Allianz SE

Earnings Release • May 15, 2012

News Details

Corporate | 15 May 2012 06:59

Allianz SE: Allianz starts 2012 with a strong first quarter

Allianz SE / Key word(s): Quarter Results

15.05.2012 / 06:59

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*Quarterly revenues of 30.1 billion euros stable at high level
*Operating profit grows 40.4 percent to 2.3 billion euros
*Net income rises 57.9 percent to 1.4 billion euros
*Capital position continues to be very strong
*Operating profit outlook for 2012 of 8.2 billion euros plus/minus 0.5
billion euros confirmed

Allianz has had a successful start in 2012: Revenues, operating profit and
net income for the first quarter were above first-quarter 2011 levels.
Allianz Group also further improved its already strong capital base.

In the first quarter of 2012, Allianz Group earned 30.1 billion euros in
revenues, the second-highest level in its history. In the same period the
year before, total revenues reached 29.9 billion euros.

Operating profit of 2.3 billion euros was 40.4 percent higher than the
previous year's value of 1.7 billion euros. Property and Casualty insurance
showed a substantial improvement in operating profit due to a lower impact
from natural catastrophes; Life and Health insurance as well as Asset
Management also produced significant increases.

Net income for the first quarter of 2012 rose 57.9 percent to 1.4 billion
euros from 0.9 billion euros in the first quarter of 2011 which was impacted
especially by high claims from natural catastrophes.

The conglomerate solvency ratio further improved to 183 percent from 179
percent as of December 31, 2011. Shareholders' equity grew over the same
period by 7.4 percent to 48.245 billion euros from 44.915 billion euros.

'Allianz has put in a very good performance this quarter, following 2011
that was tough for the entire insurance industry,' said Oliver Bäte, Chief
Financial Officer of Allianz SE. 'Despite the ongoing sovereign debt crisis,
volatile markets and low interest rates, we continue to expect an operating
profit for 2012 of 8.2 billion euros, plus or minus 0.5 billion euros.'

Property and Casualty insurance with strong results

Gross premiums written in Property and Casualty insurance reached 14.8
billion euros. This result represents an increase of 3.8 percent compared to
14.3 billion euros in the first quarter of 2011. The segment benefited from
both positive price and volume effects.

Nearly all regions and global business units contributed to this growth.
Australia and the Asia-Pacific region as well as the credit insurance and
industrial lines increased premiums significantly.

Operating profit of 1.2 billion euros for the first quarter of 2012
represents a rise of 79.3 percent compared to the same period last year. It
benefited from a reduced natural catastrophe impact, which was 695 million
euros lower than in the first three months of last year. The combined ratio
improved to 96.2 percent from 101.3 percent in the first quarter of 2011.
The expense ratio of 27.9 percent remained stable as compared to 28.0
percent in the first quarter of 2011.

Oliver Bäte: 'Revenues in Property and Casualty insurance are at record
levels, and operating profit is on track. Even though there was a lower
incidence of natural catastrophes this quarter, we are seeing a trend toward
higher natural catastrophe impacts. For this reason, we have increased our
2012 budget for these impacts to 1.2 billion euros.'

Life and Health insurance with solid operating performance

Life and Health insurance recorded statutory premiums of 13.7 billion euros
for the first quarter of 2012, 4.0 percent lower than the previous year's
result of 14.3 billion euros.

Premiums for traditional life products increased to 6.6 billion euros from
6.4 billion euros in the first quarter of 2011, while the volume for
investment-oriented products decreased to 7.1 billion euros from 7.9 billion
euros. In addition to an overall drop in demand for unit-linked products,
this development was mainly due to the discontinuation of new life insurance
business in Japan and lower bancassurance sales, for example in Italy.

The operating profit for the first three months in 2012 - supported by
benign capital market conditions - rose to 826 million euros, its highest
level in two years. This represents an increase of 17.7 percent compared to
702 million euros in the first quarter 2011.

The average asset base for Life and Health insurance was 368.5 billion euros
in the first quarter of 2012, 6.0 percent more than 347.8 billion euros over
the same period in 2011. The value of new business stood at 223 million
euros, compared to 243 million euros in the first quarter of 2011.

'The Life and Health insurance business remains robust. Traditional life
insurance business is showing a positive development. In this challenging
environment we continue to focus on value creation, not just the top line,'
said Oliver Bäte.

Asset Management maintains growth

Asset Management produced another outstanding performance in the first
quarter of 2012. Net fee and commission income rose by 12.7 percent to 1.4
billion euros from 1.3 billion euros in the first quarter of 2011.

