss and loss adjustment expenses in current year |
11.1 | (1.1) | 9.9 |
| Subtotal | 65.4 | (7.6) | 57.8 |
| Ending balance of discounted loss reserves2 |
(3.8) | 0.3 | (3.5) |
| As of 30 June 2015 | 61.6 | (7.3) | 54.3 |
1 For further information about changes in the reserves for loss and loss adjustment expenses for the Property-Casualty business segment, please refer to note 15 to the condensed consolidated interim financial statements.
2 Although discounted loss reserves have been reclassified to "Reserves for insurance and investment contracts" in the balance sheet in 2013, the underlying business development of these Property-Casualty reserves is still considered in the loss and loss adjustment expenses and in the loss ratio and is therefore included in the development of the reserves above.
As of 30 June 2015, the business segment's gross reserves for loss and loss adjustment expenses and discounted loss reserves amounted to € 65.4 bn – an increase of € 2.9 bn compared to year-end 2014. On a net basis, our reserves – including discounted loss reserves – increased from € 55.6 bn to € 57.8 bn. Foreign currency translation effects and other changes amounted to € 1.5 bn on a net basis.
The Life/Health business segment asset base increased by € 23.1 bn to € 588.5 bn. This was largely driven by an increased volume of debt securities and financial assets for unit-linked contracts and was also supported by higher equities. Lower cash and cash pool assets only marginally offset those developments.
| € bn | ||
|---|---|---|
| as of | as of | |
| 30 June | 31 December | |
| 2015 | 2014 | |
| Financial assets and liabilities carried at fair value through income |
||
| Equities | 2.5 | 1.8 |
| Debt securities | 2.5 | 2.0 |
| Other1 | (6.9) | (6.8) |
| Subtotal | (1.9) | (3.0) |
| Investments2 | ||
| Equities | 36.8 | 32.2 |
| Debt securities | 340.0 | 331.8 |
| Cash and cash pool assets3 | 6.0 | 8.0 |
| Other | 10.5 | 10.4 |
| Subtotal | 393.4 | 382.4 |
| Loans and advances to banks and customers | 92.1 | 91.4 |
| Financial assets for unit-linked contracts4 | 104.9 | 94.6 |
| Life/Health asset base | 588.5 | 565.4 |
1 This comprises assets of € 1.4 bn and € 1.4 bn and liabilities (including the market value liability option) of € (8.3) bn and € (8.2) bn as of 30 June 2015 and 31 December 2014, respectively.
2 These do not include affiliates of € 0.2 bn and € 0.2 bn as of 30 June 2015 and 31 December 2014, respectively.
3 Including cash and cash equivalents, as stated in our business segment balance sheet, of € 6.4 bn and € 7.6 bn and receivables from cash pooling amounting to € 2.1 bn and € 3.1 bn, net of liabilities from securities lending and derivatives of € (2.1) bn and € (2.6) bn, as well as liabilities from cash pooling of € (0.3) bn and € (0.0) bn as of 30 June 2015 and 31 December 2014, respectively.
4 Financial assets for unit-linked contracts represent assets owned by, and managed on behalf of, policyholders of the Allianz Group, with all appreciation and depreciation in these assets accruing to the benefit of policyholders. As a result, the value of financial assets for unit-linked contracts in our balance sheet corresponds to the value of financial liabilities for unit-linked contracts. The International Financial Reporting Standards (IFRS) require the classification of any contract written by an insurance company either as an insurance contract or as an investment contract, depending on whether an insurance component is included. This requirement also applies to unit-linked products. In contrast to unit-linked investment contracts, unit-linked insurance contracts include coverage for significant mortality or morbidity risk.
ABS within the Life/Health business segment asset base was up by € 0.6 bn to € 17.4 bn and represented an unchanged 3.0% of the business segment's asset base.
| € Bn | |||
|---|---|---|---|
| Unit-linked insurance contracts |
Unit-linked investment contracts |
Total | |
| As of 1 January 2015 | 62.7 | 31.9 | 94.6 |
| Net premium inflows (outflows) | 1.7 | 3.7 | 5.4 |
| Changes in fund value | 2.3 | 1.0 | 3.3 |
| Foreign currency translation adjustments |
3.0 | – | 3.0 |
| Other changes | (1.5) | 0.2 | (1.3) |
| As of 30 June 2015 | 68.1 | 36.8 | 104.9 |
1 Financial assets for unit-linked contracts represent assets owned by, and managed on behalf of, policyholders of the Allianz Group, with all appreciation and depreciation in these assets accruing to the benefit of policyholders. As a result, the value of financial assets for unit-linked contracts in our balance sheet corresponds to the value of financial liabilities for unit-linked contracts. The International Financial Reporting Standards (IFRS) require the classification of any contract written by an insurance company either as an insurance contract or as an investment contract, depending on whether an insurance component is included. This requirement also applies to unit-linked products. In contrast to unit-linked investment contracts, unit-linked insurance contracts include coverage for significant mortality or morbidity risk.
38 Balance Sheet Review 45 Reconciliations
Financial assets for unit-linked contracts increased by € 10.4 bn – or 11.0 % – to € 104.9 bn. Unit-linked insurance contracts increased by € 5.4 bn to € 68.1 bn due to good fund performance (€ 2.3 bn) and premium inflows exceeding outflows by € 1.7 bn. This was partly offset by transfers to the general account in France (€ (0.6) bn). Unit-linked investment contracts were up by € 4.9 bn to € 36.8 bn, with premium inflows significantly exceeding outflows (net € 3.7 bn). Currency effects were driven by the stronger U.S. Dollar (€ 2.2 bn) and Asian currencies (€ 0.7 bn).1
Life/Health reserves for insurance and investment contracts increased by € 15.4 bn – or 3.4% – to € 464.6 bn in the first six months of 2015. The € 10.3 bn increase in aggregate policy reserves was mainly driven by our operations in Germany (€ 5.1 bn), the United States (€ 3.1 bn before currency effects) and Switzerland (€ 0.7 bn before currency effects). Reserves for premium refund decreased by € 3.9 bn as higher interest rates led to lower unrealized gains to be shared with policyholders. Currency impacts resulted from the stronger U.S. Dollar (€ 5.8 bn), Swiss Franc (€ 1.9 bn) and Asian currencies (€ 1.1 bn).1
The Asset Management business segment's results are derived primarily from asset management for third-party investors and the Allianz Group's insurance operations.2 In this section, we refer only to the business segment's own assets.
The business segment's asset base decreased from € 2.6 bn to € 2.4 bn, mainly due to lower cash and cash pool assets – the main component of the business segment's asset base.
Liabilities in our Asset Management business segment increased by € 0.6 bn to € 3.0 bn.
The Corporate and Other asset base increased by € 3.0 bn to € 47.7 bn. A slight decrease in loans and advances to banks and customers was more than offset by an increase in debt securities and a lower negative synthetic cash position.
Composition of asset base – fair values
| € bn | ||
|---|---|---|
| as of | as of | |
| 30 June | 31 December | |
| 2015 | 2014 | |
| Financial assets and liabilities carried at fair value through income |
||
| Equities | 0.1 | 0.1 |
| Debt securities | 0.2 | 0.2 |
| Other1 | (0.5) | (0.5) |
| Subtotal | (0.2) | (0.1) |
| Investments2 | ||
| Equities | 2.7 | 2.7 |
| Debt securities | 30.6 | 28.4 |
| Cash and cash pool assets3 | (2.2) | (4.1) |
| Other | 0.3 | 0.3 |
| Subtotal | 31.4 | 27.3 |
| Loans and advances to banks and customers | 16.5 | 17.5 |
| Corporate and Other asset base | 47.7 | 44.7 |
1 This comprises assets of € 0.1 bn and € 0.2 bn and liabilities of € (0.7) bn and € (0.6) bn as of 30 June 2015 and 31 December 2014, respectively.
2 These do not include affiliates of € 76.4 bn and € 77.2 bn as of 30 June 2015 and 31 December 2014, respectively.
3 Including cash and cash equivalents, as stated in our business segment balance sheet, of € 1.4 bn and € 2.0 bn and receivables from cash pooling amounting to € 1.6 bn and € 1.7 bn, net of liabilities from securities lending and derivatives of € (0.1) bn and € (0.0) bn, as well as liabilities from cash pooling of € (5.2) bn and € (7.9) bn as of 30 June 2015 and 31 December 2014, respectively.
ABS remained almost unchanged at € 2.1 bn (31 December 2014: € 2.0 bn) and represented 4.3% of the segment's asset base, a downtick of 0.2 percentage points compared to year-end 2014.
In comparison to year-end 2014, other liabilities decreased by € 3.9 bn to € 24.1 bn, resulting from lower liabilities from cash pooling and other provisions mainly related to pension obligations. Subordinated liabilities increased by € 0.2 bn to € 12.2 bn. This was mainly related to the net effect of the issuance and redemptions of subordinated bonds.3 Certificated liabilities dipped by € 0.2 bn to € 12.0 bn.4
1 Based on the closing rates on the respective balance sheet dates.
2 For further information on the development of these assets, please refer to the Asset Management chapter.
3 This net effect also includes the redemption of a subordinated bond of € 400 mn issued by Allianz France S.A., which was and is not listed separately in the bonds table shown on the next page.
4 For further information on Allianz SE debt as of 30 June 2015, please refer to notes 18 and 19 to the condensed consolidated interim financial statements.
| 1. Senior bonds2 | ||
|---|---|---|
| 4.0% bond issued by Allianz Finance II B.V., Amsterdam | ||
| Volume | € 1.5 BN | |
| Year of issue | 2006 | |
| Maturity date | 11/23/2016 | |
| ISIN | XS 027 588 026 7 | |
| Interest expenses | € 31 mn | |
| 1.375% bond issued by Allianz Finance II B.V., Amsterdam | ||
| Volume | € 0.5 bn | |
| Year of issue | 2013 | |
| Maturity date | 3/13/2018 | |
| ISIN | DE 000 A1H G1J 8 | |
| Interest expenses | € 4 mn | |
| 4.75% bond issued by Allianz Finance II B.V., Amsterdam | ||
| Volume | € 1.5 BN | |
| Year of issue | 2009 | |
| Maturity date | 7/22/2019 | |
| ISIN | DE 000 A1A KHB 8 |
|
| Interest expenses | € 36 mn | |
| 3.5% bond issued by Allianz Finance II B.V., Amsterdam | ||
| Volume | € 1.5 BN | |
| Year of issue | 2012 | |
| Maturity date | 2/14/2022 | |
| ISIN | DE 000 A1G 0RU 9 | |
| Interest expenses | € 27 mn | |
| 3.0% bond issued by Allianz Finance II B.V., Amsterdam | ||
| Volume | € 0.75 bn | |
| Year of issue | 2013 | |
| Maturity date | 3/13/2028 | |
| ISIN | DE 000 A1H G1K 6 | |
| Interest expenses | € 12 mn | |
| 4.5% bond issued by Allianz Finance II B.V., Amsterdam | ||
| Volume | GBP 0.75 bn |
|
| Year of issue | 2013 | |
| Maturity date | 3/13/2043 | |
| ISIN | DE 000 A1H G1L 4 | |
| Interest expenses | € 27 mn | |
| Total interest expenses for senior bonds | € 136 mn | |
| 2. Subordinated bonds3 | ||
| 5.75% bond issued by Allianz Finance II B.V., Amsterdam | ||
| Volume | € 2.0 BN | |
| Year of issue | 2011 | |
| Maturity date | 7/8/2041 | |
| ISIN | DE 000 A1G NAH 1 |
|
| Interest expenses | € 58 mn | |
| 5.625% bond issued by Allianz SE | ||
| Volume | € 1.5 bn | |
| Year of issue | 2012 | |
| Maturity date | 10/17/2042 | |
| ISIN | DE 000 A1R E1Q 3 | |
| Interest expenses | € 43 mn | |
1 For further information on Allianz SE debt (issued or guaranteed) as of 30 June 2015, please refer to notes 18 and 19 to the condensed consolidated interim financial statements.
2 Senior bonds provide for early termination rights in case of non-payment of amounts due under the bond (interest and principal) as well as in case of insolvency.
| 2.241% bond issued by Allianz SE | ||
|---|---|---|
| Volume | € 1.5 BN | |
| Year of issue | 2015 | |
| Maturity date | 7/7/2045 | |
| ISIN | DE 000 A14 J9N 8 | |
| Interest expenses | € 8 mn | |
| 4.375% bond issued by Allianz Finance II B.V., Amsterdam | ||
| Volume | € 1.4 BN | |
| Year of issue | 2005 | |
| Maturity date | Perpetual Bond | |
| ISIN | XS 021 163 783 9 | |
| Interest expenses | € 31 mn | |
| 5.375% bond issued by Allianz Finance II B.V., Amsterdam | ||
| Volume | € 0.8 BN | |
| Year of issue | 2006 | |
| Maturity date | Perpetual Bond | |
| ISIN | DE 000 A0G NPZ 3 |
|
| Interest expenses | € 21 mn | |
| 5.5% bond issued by Allianz SE | ||
| Volume | USD 1.0 BN | |
| Year of issue | 2012 | |
| Maturity date | Perpetual Bond | |
| ISIN | XS 085 787 250 0 | |
| Interest expenses | € 27 mn | |
| 4.75% bond issued by Allianz SE | ||
| Volume | € 1.5 BN | |
| Year of issue | 2013 | |
| Maturity date | Perpetual Bond | |
| ISIN | DE 000 A1Y CQ2 9 | |
| Interest expenses | € 36 mn | |
| 3.25% bond issued by Allianz SE | ||
| Volume | CHF 0.5 bn | |
| Year of issue | 2014 | |
| Maturity date | perpetual bond | |
| ISIN | CH 023 483 337 1 | |
| Interest expenses | € 9 mn | |
| 3.375% bond issued by Allianz SE | ||
| Volume | € 1.5 bn | |
| Year of issue | 2014 | |
| Maturity date | Perpetual Bond | |
| ISIN | DE 000 A13 R7Z 7 | |
| Interest expenses | € 26 mn | |
| Total interest expenses for subordinated bonds | € 258 mn | |
| 3. Issues redeemed in 2015 | ||
| 6.5% bond issued by Allianz Finance II B.V., Amsterdam | ||
| Volume | € 1.0 BN | |
| Year of issue | 2002 | |
| Maturity date | 1/13/2025 | |
| ISIN | XS 015 952 750 5 | |
| Interest expenses | € 2 mn | |
| Sum of interest expenses1 | € 397 mn | |
| Interest expenses from external debt not presented in the table |
€ 29 mn | |
| Total interest expenses from external debt | € 425 mn | |
3 The terms of the subordinated bonds do not explicitly provide for early termination rights in favor of the bondholder. Interest payments are subject to certain conditions which are linked, inter alia, to our net income, and may have to be deferred. Nevertheless, the terms of the relevant bonds provide for alternative settlement mechanisms which allow us to avoid an interest deferral using cash raised from the issuance of specific newly issued instruments.
38 Balance Sheet Review 45 Reconciliations
Reconciliations
The previous analysis is based on our condensed consolidated interim financial statements and should be read in conjunction with them. In addition to our stated figures according to the International Financial Reporting Standards (IFRS), the Allianz Group uses operating profit and internal growth to enhance the understanding of our results. These additional measures should be viewed as complementary to, rather than a substitute for, our figures determined according to IFRS.
For further information, please refer to note 4 to the condensed consolidated interim financial statements.
Total revenues comprise statutory gross premiums written in Property-Casualty and Life/Health, operating revenues in Asset Management, and total revenues in Corporate and Other (Banking).
Composition of total revenues
| € mn | ||||
|---|---|---|---|---|
| three months ended 30 June | six months ended 30 June | |||
| 2015 | 2014 | 2015 | 2014 | |
| Property-Casualty | ||||
| Gross premiums written | 11,843 | 10,846 | 29,182 | 26,063 |
| Life/Health | ||||
| Statutory premiums | 16,719 | 16,961 | 35,540 | 34,124 |
| Asset Management | ||||
| Operating revenues | 1,548 | 1,607 | 3,121 | 3,124 |
| consisting of: | ||||
| Net fee and commission income | 1,559 | 1,601 | 3,126 | 3,117 |
| Net interest income1 | (2) | (1) | (3) | (1) |
| Income from financial assets and liabilities carried at fair value through income (net) | (9) | 5 | (4) | 3 |
| Other income | 1 | 2 | 2 | 4 |
| Corporate and Other | ||||
| thereof: Total revenues (Banking) | 131 | 132 | 270 | 270 |
| consisting of: | ||||
| Interest and similar income | 136 | 148 | 275 | 298 |
| Income from financial assets and liabilities carried at fair value through income (net)2 | 3 | 3 | 9 | 6 |
| Fee and commission income | 141 | 125 | 280 | 241 |
| Interest expenses, excluding interest expenses from external debt | (54) | (64) | (112) | (131) |
| Fee and commission expenses | (97) | (81) | (182) | (146) |
| Consolidation effects within Corporate and Other | 2 | – | 2 | 2 |
| Consolidation | (72) | (89) | (175) | (161) |
| Allianz Group total revenues | 30,170 | 29,457 | 67,939 | 63,420 |
1 Represents interest and similar income less interest expenses.
2 Includes trading income.
We believe that an understanding of our total revenue performance is enhanced when the effects of foreign currency translation as well as acquisitions, disposals and transfers (or "changes in scope of consolidation") are analyzed separately. Accordingly, in addition to presenting nominal total revenue growth, we also present internal growth, which excludes these effects.
| % | three months ended 30 June 2015 | six months ended 30 June 2015 | ||||||
|---|---|---|---|---|---|---|---|---|
| Internal growth | Changes in scope of consolidation |
Foreign currency translation |
Nominal growth |
Internal growth | Changes in scope of consolidation |
Foreign currency translation |
Nominal growth |
|
| Property-Casualty | 1.6 | 2.3 | 5.3 | 9.2 | 2.8 | 4.3 | 4.9 | 12.0 |
| Life/Health | (6.0) | (0.8) | 5.3 | (1.4) | (0.5) | (0.8) | 5.5 | 4.2 |
| Asset Management | (17.7) | – | 14.1 | (3.6) | (14.3) | – | 14.2 | (0.1) |
| Corporate and Other | – | (0.8) | – | (0.8) | 0.7 | (0.7) | – | – |
| Allianz Group | (3.8) | 0.4 | 5.8 | 2.4 | 0.2 | 1.3 | 5.7 | 7.1 |
The reconciling item scope comprises the effects from out-of-scope entities in the profit sources reporting compilation. Operating profit from operating entities that are not in-scope entities is included in the investment margin. Currently, 20 entities comprising 97.0 % of Life/Health total statutory premiums are in scope.
Expenses comprise acquisition expenses and commissions as well as administrative and other expenses.
The delta shown as definitions in acquisition expenses and commissions represents commission clawbacks, which are allocated to the technical margin. The delta shown as definitions in administrative and other expenses mainly represents restructuring charges, which are stated in a separate line item in the group income statement.
| € mn | |||||
|---|---|---|---|---|---|
| three months ended 30 June |
six months ended 30 June |
||||
| 2015 | 2014 | 2015 | 2014 | ||
| Acquisition expenses and commissions1 |
(1,185) | (1,238) | (2,434) | (2,389) | |
| Definitions | 8 | 7 | 15 | 15 | |
| Scope | (122) | (101) | (205) | (172) | |
| Acquisition costs incurred2 | (1,299) | (1,331) | (2,624) | (2,547) | |
| Administrative and other expenses1 | (439) | (419) | (849) | (789) | |
| Definitions | (37) | (22) | (65) | (53) | |
| Scope | 39 | 14 | 60 | 45 | |
| Administrative expenses on reinsurance business ceded |
1 | 4 | 3 | 6 | |
| Administrative and other expenses (net)2, 3 |
(436) | (424) | (851) | (791) |
1 As per Interim Group Management Report.
2 As per notes to the condensed consolidated interim financial statements.
3 Excluding one-off effect from pension revaluation. For further details, please refer to note 4 to the condensed consolidated interim financial statements.
5 Executive Summary
29 Asset Management
38 Balance Sheet Review 45 Reconciliations
Impact of change in DAC includes effects of change in DAC, unearned revenue reserves (URR) and value of business acquired (VOBA) and is the net impact of the deferral and amortization of acquisition costs and front-end loadings on operating profit.
URR capitalized: Capitalization amount of unearned revenue reserves (URR) and deferred profit liabilities (DPL) for FAS 97 LP.
URR amortized: Total amount of URR amortized includes scheduled URR amortization, true-up and unlocking.
Both capitalization and amortization is included in the line item premiums earned (net) in the group income statement.
Policyholder participation is included within change in reserves for insurance and investment contracts (net) in the group income statement.
€ mn
| three months ended 30 June |
six months ended 30 June |
||||
|---|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | ||
| Capitalization of DAC1 | 440 | 558 | 897 | 1,004 | |
| Definition: URR capitalized |
158 | 125 | 314 | 245 | |
| Definition: policyholder participation2 | 169 | 184 | 426 | 427 | |
| Scope | 58 | 46 | 93 | 72 | |
| Capitalization of DAC3 | 825 | 914 | 1,730 | 1,748 | |
| Amortization, unlocking and true-up of DAC1 |
(503) | (395) | (941) | (652) | |
| Definition: URR amortized |
(74) | (39) | (206) | (55) | |
| Definition: policyholder participation2 | (209) | (168) | (520) | (399) | |
| Scope | (30) | (25) | (62) | (51) | |
| Amortization, unlocking and true-up of DAC3 |
(816) | (628) | (1,728) | (1,157) |
1 As per Interim Group Management Report.
2 For German Speaking Countries, policyholder participation on revaluation of DAC/URR capitalization/ amortization.
3 As per notes to the condensed consolidated interim financial statements.
| € mn | three months ended 30 June |
six months ended 30 June |
||
|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | |
| Acquisition expenses and commissions1 |
(1,185) | (1,238) | (2,434) | (2,389) |
| Administrative and other expenses1 | (439) | (419) | (849) | (789) |
| Capitalization of DAC1 | 440 | 558 | 897 | 1,004 |
| Amortization, unlocking and true-up of DAC1 |
(503) | (395) | (941) | (652) |
| Acquisition and administrative expenses |
(1,687) | (1,494) | (3,327) | (2,826) |
| Definitions | 15 | 87 | (35) | 178 |
| Scope | (55) | (66) | (114) | (106) |
| Commissions and profit received on reinsurance business ceded |
28 | 22 | 54 | 46 |
| Administrative expenses on reinsurance business ceded |
1 | 4 | 3 | 6 |
| Acquisition and administrative expenses (net)2, 3 |
(1,698) | (1,447) | (3,420) | (2,701) |
1 As per Interim Group Management Report.
2 As per notes to the condensed consolidated interim financial statements.
3 Excluding one-off effect from pension revaluation. For further details, please refer to note 4 to the condensed consolidated interim financial statements.