Operating profit in the quarter grew to 613 million euros from 528 million
euros in the first quarter of 2011. This represents an increase of 16.1
percent. Adjusted for foreign currency and consolidation effects, operating
profit grew by 10.3 percent. The cost-income ratio for the segment improved
in the first quarter of 2012 to 57.4 percent from 58.5 percent in the first
quarter of 2011.

Total assets under management of 1.7 trillion euros were 10.7 percent higher
than 1.5 trillion euros at the same time in 2011. Third-party assets under
management rose to 1.3 trillion euros on March 31, 2012 from 1.1 trillion
euros the year before.

'The Asset Management business continues to grow and outperform the market,'
said Oliver Bäte. 'The segment rounds out our portfolio and provides
outstanding returns for customers. The new two-pillar setup with Allianz
Global Investors and PIMCO helps us serve the needs of our customers even
better and to continue this success story.'

Allianz Group - Key figures 1st quarter 2012

                                                  1Q 2012      1Q 2011

Total revenues [Euro bn] 30.1 29.9
Operating profit / loss [Euro mn] 2,330 1,660
Property-Casualty [Euro mn] 1,189 663
Life/Health [Euro mn] 826 702
Asset Management [Euro mn] 613 528
Corporate and Other[Euro mn] -284 -223
Consolidation [Euro mn] -14 -10

Income before income taxes [Euro mn] 2,235 1,486

Income taxes [Euro mn] -790 -571

Net income / loss [Euro mn] 1,445 915
Property-Casualty [Euro mn] 836 557
Life/Health [Euro mn] 626 482
Asset Management [Euro mn] 379 309
Corporate and Other[Euro mn] -383 -452
Consolidation [Euro mn] -13 19

Net income [Euro mn] 1,445 915
attributable to non-controlling interests [Euro mn] 74 58
attributable to shareholders [Euro mn] 1,371 857

Basic earnings per share [Euro] 3.03 1.90
Diluted earning per share [Euro] 3.02 1.88

Ratios
Property/Casualty: Combined ratio 96.2% 101.3%
Life/Health: Margin on reserves(1) 78 69
Asset Management: Cost-income ratio 57.4% 58.5%

                                                 03/31/12      12/31/11

Shareholders' equity [Euro bn](2) 48.2 44.9
Conglomerate solvency ratio(4) 183% 179%
Third-party assets under management [Euro bn] 1,266 1,281

(1) Operating profit(annualized)divided by average net reserves
(2) Excluding non-controlling interests
(3) Including off-balance sheet reserves (03/31/12:EUR 2.2bn, 12/31/11:
EUR 2.2bn). The solvency ratio excluding off-balance sheet reserves
would amount to 174% as of 03/31/12 and 170% as of 12/31/11

These assessments are, as always, subject to the disclaimer provided below.

Cautionary Note Regarding Forward-Looking Statements
The statements contained herein may include 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 that could cause actual results, performance or
events to differ materially from those expressed or implied in such
statements. In addition to statements which are forward-looking by reason of
context, the words 'may', 'will', 'should', 'expects', 'plans', 'intends',
'anticipates', 'believes', 'estimates', 'predicts', 'potential', or
'continue' and similar expressions identify forward-looking statements.
Actual results, performance or events may differ materially from those in
such statements due to, without limitation, (i) general economic conditions,
including in particular economic conditions in the Allianz Group's core
business and core markets, (ii) performance of financial markets, including
emerging markets, and including market volatility, liquidity and credit
events (iii) the frequency and severity of insured loss events, including
from natural catastrophes and including the development of loss expenses,
(iv) mortality and morbidity levels and trends, (v) persistency levels, (vi)
the extent of credit defaults, (vii) interest rate levels, (viii) currency
exchange rates including the Euro/U.S. Dollar exchange rate, (ix) changing
levels of competition, (x) changes in laws and regulations, including
monetary convergence and the European Monetary Union, (xi) changes in the
policies of central banks and/or foreign governments, (xii) the impact of
acquisitions, including related integration issues, (xiii) reorganization
measures, and (xiv) 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
forward-looking statement.

No duty to update
The company assumes no obligation to update any information contained
herein.

End of Corporate News

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Language: English
Company: Allianz SE
Königinstr. 28
80802 München
Germany
Phone: +49 (0)89 38 00 - 41 24
Fax: +49 (0)89 38 00 - 38 99
E-mail: investor.relations@allianz.com
Internet: www.allianz.com
ISIN: DE0008404005
WKN: 840400
Indices: DAX-30, EURO STOXX 50
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
Standard), Hamburg, Hannover, München, Stuttgart;
Terminbörse EUREX

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