Pages 50 – 112
| 82 | 5 Financial assets carried at fair value through income |
|---|---|
| 82 | 6 Investments |
| 84 | 7 Loans and advances to banks and customers |
| 84 | 8 Reinsurance assets |
| 84 | 9 Deferred acquisition costs |
| 84 | 10 Other assets |
| 85 | 11 Non-current assets and disposal groups classified as held for sale |
| 85 | 12 Intangible assets |
| 86 | 13 Financial liabilities carried at fair value through income |
| 86 | 14 Liabilities to banks and customers |
| 87 | 15 Reserves for loss and loss adjustment expenses |
| 88 | 16 Reserves for insurance and investment contracts |
| 88 | 17 Other liabilities |
| B | Condensed Consolidated Interim Financial Statements | |||
|---|---|---|---|---|
| 51 Consolidated Balance Sheets | 53 Consolidated Statements of | 54 Consolidated Statements of Changes | 55 Consolidated Statements of Cash Flows | |
| 52 Consolidated Income Statements | Comprehensive Income | in Equity | 57 Notes |
€ mn
| note | as of 30 June 2015 |
as of 31 December 2014 |
|
|---|---|---|---|
| ASSETS | |||
| Cash and cash equivalents | 12,259 | 13,863 | |
| Financial assets carried at fair value through income | 5 | 7,121 | 5,875 |
| Investments | 6 | 505,930 | 486,445 |
| Loans and advances to banks and customers | 7 | 115,796 | 117,075 |
| Financial assets for unit-linked contracts | 104,944 | 94,564 | |
| Reinsurance assets | 8 | 15,695 | 13,587 |
| Deferred acquisition costs | 9 | 24,455 | 22,262 |
| Deferred tax assets | 1,184 | 1,046 | |
| Other assets | 10 | 39,831 | 37,080 |
| Non-current assets and assets of disposal groups classified as held for sale | 11 | 165 | 235 |
| Intangible assets | 12 | 14,266 | 13,755 |
| Total assets | 841,648 | 805,787 |
| 8,496 | ||
|---|---|---|
| 23,015 19,800 |
||
| 68,989 | ||
| 463,334 | ||
| 94,564 | ||
| 4,932 | ||
| 38,609 | ||
| 11 | – | 102 |
| 18 | 8,777 | 8,207 |
| 19 | 12,208 | 12,037 |
| 778,137 | 742,085 | |
| 60,747 | ||
| 2,955 | ||
| 20 | 63,511 | 63,702 |
| 841,648 | 805,787 | |
| 13 14 15 16 17 |
8,633 25,373 24,281 72,101 478,874 104,944 4,199 38,747 60,687 2,824 |
| € mn | three months ended 30 June | six months ended 30 June | ||||
|---|---|---|---|---|---|---|
| note | 2015 | 2014 | 2015 | 2014 | ||
| Gross premiums written | 17,849 | 17,096 | 42,124 | 38,908 | ||
| Ceded premiums written | (1,893) | (1,130) | (3,504) | (2,492) | ||
| Change in unearned premiums | 1,307 | 734 | (3,086) | (3,030) | ||
| Premiums earned (net) | 21 | 17,263 | 16,700 | 35,535 | 33,386 | |
| Interest and similar income | 22 | 5,964 | 5,538 | 11,368 | 10,677 | |
| Income from financial assets and liabilities carried at fair value through income (net) | 23 | (1,317) | (53) | (758) | (373) | |
| Realized gains/losses (net) | 24 | 2,094 | 1,026 | 4,931 | 1,932 | |
| Fee and commission income | 25 | 2,673 | 2,537 | 5,317 | 4,945 | |
| Other income | 26 | 279 | 46 | 356 | 123 | |
| Income from fully consolidated private equity investments | 27 | 184 | 174 | 355 | 343 | |
| Total income | 27,139 | 25,967 | 57,103 | 51,035 | ||
| Claims and insurance benefits incurred (gross) | (13,130) | (12,962) | (26,475) | (25,294) | ||
| Claims and insurance benefits incurred (ceded) | 835 | 705 | 1,377 | 1,228 | ||
| Claims and insurance benefits incurred (net) | 28 | (12,294) | (12,257) | (25,098) | (24,066) | |
| Change in reserves for insurance and investment contracts (net) | 29 | (3,560) | (3,598) | (9,699) | (7,038) | |
| Interest expenses | 30 | (309) | (308) | (624) | (610) | |
| Loan loss provisions | 31 | (17) | (15) | (24) | (24) | |
| Impairments of investments (net) | 32 | (156) | (74) | (265) | (436) | |
| Investment expenses | 33 | (265) | (232) | (502) | (431) | |
| Acquisition and administrative expenses (net) | 34 | (6,283) | (5,703) | (12,579) | (11,034) | |
| Fee and commission expenses | 35 | (949) | (830) | (1,890) | (1,613) | |
| Amortization of intangible assets | (45) | (24) | (77) | (49) | ||
| Restructuring charges | (61) | 9 | (151) | 9 | ||
| Other expenses | 36 | (32) | (26) | (60) | (56) | |
| Expenses from fully consolidated private equity investments | 27 | (190) | (174) | (359) | (348) | |
| Total expenses | (24,160) | (23,235) | (51,330) | (45,695) | ||
| Income before income taxes | 2,979 | 2,733 | 5,773 | 5,339 | ||
| Income taxes | 37 | (867) | (875) | (1,725) | (1,741) | |
| Net income | 2,112 | 1,858 | 4,048 | 3,598 | ||
| Net income attributable to: | ||||||
| Non-controlling interests | 94 | 103 | 209 | 203 | ||
| Shareholders | 2,018 | 1,755 | 3,839 | 3,395 | ||
| Basic earnings per share (€) | 39 | 4.44 | 3.87 | 8.45 | 7.48 | |
| Diluted earnings per share (€) | 39 | 4.38 | 3.84 | 8.45 | 7.41 | |
51 Consolidated Balance Sheets 52 Consolidated Income Statements 53 Consolidated Statements of Comprehensive Income
54 Consolidated Statements of Changes in Equity
55 Consolidated Statements of Cash Flows 57 Notes
| € mn | three months ended 30 June | six months ended 30 June | |||
|---|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | ||
| Net income | 2,112 | 1,858 | 4,048 | 3,598 | |
| Other comprehensive income | |||||
| Items that may be reclassified to profit or loss in future periods | |||||
| Foreign currency translation adjustments | |||||
| Reclassifications to net income | – | – | – | – | |
| Changes arising during the period | (707) | 231 | 1,146 | 248 | |
| Subtotal | (707) | 231 | 1,146 | 248 | |
| Available-for-sale investments | |||||
| Reclassifications to net income | (448) | (177) | (955) | (272) | |
| Changes arising during the period | (6,110) | 2,375 | (1,405) | 4,688 | |
| Subtotal | (6,557) | 2,197 | (2,360) | 4,416 | |
| Cash flow hedges | |||||
| Reclassifications to net income | (2) | 15 | (3) | 13 | |
| Changes arising during the period | (228) | 30 | (137) | 35 | |
| Subtotal | (230) | 45 | (140) | 48 | |
| Share of other comprehensive income of associates and joint ventures | |||||
| Reclassifications to net income | 7 | – | 7 | – | |
| Changes arising during the period | (39) | (8) | 89 | 1 | |
| Subtotal | (33) | (8) | 96 | 1 | |
| Miscellaneous | |||||
| Reclassifications to net income | – | – | – | – | |
| Changes arising during the period | 5 | 12 | 5 | (16) | |
| Subtotal | 5 | 12 | 5 | (17) | |
| Items that may never be reclassified to profit or loss | |||||
| Actuarial gains and losses on defined benefit plans | 661 | (334) | 277 | (691) | |
| Total other comprehensive income | (6,861) | 2,143 | (977) | 4,007 | |
| Total comprehensive income | (4,749) | 4,002 | 3,071 | 7,605 |
| Total comprehensive income attributable to: | ||||
|---|---|---|---|---|
| Non-controlling interests | 65 | 136 | 241 | 278 |
| Shareholders | (4,814) | 3,865 | 2,830 | 7,327 |
For further details concerning income taxes relating to components of the other comprehensive income, please see note 37.
| € mn | |||||||
|---|---|---|---|---|---|---|---|
| Paid-in capital | Retained earnings |
Foreign currency translation adjustments |
Unrealized gains and losses (net) |
Shareholders' equity |
Non controlling interests |
Total equity | |
| Balance as of 1 January 2014 | 28,869 | 17,786 | (3,313) | 6,742 | 50,083 | 2,765 | 52,849 |
| Total comprehensive income1 | – | 2,693 | 234 | 4,399 | 7,327 | 278 | 7,605 |
| Paid-in capital | – | – | – | – | – | – | – |
| Treasury shares | – | 4 | – | – | 4 | – | 4 |
| Transactions between equity holders | – | (32) | 1 | – | (31) | (5) | (36) |
| Dividends paid | – | (2,405) | – | – | (2,405) | (205) | (2,610) |
| Balance as of 30 June 2014 | 28,869 | 18,046 | (3,078) | 11,141 | 54,979 | 2,833 | 57,812 |
| Balance as of 1 January 2015 | 28,928 | 19,878 | (1,977) | 13,917 | 60,747 | 2,955 | 63,702 |
| Total comprehensive income1 | – | 4,205 | 1,095 | (2,470) | 2,830 | 241 | 3,071 |
| Paid-in capital | – | – | – | – | – | – | – |
| Treasury shares | – | 6 | – | – | 6 | – | 6 |
| Transactions between equity holders | – | 219 | (3) | – | 216 | (190) | 26 |
| Dividends paid | – | (3,112) | – | – | (3,112) | (183) | (3,295) |
| Balance as of 30 June 2015 | 28,928 | 21,196 | (885) | 11,447 | 60,687 | 2,824 | 63,511 |
1 Total comprehensive income in shareholders' equity for the six months ended 30 June 2015 comprises net income attributable to shareholders of € 3,839 mn (2014: € 3,395 mn).
51 Consolidated Balance Sheets
52 Consolidated Income Statements
53 Consolidated Statements of Comprehensive Income
| € mn six months ended 30 June |
2015 | 2014 |
|---|---|---|
| Summary | ||
| Net cash flow provided by operating activities | 13,908 | 19,210 |
| Net cash flow used in investing activities | (13,006) | (13,339) |
| Net cash flow used in financing activities | (3,045) | (4,420) |
| Effect of exchange rate changes on cash and cash equivalents | 541 | 44 |
| Change in cash and cash equivalents | (1,604) | 1,497 |
| Cash and cash equivalents at beginning of period | 13,863 | 11,207 |
| Cash and cash equivalents at end of period | 12,259 | 12,704 |
| Cash flow from operating activities | ||
| Net income | 4,048 | 3,598 |
| Adjustments to reconcile net income to net cash flow provided by operating activities | ||
| Share of earnings from investments in associates and joint ventures | (162) | (94) |
| Realized gains/losses (net) and impairments of investments (net) of: | ||
| Available-for-sale and held-to-maturity investments, investments in associates and joint ventures, real estate held for investment, loans and advances to banks and customers, non-current assets and disposal groups classified as held for sale |
(4,666) | (1,496) |
| Other investments, mainly financial assets held for trading and designated at fair value through income | 2,471 | 185 |
| Depreciation and amortization | 684 | 579 |
| Loan loss provisions | 24 | 24 |
| Interest credited to policyholder accounts | 3,026 | 2,061 |
| Net change in: | ||
| Financial assets and liabilities held for trading | (2,813) | 984 |
| Reverse repurchase agreements and collateral paid for securities borrowing transactions | (542) | 475 |
| Repurchase agreements and collateral received from securities lending transactions | 2,016 | 284 |
| Reinsurance assets | (1,495) | (601) |
| Deferred acquisition costs | (264) | (980) |
| Unearned premiums | 4,015 | 3,351 |
| Reserves for loss and loss adjustment expenses | 1,563 | 721 |
| Reserves for insurance and investment contracts | 10,262 | 11,986 |
| Deferred tax assets/liabilities | 380 | 56 |
| Other (net) | (4,640) | (1,923) |
| Subtotal | 9,859 | 15,612 |
| Net cash flow provided by operating activities | 13,908 | 19,210 |
| € mn six months ended 30 June |
2015 | 2014 |
|---|---|---|
| Cash flow from investing activities Proceeds from the sale, maturity or repayment of: |
||
| Financial assets designated at fair value through income | 701 | 415 |
| Available-for-sale investments | 85,219 | 65,247 |
| Held-to-maturity investments | 1,539 | 379 |
| Investments in associates and joint ventures | 868 | 257 |
| Non-current assets and disposal groups classified as held for sale | 128 | 16 |
| Real estate held for investment | 160 | 210 |
| Loans and advances to banks and customers (purchased loans) | 6,195 | 5,602 |
| Property and equipment | 58 | 76 |
| Subtotal | 94,868 | 72,203 |
| Payments for the purchase or origination of: | ||
| Financial assets designated at fair value through income | (1,251) | (587) |
| Available-for-sale investments | (99,556) | (80,041) |
| Held-to-maturity investments | (1,378) | (218) |
| Investments in associates and joint ventures | (839) | (333) |
| Non-current assets and disposal groups classified as held for sale | (2) | (21) |
| Real estate held for investment | (495) | (365) |
| Loans and advances to banks and customers (purchased loans) | (2,611) | (2,297) |
| Property and equipment | (1,050) | (628) |
| Subtotal | (107,181) | (84,491) |
| Business combinations (note 3)1: | ||
| Proceeds from sale of subsidiaries, net of cash disposed | – | – |
| Acquisitions of subsidiaries, net of cash acquired | – | – |
| Change in other loans and advances to banks and customers (originated loans) | (317) | (952) |
| Other (net) | (376) | (99) |
| Net cash flow used in investing activities | (13,006) | (13,339) |
| Cash flow from financing activities | ||
| Net change in liabilities to banks and customers | (202) | (696) |
| Proceeds from the issuance of certificated liabilities and subordinated liabilities | 3,181 | 1,387 |
| Repayments of certificated liabilities and subordinated liabilities | (2,652) | (2,463) |
| Cash inflow from capital increases | – | – |
| Transactions between equity holders | 26 | (36) |
| Dividends paid to shareholders | (3,295) | (2,610) |
| Net cash from sale or purchase of treasury shares | 8 | 5 |
| Other (net) | (111) | (7) |
| Net cash flow used in financing activities | (3,045) | (4,420) |
| Supplementary information on the consolidated statements of cash flows | ||
| Income taxes paid | (1,345) | (1,312) |
| Dividends received | 1,095 | 891 |
| Interest received | 10,392 | 10,068 |
| Interest paid | (559) | (622) |
1 The consideration for the Property-Casualty business of the Territory Insurance Office (TIO) in Darwin has already been paid in 2014 and was therefore already included in the consolidated statement of cash flows for the year ended 31 December 2014. As a consequence, the cash flow for the six months ended 30 June 2015 included in the line "Acquisition of subsidiaries, net of cash acquired" is not reconcilable with note 3.
51 Consolidated Balance Sheets 52 Consolidated Income Statements 53 Consolidated Statements of
Comprehensive Income
54 Consolidated Statements of Changes in Equity
55 Consolidated Statements of Cash Flows 57 Notes
The condensed consolidated interim financial statements of the Allianz Group – comprising the consolidated balance sheets, consolidated income statements, consolidated statements of comprehensive income, consolidated statements of changes in equity, consolidated statements of cash flows and selected explanatory notes – are presented in accordance with the requirements of IAS 34, Interim Financial Reporting, and have been prepared in conformity with International Financial Reporting Standards (IFRSs), as adopted under European Union (E.U.) regulations in accordance with §315a of the German Commercial Code (HGB). IFRSs comprise the International Financial Reporting Standards (IFRSs), the International Accounting Standards (IASs) and the interpretations developed by the IFRS Interpretations Committee (formerly called the IFRIC) or the former Standing Interpretations Committee (SIC).
Within these condensed consolidated interim financial statements, the Allianz Group has applied all IFRSs issued by the IASB that are endorsed by the E.U. and are compulsory as of 1 January 2015. For further information, please see note 2.
For existing and unchanged IFRSs, the accounting policies for recognition, measurement, consolidation and presentation applied in the preparation of the condensed consolidated interim financial statements are consistent with the accounting policies that have been applied in the preparation of the consolidated financial statements for the year ended 31 December 2014. These condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements included in the Allianz Group Annual Report 2014.
IFRSs do not provide specific guidance concerning all aspects of the recognition and measurement of insurance contracts, reinsurance contracts and investment contracts with discretionary participation features. Therefore, as envisioned in IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors, to those aspects where specific guidance is not provided by IFRS 4, Insurance Contracts, the provisions embodied under accounting principles generally accepted in the United States of America (US GAAP) as at first-time adoption of IFRS 4 on 1 January 2005 have been applied.
The condensed consolidated interim financial statements are presented in millions of Euros (€ mn), 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. Previously published figures have been adjusted accordingly.
These condensed consolidated interim financial statements of the Allianz Group were authorized for issue by the Board of Management on 6 August 2015.
effective 1 January 2015
The following interpretation as well as the amendments to and revisions of existing standards became effective for the Allianz Group's consolidated financial statements as of 1 January 2015:
These changes had no material impact on the financial results or financial position of the Allianz Group.
Effective 1 January 2015, the Allianz Group acquired the Property-Casualty insurance business of the Territory Insurance Office (TIO business), Darwin, and entered into a 10-year agreement to manage the compulsory motor accidents compensation scheme (MAC contract). The acquired TIO business includes, inter alia, all relevant insurance assets and liabilities, operations, employees and the brand name related to the TIO business.
The acquired TIO business represents insurance activities with premiums equal to approximately € 88 mn (for the year 2014). As a result of the acquisition, the Allianz Group expects to increase its presence in the Australian market. It also expects to reduce costs through economies of scale and through synergies in the reinsurance area.
The final consideration paid in cash amounts to € 150 mn.
The following table summarizes the recognized amounts of assets acquired and liabilities assumed in the context of the TIO business and the MAC contract:
| € mn | |
|---|---|
| Fair value | |
| Cash and cash equivalents | 11 |
| Financial assets carried at fair value through income | 79 |
| Investments | 50 |
| Loans and advances to banks and customers | 2 |
| Reinsurance assets | 32 |
| Deferred tax assets | 2 |
| Other assets | 72 |
| Intangible assets | 37 |
| Total assets | 285 |
| Unearned premiums | (45) |
| Reserves for loss and loss adjustment expenses | (107) |
| Deferred tax liabilities | (18) |
| Other liabilities | (13) |
| Total liabilities | (183) |
| Total net identifiable assets | 102 |
Intangible assets mainly consist of the fair values of the MAC contract, the TIO brand name, the customer relationships related to the acquired insurance portfolio and the present value of the transferred in-force business.
The fair values of other assets, intangible assets, deferred taxes and goodwill are provisional as the receipt of the final valuations for those assets is still pending.
The acquired TIO business comprises a preliminary goodwill which was determined as follows as of 1 January 2015:
| € mn | Fair value |
|---|---|
| Consideration transferred | 150 |
| Total net identifiable assets | 102 |
| Goodwill | 48 |
The goodwill of € 48 mn of the business combination largely reflects the benefits associated with cost and reinsurance synergies as well as the ability to revert to an existing infrastructure in a new geographical market.
None of this goodwill is expected to be deductible for income tax purposes.
In administrative expenses, acquisition-related costs in the amount of € 1 mn were included in fiscal year 2014 and in the amount of € 3 mn in fiscal year 2015.
The impact of the acquired Property-Casualty insurance business of the Territory Insurance Office on the Allianz Group's total revenues and net income since the acquisition was € 46 mn and € (2) mn, respectively.
Comprehensive Income
54 Consolidated Statements of Changes in Equity
The business activities of the Allianz Group are first organized by product and type of service: insurance activities, asset management activities and corporate and other activities. Due to differences in the nature of products, risks and capital allocation, insurance activities are further divided into the business segments Property-Casualty and Life/Health. In accordance with the responsibilities of the Board of Management, each of the insurance business segments is grouped into the following reportable segments:
Asset management activities represent a separate reportable segment. Due to differences in the nature of products, risks and capital allocation, corporate and other activities are divided into three reportable segments: Holding&Treasury, Banking and Alternative Investments. In total, the Allianz Group has identified 16 reportable segments in accordance with IFRS 8, Operating Segments.
The types of products and services from which the reportable segments derive revenues are described below.
In the business segment Property-Casualty, reportable segments offer a wide variety of insurance products to both private and corporate customers, including motor liability and own damage, accident, general liability, fire and property, legal expense, credit and travel insurance.
In the business segment Life/Health, reportable segments offer a comprehensive range of life and health insurance products on both an individual and a group basis, including annuities, endowment and term insurance, unit-linked and investment-oriented products, as well as full private health, supplemental health and long-term care insurance.
The reportable segment Asset Management operates as a global provider of institutional and retail asset management products and services to third-party investors and provides investment management services to the Allianz Group's insurance operations. The products for retail and institutional customers include equity and fixedincome funds as well as alternative products. The United States and Germany as well as France, Italy and the Asia-Pacific region represent the primary asset management markets.
The reportable segment Holding&Treasury includes the management and support of the Allianz Group's businesses through its strategy, risk, corporate finance, treasury, financial reporting, controlling, communication, legal, human resources, technology and other functions. The reportable segment Banking consists of the banking activities in Germany, France, Italy, the Netherlands and Bulgaria. The banks offer a wide range of products for corporate and retail clients, with a primary focus on the latter. The reportable segment Alternative Investments provides global alternative investment management services in the private equity, real estate, renewable energy and infrastructure sectors, mainly on behalf of the Allianz Group's insurance operations. The reportable segment Alternative Investments also includes a fully consolidated private equity investment. The income and expenses of this investment are included in the nonoperating result.
Prices for transactions between reportable segments are set on an arm's length basis in a manner similar to transactions with third parties. Transactions between reportable segments are eliminated in the Consolidation. For the reportable segment Asset Management, interest revenues are reported net of interest expenses. Financial information is recorded based on reportable segments. Cross-segmental country-specific information is not determined.
The Allianz Group uses operating profit to evaluate the performance of its reportable segments as well as of the Allianz Group as a whole. Operating profit highlights the portion of income before income taxes that is attributable to the ongoing core operations of the Allianz Group. The Allianz Group considers the presentation of operating profit to be useful and meaningful to investors because it enhances the understanding of the Allianz Group's underlying operating performance and the comparability of its operating performance over time.
To better understand the ongoing operations of the business, the Allianz Group generally excludes the following non-operating effects:
The following exceptions apply to this general rule:
Operating profit should be viewed as complementary to, and not as a substitute for, income before income taxes or net income as determined in accordance with IFRS.
Effective 1 January 2015, the Allianz Group reorganized the structure of its insurance activities to reflect the changes in the responsibilities of the Board of Management. The property-casualty insurance operations of the former reportable segment USA have been allocated to the reportable segment Global Insurance Lines&Anglo Markets. Furthermore, Australia has been reallocated from the reportable segment Global Insurance Lines&Anglo Markets to the reportable segment Growth Markets. Previously reported information has been adjusted to reflect this change in the composition of the Allianz Group's reportable segments. Additionally, some minor reallocations between the reportable segments have been made.
Consolidated Balance Sheets Consolidated Income Statements Consolidated Statements of Comprehensive Income Consolidated Statements of Changes in Equity Consolidated Statements of Cash Flows Notes
| € mn | |||||
|---|---|---|---|---|---|
| Property-Casualty | Life/Health | Asset Management Corporate and Other Consolidation |
|||
| as of 30 June 2015 |
as of 31 December 2014 |
as of 30 June 2015 |
as of 31 December 2014 |
as of as of as of as of as of as of 30 June 31 December 30 June 31 December 30 June 31 December 2015 2014 2015 2014 2015 2014 |
|
| ASSETS | |||||
| Cash and cash equivalents | 3,333 | 3,668 | 6,388 | 7,555 | 1,662 1,449 1,436 2,028 (559) (838) |
| Financial assets carried at fair value through income | 568 | 601 | 6,431 | 5,238 | 39 46 516 511 (433) (521) |
| Investments | 101,262 | 97,129 | 387,507 | 374,589 | 238 106 110,030 108,669 (93,107) (94,048) |
| Loans and advances to banks and customers | 13,965 | 14,963 | 92,069 | 91,411 | 101 72 16,522 17,547 (6,861) (6,917) |
| Financial assets for unit-linked contracts | – | – | 104,944 | 94,564 | – – – – – – |
| Reinsurance assets | 10,048 | 8,466 | 5,716 | 5,176 | – – – – (68) (55) |
| Deferred acquisition costs | 4,962 | 4,595 | 19,493 | 17,667 | – – – – – – |
| Deferred tax assets | 1,163 | 1,013 | 347 | 240 | 362 177 1,381 1,782 (2,068) (2,167) |
| Other assets | 23,894 | 23,494 | 17,895 | 18,723 | 2,463 2,951 8,080 8,595 (12,500) (16,684) |
| Non-current assets and assets of disposal groups classified as held for sale | 165 | 61 | – | 92 | – – – 83 – – |
| Intangible assets | 2,810 | 2,722 | 3,219 | 3,063 | 7,566 7,286 672 685 – – |
| Total assets | 162,169 | 156,710 | 644,008 | 618,318 | 12,431 12,087 138,636 139,900 (115,596) (121,229) |
€ mn Property-Casualty Life/Health Asset Management Corporate and Other Consolidation Group as of 30 June 2015 as of 31 December 2014 as of 30 June 2015 as of 31 December 2014 LIABILITIES AND EQUITY Financial liabilities carried at fair value through income 84 129 8,283 8,240 – – 697 648 (431) (521) 8,633 8,496 Liabilities to banks and customers 970 878 4,134 4,273 174 174 23,571 20,749 (3,476) (3,057) 25,373 23,015 Unearned premiums 20,833 16,595 3,471 3,222 – – – – (23) (17) 24,281 19,800 Reserves for loss and loss adjustment expenses 61,584 58,925 10,542 10,081 – – – – (25) (18) 72,101 68,989 Reserves for insurance and investment contracts 14,458 14,276 464,620 449,263 – – – – (203) (205) 478,874 463,334 Financial liabilities for unit-linked contracts – – 104,944 94,564 – – – – – – 104,944 94,564 Deferred tax liabilities 2,403 2,681 3,672 4,226 6 2 185 189 (2,068) (2,167) 4,199 4,932 Other liabilities 17,687 19,445 14,605 13,739 2,838 2,231 24,113 28,028 (20,496) (24,834) 38,747 38,609 Liabilities of disposal groups classified as held for sale – – – – – – – 102 – – – 102 Certificated liabilities 13 38 13 13 – – 12,047 12,231 (3,296) (4,075) 8,777 8,207 Subordinated liabilities – – 95 95 – – 12,163 11,992 (50) (50) 12,208 12,037 Total liabilities 118,032 112,969 614,380 587,714 3,018 2,407 72,777 73,938 (30,070) (34,943) 778,137 742,085
| B | Condensed Consolidated Interim Financial Statements | |||
|---|---|---|---|---|
| 51 Consolidated Balance Sheets | 53 Consolidated Statements of | 54 Consolidated Statements of Changes | 55 Consolidated Statements of Cash Flows | |
| 52 Consolidated Income Statements | Comprehensive Income | in Equity | 57 Notes |
| Asset Management | Corporate and Other | Consolidation | Group | |||||
|---|---|---|---|---|---|---|---|---|
| as of 30 June 2015 |
as of 31 December 2014 |
as of 30 June 2015 |
as of 31 December 2014 |
as of 30 June 2015 |
as of 31 December 2014 |
as of 30 June 2015 |
as of 31 December 2014 |
|
| 1,662 | 1,449 | 1,436 | 2,028 | (559) | (838) | 12,259 | 13,863 | |
| 39 | 46 | 516 | 511 | (433) | (521) | 7,121 | 5,875 | |
| 238 | 106 | 110,030 | 108,669 | (93,107) | (94,048) | 505,930 | 486,445 | |
| 101 | 72 | 16,522 | 17,547 | (6,861) | (6,917) | 115,796 | 117,075 | |
| – | – | – | – | – | – | 104,944 | 94,564 | |
| – | – | – | – | (68) | (55) | 15,695 | 13,587 | |
| – | – | – | – | – | – | 24,455 | 22,262 | |
| 362 | 177 | 1,381 | 1,782 | (2,068) | (2,167) | 1,184 | 1,046 | |
| 2,463 | 2,951 | 8,080 | 8,595 | (12,500) | (16,684) | 39,831 | 37,080 | |
| – | – | – | 83 | – | – | 165 | ||
| 7,566 | 7,286 | 672 | 685 | – | – | 14,266 | 13,755 | |
| 12,431 | 12,087 | 138,636 | 139,900 | (115,596) | (121,229) | 841,648 | 805,787 | |
| Group | Consolidation | Corporate and Other | Asset Management | ||||
|---|---|---|---|---|---|---|---|
| 31 December | as of 30 June 2015 |
as of 31 December 2014 |
as of 30 June 2015 |
as of 31 December 2014 |
as of 30 June 2015 |
as of 31 December 2014 |
as of 30 June 2015 |
| 8,633 | (521) | (431) | 648 | 697 | – | – | |
| 25,373 | (3,057) | (3,476) | 20,749 | 23,571 | 174 | 174 | |
| 24,281 | (17) | (23) | – | – | – | – | |
| 72,101 | (18) | (25) | – | – | – | – | |
| 478,874 | (205) | (203) | – | – | – | – | |
| 104,944 | – | – | – | – | – | – | |
| 4,199 | (2,167) | (2,068) | 189 | 185 | 2 | 6 | |
| 38,747 | (24,834) | (20,496) | 28,028 | 24,113 | 2,231 | 2,838 | |
| – | – | – | 102 | – | – | – | |
| 8,777 | (4,075) | (3,296) | 12,231 | 12,047 | – | – | |
| 12,208 | (50) | (50) | 11,992 | 12,163 | – | – | |
| 778,137 | (34,943) | (30,070) | 73,938 | 72,777 | 2,407 | 3,018 | |
| 63,511 | Total equity | ||||||
| 841,648 | Total liabilities and equity |
| € mn | ||||
|---|---|---|---|---|
| Property-Casualty | Life/Health | |||
| three months ended 30 June | 2015 | 2014 | 2015 | 2014 |
| Total revenues1 | 11,843 | 10,846 | 16,719 | 16,961 |
| Premiums earned (net) | 11,553 | 10,701 | 5,710 | 5,999 |
| Operating investment result | ||||
| Interest and similar income | 983 | 939 | 4,846 | 4,472 |
| Operating income from financial assets and liabilities carried at fair value | ||||
| through income (net) | (29) | 1 | (1,272) | (37) |
| Operating realized gains/losses (net) | 58 | 29 | 1,606 | 754 |
| Interest expenses, excluding interest expenses from external debt | (21) | (17) | (25) | (24) |
| Operating impairments of investments (net) | (5) | (1) | (108) | (49) |
| Investment expenses | (87) | (74) | (245) | (232) |
| Subtotal | 899 | 877 | 4,802 | 4,884 |
| Fee and commission income | 358 | 302 | 332 | 261 |
| Other income | 237 | 11 | 42 | 33 |
| Claims and insurance benefits incurred (net) | (7,592) | (7,086) | (4,703) | (5,173) |
| Change in reserves for insurance and investment contracts (net)2 | (118) | (135) | (3,433) | (3,457) |
| Loan loss provisions | – | – | – | – |
| Acquisition and administrative expenses (net), excluding acquisition-related expenses | (3,208) | (3,036) | (1,698) | (1,447) |
| Fee and commission expenses | (336) | (280) | (145) | (93) |
| Operating amortization of intangible assets | – | – | (5) | (5) |
| Restructuring charges | (40) | – | (20) | 8 |
| Other expenses | (7) | (8) | (29) | (26) |
| Operating profit (loss) | 1,745 | 1,345 | 853 | 985 |
| Non-operating investment result | ||||
| Non-operating income from financial assets and liabilities carried at fair value | ||||
| through income (net) | (20) | (3) | 39 | (25) |
| Non-operating realized gains/losses (net) | 207 | 114 | 64 | 90 |
| Non-operating impairments of investments (net) | (39) | (20) | (3) | (3) |
| Subtotal | 147 | 91 | 100 | 63 |
| Income from fully consolidated private equity investments (net) | – | – | – | – |
| Interest expenses from external debt | – | – | – | – |
| Acquisition-related expenses | – | – | – | – |
| Non-operating amortization of intangible assets | (17) | (6) | (19) | (8) |
| Non-operating items | 130 | 85 | 81 | 54 |
| Income (loss) before income taxes | 1,876 | 1,430 | 935 | 1,039 |
| Income taxes | (532) | (461) | (273) | (308) |
| Net income (loss) | 1,344 | 969 | 662 | 731 |
| Net income (loss) attributable to: | ||||
| Non-controlling interests | 37 | 42 | 37 | 32 |
| Shareholders | 1,306 | 928 | 624 | 699 |
1 Total revenues comprise statutory gross premiums written in Property-Casualty and Life/Health, operating revenues in Asset Management and total revenues in Corporate and Other (Banking).
2 For the three months ended 30 June 2015, includes expenses for premium refunds (net) in Property-Casualty of € (59) mn (2014: € (72) mn).
| B | Condensed Consolidated Interim Financial Statements | |||
|---|---|---|---|---|
| 51 Consolidated Balance Sheets | 53 Consolidated Statements of | 54 Consolidated Statements of Changes | 55 Consolidated Statements of Cash Flows | |
| 52 Consolidated Income Statements | Comprehensive Income | in Equity | 57 Notes |
| Asset Management | Corporate and Other | Consolidation | Group | ||||
|---|---|---|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 |
| 1,548 | 1,607 | 131 | 132 | (72) | (89) | 30,170 | 29,457 |
| – | – | – | – | – | – | 17,263 | 16,700 |
| 1 | 2 | 219 | 230 | (85) | (105) | 5,964 | 5,538 |
| (9) | 5 | (11) | 9 | (9) | – | (1,330) | |
| – | – | – | – | 6 | – | 1,670 | |
| (3) | (3) | (111) | (149) | 65 | 91 | (96) | |
| – | – | – | – | – | – | (113) | |
| – | – | (19) | (19) | 86 | 93 | (265) | |
| (11) | 4 | 78 | 71 | 62 | 79 | 5,830 | |
| 1,975 | 1,972 | 207 | 177 | (199) | (174) | 2,673 | |
| 1 | 2 | – | – | (1) | (1) | 279 | |
| (12,257) | |||||||
| – | – | – | – | 1 | 2 | (12,294) | |
| – | – | – | – | (9) | (6) | (3,560) | |
| – | – | (17) | (15) | – | – | (17) | |
| (1,043) | (932) | (331) | (294) | (7) | 5 | (6,286) | |
| (416) | (371) | (166) | (158) | 114 | 72 | (949) | |
| – | – | – | – | – | – | (5) | |
| – | 1 | (1) | – | – | – | (61) | |
| – | – | (1) | – | 6 | 7 | (32) | |
| 505 | 676 | (230) | (219) | (32) | (16) | 2,842 | |
| – | – | (15) | (1) | 9 | (2) | 13 | |
| – | – | 152 | 38 | – | 1 | 424 | |
| – | – | (1) | (1) | – | – | (43) | |
| – | – | 136 | 36 | 10 | (1) | 393 | |
| – | – | (10) | (5) | 4 | 5 | (6) | |
| – | – | (213) | (206) | – | – | (213) | |
| 3 | – | 1 | 1 | – | – | 3 | |
| (3) | (3) | (2) | (2) | – | – | (41) | |
| – | (3) | (89) | (177) | 14 | 4 | 137 | |
| 505 | 673 | (318) | (397) | (18) | (13) | 2,979 | |
| (176) | (254) | 113 | 148 | 1 | (1) | (867) | |
| 329 | 419 | (205) | (249) | (17) | (13) | 2,112 | |
| 16 | 23 | 4 | 6 | – | – | 94 |
| € mn | |||||
|---|---|---|---|---|---|
| Property-Casualty | Life/Health | ||||
| six months ended 30 June | 2015 | 2014 | 2015 | 2014 | |
| Total revenues1 | 29,182 | 26,063 | 35,540 | 34,124 | |
| Premiums earned (net) | 23,072 | 21,111 | 12,463 | 12,275 | |
| Operating investment result | |||||
| Interest and similar income | 1,847 | 1,792 | 9,272 | 8,631 | |
| Operating income from financial assets and liabilities carried at fair value | |||||
| through income (net) | 33 | 16 | (688) | (305) | |
| Operating realized gains/losses (net) | 138 | 55 | 4,044 | 1,581 | |
| Interest expenses, excluding interest expenses from external debt | (43) | (29) | (52) | (48) | |
| Operating impairments of investments (net) | (7) | (6) | (195) | (340) | |
| Investment expenses | (162) | (144) | (472) | (427) | |
| Subtotal | 1,806 | 1,683 | 11,910 | 9,091 | |
| Fee and commission income | 715 | 608 | 679 | 490 | |
| Other income | 251 | 39 | 105 | 82 | |
| Claims and insurance benefits incurred (net) | (15,243) | (13,813) | (9,858) | (10,254) | |
| Change in reserves for insurance and investment contracts (net)2 | (291) | (260) | (9,394) | (6,771) | |
| Loan loss provisions | – | – | – | – | |
| Acquisition and administrative expenses (net), | |||||
| excluding acquisition-related expenses and one-off effects from pension revaluation | (6,456) | (5,948) | (3,420) | (2,701) | |
| Fee and commission expenses | (680) | (571) | (296) | (180) | |
| Operating amortization of intangible assets | – | – | (9) | (9) | |
| Restructuring charges | (130) | (1) | (20) | 8 | |
| Other expenses | (14) | (14) | (203) | (166) | |
| Reclassification of tax benefits | – | – | – | – | |
| Operating profit (loss) | 3,030 | 2,835 | 1,957 | 1,864 | |
| Non-operating investment result | |||||
| Non-operating income from financial assets and liabilities carried | |||||
| at fair value through income (net) | (38) | (62) | (11) | (25) | |
| Non-operating realized gains/losses (net) | 434 | 197 | 100 | 116 | |
| Non-operating impairments of investments (net) | (56) | (77) | (5) | (8) | |
| Subtotal | 340 | 58 | 84 | 82 | |
| Income from fully consolidated private equity investments (net) | – | – | – | – | |
| Interest expenses from external debt | – | – | – | – | |
| Acquisition-related expenses | – | – | – | – | |
| One-off effects from pension revaluation | (181) | (537) | (13) | (7) | |
| Non-operating amortization of intangible assets | (30) | (13) | (28) | (17) | |
| Reclassification of tax benefits | – | – | – | – | |
| Non-operating items | 130 | (491) | 43 | 58 | |
| Income (loss) before income taxes | 3,160 | 2,343 | 2,000 | 1,923 | |
| Income taxes | (894) | (729) | (599) | (562) | |
| Net income (loss) | 2,266 | 1,614 | 1,401 | 1,360 | |
| Net income (loss) attributable to: | |||||
| Non-controlling interests | 89 | 85 | 78 | 63 | |
| Shareholders | 2,177 | 1,529 | 1,323 | 1,297 |
1 Total revenues comprise statutory gross premiums written in Property-Casualty and Life/Health, operating revenues in Asset Management and total revenues in Corporate and Other (Banking).
2 For the six months ended 30 June 2015, includes expenses for premium refunds (net) in Property-Casualty of € (168) mn (2014: € (131) mn).
| B | Condensed Consolidated Interim Financial Statements | |||
|---|---|---|---|---|
| 51 Consolidated Balance Sheets | 53 Consolidated Statements of | 54 Consolidated Statements of Changes | 55 Consolidated Statements of Cash Flows | |
| 52 Consolidated Income Statements | Comprehensive Income | in Equity | 57 Notes |
| Life/Health Asset Management |
Corporate and Other | Consolidation | Group | ||||
|---|---|---|---|---|---|---|---|
| 2015 2014 2015 |
2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 |
| 34,124 3,121 |
3,124 | 270 | 270 | (175) | (161) | 67,939 | 63,420 |
| 12,275 – |
– | – | – | – | – | 35,535 | 33,386 |
| 8,631 3 |
4 | 412 | 438 | (167) | (187) | 11,368 | 10,677 |
| (305) | |||||||
| (4) – |
3 – |
– – |
11 – |
12 7 |
4 (73) |
(647) 4,189 |
(272) 1,563 |
| 1,581 (48) (6) |
(5) | (241) | (293) | 143 | 176 | (199) | (199) |
| (340) – |
– | – | – | – | – | (202) | (347) |
| (427) – |
– | (37) | (34) | 168 | 174 | (502) | (431) |
| 9,091 (7) |
2 | 134 | 121 | 163 | 94 | 14,007 | 10,991 |
| 490 3,914 |
3,833 | 407 | 344 | (398) | (330) | 5,317 | 4,945 |
| 82 2 |
4 | 148 | – | (150) | (3) | 356 | |
| (10,254) – |
– | – | – | 3 | 1 | (25,098) | (24,066) |
| (6,771) – |
– | – | – | (13) | (6) | (9,699) | (7,038) |
| – – |
– | (24) | (24) | – | – | (24) | |
| (2,701) (2,060) |
(1,805) | (652) | (590) | (1) | (112) | (12,590) | (11,156) |
| (180) (788) |
(716) | (340) | (293) | 214 | 146 | (1,890) | |
| (9) – |
– | – | – | – | – | (9) | |
| 8 – |
3 | (1) | – | – | – | (151) | |
| – | – | (2) | – | 159 | 124 | (60) | |
| – | – | – | – | 5 | – | 5 | |
| 1,060 | 1,321 | (331) | (442) | (19) | (85) | 5,697 | |
| (25) – |
– | (55) | (8) | (8) | (6) | (112) | |
| 116 – |
(1) | 207 | 56 | 1 | 1 | 742 | |
| (8) – |
– | (1) | (4) | – | – | (63) | |
| – | (1) | 151 | 44 | (7) | (5) | 568 | |
| – | – | (7) | (11) | 3 | 6 | (4) | |
| – – |
– | (425) | (411) | – | – | (425) | |
| – 9 |
3 | 1 | 3 | – | – | 10 | |
| (7) (31) (5) |
(14) (5) |
224 (4) |
675 (4) |
– – |
– – |
– (68) |
|
| (17) – – |
– | – | – | (5) | – | (5) | |
| 58 (27) |
(17) | (62) | 294 | (9) | 1 | 76 | |
| 1,923 1,034 |
1,304 | (393) | (147) | (28) | (84) | 5,773 | |
| (562) (375) |
(479) | 138 | 30 | 6 | (1) | (1,725) | |
| 658 | 825 | (254) | (117) | (22) | (84) | 4,048 | |
| 63 32 |
45 | 10 | 10 | – | – | 209 | |
| 1,297 626 |
781 | (264) | (127) | (22) | (84) | 3,839 |
€ mn
| German Speaking Countries | Western&Southern Europe | |||
|---|---|---|---|---|
| three months ended 30 June | 2015 | 2014 | 2015 | 2014 |
| Gross premiums written | 2,166 | 2,159 | 2,734 | 2,475 |
| Ceded premiums written | (340) | (334) | (159) | (165) |
| Change in unearned premiums | 752 | 707 | 139 | 166 |
| Premiums earned (net) | 2,577 | 2,531 | 2,714 | 2,475 |
| Interest and similar income | 284 | 299 | 259 | 238 |
| Operating income from financial assets and liabilities carried at fair value through income (net) | (32) | 4 | 8 | 1 |
| Operating realized gains/losses (net) | 58 | 29 | – | – |
| Fee and commission income | 35 | 31 | – | 9 |
| Other income | 8 | 7 | 4 | 2 |
| Operating revenues | 2,932 | 2,902 | 2,985 | 2,725 |
| Claims and insurance benefits incurred (net) | (1,655) | (1,692) | (1,749) | (1,580) |
| Change in reserves for insurance and investment contracts (net) | (101) | (120) | (10) | (9) |
| Interest expenses | (2) | (1) | (3) | (4) |
| Operating impairments of investments (net) | (5) | (1) | – | – |
| Investment expenses | (29) | (22) | (28) | (25) |
| Acquisition and administrative expenses (net) | (612) | (636) | (741) | (703) |
| Fee and commission expenses | (33) | (28) | – | (9) |
| Restructuring charges | (35) | – | – | – |
| Other expenses | (6) | (5) | (2) | (1) |
| Operating expenses | (2,477) | (2,505) | (2,533) | (2,332) |
| Operating profit | 455 | 397 | 452 | 393 |
| Non-operating income from financial assets and liabilities carried at fair value through income (net) | (2) | (8) | – | 5 |
| Non-operating realized gains/losses (net) | 63 | 16 | 63 | 42 |
| Non-operating impairments of investments (net) | (14) | (5) | (19) | (10) |
| Amortization of intangible assets | (1) | (1) | (11) | (3) |
| Non-operating items | 48 | 3 | 33 | 34 |
| Income before income taxes | 502 | 400 | 485 | 427 |
| Income taxes | (140) | (108) | (157) | (165) |
| Net income | 362 | 292 | 328 | 262 |
| Net income attributable to: | ||||
| Non-controlling interests | (1) | (1) | 3 | 3 |
| Shareholders | 363 | 293 | 325 | 259 |
| Loss ratio2 in % | 64.2 | 66.8 | 64.4 | 63.8 |
| Expense ratio3 in % | 23.7 | 25.1 | 27.3 | 28.4 |
| Combined ratio4 in % | 87.9 | 92.0 | 91.7 | 92.2 |
1 In the fourth quarter of 2014, the French International Health business was reclassified from the reportable segment Western&Southern Europe (Life/Health) to the reportable segment Allianz Worldwide Partners. Previously reported information for the three months ended 30 June 2014 was not adjusted.
4 Represents the total of acquisition and administrative expenses (net) and claims and insurance benefits incurred (net) divided by premiums earned (net).
5 Presentation not meaningful.
2 Represents claims and insurance benefits incurred (net) divided by premiums earned (net).
68 Interim Report Second Quarter and First Half Year of 2015 Allianz Group
3 Represents acquisition and administrative expenses (net) divided by premiums earned (net).
| B | Condensed Consolidated Interim Financial Statements | |||
|---|---|---|---|---|
| 51 Consolidated Balance Sheets | 53 Consolidated Statements of | 54 Consolidated Statements of Changes | 55 Consolidated Statements of Cash Flows | |
| 52 Consolidated Income Statements | Comprehensive Income | in Equity | 57 Notes |
| German Speaking Countries Western&Southern Europe |
Iberia&Latin America | Global Insurance Lines& Anglo Markets |
Growth Markets | Allianz Worldwide Partners1 | Consolidation | Property-Casualty | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2014 2015 2014 |
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 |
| 2,475 | 1,142 | 1,092 | 4,540 | 3,785 | 1,485 | 1,442 | 852 | 689 | (1,075) | (795) | 11,843 | 10,846 |
| (165) | (203) | (158) | (1,719) | (780) | (288) | (275) | (25) | (19) | 1,075 | 795 | (1,660) | (936) |
| 8 | 25 | 444 | (38) | (35) | (28) | 61 | (41) | – | – | 1,369 | 791 | |
| 948 | 959 | 3,265 | 2,968 | 1,162 | 1,140 | 887 | 628 | – | – | 11,553 | 10,701 | |
| 2,475 238 |
50 | 50 | 282 | 250 | 100 | 94 | 11 | 9 | (4) | – | 983 | 939 |
| 1 | 1 | – | (4) | (1) | 1 | (1) | (3) | (2) | – | – | (29) | |
| – | – | – | – | – | – | – | – | – | – | – | 58 | 29 |
| 9 | – | – | 117 | 112 | 53 | 48 | 174 | 126 | (22) | (25) | 358 | 302 |
| 1 | – | 224 | – | – | 1 | – | – | – | – | 237 | 11 | |
| 1,000 | 1,009 | 3,884 | 3,328 | 1,315 | 1,282 | 1,069 | 762 | (26) | (25) | 13,159 | 11,983 | |
| (684) | (682) | (2,170) | (1,916) | (748) | (810) | (586) | (406) | – | – | (7,592) | (7,086) | |
| (1,580) (9) |
(1) | (1) | (4) | (4) | (2) | (2) | – | – | – | – | (118) | (135) |
| (4) | – | (1) | (17) | (9) | (1) | (1) | (1) | – | 3 | – | (21) | (17) |
| – | – | – | – | – | – | – | – | – | – | – | (5) | |
| (25) | (4) | (3) | (12) | (11) | (13) | (13) | – | – | – | – | (87) | |
| (703) | (266) | (247) | (959) | (906) | (357) | (350) | (274) | (200) | 1 | 7 | (3,208) | (3,036) |
| (9) | – | – | (110) | (100) | (39) | (34) | (176) | (127) | 22 | 18 | (336) | (280) |
| – | – | – | (5) | – | – | – | – | – | – | – | (40) | |
| – | – | – | – | – | (1) | – | – | – | – | (7) | ||
| (955) | (934) | (3,276) | (2,947) | (1,160) | (1,211) | (1,038) | (734) | 26 | 25 | (11,413) | (10,638) | |
| 44 | 75 | 608 | 382 | 155 | 71 | 31 | 28 | – | – | 1,745 | 1,345 | |
| (1) | 1 | (11) | (2) | (7) | – | (1) | 1 | – | – | (20) | ||
| 4 | 2 | 34 | 46 | 43 | 8 | – | – | – | – | 207 | ||
| (10) | – | – | (6) | (4) | – | – | – | – | – | – | (39) | |
| – | – | (2) | (1) | (4) | (2) | – | – | – | 1 | (17) | ||
| 3 | 15 | 38 | 32 | 6 | (1) | 1 | – | 1 | 130 | |||
| 3 | ||||||||||||
| (3) 34 427 |
48 | 78 | 623 | 420 | 187 | 77 | 30 | 28 | – | 1 | 1,876 | |
| (6) | (21) | (172) | (126) | (49) | (34) | (7) | (8) | – | – | (532) | 1,430 (461) |
|
| (165) 262 |
42 | 57 | 451 | 294 | 138 | 43 | 23 | 20 | – | 1 | 1,344 | |
| 2 | 2 | 24 | 31 | 8 | 6 | 2 | 2 | – | – | 37 | ||
| 40 | 55 | 427 | 264 | 130 | 37 | 21 | 19 | – | 1 | 1,306 | ||
| 3 259 63.8 |
||||||||||||
| 28.4 | 72.2 28.0 |
71.1 25.8 |
66.5 29.4 |
64.6 30.5 |
64.4 30.7 |
71.1 30.7 |
66.1 30.9 |
64.6 31.9 |
–5 –5 |
–5 –5 |
65.7 27.8 |
€ mn
| German Speaking Countries | Western&Southern Europe | |||
|---|---|---|---|---|
| six months ended 30 June | 2015 | 2014 | 2015 | 2014 |
| Gross premiums written | 7,806 | 7,543 | 6,233 | 5,639 |
| Ceded premiums written | (1,184) | (1,151) | (456) | (410) |
| Change in unearned premiums | (1,509) | (1,412) | (351) | (301) |
| Premiums earned (net) | 5,113 | 4,980 | 5,426 | 4,928 |
| Interest and similar income | 554 | 582 | 454 | 432 |
| Operating income from financial assets and liabilities carried at fair value through income (net) | 14 | 8 | 6 | 1 |
| Operating realized gains/losses (net) | 138 | 55 | – | – |
| Fee and commission income | 68 | 60 | 22 | 19 |
| Other income | 19 | 16 | 6 | 4 |
| Operating revenues | 5,906 | 5,700 | 5,913 | 5,384 |
| Claims and insurance benefits incurred (net) | (3,459) | (3,291) | (3,465) | (3,142) |
| Change in reserves for insurance and investment contracts (net) | (259) | (226) | (20) | (22) |
| Interest expenses | (8) | (4) | (8) | (8) |
| Operating impairments of investments (net) | (7) | (6) | – | – |
| Investment expenses | (51) | (45) | (51) | (47) |
| Acquisition and administrative expenses (net), excluding one-off effects from pension revaluation | (1,248) | (1,261) | (1,480) | (1,352) |
| Fee and commission expenses | (64) | (55) | (19) | (18) |
| Restructuring charges | (35) | – | – | – |
| Other expenses | (11) | (9) | (3) | (2) |
| Operating expenses | (5,142) | (4,896) | (5,047) | (4,592) |
| Operating profit | 764 | 805 | 867 | 792 |
| Non-operating income from financial assets and liabilities carried at fair value through income (net) | (42) | (33) | 24 | (18) |
| Non-operating realized gains/losses (net) | 199 | 51 | 77 | 60 |
| Non-operating impairments of investments (net) | (27) | (14) | (20) | (54) |
| One-off effects from pension revaluation | (166) | (530) | – | – |
| Amortization of intangible assets | (1) | (1) | (19) | (6) |
| Non-operating items | (37) | (526) | 61 | (18) |
| Income before income taxes | 726 | 279 | 928 | 774 |
| Income taxes | (185) | (63) | (317) | (290) |
| Net income | 542 | 216 | 612 | 484 |
| Net income attributable to: | ||||
| Non-controlling interests | (2) | (1) | 6 | 8 |
| Shareholders | 544 | 217 | 606 | 476 |
| Loss ratio2 in % | 67.7 | 66.1 | 63.9 | 63.8 |
| Expense ratio3 in % | 24.4 | 25.3 | 27.3 | 27.4 |
| Combined ratio4 in % | 92.1 | 91.4 | 91.2 | 91.2 |
1 In the fourth quarter of 2014, the French International Health business was reclassified from the reportable segment Western&Southern Europe (Life/Health) to the reportable segment Allianz Worldwide Partners. Previously reported information for the six months ended 30 June 2014 was not adjusted.
3 Represents acquisition and administrative expenses (net), excluding one-off effects from pension revaluation, divided by premiums earned (net).
2 Represents claims and insurance benefits incurred (net) divided by premiums earned (net).
4 Represents the total of acquisition and administrative expenses (net), excluding one-off effects from pension revaluation, and claims and insurance benefits incurred (net) divided by premiums earned (net). 5 Presentation not meaningful.
| B | Condensed Consolidated Interim Financial Statements | |||
|---|---|---|---|---|
| 51 Consolidated Balance Sheets | 53 Consolidated Statements of | 54 Consolidated Statements of Changes | 55 Consolidated Statements of Cash Flows | |
| 52 Consolidated Income Statements | Comprehensive Income | in Equity | 57 Notes |
| German Speaking Countries Western&Southern Europe |
Iberia&Latin America | Global Insurance Lines& Anglo Markets |
Growth Markets | Allianz Worldwide Partners1 | Consolidation | Property-Casualty | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2014 2015 2014 |
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 |
| 6,233 5,639 |
2,440 | 2,221 | 10,564 | 8,727 | 2,977 | 2,933 | 2,453 | 1,474 | (3,290) | (2,473) | 29,182 | 26,063 |
| (410) | (417) | (326) | (3,618) | (2,111) | (621) | (589) | (154) | (49) | 3,290 | 2,473 | (3,159) | (2,163) |
| (301) | (130) | (20) | (301) | (746) | (58) | (89) | (603) | (221) | – | – | (2,951) | (2,789) |
| 4,928 | 1,894 | 1,875 | 6,645 | 5,870 | 2,299 | 2,255 | 1,696 | 1,204 | – | – | 23,072 | 21,111 |
| 432 | 104 | 99 | 520 | 482 | 199 | 184 | 22 | 15 | (6) | (1) | 1,847 | 1,792 |
| 1 | 4 | 8 | 13 | – | 1 | – | (3) | (1) | – | – | 33 | 16 |
| – | – | – | – | – | – | – | – | – | – | – | 138 | |
| 19 | – | – | 229 | 223 | 98 | 100 | 346 | 242 | (48) | (36) | 715 | 608 |
| 4 | 1 | 17 | 224 | – | 1 | 3 | – | – | – | – | 251 | |
| 2,002 | 1,999 | 7,630 | 6,575 | 2,598 | 2,541 | 2,061 | 1,459 | (54) | (36) | 26,056 | 23,621 | |
| (1,363) | (1,320) | (4,283) | (3,693) | (1,551) | (1,592) | (1,121) | (775) | – | – | (15,243) | (13,813) | |
| (22) | (3) | (2) | (8) | (8) | (1) | (3) | – | – | – | – | (291) | (260) |
| (1) | (1) | (29) | (13) | (1) | (2) | (1) | – | 5 | 1 | (43) | (29) | |
| – | – | – | – | – | – | – | – | – | – | (7) | (6) | |
| (47) (1,352) |
(8) | (7) | (24) | (20) | (27) | (25) | (1) | – | – | – | (162) | (144) |
| (516) | (481) | (2,003) | (1,783) | (690) | (695) | (527) | (388) | 7 | 12 | (6,456) | (5,948) | |
| (18) – |
– | – | (213) | (199) | (78) | (76) | (346) | (247) | 41 | 24 | (680) | |
| – | – | (95) | (1) | – | – | – | – | – | – | (130) | ||
| – | (1) | – | – | – | (2) | – | – | – | – | (14) | ||
| (1,890) | (1,812) | (6,656) | (5,719) | (2,350) | (2,395) | (1,996) | (1,410) | 54 | 36 | (23,026) | (20,787) | |
| 792 | 112 | 187 | 974 | 856 | 248 | 146 | 65 | 49 | – | – | 3,030 | |
| 1 | 2 | (14) | (11) | (6) | (2) | (1) | – | – | – | (38) | ||
| 10 | 5 | 89 | 71 | 60 | 10 | – | – | – | – | 434 | ||
| (54) | – | (1) | (8) | (8) | – | (1) | – | – | – | – | (56) | |
| – | – | – | (13) | (7) | – | – | (1) | – | – | – | (181) | (537) |
| (1) | (1) | (3) | (3) | (6) | (4) | – | – | – | 2 | (30) | ||
| 10 | 6 | 51 | 42 | 47 | 3 | (3) | – | – | 2 | 130 | ||
| 122 | 193 | 1,026 | 898 | 296 | 149 | 62 | 49 | – | 2 | 3,160 | 2,343 | |
| 774 (290) |
(28) | (55) | (272) | (254) | (77) | (54) | (16) | (14) | – | – | (894) | |
| 94 | 139 | 753 | 644 | 218 | 95 | 47 | 35 | – | 2 | 2,266 | (729) 1,614 |
|
| 3 | 3 | 65 | 58 | 15 | 15 | 2 | 2 | – | – | 89 | 85 | |
| 91 | 136 | 688 | 585 | 203 | 81 | 44 | 33 | – | 2 | 2,177 | 1,529 | |
| 63.8 | 72.0 | 70.4 | 64.5 | 62.9 | 67.5 | 70.6 | 66.1 | 64.4 | –5 | –5 | 66.1 | |
| 27.4 | 27.2 | 25.6 | 30.1 | 30.4 | 30.0 | 30.8 | 31.0 | 32.2 | –5 | –5 | 28.0 | |
| 99.2 | 96.0 | 94.6 | 93.3 | 97.5 | 101.4 | 97.1 | 96.6 | –5 | –5 | 94.1 |
€ mn
| German Speaking Countries | Western&Southern Europe1 | |||
|---|---|---|---|---|
| three months ended 30 June | 2015 | 2014 | 2015 | 2014 |
| Statutory premiums2 | 5,232 | 5,624 | 6,153 | 5,955 |
| Ceded premiums written | (35) | (34) | (85) | (184) |
| Change in unearned premiums | (63) | (48) | 16 | 4 |
| Statutory premiums (net) | 5,134 | 5,542 | 6,083 | 5,776 |
| Deposits from insurance and investment contracts | (1,804) | (1,888) | (4,990) | (4,574) |
| Premiums earned (net) | 3,331 | 3,654 | 1,093 | 1,203 |
| Interest and similar income | 2,468 | 2,397 | 1,059 | 1,047 |
| Operating income from financial assets and liabilities carried at fair value through income (net) | (1,133) | 157 | (7) | (24) |
| Operating realized gains/losses (net) | 1,330 | 603 | 263 | 144 |
| Fee and commission income | 26 | 21 | 189 | 129 |
| Other income | 36 | 27 | 6 | 5 |
| Operating revenues | 6,056 | 6,859 | 2,603 | 2,505 |
| Claims and insurance benefits incurred (net) | (3,117) | (3,498) | (943) | (1,052) |
| Changes in reserves for insurance and investment contracts (net) | (2,017) | (2,329) | (681) | (594) |
| Interest expenses | (19) | (20) | (4) | (4) |
| Operating impairments of investments (net) | (93) | (36) | (12) | (12) |
| Investment expenses | (160) | (151) | (62) | (63) |
| Acquisition and administrative expenses (net) | (418) | (384) | (486) | (504) |
| Fee and commission expenses | (11) | (9) | (98) | (58) |
| Operating amortization of intangible assets | (5) | (5) | – | – |
| Restructuring charges | (20) | – | – | – |
| Other expenses | (25) | (21) | (5) | (4) |
| Operating expenses | (5,884) | (6,453) | (2,291) | (2,290) |
| Operating profit (loss) | 172 | 405 | 312 | 215 |
| Non-operating income from financial assets and liabilities carried at fair value through income (net) | – | – | (2) | – |
| Non-operating realized gains/losses (net) | – | – | 34 | 88 |
| Non-operating impairments of investments (net) | – | – | (3) | (2) |
| Non-operating amortization of intangible assets | – | – | (12) | (3) |
| Non-operating items | – | – | 17 | 84 |
| Income before income taxes | 172 | 405 | 329 | 298 |
| Income taxes | (77) | (141) | (74) | (74) |
| Net income | 95 | 264 | 255 | 224 |
| Net income attributable to: | ||||
| Non-controlling interests | – | – | 13 | 12 |
| Shareholders | 95 | 264 | 242 | 212 |
1 In the fourth quarter of 2014, the French International Health business was reclassified from the reportable segment Western&Southern Europe (Life/Health) to the reportable segment Allianz Worldwide Partners. Previously reported information for the three months ended 30 June 2014 was not adjusted.
3 Represents annualized operating profit divided by the average of the current quarter-end and previous quarter-end net reserves, where net reserves equal reserves for loss and loss adjustment expenses, reserves for insurance and investment contracts and financial liabilities for unit-linked contracts less reinsurance assets.
2 Statutory premiums are gross premiums written from sales of life and health insurance policies, as well as gross receipts from sales of unit-linked and other investment-oriented products, in accordance with the statutory accounting practices applicable in the insurer's home jurisdiction.
4 Presentation not meaningful.
| B | Condensed Consolidated Interim Financial Statements | |||
|---|---|---|---|---|
| 51 Consolidated Balance Sheets | 53 Consolidated Statements of | 54 Consolidated Statements of Changes | 55 Consolidated Statements of Cash Flows | |
| 52 Consolidated Income Statements | Comprehensive Income | in Equity | 57 Notes |
| 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 452 2,592 3,352 158 142 2,201 1,615 (111) (179) 16,719 (4) (36) (27) (68) (46) (149) (108) 111 179 (263) 4 (6) (3) 6 7 (17) (21) – – (62) 451 2,550 3,322 96 102 2,035 1,486 – – 16,394 (258) (2,264) (3,090) – – (1,336) (872) – – (10,684) 193 286 232 96 102 698 614 – – 5,710 91 953 709 15 14 275 224 (11) (10) 4,846 16 (136) (183) – – (11) (2) 6 (1) (1,272) 2 2 2 – – 4 3 – 1 1,606 35 31 28 – – 41 48 (1) – 332 – – – – – – 1 – – 42 336 1,136 788 111 116 1,007 889 (6) (11) 11,265 (157) (28) (21) (71) (78) (376) (367) – – (4,703) (51) (371) (305) 2 (1) (314) (178) – – (3,433) – (3) (2) – – (9) (8) 11 10 (25) – – – – – (2) (1) – – (108) (2) (13) (9) – – (9) (7) – – (245) (54) (416) (246) (29) (19) (298) (241) – – (1,698) (17) (7) (5) – – (4) (4) 1 – (145) – – – – – – – – – (5) – – – – – – 8 – – (20) – – – – – – (2) – – (29) (282) (839) (586) (98) (98) (1,011) (799) 12 11 (10,411) 54 297 202 13 18 (4) 90 6 – 853 – 41 (25) – – – – – – 39 – 23 – – – 7 2 – – 64 – – – – – – – – – (3) (4) – – – – (2) (2) – – (19) (4) 64 (25) – – 5 – – – 81 50 361 177 13 18 1 90 6 – 935 (15) (109) (54) (2) (4) 5 (20) – – (273) 36 252 123 11 14 5 70 6 – 662 9 – – – – 14 11 – – 37 26 252 123 11 14 (8) 60 6 – 624 |
Iberia&Latin America | USA | Global Insurance Lines& Anglo Markets |
Growth Markets | Consolidation | Life/Health | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2015 | 2014 | ||||||||||||
| 494 | 16,961 | ||||||||||||
| (2) | (225) | ||||||||||||
| 3 | (57) | ||||||||||||
| 496 | 16,679 | ||||||||||||
| (289) | (10,680) | ||||||||||||
| 207 | 5,999 | ||||||||||||
| 87 | 4,472 | ||||||||||||
| 8 | (37) | ||||||||||||
| 8 | 754 | ||||||||||||
| 47 | 261 | ||||||||||||
| – | 33 | ||||||||||||
| 357 | 11,482 | ||||||||||||
| (168) | (5,173) | ||||||||||||
| (52) | (3,457) | ||||||||||||
| – | |||||||||||||
| – | |||||||||||||
| (2) | |||||||||||||
| (52) | (1,447) | ||||||||||||
| (26) | |||||||||||||
| (5) – – – |
|||||||||||||
| – | |||||||||||||
| – | |||||||||||||
| (300) | (10,497) | ||||||||||||
| 57 | 985 | ||||||||||||
| – | (25) | ||||||||||||
| – | |||||||||||||
| – | |||||||||||||
| (4) | |||||||||||||
| (4) | |||||||||||||
| 53 | 1,039 | ||||||||||||
| (15) | (308) | ||||||||||||
| 38 | |||||||||||||
| 11 | |||||||||||||
| 27 | |||||||||||||
| 227 247 |
117 | 108 | 295 | 380 | (5) | 133 | –4 | –4 | 58 |
€ mn
| German Speaking Countries | Western&Southern Europe1 | |||
|---|---|---|---|---|
| six months ended 30 June | 2015 | 2014 | 2015 | 2014 |
| Statutory premiums2 | 12,060 | 12,480 | 13,088 | 12,082 |
| Ceded premiums written | (65) | (74) | (392) | (780) |
| Change in unearned premiums | (61) | (109) | 29 | (10) |
| Statutory premiums (net) | 11,934 | 12,297 | 12,724 | 11,292 |
| Deposits from insurance and investment contracts | (4,309) | (4,580) | (10,455) | (8,937) |
| Premiums earned (net) | 7,625 | 7,717 | 2,269 | 2,356 |
| Interest and similar income | 4,720 | 4,662 | 1,952 | 1,938 |
| Operating income from financial assets and liabilities carried at fair value through income (net) | (239) | 188 | (43) | (73) |
| Operating realized gains/losses (net) | 3,215 | 1,100 | 779 | 451 |
| Fee and commission income | 47 | 41 | 405 | 247 |
| Other income | 92 | 69 | 14 | 10 |
| Operating revenues | 15,459 | 13,775 | 5,376 | 4,928 |
| Claims and insurance benefits incurred (net) | (6,675) | (7,017) | (1,908) | (2,050) |
| Changes in reserves for insurance and investment contracts (net) | (6,355) | (4,595) | (1,569) | (1,083) |
| Interest expenses | (38) | (45) | (8) | (9) |
| Operating impairments of investments (net) | (180) | (149) | (11) | (188) |
| Investment expenses | (307) | (280) | (117) | (113) |
| Acquisition and administrative expenses (net), excluding one-off effects from pension revaluation | (970) | (769) | (969) | (924) |
| Fee and commission expenses | (21) | (19) | (208) | (111) |
| Operating amortization of intangible assets | (9) | (9) | – | – |
| Restructuring charges | (20) | – | – | – |
| Other expenses | (195) | (155) | (8) | (6) |
| Operating expenses | (14,771) | (13,038) | (4,798) | (4,484) |
| Operating profit | 688 | 737 | 577 | 444 |
| Non-operating income from financial assets and liabilities carried at fair value through income (net) | – | – | – | (5) |
| Non-operating realized gains/losses (net) | 2 | – | 55 | 113 |
| Non-operating impairments of investments (net) | – | – | (5) | (7) |
| One-off effects from pension revaluation | (13) | (7) | – | – |
| Non-operating amortization of intangible assets | – | – | (15) | (5) |
| Non-operating items | (11) | (8) | 34 | 97 |
| Income before income taxes | 677 | 730 | 611 | 540 |
| Income taxes | (249) | (249) | (157) | (132) |
| Net income | 428 | 480 | 455 | 408 |
| Net income attributable to: | ||||
| Non-controlling interests | – | – | 29 | 21 |
| Shareholders | 428 | 480 | 426 | 387 |
| Margin on reserves3 in basis points | 53 | 63 | 70 | 60 |
1 In the fourth quarter of 2014, the French International Health business was reclassified from the reportable segment Western&Southern Europe (Life/Health) to the reportable segment Allianz Worldwide Partners. Previously reported information for the six months ended 30 June 2014 was not adjusted.
3 Represents annualized operating profit divided by the average of the current quarter-end and previous year-end net reserves, where net reserves equal reserves for loss and loss adjustment expenses, reserves for insurance and investment contracts and financial liabilities for unit-linked contracts less reinsurance assets.
2 Statutory premiums are gross premiums written from sales of life and health insurance policies, as well as gross receipts from sales of unit-linked and other investment-oriented products, in accordance with the statutory accounting practices applicable in the insurer's home jurisdiction.
4 Presentation not meaningful.
| B | Condensed Consolidated Interim Financial Statements | |||
|---|---|---|---|---|
| 51 Consolidated Balance Sheets | 53 Consolidated Statements of | 54 Consolidated Statements of Changes | 55 Consolidated Statements of Cash Flows | |
| 52 Consolidated Income Statements | Comprehensive Income | in Equity | 57 Notes |
| Western&Southern Europe1 | Iberia&Latin America | USA | Global Insurance Lines& Anglo Markets 2015 2014 293 267 |
Growth Markets | Consolidation | Life/Health | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2015 2014 |
2015 2014 |
2015 | 2014 | (84) (59) |
2014 | 2015 | 2014 | 2015 | 2014 | ||
| 13,088 12,082 |
1,071 928 |
5,291 | 5,908 | 3,231 | (451) | (773) | 35,540 | 34,124 | |||
| (392) (780) |
(8) (8) |
(71) | (56) | 3 (24) |
(182) | 451 | 773 | (417) | (386) | ||
| (10) | (30) (31) |
(14) | (7) | 212 184 – – |
(60) | – | – | (135) | (240) | ||
| 1,034 889 |
5,206 | 5,846 | 212 184 29 34 (1) (5) |
2,989 | – | – | 34,989 | 33,497 | |||
| 11,292 (8,937) |
(679) (546) |
(4,638) | (5,386) | – – – – |
(1,773) | – | – | (22,526) | (21,222) | ||
| 2,356 | 355 342 |
567 | 459 | – – 241 213 (139) (153) (20) 14 (1) (1) – – – – (51) (43) – – – – |
1,216 | – | – | 12,463 | 12,275 | ||
| 177 185 |
1,876 | 1,401 | – – |
438 | (21) | (26) | 9,272 | 8,631 | |||
| 25 | 16 (412) |
(428) | (6) | (5) | (12) | 2 | (688) | (305) | |||
| 26 | 5 8 |
11 | 16 | 14 | – | 1 | 4,044 | 1,581 | |||
| 86 | 69 58 |
52 | 84 | 83 | (1) | (1) | 679 | 490 | |||
| – | – – |
– | – | 3 | – | – | 105 | 82 | |||
| 668 618 |
2,098 | 1,495 | 2,068 | 1,749 | (34) | (24) | 25,876 | 22,753 | |||
| (333) (296) |
(58) | (46) | (744) | (692) | – | – | (9,858) | (10,254) | |||
| (2,050) (1,083) |
(69) (73) |
(769) | (642) | (613) | (392) | – | – | (9,394) | (6,771) | ||
| (1) (1) |
(6) | (4) | (19) | (15) | 21 | 26 | (52) | (48) | |||
| – (1) |
(1) | – | (3) | (2) | – | – | (195) | (340) | |||
| (3) (3) |
(26) | (18) | (17) | (13) | – | – | (472) | (427) | |||
| (103) (104) |
(764) | (404) | (563) | (458) | – | – | (3,420) | (2,701) | |||
| (47) (34) |
(14) | (9) | (8) | (7) | – | 1 | (296) | (180) | |||
| – | – – |
– | – | – | – | (9) | |||||
| – | – – |
– | 8 | – | – | (20) | |||||
| – | – – |
– | – – |
– | (5) | – | – | (203) | (166) | ||
| (556) (512) |
(1,637) | (1,123) | (211) | (183) | (1,967) | (1,576) | 22 | 27 | (23,919) | (20,889) | |
| 112 106 |
461 | 372 | 30 | 29 | 101 | 173 | (12) | 3 | 1,957 | 1,864 | |
| – | – (11) |
(21) | – | – | – | – | – | – | (11) | (25) | |
| (5) 113 |
– | – 34 |
– | – | – | 9 | 3 | – | – | 100 | 116 |
| – | – – |
– | – | – | – | (1) | – | – | (5) | ||
| – | – – |
– | – | – | – | – | – | – | (13) | ||
| (8) (8) |
– | – | – | – | (5) | (3) | – | – | (28) | ||
| (8) (8) |
23 | (21) | – | – | 4 | (2) | – | – | 43 | ||
| 104 | 98 484 |
351 | 30 | 29 | 105 | 171 | (12) | 3 | 2,000 | 1,923 | |
| (28) (29) |
(146) | (108) | (6) | (7) | (13) | (37) | – | – | (599) | (562) | |
| 76 | 69 339 |
243 | 24 | 22 | 92 | 135 | (12) | 3 | 1,401 | 1,360 | |
| 20 | 18 – |
– | – | – | 29 | 23 | – | – | 78 | 63 | |
| 56 | 51 339 |
243 | 24 | 22 | 63 | 111 | (12) | 3 | 1,323 | 1,297 | |
| 232 247 |
97 | 100 | 329 | 302 | 63 | 128 | –4 | –4 | 70 | ||
| 60 |
| € mn | ||
|---|---|---|
| three months ended 30 June | 2015 | 2014 |
| Net fee and commission income1 | 1,559 | 1,601 |
| Net interest income2 | (2) | (1) |
| Income from financial assets and liabilities carried at fair value through income (net) | (9) | 5 |
| Other income | 1 | 2 |
| Operating revenues | 1,548 | 1,607 |
| Administrative expenses (net), excluding acquisition-related expenses | (1,043) | (932) |
| Restructuring charges | – | 1 |
| Operating expenses | (1,043) | (931) |
| Operating profit | 505 | 676 |
| Acquisition-related expenses | 3 | – |
| Amortization of intangible assets | (3) | (3) |
| Non-operating items | – | (3) |
| Income before income taxes | 505 | 673 |
| Income taxes | (176) | (254) |
| Net income | 329 | 419 |
| Net income attributable to: | ||
| Non-controlling interests | 16 | 23 |
| Shareholders | 314 | 396 |
| Cost-income ratio3 in % | 67.4 | 57.9 |
1 Represents fee and commission income less fee and commission expenses.
2 Represents interest and similar income less interest expenses.
3 Represents operating expenses divided by operating revenues.
| B | Condensed Consolidated Interim Financial Statements | |||
|---|---|---|---|---|
| 51 Consolidated Balance Sheets | 53 Consolidated Statements of | 54 Consolidated Statements of Changes | 55 Consolidated Statements of Cash Flows | |
| 52 Consolidated Income Statements | Comprehensive Income | in Equity | 57 Notes |
| € mn | ||
|---|---|---|
| six months ended 30 June | 2015 | 2014 |
| Net fee and commission income1 | 3,126 | 3,117 |
| Net interest income2 | (3) | (1) |
| Income from financial assets and liabilities carried at fair value through income (net) | (4) | 3 |
| Other income | 2 | 4 |
| Operating revenues | 3,121 | 3,124 |
| Administrative expenses (net), excluding acquisition-related expenses and one-off effects from pension revaluation | (2,060) | (1,805) |
| Restructuring charges | – | 3 |
| Operating expenses | (2,060) | (1,802) |
| Operating profit | 1,060 | 1,321 |
| Realized gains/losses (net) | – | (1) |
| Acquisition-related expenses | 9 | 3 |
| One-off effects from pension revaluation | (31) | (14) |
| Amortization of intangible assets | (5) | (5) |
| Non-operating items | (27) | (17) |
| Income before income taxes | 1,034 | 1,304 |
| Income taxes | (375) | (479) |
| Net income | 658 | 825 |
| Net income attributable to: | ||
| Non-controlling interests | 32 | 45 |
| Shareholders | 626 | 781 |
| Cost-income ratio3 in % | 66.0 | 57.7 |
1 Represents fee and commission income less fee and commission expenses.
2 Represents interest and similar income less interest expenses.
3 Represents operating expenses divided by operating revenues.
| € mn | ||||
|---|---|---|---|---|
| Holding&Treasury | Banking | |||
| three months ended 30 June | 2015 | 2014 | 2015 | 2014 |
| Interest and similar income | 78 | 74 | 136 | 148 |
| Operating income from financial assets and liabilities carried at fair value through income (net) | (13) | 7 | 3 | 3 |
| Fee and commission income | 22 | 14 | 141 | 125 |
| Operating revenues | 87 | 95 | 280 | 277 |
| Interest expenses, excluding interest expenses from external debt | (57) | (85) | (54) | (64) |
| Loan loss provisions | – | – | (17) | (15) |
| Investment expenses | (17) | (17) | – | – |
| Administrative expenses (net), excluding acquisition-related expenses | (208) | (161) | (84) | (100) |
| Fee and commission expenses | (69) | (77) | (97) | (81) |
| Restructuring charges | – | – | (1) | – |
| Other expenses | – | – | (1) | – |
| Operating expenses | (351) | (340) | (254) | (260) |
| Operating profit (loss) | (264) | (245) | 26 | 17 |
| Non-operating income from financial assets and liabilities carried at fair value through income (net) | (14) | (1) | – | – |
| Realized gains/losses (net) | 147 | 34 | 5 | 5 |
| Impairments of investments (net) | (1) | (1) | – | – |
| Income from fully consolidated private equity investments (net) | – | – | – | – |
| Interest expenses from external debt | (213) | (206) | – | – |
| Acquisition-related expenses | 1 | 1 | – | – |
| Amortization of intangible assets | (2) | (2) | – | – |
| Non-operating items | (82) | (177) | 5 | 4 |
| Income (loss) before income taxes | (346) | (421) | 31 | 21 |
| Income taxes | 122 | 163 | (9) | (7) |
| Net income (loss) | (224) | (258) | 22 | 14 |
| Net income (loss) attributable to: | ||||
| Non-controlling interests | – | – | 2 | 2 |
| Shareholders | (224) | (258) | 20 | 12 |
| Cost-income ratio1 for the reportable segment Banking in % | 67.0 | 75.8 |
1 Represents investment expenses, administrative expenses (net), excluding acquisition-related expenses, restructuring charges and other expenses divided by interest and similar income, operating income from financial assets and liabilities carried at fair value through income (net), fee and commission income, interest expenses, excluding interest expenses from external debt, and fee and commission expenses.
| B | Condensed Consolidated Interim Financial Statements | |||
|---|---|---|---|---|
| 51 Consolidated Balance Sheets | 53 Consolidated Statements of | 54 Consolidated Statements of Changes | 55 Consolidated Statements of Cash Flows |
| 52 Consolidated Income Statements | |||||
|---|---|---|---|---|---|
| -- | -- | -- | ----------------------------------- | -- | -- |
Comprehensive Income
in Equity
57 Notes
| Banking | Alternative Investments | Consolidation | Corporate and Other | ||||
|---|---|---|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 |
| 136 | 148 | 5 | 8 | – | – | 219 | 230 |
| 3 | 3 | (1) | (2) | – | – | (11) | 9 |
| 141 | 125 | 44 | 39 | 1 | – | 207 | 177 |
| 280 | 277 | 48 | 45 | 1 | (1) | 416 | 416 |
| (54) | (64) | – | (1) | – | – | (111) | (149) |
| (17) | (15) | – | – | – | – | (17) | (15) |
| – (84) |
– (100) |
(2) (37) |
(2) (34) |
1 (1) |
– – |
(19) (331) |
(19) (294) |
| (97) | (81) | – | – | – | – | (166) | (158) |
| (1) | – | – | – | – | – | (1) | |
| (1) | – | – | – | – | – | (1) | |
| (254) | (260) | (40) | (36) | (1) | 1 | (646) | (635) |
| 26 | 17 | 8 | 8 | – | – | (230) | (219) |
| – | – | (1) | – | – | – | (15) | |
| 5 | 5 | – | – | – | – | 152 | |
| – | – | – | – | – | – | (1) | |
| – | – | (10) | (5) | – | – | (10) | |
| – | – | – | – | – | – | (213) | (206) |
| – | – | – | – | – | – | 1 | |
| – | – | – | – | – | – | (2) | |
| 5 | 4 | (11) | (5) | – | – | (89) | (177) |
| 31 | 21 | (3) | 3 | – | – | (318) | (397) |
| (9) | (7) | (1) | (7) | – | – | 113 | |
| 22 | 14 | (3) | (4) | – | – | (205) | (249) |
| 2 | 2 | 2 | 5 | – | – | 4 | |
| 20 | 12 | (5) | (9) | – | – | (209) | (255) |
| 67.0 | 75.8 | ||||||
| € mn | Holding&Treasury | |
|---|---|---|
| six months ended 30 June | 2015 | 2014 |
| Interest and similar income | 127 | 128 |
| Operating income from financial assets and liabilities carried at fair value through income (net) | (7) | 7 |
| Fee and commission income | 35 | 29 |
| Other income | 148 | – |
| Operating revenues | 302 | 164 |
| Interest expenses, excluding interest expenses from external debt | (128) | (162) |
| Loan loss provisions | – | – |
| Investment expenses | (33) | (31) |
| Administrative expenses (net), excluding acquisition-related expenses and one-off effects from pension revaluation | (390) | (316) |
| Fee and commission expenses | (158) | (147) |
| Restructuring charges | – | – |
| Other expenses | – | – |
| Operating expenses | (709) | (656) |
| Operating profit (loss) | (407) | (493) |
| Non-operating income from financial assets and liabilities carried at fair value through income (net) | (55) | (7) |
| Realized gains/losses (net) | 195 | 52 |
| Impairments of investments (net) | (1) | (4) |
| Income from fully consolidated private equity investments (net) | – | – |
| Interest expenses from external debt | (425) | (411) |
| Acquisition-related expenses | 1 | 3 |
| One-off effects from pension revaluation | 230 | 679 |
| Amortization of intangible assets | (4) | (4) |
| Non-operating items | (60) | 307 |
| Income (loss) before income taxes | (467) | (185) |
| Income taxes | 161 | 49 |
| Net income (loss) | (306) | (136) |
| Net income (loss) attributable to: | ||
| Non-controlling interests | – | – |
| Shareholders | (306) | (136) |
| Cost-income ratio1 for the reportable segment Banking in % | ||
1 Represents investment expenses, administrative expenses (net), excluding acquisition-related expenses and one-off effects from pension revaluation, restructuring charges and other expenses divided by interest and similar income, operating income from financial assets and liabilities carried at fair value through income (net), fee and commission income, other income, interest expenses, excluding interest expenses from external debt, and fee and commission expenses.
| B | Condensed Consolidated Interim Financial Statements | |||
|---|---|---|---|---|
| 51 Consolidated Balance Sheets | 53 Consolidated Statements of | 54 Consolidated Statements of Changes | 55 Consolidated Statements of Cash Flows | |
| Comprehensive Income | in Equity |
57 Notes
52 Consolidated Income Statements
| Holding&Treasury | Banking | Alternative Investments | Consolidation | Corporate and Other | ||||
|---|---|---|---|---|---|---|---|---|
| 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 |
| 128 | 275 | 298 | 11 | 12 | – | (1) | 412 | 438 |
| 7 | 9 | 6 | (2) | (2) | – | – | – | 11 |
| 29 | 280 | 241 | 92 | 75 | – | (1) | 407 | 344 |
| – | – | – | – | – | – | – | 148 | |
| 164 | 563 | 545 | 101 | 85 | – | (1) | 967 | 793 |
| (162) | (112) | (131) | (1) | (1) | – | 1 | (241) | (293) |
| – | (24) | (24) | – | – | – | – | (24) | (24) |
| (31) | – | – | (4) | (4) | 1 | 1 | (37) | (34) |
| (184) | (210) | (77) | (65) | (1) | – | (652) | (590) | |
| (316) (147) |
(182) | (146) | – | – | – | – | (340) | (293) |
| – | (1) | – | – | – | – | – | (1) | |
| – | (2) | – | – | – | – | – | (2) | |
| (506) | (510) | (82) | (69) | – | 1 | (1,297) | (1,235) | |
| (493) | 58 | 35 | 19 | 16 | – | – | (331) | |
| (7) | – | – | – | (1) | – | – | (55) | |
| 52 | 12 | 4 | – | – | – | – | 207 | |
| (4) | – | – | – | – | – | – | (1) | |
| – | – | (7) | (11) | – | – | (7) | ||
| – | – | – | – | – | – | (425) | ||
| 3 | – | – | – | – | – | – | 1 | |
| 679 | (1) | (1) | (5) | (4) | – | – | 224 | |
| (4) | – | – | – | – | – | – | (4) | |
| 307 | 11 | 3 | (13) | (16) | – | – | (62) | |
| (185) | 69 | 37 | 6 | – | – | – | (393) | |
| 49 | (21) | (13) | (2) | (6) | – | – | 138 | |
| (136) | 47 | 25 | 4 | (6) | – | – | (254) | |
| – | 4 | 4 | 5 | 6 | – | – | 10 | |
| (136) | 43 | 21 | (1) | (12) | – | – | (264) | |
| 69.5 | 78.3 |
| € mn | ||
|---|---|---|
| as of | as of | |
| 30 June | 31 December | |
| 2015 | 2014 | |
| Financial assets held for trading | ||
| Debt securities | 491 | 402 |
| Equity securities | 222 | 195 |
| Derivative financial instruments | 1,613 | 1,618 |
| Subtotal | 2,327 | 2,214 |
| Financial assets designated at fair value through income |
||
| Debt securities | 2,404 | 1,887 |
| Equity securities | 2,390 | 1,773 |
| Subtotal | 4,794 | 3,660 |
| Total | 7,121 | 5,875 |
| € mn | as of 30 June 2015 |
as of 31 December 2014 |
|---|---|---|
| Available-for-sale investments | 484,261 | 465,914 |
| Held-to-maturity investments | 3,993 | 3,969 |
| Funds held by others under reinsurance contracts assumed |
1,311 | 1,154 |
| Investments in associates and joint ventures | 4,536 | 4,059 |
| Real estate held for investment | 11,829 | 11,349 |
| Total | 505,930 | 486,445 |
| B | Condensed Consolidated Interim Financial Statements | |||
|---|---|---|---|---|
| 51 Consolidated Balance Sheets | 53 Consolidated Statements of | 54 Consolidated Statements of Changes | 55 Consolidated Statements of Cash Flows | |
| 52 Consolidated Income Statements | Comprehensive Income | in Equity | 57 Notes |
| € mn | ||||||||
|---|---|---|---|---|---|---|---|---|
| as of 30 June 2015 | as of 31 December 2014 | |||||||
| Amortized Cost |
Unrealized Gains |
Unrealized Losses |
Fair Value | Amortized Cost |
Unrealized Gains |
Unrealized Losses |
Fair Value | |
| Debt securities | ||||||||
| Government and agency mortgage-backed securities (residential and commercial) |
3,858 | 161 | (12) | 4,008 | 3,548 | 192 | (2) | 3,738 |
| Corporate mortgage-backed securities (residential and commercial) |
14,129 | 418 | (90) | 14,457 | 13,685 | 546 | (44) | 14,186 |
| Other asset-backed securities | 4,336 | 261 | (73) | 4,524 | 4,313 | 284 | (46) | 4,552 |
| Government and government agency bonds | ||||||||
| France | 31,366 | 7,630 | (83) | 38,913 | 31,113 | 9,509 | (21) | 40,601 |
| Italy | 24,211 | 4,094 | (206) | 28,099 | 25,203 | 5,557 | (5) | 30,755 |
| Germany | 12,489 | 1,792 | (61) | 14,221 | 12,900 | 2,152 | (5) | 15,048 |
| United States | 12,812 | 596 | (90) | 13,318 | 10,574 | 875 | (34) | 11,415 |
| South Korea | 7,169 | 982 | (3) | 8,147 | 6,156 | 882 | – | 7,038 |
| Belgium | 6,836 | 1,550 | (85) | 8,300 | 5,866 | 1,818 | – | 7,684 |
| Austria | 5,346 | 1,290 | (13) | 6,622 | 5,476 | 1,698 | (1) | 7,173 |
| Spain | 8,817 | 631 | (421) | 9,027 | 5,055 | 944 | (1) | 5,997 |
| Switzerland | 5,337 | 722 | (5) | 6,055 | 4,695 | 610 | – | 5,305 |
| Netherlands | 4,384 | 425 | (24) | 4,786 | 4,102 | 506 | (1) | 4,607 |
| Hungary | 864 | 93 | (1) | 956 | 868 | 105 | – | 972 |
| Ireland | 1,302 | 10 | (71) | 1,242 | 620 | 28 | – | 648 |
| Russia | 370 | 2 | (30) | 342 | 472 | – | (71) | 401 |
| Portugal | 215 | 27 | – | 242 | 198 | 29 | – | 227 |
| Greece | 1 | 1 | – | 2 | 1 | 2 | – | 3 |
| Supranationals | 16,256 | 2,731 | (76) | 18,911 | 15,726 | 3,202 | (3) | 18,925 |
| All other countries | 39,079 | 1,641 | (472) | 40,247 | 33,401 | 2,013 | (196) | 35,217 |
| Subtotal | 176,854 | 24,216 | (1,641) | 199,429 | 162,426 | 29,928 | (338) | 192,016 |
| Corporate bonds1 | 204,278 | 14,201 | (2,380) | 216,099 | 193,315 | 18,807 | (837) | 211,284 |
| Other | 3,290 | 481 | (32) | 3,739 | 2,471 | 499 | (2) | 2,968 |
| Subtotal | 406,745 | 39,740 | (4,229) | 442,256 | 379,757 | 50,255 | (1,269) | 428,744 |
| Equity securities2 | 29,065 | 13,234 | (294) | 42,005 | 26,113 | 11,313 | (255) | 37,171 |
| Total | 435,810 | 52,974 | (4,523) | 484,261 | 405,870 | 61,568 | (1,524) | 465,914 |
1 Include bonds issued by Spanish banks with a fair value of € 611 MN (2014: € 472 MN), thereof subordinated
2 Include shares invested in Spanish banks with a fair value of € 470 MN (2014: € 408 mn).
bonds with a fair value of € 141 mn (2014: € 134 MN).
| € mn | as of 30 June 2015 | as of 31 December 2014 | ||||
|---|---|---|---|---|---|---|
| Banks | Customers | Total | Banks | Customers | Total | |
| Short-term investments and certificates of deposit | 3,435 | – | 3,435 | 3,622 | – | 3,622 |
| Loans | 52,9761 | 57,861 | 110,838 | 56,4141 | 55,950 | 112,363 |
| Other | 1,819 | 12 | 1,832 | 1,372 | 16 | 1,388 |
| Subtotal | 58,230 | 57,874 | 116,104 | 61,407 | 55,966 | 117,373 |
| Loan loss allowance | – | (308) | (308) | – | (298) | (298) |
| Total | 58,230 | 57,566 | 115,796 | 61,407 | 55,668 | 117,075 |
1 Primarily include covered bonds.
| € mn | as of 30 June 2015 |
as of 31 December 2014 |
|---|---|---|
| Unearned premiums | 2,367 | 1,519 |
| Reserves for loss and loss adjustment expenses | 7,702 | 6,947 |
| Aggregate policy reserves | 5,512 | 4,998 |
| Other insurance reserves | 115 | 123 |
| Total | 15,695 | 13,587 |
| € mn | as of 30 June 2015 |
as of 31 December 2014 |
|---|---|---|
| Deferred acquisition costs | ||
| Property-Casualty | 4,962 | 4,595 |
| Life/Health | 17,879 | 16,089 |
| Subtotal | 22,842 | 20,685 |
| Present value of future profits1 | 689 | 870 |
| Deferred sales inducements | 925 | 708 |
| Total | 24,455 | 22,262 |
1 In the second quarter of 2015, € 145 mn were reclassified from present value of future profits to intangible assets.
| € mn | ||
|---|---|---|
| as of | as of | |
| 30 June 2015 |
31 December 2014 |
|
| Receivables | ||
| Policyholders | 6,480 | 5,846 |
| Agents | 5,081 | 4,348 |
| Reinsurers | 2,531 | 1,951 |
| Other | 5,423 | 4,711 |
| Less allowance for doubtful accounts | (685) | (693) |
| Subtotal | 18,829 | 16,163 |
| Tax receivables | ||
| Income taxes | 1,693 | 1,996 |
| Other taxes | 1,499 | 1,426 |
| Subtotal | 3,192 | 3,422 |
| Accrued dividends, interest and rent | 7,323 | 7,836 |
| Prepaid expenses | ||
| Interest and rent | 22 | 25 |
| Other prepaid expenses | 363 | 256 |
| Subtotal | 385 | 281 |
| Derivative financial instruments used for hedging | ||
| that meet the criteria for hedge accounting and firm commitments |
336 | 477 |
| Property and equipment | ||
| Real estate held for own use | 2,751 | 2,566 |
| Software | 2,215 | 2,142 |
| Equipment | 1,385 | 1,291 |
| Fixed assets of alternative investments | 1,712 | 1,465 |
| Subtotal | 8,063 | 7,464 |
| Other assets | 1,704 | 1,437 |
| Total | 39,831 | 37,080 |
53 Consolidated Statements of Comprehensive Income
B Condensed Consolidated Interim Financial Statements
51 Consolidated Balance Sheets 52 Consolidated Income Statements
| € mn | ||
|---|---|---|
| as of | as of | |
| 30 June 2015 |
31 December 2014 |
|
| Assets of disposal groups classified as held for sale | ||
| Münsterländische Bank Thie&Co. KG, Münster | – | 83 |
| Subtotal | – | 83 |
| Non-current assets classified as held for sale | ||
| Real estate held for investment | 83 | 92 |
| Real estate held for own use | 82 | 61 |
| Subtotal | 165 | 152 |
| Total | 165 | 235 |
| Liabilities of disposal groups classified as held for sale |
||
| Münsterländische Bank Thie&Co. KG, Münster | – | 102 |
| Total | – | 102 |
In May 2015, the Allianz Group completed the sale of Münsterländische Bank Thie&Co. KG, Münster, which was classified as a disposal group held for sale during the fourth quarter of 2014. Upon measurement of the disposal group at fair value less costs to sell, no impairment losses were recognized until the disposal.
Real estate held for investment classified as held for sale comprised as of 31 December 2014 several office buildings allocated to the reportable segment German Speaking Countries (Life/Health), which were sold as expected during the first quarter of 2015.
As of 30 June 2015, real estate held for investment (€ 83 mn) and held for own use (€ 19 mn) classified as held for sale comprised a large number of buildings in different portfolios allocated to the reportable segment Western&Southern Europe (Property-Casualty). Upon measurement of these buildings at fair value less costs to sell, no impairment losses were recognized for the six months ended 30 June 2015. The sale of these buildings will be completed by the end of the third quarter of 2015.
In addition, real estate held for own use (€ 63 mn) classified as held for sale comprised several office buildings allocated to the reportable segment Global Insurance Lines & Anglo Markets (Property-Casualty). Upon measurement of these buildings at fair value less costs to sell, no further impairment losses were recognized for the six months ended 30 June 2015. The sale of these buildings will be completed by the end of the third and fourth quarter of 2015, respectively.
in Equity
| € mn | ||
|---|---|---|
| as of | as of | |
| 30 June | 31 December | |
| 2015 | 2014 | |
| Intangible assets with indefinite useful lives | ||
| Goodwill | 12,555 | 12,166 |
| Brand names1 | 294 | 289 |
| Subtotal | 12,849 | 12,455 |
| Intangible assets with finite useful lives | ||
| Distribution agreements2 | 902 | 948 |
| Customer relationships3 | 201 | 231 |
| Other4 | 314 | 121 |
| Subtotal | 1,417 | 1,300 |
| Total | 14,266 | 13,755 |
1 Include primarily the brand name of Selecta AG, Muntelier.
2 Include primarily the long-term distribution agreements with Commerzbank AG of € 317 mn (2014: € 335 mn), Banco Popular S.A. of € 345 mn (2014: € 353 mn), Yapı Kredi Bank of € 134 mn (2014: € 147 mn) and HSBC Asia, HSBC Turkey and BTPN Indonesia of € 87 mn (2014: € 90 mn).
3 Include primarily customer relationships from acquired parts of the insurance business of UnipolSai Assicurazioni S.p.A. of € 88 mn (2014: € 100 mn), and from the acquisition of Selecta of € 69 mn (2014: € 85 mn), Assurances Médicales S.A. of € 17 mn (2014: € 18 mn) and Yapı Kredi of € 7 mn (2014: € 8 mn).
4 Include primarily acquired business portfolios of € 209 mn (2014: € 64 mn), heritable building rights of € 39 mn (2014: € 17 mn) and lease rights of € 10 mn (2014: € – mn). In the second quarter of 2015, € 145 mn were reclassified from present value of future profits to intangible assets.
| € mn | ||
|---|---|---|
| 2015 | 2014 | |
| Cost as of 1 January | 13,156 | 12,534 |
| Accumulated impairments as of 1 January | (990) | (990) |
| Carrying amount as of 1 January | 12,166 | 11,544 |
| Additions | 67 | 6 |
| Disposals | – | – |
| Foreign currency translation adjustments | 323 | 24 |
| Impairments | – | – |
| Carrying amount as of 30 June | 12,555 | 11,574 |
| Accumulated impairments as of 30 June | 990 | 990 |
| Cost as of 30 June | 13,545 | 12,564 |
For the six months ended 30 June 2015, additions are mainly related to goodwill arising from the acquisition of the Property-Casualty insurance business of the Territory Insurance Office, Darwin, as well as from the acquisition of several windparks. For further information, please refer to note 3.
| € mn | ||
|---|---|---|
| as of | as of | |
| 30 June | 31 December | |
| 2015 | 2014 | |
| Financial liabilities held for trading | ||
| Derivative financial instruments | 8,631 | 8,493 |
| Other trading liabilities | 2 | 3 |
| Total | 8,633 | 8,496 |
| Banks | Customers | Total | Banks | Customers | Total |
|---|---|---|---|---|---|
| 200 | 5,208 | 5,408 | 69 | 4,803 | 4,872 |
| – | 2,492 | 2,492 | – | 2,846 | 2,846 |
| 1,069 | 1,374 | 2,443 | 971 | 1,946 | 2,916 |
| 3,781 | – | 3,781 | 1,197 | – | 1,197 |
| 2,315 | – | 2,315 | 2,715 | – | 2,715 |
| 4,314 | 4,620 | 8,934 | 4,278 | 4,191 | 8,469 |
| 11,678 | 13,695 | 25,373 | 9,230 | 13,786 | 23,015 |
| as of 30 June 2015 | as of 31 December 2014 |
| B | Condensed Consolidated Interim Financial Statements | ||||
|---|---|---|---|---|---|
54 Consolidated Statements of Changes in Equity
55 Consolidated Statements of Cash Flows 57 Notes
| as of |
|---|
| 31 December |
| 2014 |
| 58,925 |
| 10,081 |
| (18) |
| 68,989 |
The following table reconciles the beginning and ending reserves of the Allianz Group, including the effect of reinsurance ceded, for the Property-Casualty business segment for the six months ended 30 June 2015 and 2014.
| € mn | ||||||
|---|---|---|---|---|---|---|
| 2015 | 2014 | |||||
| Gross | Ceded | Net | Gross | Ceded | Net | |
| As of 1 January | 58,925 | (6,577) | 52,348 | 56,614 | (6,070) | 50,544 |
| Balance carry forward of discounted loss reserves | 3,597 | (326) | 3,271 | 3,207 | (306) | 2,901 |
| Subtotal | 62,522 | (6,903) | 55,619 | 59,821 | (6,376) | 53,445 |
| Loss and loss adjustment expenses incurred | ||||||
| Current year | 17,371 | (1,367) | 16,004 | 15,515 | (1,083) | 14,432 |
| Prior years | (945) | 184 | (761) | (703) | 84 | (619) |
| Subtotal | 16,426 | (1,183) | 15,243 | 14,812 | (999) | 13,813 |
| Loss and loss adjustment expenses paid | ||||||
| Current year | (6,313) | 252 | (6,061) | (5,853) | 222 | (5,631) |
| Prior years | (9,312) | 780 | (8,532) | (8,709) | 672 | (8,037) |
| Subtotal | (15,625) | 1,032 | (14,593) | (14,562) | 894 | (13,668) |
| Foreign currency translation adjustments and other changes | 2,076 | (565) | 1,510 | 717 | (127) | 590 |
| Subtotal | 65,398 | (7,619) | 57,779 | 60,787 | (6,608) | 54,180 |
| Ending balance of discounted loss reserves | (3,814) | 344 | (3,470) | (3,449) | 300 | (3,149) |
| As of 30 June | 61,584 | (7,275) | 54,309 | 57,339 | (6,308) | 51,031 |
| Total | 478,874 | 463,334 |
|---|---|---|
| Other insurance reserves | 1,188 | 1,081 |
| Reserves for premium refunds | 59,444 | 63,026 |
| Aggregate policy reserves | 418,242 | 399,227 |
| € mn | as of 30 June 2015 |
as of 31 December 2014 |
| as of 30 June 31 December 2015 Payables Policyholders 4,008 Reinsurance 1,642 Agents 1,713 Subtotal 7,363 Payables for social security 405 Tax payables Income taxes 1,390 Other taxes 1,498 Subtotal 2,888 Accrued interest and rent 688 Unearned income Interest and rent 24 Other 509 Subtotal 533 Provisions Pensions and similar obligations 9,400 Employee related 2,353 Share-based compensation plans 398 Restructuring plans 209 Loan commitments 8 Contingent losses from non-insurance business 150 Other provisions 1,489 Subtotal 14,007 Deposits retained for reinsurance ceded 1,923 Derivative financial instruments used for hedging that meet the criteria for hedge accounting and firm commitments 702 Financial liabilities for puttable equity instruments 2,526 |
€ mn | ||
|---|---|---|---|
| as of | |||
| 2014 | |||
| 4,934 | |||
| 1,460 | |||
| 1,615 | |||
| 8,009 | |||
| 420 | |||
| 1,801 | |||
| 1,387 | |||
| 3,187 | |||
| 613 | |||
| 24 | |||
| 283 | |||
| 307 | |||
| 9,765 | |||
| 2,327 | |||
| 606 | |||
| 109 | |||
| 12 | |||
| 134 | |||
| 1,684 | |||
| 14,637 | |||
| 1,843 | |||
| 281 | |||
| 1,793 | |||
| Other liabilities | 7,713 | 7,520 | |
| Total 38,747 |
38,609 |
The change in the restructuring provisions is mainly driven by the reorganization of Fireman's Fund Insurance Company (FFIC) in the United States, started in the first quarter of 2015, and by a new restructuring program at Allianz Beratungs- und Vertriebs-AG, Germany (ABV), started in the second quarter of 2015.
For the reorganization of FFIC, restructuring charges of € 93 MN, thereof restructuring provisions of € 73 MN, were recorded in the Global Insurance Lines&Anglo Markets (Property-Casualty) reportable segment for the six months ended 30 June 2015.
52 Consolidated Income Statements
Comprehensive Income
54 Consolidated Statements of Changes in Equity
ABV reorganizes its sales and distribution organization to meet changing client expectations as well as new regulatory requirements and to strengthen sustainability and competitiveness. In this regard, restructuring charges of € 53 MN, which were fully recognized in restructuring provisions, were recorded for the six months ended 30 June 2015.
| € mn | ||
|---|---|---|
| as of | as of | |
| 30 June | 31 December | |
| 2015 | 2014 | |
| Allianz SE1 | ||
| Senior bonds | 6,748 | 6,653 |
| Money market securities | 1,573 | 1,041 |
| Subtotal | 8,321 | 7,694 |
| Banking subsidiaries | ||
| Senior bonds | 456 | 513 |
| Subtotal | 456 | 513 |
| Total | 8,777 | 8,207 |
1 Includes senior bonds issued by Allianz Finance II B.V., guaranteed by Allianz SE as well as money market securities issued by Allianz Finance Corporation, a wholly-owned subsidiary of Allianz SE, which are fully and unconditionally guaranteed by Allianz SE.
| € mn | ||
|---|---|---|
| as of | as of | |
| 30 June | 31 December | |
| 2015 | 2014 | |
| Allianz SE1 | ||
| Subordinated bonds2 | 11,923 | 11,371 |
| Subtotal | 11,923 | 11,371 |
| Banking subsidiaries | ||
| Subordinated bonds | 241 | 221 |
| Subtotal | 241 | 221 |
| All other subsidiaries | ||
| Subordinated bonds3 | – | 400 |
| Hybrid equity | 45 | 45 |
| Subtotal | 45 | 445 |
| Total | 12,208 | 12,037 |
1 Includes subordinated bonds issued by Allianz Finance II B.V. and guaranteed by Allianz SE.
2 Change due to the redemption of a € 1.0 bn bond and the issuance of a € 1.5 bn bond in the first quarter of 2015.
3 Change due to the redemption of a € 0.4 bn bond in the second quarter of 2015.
| € mn | ||
|---|---|---|
| as of | as of | |
| 30 June | 31 December | |
| 2015 | 2014 | |
| Shareholders' equity | ||
| Issued capital | 1,170 | 1,170 |
| Additional paid-in capital | 27,758 | 27,758 |
| Retained earnings1 | 21,196 | 19,878 |
| Foreign currency translation adjustments | (885) | (1,977) |
| Unrealized gains and losses (net)2 | 11,447 | 13,917 |
| Subtotal | 60,687 | 60,747 |
| Non-controlling interests | 2,824 | 2,955 |
| Total | 63,511 | 63,702 |
1 As of 30 June 2015, include € (216) mn (2014: € (222) mn) related to treasury shares. 2 As of 30 June 2015, include € 149 mn (2014: € 288 mn) related to cash flow hedges.
In the second quarter of 2015, a total dividend of € 3,112 MN (2014: € 2,405 MN) or € 6.85 (2014: € 5.30) per qualifiying share was paid to the shareholders.
| € mn | ||||
|---|---|---|---|---|
| three months ended 30 June | Property Casualty |
Life/Health | Consoli dation |
Group |
| 2015 | ||||
| Premiums written | ||||
| Direct | 10,824 | 5,840 | – | 16,663 |
| Assumed | 1,020 | 188 | (21) | 1,186 |
| Subtotal | 11,843 | 6,027 | (21) | 17,849 |
| Ceded | (1,660) | (255) | 21 | (1,893) |
| Net | 10,184 | 5,772 | – | 15,956 |
| Change in unearned premiums |
||||
| Direct | 1,155 | (63) | – | 1,092 |
| Assumed | (135) | 1 | (9) | (144) |
| Subtotal | 1,019 | (62) | (9) | 948 |
| Ceded | 349 | – | 9 | 359 |
| Net | 1,369 | (62) | – | 1,307 |
| Premiums earned | ||||
| Direct | 11,978 | 5,777 | – | 17,755 |
| Assumed | 884 | 188 | (30) | 1,042 |
| Subtotal | 12,863 | 5,965 | (30) | 18,797 |
| Ceded | (1,310) | (255) | 30 | (1,534) |
| Net | 11,553 | 5,710 | – | 17,263 |
| 2014 | ||||
| Premiums written | ||||
| Direct | 10,102 | 6,053 | – | 16,155 |
| Assumed | 745 | 220 | (24) | 941 |
| Subtotal | 10,846 | 6,274 | (24) | 17,096 |
| Ceded | (936) | (218) | 24 | (1,130) |
| Net | 9,910 | 6,056 | – | 15,966 |
| Change in unearned premiums |
||||
| Direct | 953 | (71) | – | 883 |
| Assumed | (222) | 6 | 4 | (213) |
| Subtotal | 731 | (65) | 4 | 670 |
| Ceded | 60 | 7 | (4) | 64 |
| Net | 791 | (57) | – | 734 |
| Premiums earned | ||||
| Direct | 11,055 | 5,983 | – | 17,038 |
| Assumed | 523 | 226 | (20) | 728 |
| Subtotal | 11,577 | 6,209 | (20) | 17,766 |
| Ceded | (876) | (210) | 20 | (1,066) |
| Net | 10,701 | 5,999 | – | 16,700 |
| € mn | ||||
|---|---|---|---|---|
| six months ended 30 June | Property Casualty |
Life/Health | Consoli dation |
Group |
| 2015 | ||||
| Premiums written | ||||
| Direct | 26,936 | 12,668 | – | 39,604 |
| Assumed | 2,246 | 331 | (57) | 2,520 |
| Subtotal | 29,182 | 12,999 | (57) | 42,124 |
| Ceded | (3,159) | (401) | 57 | (3,504) |
| Net | 26,023 | 12,598 | – | 38,621 |
| Change in unearned premiums |
||||
| Direct | (3,324) | (140) | – | (3,464) |
| Assumed | (463) | (1) | 13 | (451) |
| Subtotal | (3,787) | (141) | 13 | (3,915) |
| Ceded | 836 | 6 | (13) | 829 |
| Net | (2,951) | (135) | – | (3,086) |
| Premiums earned | ||||
| Direct | 23,612 | 12,528 | – | 36,140 |
| Assumed | 1,783 | 330 | (44) | 2,069 |
| Subtotal | 25,395 | 12,858 | (44) | 38,209 |
| Ceded | (2,323) | (395) | 44 | (2,675) |
| Net | 23,072 | 12,463 | – | 35,535 |
| 2014 | ||||
| Premiums written | ||||
| Direct | 24,556 | 12,507 | – | 37,063 |
| Assumed | 1,507 | 382 | (45) | 1,845 |
| Subtotal | 26,063 | 12,889 | (45) | 38,908 |
| Ceded | (2,163) | (373) | 45 | (2,492) |
| Net | 23,900 | 12,516 | – | 36,416 |
| Change in unearned premiums |
||||
| Direct | (2,866) | (228) | – | (3,094) |
| Assumed | (316) | (19) | 7 | (328) |
| Subtotal | (3,182) | (247) | 7 | (3,422) |
| Ceded | 393 | 7 | (7) | 392 |
| Net | (2,789) | (240) | – | (3,030) |
| Premiums earned | ||||
| Direct | 21,690 | 12,279 | – | 33,969 |
| Assumed | 1,191 | 363 | (37) | 1,516 |
| Subtotal | 22,882 | 12,642 | (37) | 35,486 |
| Ceded | (1,771) | (366) | 37 | (2,099) |
| Net | 21,111 | 12,275 | – | 33,386 |
| B | Condensed Consolidated Interim Financial Statements | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 51 Consolidated Balance Sheets | 53 Consolidated Statements of | 54 Consolidated Statements of Changes | 55 Consolidated Statements of Cash Flows | |||||||
| 52 Consolidated Income Statements | Comprehensive Income | in Equity | 57 Notes |
| € mn | ||||
|---|---|---|---|---|
| three months ended 30 June |
six months ended 30 June |
|||
| 2015 | 2014 | 2015 | 2014 | |
| Interest from held-to-maturity investments |
38 | 39 | 78 | 83 |
| Dividends from available-for-sale investments |
766 | 594 | 1,108 | 892 |
| Interest from available-for-sale investments |
3,632 | 3,364 | 7,104 | 6,659 |
| Share of earnings from investments in associates and joint ventures |
85 | 56 | 162 | 94 |
| Rent from real estate held for investment |
221 | 215 | 438 | 422 |
| Interest from loans to banks and customers |
1,174 | 1,219 | 2,376 | 2,435 |
| Other interest income | 49 | 51 | 102 | 93 |
| Total | 5,964 | 5,538 | 11,368 | 10,677 |
| € mn | ||||||
|---|---|---|---|---|---|---|
| three months ended 30 June | Property Casualty |
Life/Health | Asset Management |
Corporate and Other |
Consolidation | Group |
| 2015 | ||||||
| Income (expenses) from financial assets and liabilities held for trading (net) | 41 | (416) | (1) | 41 | – | (334) |
| Income (expenses) from financial assets and liabilities designated at fair value through income (net) |
– | (122) | (1) | (9) | – | (132) |
| Income (expenses) from financial liabilities for puttable equity instruments (net) | – | 116 | – | 1 | – | 117 |
| Foreign currency gains and losses (net) | (90) | (812) | (8) | (59) | – | (968) |
| Total | (49) | (1,234) | (9) | (26) | – | (1,317) |
| 2014 | ||||||
| Income (expenses) from financial assets and liabilities held for trading (net) | (19) | (292) | – | 8 | (1) | (305) |
| Income (expenses) from financial assets and liabilities designated at fair value through income (net) |
1 | 90 | 3 | 2 | – | 95 |
| Income (expenses) from financial liabilities for puttable equity instruments (net) | – | (50) | – | – | – | (50) |
| Foreign currency gains and losses (net) | 17 | 191 | 1 | (3) | – | 206 |
| Total | (2) | (62) | 5 | 7 | (2) | (53) |
| € mn | ||||||
|---|---|---|---|---|---|---|
| six months ended 30 June | Property Casualty |
Life/Health | Asset Management |
Corporate and Other |
Consolidation | Group |
| 2015 | ||||||
| Income (expenses) from financial assets and liabilities held for trading (net) | (135) | (2,173) | – | (167) | 5 | (2,471) |
| Income (expenses) from financial assets and liabilities designated at fair value through income (net) |
– | 156 | 3 | 6 | (1) | 166 |
| Income (expenses) from financial liabilities for puttable equity instruments (net) | – | (106) | – | – | – | (106) |
| Foreign currency gains and losses (net) | 130 | 1,424 | (7) | 105 | – | 1,653 |
| Total | (5) | (698) | (4) | (55) | 4 | (758) |
| 2014 | ||||||
| Income (expenses) from financial assets and liabilities held for trading (net) | (77) | (664) | (1) | 9 | (1) | (735) |
| Income (expenses) from financial assets and liabilities designated at fair value through income (net) |
– | 142 | 3 | 2 | (1) | 148 |
| Income (expenses) from financial liabilities for puttable equity instruments (net) | 1 | (78) | – | – | – | (78) |
| Foreign currency gains and losses (net) | 30 | 269 | 1 | (8) | – | 292 |
| Total | (46) | (331) | 3 | 3 | (2) | (373) |
Foreign currency gains and losses are reported within income from financial assets and liabilities carried at fair value through income (net) (2015: expenses of € 968 MN; 2014: income of € 206 MN). These foreign currency gains and losses arise subsequent to initial recognition on all assets and liabilities denominated in a foreign currency that are monetary items and not measured at fair value through income. The Allianz Group uses freestanding derivatives, included in the line item income (expenses) from financial assets and liabilities held for trading (net), to hedge against foreign currency fluctuations (2015: income of € 678 MN; 2014: expenses of € 204 MN).
Additionally included in the business segment Life/Health are derivative financial instruments from German entities which relate to duration management (2015: expenses of € 877 MN; 2014: income of € 148 MN) and protection against equity fluctuations (2015: income of € 27 MN; 2014: expenses of € 27 MN), as well as from U.S. entities which relate to fixed-indexed annuity products and guaranteed benefits under unit-linked contracts (2015: expenses of € 99 MN; 2014: expenses of € 218 MN).
| € mn | ||||
|---|---|---|---|---|
| three months ended 30 June |
six months ended 30 June |
|||
| 2015 | 2014 | 2015 | 2014 | |
| Realized gains | ||||
| Available-for-sale investments | ||||
| Equity securities | 941 | 415 | 2,345 | 837 |
| Debt securities | 1,144 | 499 | 2,503 | 974 |
| Subtotal | 2,084 | 914 | 4,847 | 1,811 |
| Investments in associates and joint ventures1 |
32 | 11 | 32 | 20 |
| Real estate held for investment | 22 | 66 | 71 | 83 |
| Loans and advances to banks and customers |
218 | 113 | 394 | 183 |
| Non-current assets classified as held for sale |
– | 1 | 29 | 1 |
| Subtotal | 2,356 | 1,104 | 5,373 | 2,098 |
| Realized losses | ||||
| Available-for-sale investments | ||||
| Equity securities | (54) | (26) | (113) | (51) |
| Debt securities | (202) | (49) | (323) | (104) |
| Subtotal | (256) | (75) | (435) | (155) |
| Investments in associates and joint ventures2 |
(4) | (1) | (4) | (5) |
| Real estate held for investment | – | (2) | (1) | (5) |
| Loans and advances to banks | ||||
| and customers | (1) | (1) | (2) | (1) |
| Subtotal | (262) | (78) | (442) | (166) |
| Total | 2,094 | 1,026 | 4,931 | 1,932 |
1 For the three and the six months ended 30 June 2015, include realized gains from the disposal of subsidiaries and businesses of € 1 mn (2014: € – mn).
2 For the three and the six months ended 30 June 2015, include no realized losses from the disposal of subsidiaries and businesses.
| B | Condensed Consolidated Interim Financial Statements | |||
|---|---|---|---|---|
| 51 Consolidated Balance Sheets | 53 Consolidated Statements of | 54 Consolidated Statements of Changes | 55 Consolidated Statements of Cash Flows | |
| 52 Consolidated Income Statements | Comprehensive Income | in Equity | 57 Notes |
| € mn | ||||
|---|---|---|---|---|
| three months ended 30 June |
six months ended 30 June |
|||
| 2015 | 2014 | 2015 | 2014 | |
| Property-Casualty | ||||
| Fees from credit and assistance business |
254 | 192 | 491 | 389 |
| Service agreements | 104 | 109 | 225 | 219 |
| Subtotal | 358 | 302 | 715 | 608 |
| Life/Health | ||||
| Service agreements | 24 | 28 | 46 | 51 |
| Investment advisory | 308 | 232 | 633 | 438 |
| Other | – | 1 | – | 1 |
| Subtotal | 332 | 261 | 679 | 490 |
| Asset Management | ||||
| Management fees | 1,745 | 1,701 | 3,472 | 3,356 |
| Loading and exit fees | 170 | 190 | 314 | 360 |
| Performance fees | 52 | 67 | 111 | 86 |
| Other | 8 | 15 | 17 | 31 |
| Subtotal | 1,975 | 1,972 | 3,914 | 3,833 |
| Corporate and Other | ||||
| Service agreements | 25 | 16 | 41 | 33 |
| Investment advisory and banking activities |
182 | 161 | 365 | 311 |
| Subtotal | 207 | 177 | 407 | 344 |
| Consolidation | (199) | (174) | (398) | (330) |
| Total | 2,673 | 2,537 | 5,317 | 4,945 |
| three months ended 30 June |
|||
|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 |
| 1 | 2 | 9 | 22 |
| 1 | – | 1 | – |
| 3 | 2 | 11 | 22 |
| – | 1 | – | 1 |
| 52 | 41 | 121 | 98 |
| 2241 | 2 | 2241 | 2 |
| 279 | 46 | 356 | 123 |
| six months ended 30 June |
1 Includes for the three and the six months ended 30 June 2015 a net gain of € 0.2 bN on the sale of the personal insurance business of Firemans's Fund Insurance Company to ACE Limited. The sale was an integral part of the reorganization of Allianz Group's Property-Casualty insurance business in the United States.
| € mn | ||||
|---|---|---|---|---|
| three months ended 30 June |
six months ended 30 June |
|||
| 2015 | 2014 | 2015 | 2014 | |
| Income | ||||
| Sales and service revenues | 184 | 174 | 355 | 343 |
| Subtotal | 184 | 174 | 355 | 343 |
| Expenses | ||||
| Cost of goods sold | (57) | (53) | (110) | (107) |
| General and administrative expenses | (117) | (118) | (207) | (233) |
| Interest expenses | (20) | (7) | (45) | (15) |
| Subtotal | (194) | (179) | (362) | (355) |
| Consolidation1 | 4 | 5 | 3 | 6 |
| Total | (6) | – | (4) | (5) |
1 This consolidation effect results from the deferred policyholder participation recognized in the result from fully consolidated private equity investments within operating profit in the Life/Health business segment that was reclassified to expenses from fully consolidated private equity investments in nonoperating profit to ensure the consistent presentation of the Allianz Group's operating profit.
| € mn | ||||
|---|---|---|---|---|
| three months ended 30 June | Property Casualty |
Life/Health | Consoli dation |
Group |
| 2015 | ||||
| Gross | ||||
| Claims and insurance benefits paid |
(7,978) | (4,688) | 14 | (12,651) |
| Change in loss and loss adjustment expenses |
(338) | (144) | 4 | (478) |
| Subtotal | (8,316) | (4,832) | 18 | (13,130) |
| Ceded | ||||
| Claims and insurance benefits paid |
687 | 98 | (13) | 771 |
| Change in loss and loss adjustment expenses |
38 | 31 | (4) | 64 |
| Subtotal | 724 | 128 | (17) | 835 |
| Net | ||||
| Claims and insurance benefits paid |
(7,291) | (4,590) | 1 | (11,880) |
| Change in loss and loss adjustment expenses |
(300) | (114) | – | (414) |
| Total | (7,592) | (4,703) | 1 | (12,294) |
| 2014 | ||||
| Gross | ||||
| Claims and insurance benefits paid |
(7,252) | (5,071) | 12 | (12,310) |
| Change in loss and loss adjustment expenses |
(427) | (224) | (1) | (652) |
| Subtotal | (7,679) | (5,295) | 11 | (12,962) |
| Ceded | ||||
| Claims and insurance benefits paid |
492 | 114 | (11) | 595 |
| Change in loss and loss adjustment expenses |
101 | 8 | 1 | 110 |
| Subtotal | 593 | 122 | (10) | 705 |
| Net | ||||
| Claims and insurance benefits paid |
(6,760) | (4,957) | 1 | (11,715) |
| Change in loss and loss adjustment expenses |
(326) | (216) | – | (542) |
| Total | (7,086) | (5,173) | 2 | (12,257) |
| € mn | ||||
|---|---|---|---|---|
| six months ended 30 June | Property Casualty |
Life/Health | Consoli dation |
Group |
| 2015 | ||||
| Gross | ||||
| Claims and insurance benefits paid |
(15,625) | (9,928) | 27 | (25,526) |
| Change in loss and loss adjustment expenses |
(801) | (157) | 9 | (949) |
| Subtotal | (16,426) | (10,085) | 36 | (26,475) |
| Ceded | ||||
| Claims and insurance benefits paid |
1,032 | 188 | (24) | 1,195 |
| Change in loss and loss adjustment expenses |
151 | 40 | (9) | 182 |
| Subtotal | 1,183 | 227 | (33) | 1,377 |
| Net | ||||
| Claims and insurance benefits paid |
(14,593) | (9,740) | 3 | (24,331) |
| Change in loss and loss adjustment expenses |
(650) | (117) | – | (767) |
| Total | (15,243) | (9,858) | 3 | (25,098) |
| 2014 | ||||
| Gross | ||||
| Claims and insurance benefits paid |
(14,562) | (10,255) | 21 | (24,796) |
| Change in loss and loss adjustment expenses |
(250) | (249) | 1 | (498) |
| Subtotal | (14,812) | (10,504) | 22 | (25,294) |
| Ceded | ||||
| Claims and insurance benefits paid |
894 | 228 | (18) | 1,104 |
| Change in loss and loss adjustment expenses |
105 | 22 | (3) | 124 |
| Subtotal | 999 | 250 | (21) | 1,228 |
| Net | ||||
| Claims and insurance benefits paid |
(13,668) | (10,027) | 3 | (23,693) |
| Change in loss and loss adjustment expenses |
(145) | (227) | (1) | (374) |
| Total | (13,813) | (10,254) | 1 | (24,066) |
54 Consolidated Statements of Changes in Equity
| € mn | ||||
|---|---|---|---|---|
| three months ended 30 June | Property Casualty |
Life/Health | Consoli dation |
Group |
| 2015 | ||||
| Gross | ||||
| Aggregate policy reserves | (61) | (2,012) | – | (2,074) |
| Other insurance reserves | – | (132) | – | (132) |
| Expenses for premium refunds |
(59) | (1,452) | (8) | (1,519) |
| Subtotal | (120) | (3,596) | (8) | (3,725) |
| Ceded | ||||
| Aggregate policy reserves | 2 | 160 | – | 162 |
| Other insurance reserves | – | 1 | – | 2 |
| Expenses for premium refunds |
– | 1 | – | 1 |
| Subtotal | 2 | 163 | – | 165 |
| Net | ||||
| Aggregate policy reserves | (59) | (1,852) | – | (1,912) |
| Other insurance reserves | – | (130) | – | (130) |
| Expenses for premium refunds |
(59) | (1,451) | (8) | (1,518) |
| Total | (118) | (3,433) | (9) | (3,560) |
| 2014 | ||||
| Gross | ||||
| Aggregate policy reserves | (64) | (1,709) | (1) | (1,774) |
| Other insurance reserves | (1) | (36) | – | (37) |
| Expenses for premium refunds |
(72) | (1,801) | (5) | (1,877) |
| Subtotal | (137) | (3,546) | (6) | (3,689) |
| Ceded | ||||
| Aggregate policy reserves | 1 | 82 | – | 84 |
| Other insurance reserves | – | 3 | – | 3 |
| Expenses for premium refunds |
– | 4 | – | 4 |
| Subtotal | 1 | 89 | – | 90 |
| Net | ||||
| Aggregate policy reserves | (63) | (1,627) | (1) | (1,691) |
| Other insurance reserves | (1) | (33) | – | (34) |
| Expenses for premium refunds |
(72) | (1,797) | (5) | (1,874) |
| Total | (135) | (3,457) | (6) | (3,598) |
| € mn | ||||
|---|---|---|---|---|
| six months ended 30 June | Property Casualty |
Life/Health | Consoli dation |
Group |
| 2015 | ||||
| Gross | ||||
| Aggregate policy reserves | (127) | (4,324) | (1) | (4,452) |
| Other insurance reserves | – | (135) | – | (134) |
| Expenses for premium refunds |
(168) | (5,191) | (12) | (5,372) |
| Subtotal | (295) | (9,650) | (13) | (9,958) |
| Ceded | ||||
| Aggregate policy reserves | 3 | 250 | – | 253 |
| Other insurance reserves | – | 3 | – | 3 |
| Expenses for premium refunds |
– | 3 | – | 3 |
| Subtotal | 3 | 256 | – | 259 |
| Net | ||||
| Aggregate policy reserves | (123) | (4,074) | (1) | (4,199) |
| Other insurance reserves | – | (131) | – | (131) |
| Expenses for premium refunds |
(168) | (5,189) | (12) | (5,369) |
| Total | (291) | (9,394) | (13) | (9,699) |
| 2014 | ||||
| Gross | ||||
| Aggregate policy reserves | (129) | (3,703) | (1) | (3,832) |
| Other insurance reserves | (4) | (90) | – | (94) |
| Expenses for premium refunds |
(131) | (3,124) | (6) | (3,261) |
| Subtotal | (263) | (6,917) | (7) | (7,187) |
| Ceded | ||||
| Aggregate policy reserves | 3 | 133 | 1 | 137 |
| Other insurance reserves | – | 6 | – | 6 |
| Expenses for premium refunds |
– | 5 | – | 6 |
| Subtotal | 3 | 145 | – | 149 |
| Net | ||||
| Aggregate policy reserves | (126) | (3,569) | – | (3,695) |
| Other insurance reserves | (4) | (83) | – | (87) |
| Expenses for premium refunds |
(131) | (3,119) | (6) | (3,256) |
| Total | (260) | (6,771) | (6) | (7,038) |
| € mn | three months ended 30 June |
six months ended 30 June |
||
|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | |
| Liabilities to banks and customers | (52) | (62) | (110) | (123) |
| Deposits retained for reinsurance ceded | (16) | (10) | (28) | (22) |
| Certificated liabilities | (73) | (71) | (148) | (138) |
| Subordinated liabilities | (147) | (141) | (290) | (282) |
| Other interest expenses | (21) | (24) | (49) | (45) |
| Total | (309) | (308) | (624) | (610) |
| € mn | three months ended 30 June |
six months ended 30 June |
||
|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | |
| Additions to allowances including direct impairments |
(32) | (45) | (69) | (73) |
| Amounts released | 15 | 23 | 43 | 36 |
| Recoveries on loans previously impaired |
1 | 7 | 2 | 14 |
| Total | (17) | (15) | (24) | (24) |
| € mn | ||||
|---|---|---|---|---|
| three months ended 30 June |
six months ended 30 June |
|||
| 2015 | 2014 | 2015 | 2014 | |
| Impairments | ||||
| Available-for-sale investments | ||||
| Equity securities | (117) | (53) | (151) | (188) |
| Debt securities | (32) | (18) | (93) | (244) |
| Subtotal | (149) | (72) | (244) | (432) |
| Investments in associates and joint ventures |
(4) | – | (4) | – |
| Real estate held for investment | (1) | (1) | (5) | (1) |
| Loans and advances to banks and customers |
(5) | (1) | (16) | (2) |
| Non-current assets classified as held for sale |
– | (1) | – | (2) |
| Subtotal | (158) | (74) | (268) | (436) |
| Reversals of impairments | ||||
| Real estate held for investment | 1 | – | 1 | – |
| Loans and advances to banks and customers |
1 | – | 2 | – |
| Subtotal | 2 | – | 3 | 1 |
| Total | (156) | (74) | (265) | (436) |
| € mn | ||||
|---|---|---|---|---|
| three months ended 30 June |
six months ended 30 June |
|||
| 2015 | 2014 | 2015 | 2014 | |
| Investment management expenses | (163) | (138) | (308) | (251) |
| Depreciation of real estate held for investment |
(62) | (56) | (123) | (112) |
| Other expenses from real estate held for investment |
(40) | (38) | (72) | (68) |
| Total | (265) | (232) | (502) | (431) |
53 Consolidated Statements of Comprehensive Income
54 Consolidated Statements of Changes in Equity
| € mn | ||||
|---|---|---|---|---|
| three months ended 30 June |
six months ended 30 June |
|||
| 2015 | 2014 | 2015 | 2014 | |
| Property-Casualty | ||||
| Acquisition costs | ||||
| Incurred | (2,566) | (2,330) | (5,674) | (5,095) |
| Commissions and profit received on reinsurance business ceded |
141 | 76 | 249 | 193 |
| Deferrals of acquisition costs | 1,560 | 1,433 | 3,657 | 3,261 |
| Amortization of deferred acquisition costs |
(1,656) | (1,513) | (3,271) | (2,934) |
| Subtotal | (2,521) | (2,333) | (5,039) | (4,574) |
| Administrative expenses | (686) | (703) | (1,598)1 | (1,910)1 |
| Subtotal | (3,208) | (3,036) | (6,637) | (6,485) |
| Life/Health | ||||
| Acquisition costs | ||||
| Incurred | (1,299) | (1,331) | (2,624) | (2,547) |
| Commissions and profit received on reinsurance business ceded |
28 | 22 | 54 | 46 |
| Deferrals of acquisition costs | 825 | 914 | 1,730 | 1,748 |
| Amortization of deferred acquisition costs |
(816) | (628) | (1,728) | (1,157) |
| Subtotal | (1,262) | (1,024) | (2,568) | (1,910) |
| Administrative expenses | (436) | (424) | (864)1 | (799)1 |
| Subtotal | (1,698) | (1,447) | (3,432) | (2,709) |
| Asset Management | ||||
| Personnel expenses | (621) | (592) | (1,294)1 | (1,167)1 |
| Non-personnel expenses | (419) | (340) | (788) | (649) |
| Subtotal | (1,040) | (932) | (2,082) | (1,816) |
| Corporate and Other | ||||
| Administrative expenses | (330) | (293) | (427)1 | 871 |
| Subtotal | (330) | (293) | (427) | 87 |
| Consolidation | (7) | 5 | (1) | (112)1 |
| Total | (6,283) | (5,703) | (12,579) | (11,034) |
1 Include one-off effects from pension revaluation. Please refer to note 4 for further details.
| € mn | ||||
|---|---|---|---|---|
| three months ended 30 June |
six months ended 30 June |
|||
| 2015 | 2014 | 2015 | 2014 | |
| Property-Casualty | ||||
| Fees from credit and assistance business |
(261) | (198) | (507) | (401) |
| Service agreements | (74) | (82) | (173) | (169) |
| Subtotal | (336) | (280) | (680) | (571) |
| Life/Health | ||||
| Service agreements | (9) | (10) | (21) | (22) |
| Investment advisory | (137) | (82) | (275) | (158) |
| Subtotal | (145) | (93) | (296) | (180) |
| Asset Management | ||||
| Commissions | (377) | (313) | (731) | (620) |
| Other | (39) | (58) | (58) | (95) |
| Subtotal | (416) | (371) | (788) | (716) |
| Corporate and Other | ||||
| Service agreements | (70) | (79) | (160) | (149) |
| Investment advisory and banking activities |
(96) | (80) | (180) | (144) |
| Subtotal | (166) | (158) | (340) | (293) |
| Consolidation | 114 | 72 | 214 | 146 |
| Total | (949) | (830) | (1,890) | (1,613) |
| € mn | three months ended 30 June |
six months ended 30 June |
||
|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | |
| Realized losses from disposals of real estate held for own use |
– | (3) | – | (7) |
| Expenses from alternative investments | (31) | (23) | (58) | (48) |
| Expenses from non-current assets classified as held for sale |
– | – | – | (1) |
| Other | (1) | – | (2) | – |
| Total | (32) | (26) | (60) | (56) |
| € mn | three months ended 30 June |
six months ended 30 June |
||
|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | |
| Current income taxes | (580) | (803) | (1,307) | (1,791) |
| Deferred income taxes | (287) | (71) | (418) | 50 |
| Total | (867) | (875) | (1,725) | (1,741) |
For the three and the six months ended 30 June 2015 and 2014, the income taxes relating to components of other comprehensive income consist of the following:
income taxes relating to components of other comprehensive income
| € mn | three months ended 30 June |
six months ended 30 June |
||
|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | |
| Items that may be reclassified to profit or loss in future periods |
||||
| Foreign currency translation adjustments |
(35) | 12 | 113 | 13 |
| Available-for-sale investments | 2,719 | (896) | 1,450 | (1,816) |
| Cash flow hedges | 106 | (18) | 65 | (20) |
| Share of other comprehensive income of associates and joint ventures |
(1) | (1) | (3) | (2) |
| Miscellaneous | (3) | 3 | (10) | (27) |
| Items that may never be reclassified to profit or loss |
||||
| Actuarial gains (losses) on defined benefit plans |
(301) | 137 | (142) | 296 |
| Total | 2,485 | (763) | 1,473 | (1,555) |
51 Consolidated Balance Sheets 52 Consolidated Income Statements 53 Consolidated Statements of Comprehensive Income
54 Consolidated Statements of Changes in Equity
55 Consolidated Statements of Cash Flows 57 Notes
The following table compares the carrying amount with the fair value of the Allianz Group's financial assets and financial liabilities:
€ mn as of 30 June 2015 as of 31 December 2014 Carrying amount Fair value Carrying amount Fair value Financial assets Cash and cash equivalents 12,259 12,259 13,863 13,863 Financial assets held for trading 2,327 2,327 2,214 2,214 Financial assets designated at fair value through income 4,794 4,794 3,660 3,660 Available-for-sale investments 484,261 484,261 465,914 465,914 Held-to-maturity investments 3,993 4,649 3,969 4,710 Investments in associates and joint ventures 4,536 5,500 4,059 4,820 Real estate held for investment 11,829 17,065 11,349 16,323 Loans and advances to banks and customers 115,796 135,231 117,075 140,238 Financial assets for unit-linked contracts 104,944 104,944 94,564 94,564 Derivative financial instruments and firm commitments included in other assets 336 336 477 477 Real estate held for own use 2,751 3,880 2,566 3,646 Financial liabilities Financial liabilities held for trading 8,633 8,633 8,496 8,496 Liabilities to banks and customers 25,373 25,692 23,015 23,607 Financial liabilities for unit-linked contracts 104,944 104,944 94,564 94,564 Derivative financial instruments and firm commitments included in other liabilities 702 702 281 281 Financial liabilities for puttable equity instruments 2,526 2,526 1,793 1,793 Certificated liabilities 8,777 9,621 8,207 9,293 Subordinated liabilities 12,208 13,130 12,037 13,253
The Allianz Group carries certain financial instruments at fair value and discloses the fair value of most other assets and liabilities. The fair value of an asset or liability is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The maximum exposure to credit risk of financial assets, without taking collateral into account, is represented by their carrying amount, except for available-for-sale financial assets, for which it is represented by the amortized cost amount.
The degree of judgment used in measuring the fair value of financial instruments closely correlates with the level of non-market observable inputs. The Allianz Group maximizes the use of observable inputs and minimizes the use of non-market observable inputs when measuring fair value. Observability of input parameters is influenced by various factors such as type of the financial instrument, whether a market is established for the particular instrument, specific transaction characteristics, liquidity as well as general market conditions.
If the fair value cannot be measured reliably, amortized cost is used as a proxy for determining fair values. As of 30 June 2015, fair values could not be reliably measured for equity investments with carrying amounts totaling € 202 mn (31 December 2014: € 189 mn). These investments are primarily investments in privately held corporations and partnerships.
Assets and liabilities measured or disclosed at fair value in the consolidated financial statements are measured and classified in accordance with the fair value hierarchy in IFRS 13, which categorizes the inputs to valuation techniques used to measure fair value into three levels.
In general, the subsidiaries assume responsibility for assessing fair values and hierarchies of assets and liabilities. This is consistent with the decentralized organizational structure of the Allianz Group and reflects market insights of local managers. Estimates and assumptions are particularly significant when determining the fair value of financial instruments for which at least one significant input is not based on observable market data (classified within level 3 of the fair value hierarchy). The availability of market information is determined by the relative trading levels of identical or similar instruments in the market, with emphasis placed on information that represents actual market activity or binding quotations from brokers or dealers. If no sufficient market information is available, management's best estimate of a particular input is used to determine the value.
The level 1 inputs of financial instruments that are traded in active markets are based on unadjusted quoted market prices or dealer price quotations for identical assets or liabilities on the last exchange trading day prior to or at the balance sheet date, if the latter is a trading day.
Level 2 applies if the market for a financial instrument is not active or when the fair value is determined by using valuation techniques based on observable input parameters. Such market inputs are observable substantially over the full term of the asset or liability and include references to formerly quoted prices for identical instruments from an active market, quoted prices for identical instruments from an inactive market, quoted prices for similar instruments from active markets and quoted prices for similar instruments from inactive markets. Market observable inputs also include interest rate yield curves, volatilities and foreign currency exchange rates.
Where observable market inputs are not available, the fair value is based on valuation techniques using non-market observable inputs. Valuation techniques include the discounted cash flow method, comparison to similar instruments for which observable market prices exist and other valuation models. Appropriate adjustments are made for credit risks. In particular, when observable market inputs are not available, the use of estimates and assumptions may have a high impact on the valuation outcome.
The following financial assets and liabilities are carried at fair value on a recurring basis:
51 Consolidated Balance Sheets 52 Consolidated Income Statements
53 Consolidated Statements of Comprehensive Income
54 Consolidated Statements of Changes in Equity
55 Consolidated Statements of Cash Flows 57 Notes
The following tables present the fair value hierarchy for financial instruments carried at fair value in the consolidated balance sheets as of 30 June 2015 and 31 December 2014.
| € mn | ||||
|---|---|---|---|---|
| Level 1 – Quoted prices in active markets |
Level 2 – Market observable inputs |
Level 3 – Non-market observable inputs |
Total | |
| Financial assets | ||||
| Financial assets carried at fair value through income | ||||
| Financial assets held for trading | ||||
| Debt securities | 127 | 364 | – | 491 |
| Equity securities | 65 | 142 | 16 | 222 |
| Derivative financial instruments | 141 | 1,362 | 110 | 1,613 |
| Subtotal | 332 | 1,869 | 126 | 2,327 |
| Financial assets designated at fair value through income | ||||
| Debt securities | 1,478 | 902 | 25 | 2,404 |
| Equity securities | 2,246 | 34 | 110 | 2,390 |
| Subtotal | 3,724 | 935 | 135 | 4,794 |
| Subtotal | 4,056 | 2,804 | 261 | 7,121 |
| Available-for-sale investments | ||||
| Government and agency mortgage-backed securities (residential and commercial) | 15 | 3,993 | – | 4,008 |
| Corporate mortgage-backed securities (residential and commercial) | 59 | 14,346 | 52 | 14,457 |
| Other asset-backed securities | 196 | 4,060 | 268 | 4,524 |
| Government and government agency bonds | 43,740 | 155,654 | 35 | 199,429 |
| Corporate bonds | 26,885 | 181,327 | 7,886 | 216,099 |
| Other debt securities | 532 | 1,875 | 1,333 | 3,739 |
| Equity securities | 34,156 | 1,012 | 6,839 | 42,005 |
| Subtotal | 105,582 | 362,267 | 16,414 | 484,261 |
| Financial assets for unit-linked contracts | 101,800 | 2,982 | 163 | 104,944 |
| Derivative financial instruments and firm commitments included in other assets | – | 336 | – | 336 |
| Total | 211,438 | 368,388 | 16,838 | 596,663 |
| Financial liabilities | ||||
| Financial liabilities held for trading | ||||
| Derivative financial instruments | 19 | 1,415 | 7,197 | 8,631 |
| Other trading liabilities | – | 2 | – | 2 |
| Subtotal | 19 | 1,417 | 7,197 | 8,633 |
| Financial liabilities for unit-linked contracts | 101,800 | 2,982 | 163 | 104,944 |
| Derivative financial instruments and firm commitments included in other liabilities | – | 702 | – | 702 |
| Financial liabilities for puttable equity instruments | 2,439 | 68 | 19 | 2,526 |
| Total | 104,258 | 5,168 | 7,379 | 116,805 |
€ mn
| Level 1 – Quoted prices in |
Level 2 – Market |
Level 3 – Non-market |
||
|---|---|---|---|---|
| active markets | observable inputs | observable inputs | Total | |
| Financial assets | ||||
| Financial assets carried at fair value through income | ||||
| Financial assets held for trading | ||||
| Debt securities | 79 | 323 | – | 402 |
| Equity securities | 47 | 133 | 15 | 195 |
| Derivative financial instruments | 260 | 1,336 | 22 | 1,618 |
| Subtotal | 385 | 1,792 | 38 | 2,214 |
| Financial assets designated at fair value through income | ||||
| Debt securities | 887 | 981 | 19 | 1,887 |
| Equity securities | 1,624 | 38 | 110 | 1,773 |
| Subtotal | 2,512 | 1,018 | 129 | 3,660 |
| Subtotal | 2,897 | 2,810 | 167 | 5,875 |
| Available-for-sale investments | ||||
| Government and agency mortgage-backed securities (residential and commercial) | 43 | 3,695 | – | 3,738 |
| Corporate mortgage-backed securities (residential and commercial) | – | 14,146 | 40 | 14,186 |
| Other asset-backed securities | 259 | 4,075 | 218 | 4,552 |
| Government and government agency bonds | 29,810 | 162,166 | 39 | 192,016 |
| Corporate bonds | 15,885 | 188,946 | 6,452 | 211,284 |
| Other debt securities | 273 | 1,966 | 729 | 2,968 |
| Equity securities | 30,077 | 868 | 6,226 | 37,171 |
| Subtotal | 76,347 | 375,862 | 13,704 | 465,914 |
| Financial assets for unit-linked contracts | 91,885 | 2,511 | 166 | 94,564 |
| Derivative financial instruments and firm commitments included in other assets | 2 | 476 | – | 477 |
| Total | 171,131 | 381,659 | 14,037 | 566,830 |
| Financial liabilities | ||||
| Financial liabilities held for trading | ||||
| Derivative financial instruments | 49 | 1,315 | 7,129 | 8,493 |
| Other trading liabilities | – | 3 | – | 3 |
| Subtotal | 49 | 1,319 | 7,129 | 8,496 |
| Financial liabilities for unit-linked contracts | 91,885 | 2,511 | 166 | 94,564 |
| Derivative financial instruments and firm commitments included in other liabilities | – | 281 | – | 281 |
| Financial liabilities for puttable equity instruments | 1,754 | 24 | 15 | 1,793 |
| Total | 93,688 | 4,135 | 7,310 | 105,134 |
Comprehensive Income
54 Consolidated Statements of Changes in Equity
For fair value measurements categorized within level 2 and level 3, the Allianz Group uses valuation techniques consistent with the three widely used classes of valuation techniques listed in IFRS 13:
There is no one-to-one connection between valuation technique and hierarchy level. Depending on whether the valuation techniques are based on significant observable or unobservable inputs, financial instruments are classified in the fair value hierarchy.
Financial assets held for trading – Debt and equity securities The fair value is mainly determined using the market approach. In some cases, the fair value is determined based on the income approach using interest rates and yield curves observable at commonly quoted intervals.
For level 2, the fair value is mainly determined based on the income approach using present value techniques and the Black-Scholes-Merton model. Primary inputs to the valuation include volatilities, interest rates, yield curves, and foreign exchange rates observable at commonly quoted intervals.
For level 3, derivatives are mainly priced by third-party vendors. Controls are in place to monitor the valuations of these derivatives. Valuations are mainly derived based on the income approach.
The fair value is mainly determined using net asset value techniques for funds and the market approach.
For level 2, the fair value is determined using the market approach. For level 3, equity securities mainly represent unlisted equity securities measured at cost.
Available-for-sale investments – Debt securities Debt securities include:
The valuation techniques for these debt securities are similar. For level 2 and level 3, the fair value is determined using the market and the income approach. Primary inputs to the market approach are quoted prices for identical or comparable assets in active markets where the comparability between security and benchmark defines the fair value level. The income approach in most cases means a present value technique where either the cash flow or the discount curve is adjusted to reflect credit risk and liquidity risk. Depending on the observability of these risk parameters in the market, the security is classified as level 2 or level 3.
For level 2, the fair value is mainly determined using the market approach or net asset value techniques for funds. For certain private equity investments, the funds are priced based on transaction prices using the cost approach. As there are only few holders of these funds, the market is not liquid and transactions are only known to participants.
For level 3, the fair value is mainly determined using net asset values. The net asset values are based on the fair value measurement of the underlying investments and are mainly provided by fund managers. For certain level 3 equity securities, the capital invested is considered to be a reasonable proxy for the fair value.
For level 2, the fair value is determined using the market or the income approach. For the income approach, primary observable inputs include yield curves observable at commonly quoted intervals.
For level 3, the fair value is mainly determined based on the net asset value.
Financial liabilities for unit-linked contracts are valued based on their corresponding assets.
The fair value of the derivatives is mainly determined based on the income approach using present value techniques. Primary inputs include yield curves observable at commonly quoted intervals. The derivatives are mainly used for hedging purposes. Certain derivatives are priced by Bloomberg functions, such as Black-Scholes Option Pricing or the swap manager tool.
For level 2, the fair value is mainly determined using the income approach. Valuation techniques applied for the income approach mainly include discounted cash flow models as well as the Black-Scholes-Merton model. Main observable input parameters include volatilities, yield curves observable at commonly quoted intervals and credit spreads observable in the market.
For level 3, the fair value is mainly determined based on the income approach using deterministic discounted cash flow models. A significant proportion of derivative liabilities represent derivatives embedded in certain life insurance and annuity contracts. Significant non-market observable input parameters include mortality rates and surrender rates.
The fair value is mainly determined based on the income approach using present value techniques. Primary inputs comprise swap curves, share prices and dividend estimates.
For level 2, the fair value is mainly determined using the income approach. Primary inputs include interest rates and yield curves observable at commonly quoted intervals.
Financial liabilities for puttable equity instruments are generally required to be recorded at the redemption amount with changes recognized in income. For level 2, the fair value is mainly determined using net asset value techniques.
In general, financial assets and liabilities are transferred from level 1 to level 2 when liquidity, trade frequency and activity are no longer indicative of an active market. Conversely, the same policy applies for transfers from level 2 to level 1.
Equity securities within available-for-sale investments classified as level 3 mainly comprise private equity fund investments as well as alternative investments of the Allianz Group and are in most cases delivered as net asset values by the fund managers (€ 5.8 bn). The net asset values are calculated using material, non-public information about the respective private equity companies. The Allianz Group has only limited insight into the specific inputs used by the fund managers and hence a narrative sensitivity analysis is not applicable. The fund's asset manager generally prices the underlying single portfolio companies in line with the International Private Equity and Venture Capital Valuation (IPEV) guidelines using discounted cash flow (income approach) or multiple methods (market approach). For certain investments, the capital invested is considered to be a reasonable proxy for the fair value. In these cases, sensitivity analyses are also not applicable.
Corporate bonds within available-for-sale investments classified as level 3 are mainly priced based on the income approach (€ 5.4 bn). The primary non-market observable input used in the discounted cash flow method is an option adjusted spread taken from a benchmark security. A significant yield increase of the benchmark securities in isolation could result in a decreased fair value, while a significant yield decrease could result in an increased fair value. However, a 10% stress of the main non-market observable inputs has only an immaterial impact on fair value.
53 Consolidated Statements of Comprehensive Income
54 Consolidated Statements of Changes in Equity
55 Consolidated Statements of Cash Flows 57 Notes
Financial liabilities held for trading mainly include embedded derivative financial instruments relating to annuity products that are priced internally using discounted cash flow models (€ 7.0 bn). A significant decrease (increase) in surrender rates, mortality rates or the utilization of annuitization benefits could result in a higher (lower) fair value. For products with a high death benefit, surrender rates may show an opposite effect. However, a 10% stress of the main nonmarket observable inputs has only an immaterial impact on fair value.
The following table shows the quantitative description of valuation technique(s) and input(s) used for the level 3 portfolios described above.
| € mn | ||||
|---|---|---|---|---|
| Description | Fair value as of | 30 June 2015 Valuation technique(s) | Non-market observable input(s) |
Range |
| Available-for-sale investments | ||||
| Equity securities | 5,758 Net asset value | n/a | n/a | |
| Corporate bonds | 5,397 Discounted cash flow method | Option adjusted spread | 16 bps–800 bps | |
| Financial liabilities held for trading | ||||
| Derivative financial instruments | 6,987 | |||
| Fixed-indexed annuities | 5,562 Discounted cash flow method | Annuitizations | 0%–25% | |
| Surrenders | 0%–25% | |||
| Mortality | n/a1 | |||
| Withdrawal benefit election | 0%–50% | |||
| Volatility | n/a | |||
| Variable annuities | 1,425 Discounted cash flow method | Surrenders | 0.5%–35% | |
| Mortality | n/a1 |
1 Presentation not meaningful. Mortality assumptions are mainly derived from the Annuity 2000 Mortality Table.
The following tables show a reconciliation of the financial instruments carried at fair value and classified as level 3.
€ mn
| Carrying value (fair value) as of |
Additions through | Net transfers | Disposals through | |
|---|---|---|---|---|
| 1 January 2015 | purchases and issues | into (out of) level 3 | sales and settlements | |
| Financial assets | ||||
| Financial assets carried at fair value through income | ||||
| Financial assets held for trading | ||||
| Debt securities | – | – | – | – |
| Equity securities | 15 | – | – | – |
| Derivative financial instruments | 22 | 17 | – | (89) |
| Subtotal | 38 | 17 | – | (89) |
| Financial assets designated at fair value through income | ||||
| Debt securities | 19 | 7 | – | (2) |
| Equity securities | 110 | – | – | – |
| Subtotal | 129 | 7 | – | (2) |
| Available-for-sale investments | ||||
| Corporate mortgage-backed securities (residential and commercial) | 40 | – | – | (2) |
| Other asset-backed securities | 218 | 53 | – | (63) |
| Government and government agency bonds | 39 | 3 | – | (11) |
| Corporate bonds | 6,452 | 1,372 | (10) | (190) |
| Other debt securities | 729 | 585 | – | (24) |
| Equity securities | 6,226 | 571 | – | (487) |
| Subtotal | 13,704 | 2,585 | (9) | (776) |
| Financial assets for unit-linked contracts | 166 | 2 | – | (3) |
| Total financial assets at fair value | 14,037 | 2,610 | (9) | (870) |
€ mn
| Carrying value (fair value) as of 1 January 2015 |
Additions through purchases and issues |
Net transfers into (out of) level 3 |
Disposals through sales and settlements |
|
|---|---|---|---|---|
| Financial liabilities | ||||
| Financial liabilities held for trading | ||||
| Derivative financial instruments | 7,129 | 875 | 22 | (400) |
| Financial liabilities for unit-linked contracts | 166 | 2 | – | (3) |
| Financial liabilities for puttable equity instruments | 15 | 4 | – | (1) |
| Total financial liabilities at fair value | 7,310 | 881 | 22 | (403) |
| B | Condensed Consolidated Interim Financial Statements | |||
|---|---|---|---|---|
| 51 Consolidated Balance Sheets | 53 Consolidated Statements of | 54 Consolidated Statements of Changes | 55 Consolidated Statements of Cash Flows | |
| 52 Consolidated Income Statements | Comprehensive Income | in Equity | 57 Notes |
| Net gains (losses) in profit or loss attributable to a change in unrealized gains or losses for financial assets held at the reporting date |
Carrying value (fair value) as of 30 June 2015 |
Changes in the consolidated subsidiaries of the Allianz Group |
Foreign currency translation adjustments |
Impairments | Net gains (losses) recognized in other comprehensive income |
Net gains (losses) recognized in consolidated income statement |
|---|---|---|---|---|---|---|
| – | – | – | – | – | – | – |
| – | 16 | – | – | – | – | 1 |
| 22 | 110 | – | 3 | – | – | 157 |
| 22 | 126 | – | 3 | – | – | 158 |
| – | 25 | – | – | – | – | – |
| – | 110 | – | – | – | – | – |
| – | 135 | – | – | – | – | – |
| – | 52 | 8 | 3 | – | – | 3 |
| – | 268 | 35 | 13 | – | (6) | 18 |
| – | 35 | – | 3 | – | – | – |
| – | 7,886 | – | 428 | – | (181) | 15 |
| 1,333 | 3 | 2 | (1) | 36 | 1 | |
| 6,839 | 32 | 28 | (37) | 495 | 11 | |
| 16,414 | 79 | 477 | (38) | 344 | 48 | |
| 163 | – | – | – | – | (2) | |
| 22 | 16,838 | 79 | 481 | (38) | 344 | 204 |
| Net losses (gains) in profit or loss attributable to a change in unrealized gains or losses for financial liabilities held at the reporting date |
Carrying value (fair value) as of 30 June 2015 |
Changes in the consolidated subsidiaries of the Allianz Group |
Foreign currency translation adjustments |
Impairments | Net losses (gains) recognized in other comprehensive income |
Net losses (gains) recognized in consolidated income statement |
|---|---|---|---|---|---|---|
| 7,197 | – | 600 | – | – | (1,029) | |
| 163 | – | – | – | – | (2) | |
| 19 | – | – | – | – | 1 | |
| 7,379 | – | 600 | – | – | (1,030) |
Certain financial assets are measured at fair value on a non-recurring basis when events or changes in circumstances indicate that the carrying amount may not be recoverable.
If financial assets are measured at fair value on a non-recurring basis at the time of impairment or if fair value less cost to sell is used as the measurement basis under IFRS 5, corresponding disclosures can be found in note 32 – Impairments of investments (net) or note 36 – Other expenses.
On 31 January 2009, certain U.S. Dollar denominated CDOs were reclassified from financial assets held for trading to loans and advances to banks and customers in accordance with IAS 39.
As of 31 December 2014, the carrying amount and fair value of the CDOs was € 167 MN and € 169 MN, respectively. As of 30 June 2015, the carrying amount and fair value of the CDOs was reduced to € 4 MN and € 5 MN, respectively. This reduction was driven by the circumstance that one CDO vehicle was restructured during the second quarter of 2015. In the course of this, the underlying assets of the CDO vehicle were recognized as available-for-sale investments. For the six months ended 30 June 2015, the net profit related to the CDOs was € 18 MN.
Basic earnings per share are calculated by dividing net income attributable to shareholders by the weighted average number of common shares outstanding for the period.
| € mn | three months ended 30 June | six months ended 30 June | ||
|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | |
| Net income attributable to shareholders used to calculate basic earnings per share | 2,018 | 1,755 | 3,839 | 3,395 |
| Weighted average number of common shares outstanding | 454,278,679 | 453,761,276 | 454,265,060 | 453,750,731 |
| Basic earnings per share (€) | 4.44 | 3.87 | 8.45 | 7.48 |
Diluted earnings per share are calculated by dividing net income attributable to shareholders by the weighted average number of common shares outstanding for the period, both adjusted for the effects of potentially dilutive common shares. These effects arise from various share-based compensation plans of the Allianz Group.
| B | Condensed Consolidated Interim Financial Statements | |||
|---|---|---|---|---|
| 51 Consolidated Balance Sheets | 53 Consolidated Statements of | 54 Consolidated Statements of Changes | 55 Consolidated Statements of Cash Flows | |
| 52 Consolidated Income Statements | Comprehensive Income | in Equity | 57 Notes |
€ mn
| three months ended 30 June | six months ended 30 June | ||
|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 |
| 2,018 | 1,755 | 3,839 | 3,395 |
| (19) | (10) | (1) | (11) |
| 1,998 | 1,745 | 3,838 | 3,385 |
| 454,278,679 | 453,761,276 | 454,265,060 | 453,750,731 |
| 2,095,413 | 715,550 | 192,840 | 3,006,849 |
| 456,374,091 | 454,476,826 | 454,457,901 | 456,757,580 |
| 7.41 | |||
| 4.38 3.84 |
8.45 |
For the six months ended 30 June 2015, the weighted average number of common shares excludes 2,734,940 (2014: 2,749,269) treasury shares.
40 – Other information
number of employees
| as of 30 June 2015 |
as of 31 December 2014 |
|---|---|
| 40,589 | 40,692 |
| 107,173 | 106,733 |
| 147,762 | 147,425 |
As of 30 June 2015, there were no significant changes in contingent liabilities compared to the consolidated financial statements for the year ended 31 December 2014.
As of 30 June 2015, outstanding commitments to invest in private equity funds and similar financial instruments amounted to € 5,101 mn (31 December 2014: € 4,388 mn) and outstanding commitments to invest in real estate and infrastructure amounted to € 2,300 mn (31 December 2014: € 1,209 mn). Other commitments – mainly referring to sponsoring – decreased from € 743 mn as of 31 December 2014 to € 506 mn as of 30 June 2015. All other commitments showed no significant changes.
The Insurance Laws (Amendment) Bill has become legally effective in the first quarter of 2015 and provides for raising the foreign investment cap in India from 26% to 49%. As per the 2001 joint venture agreement between the Allianz Group and Bajaj, the Allianz Group has the right to increase the stakes in Bajaj at pre-determined prices, if allowed under applicable laws, and subject to regulatory approvals. The Allianz Group is currently in the process of evaluating the contractual situation against the prevailing regulatory background.
The Allianz Group was not subject to any subsequent events that significantly impacted the Group financial results after the balance sheet date and before the financial statements were authorized for issue.
Munich, 6 August 2015
Allianz SE The Board of Management
53 Consolidated Statements of Comprehensive Income
54 Consolidated Statements of Changes in Equity
55 Consolidated Statements of Cash Flows 57 Notes
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the condensed consolidated interim financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group in accordance with generally accepted accounting principles, and the interim group management report includes a fair review of the development and performance of the business and the position of the group, together with a description of the material opportunities and risks associated with the expected development of the group for the remaining months of the financial year.
Munich, 6 August 2015
Allianz SE The Board of Management
We have reviewed the condensed interim consolidated financial statements of Allianz SE, Munich – comprising the consolidated balance sheets, consolidated income statements, consolidated statements of comprehensive income, consolidated statements of changes in equity, consolidated statements of cash flows and selected explanatory notes – together with the interim group management report of Allianz SE, Munich, for the period from 1 January to 30 June 2015 that are part of the semi annual financial report according to §37w WpHG ["Wertpapierhandelsgesetz": "German Securities Trading Act"]. The preparation of the condensed interim consolidated financial statements in accordance with those IFRS applicable to interim financial reporting as adopted by the EU, and of the interim group management report in accordance with the requirements of the WpHG applicable to interim group management reports, is the responsibility of the company's management. Our responsibility is to issue a report on the condensed interim consolidated financial statements and on the interim group management report based on our review.
We performed our review of the condensed interim consolidated financial statements and the interim group management report in accordance with the German generally accepted standards for the review of financial statements promulgated by the Institut der Wirtschaftsprüfer (IDW). Those standards require that we plan and perform the review so that we can preclude through critical evaluation, with a certain level of assurance, that the condensed interim consolidated financial statements have not been prepared, in material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, and that the interim group management report has not been prepared, in material respects, in accordance with the requirements of the WpHG applicable to interim group management reports. A review is limited primarily to inquiries of company employees and analytical assessments and therefore does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed a financial statement audit, we cannot issue an auditor's report.
Based on our review, no matters have come to our attention that cause us to presume that the condensed interim consolidated financial statements have not been prepared, in material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, or that the interim group management report has not been prepared, in material respects, in accordance with the requirements of the WpHG applicable to interim group management reports.
Munich, 6 August 2015
KPMG AG Wirtschaftsprüfungsgesellschaft
Wirtschaftsprüfer Wirtschaftsprüfer
Klaus Becker Dr. Frank Pfaffenzeller (Independent Auditor) (Independent Auditor)
| Important dates for shareholders and analysts1 | |
|---|---|
| Interim Report/Financial Results 3Q | ______ 6 November 2015 |
| ______ Financial Results 2015 |
19 February 2016 |
| _________ Annual Report 2015 |
11 March 2016 |
| ________ Annual General Meeting |
4 May 2016 |
| Interim Report/Financial Results 1Q | ____ 11 May 2016 |
| Interim Report/Financial Results 2Q | _________ 5 August 2016 |
1 The German Securities Trading Act ("Wertpapierhandelsgesetz") obliges issuers to announce immediately any information which may have a substantial price impact. Therefore we cannot exclude that we have to announce key figures related to quarterly and fiscal year results ahead of the dates mentioned above. As we can never rule out changes of dates, we recommend checking them on the internet at www.allianz.com/financialcalendar.
Allianz SE – Königinstrasse 28 – 80802 Munich – Germany – Phone +49.89.3800-0 – [email protected] – www.allianz.com Interim Report on the internet – www.allianz.com/interim-report – Design/Concept: hw.design GmbH – Date of publication: 7 August 2015 This is a translation of the German Interim Report of Allianz Group. In case of any divergences, the German original is legally binding.
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