Allianz SE

Earnings Release • Aug 3, 2012

News Details

Corporate | 3 August 2012 06:59

Allianz continues solid performance in second quarter of 2012

Allianz SE / Key word(s): Quarter Results

03.08.2012 / 06:59

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*Revenues increase to 25.2 billion euros
*Operating profit rises to 2.4 billion euros
*Quarterly net income grows over 20 percent
*Strong capital position fortified
*Operating profit outlook for 2012 of 8.2 billion euros
plus/minus 0.5 billion euros confirmed

Allianz has followed up its strong start into 2012 with another solid
performance in the second quarter. Revenues and operating profit grew due
to the Group's diversified business portfolio; net income also improved
compared to the second quarter of 2011.

Allianz Group recorded revenues of 25.2 billion euros in the second quarter
of 2012. This was an increase of 2.5 percent from 24.6 billion euros in the
same period the year before.

Quarterly operating profit rose 2.8 percent to 2.4 billion euros from 2.3
billion euros in the second quarter of 2011. Growth in operating profit in
both Life and Health insurance and in Asset Management offset a lower
operating profit in Property and Casualty insurance.

At 1.3 billion euros, net income in the second quarter of 2012 was 23.2
percent higher than 1.1 billion euros in the same period the year before
which had been impacted by write-downs of Greek sovereign debt.

The conglomerate solvency ratio further improved over the quarter to 186
percent, compared to 183 percent as of March 31, 2012. Shareholders' equity
over the same period was stable at 48.013 billion euros, compared to 48.245
billion euros at the end of the first quarter of 2012 - despite dividend
payments of 2.037 billion euros to Allianz shareholders in May 2012.

'Our consistently good results show that we weather the difficult market
conditions very well. Our operative business is stable and remains on
course,' said Michael Diekmann, CEO of Allianz SE. 'Despite the challenging
environment, we confirm our outlook of an operating profit for 2012 of 8.2
billion euros, plus or minus 0.5 billion euros.'

Property and Casualty insurance with strong revenue growth

Property and Casualty insurance saw a further increase in gross premiums
written of 5.2 percent to 10.7 billion euros in the second quarter of 2012
from 10.2 billion euros over the same period in 2011.

Internal growth of 3.2 percent was attributable to price increases of 1.4
percent and volume growth of 1.8 percent. Nearly all markets showed rises
in premiums, including an increase of 33.0 percent in Latin America driven
by growth in Brazil. Revenues in Germany rose by 3.3 percent, benefitting
from a positive price effect.

In the second quarter of 2012, operating profit of 1.1 billion euros was
16.3 percent lower than 1.3 billion euros in the second quarter of 2011.
The main driver for this change was a lower run-off, following reserve
additions of approximately 120 million euros related to the Thailand
flooding of 2011. At 2.1 percent, run-off for the second quarter of 2012
was about half the level it was in the second quarter of 2011 of 4.0
percent. As a result, the combined ratio increased 2.4 percentage points to
97.4 percent from 95.0 percent over the same period. The expense ratio for
the quarter was 28.0 percent, unchanged from the second quarter of 2011.

'We are seeing a solid performance in our Property and Casualty business.
Premiums are growing both in markets where Allianz is well-established and
in important growth markets like Brazil,' said Oliver Bäte, Chief Financial
Officer of Allianz SE. 'These are clear signs that our business is robust.'

Life and Health insurance resilient in difficult environment

In the second quarter of 2012, statutory premiums in Life and Health
insurance supported by positive foreign currency effects were stable at
12.9 billion euros, close to the level of 13.0 billion euros in the second
quarter of 2011.

Italy and Spain both recorded strong revenue growth for the second quarter
of 2012, despite the ongoing sovereign debt crisis in Europe. Statutory
premiums for traditional life insurance products increased to 5.8 billion
euros compared to 5.6 billion euros in the second quarter of 2011. This
partially balanced out the effects of difficult financial markets on
investment-oriented products, especially in Europe. Premiums in
investment-oriented products decreased to 7.1 billion euros for the quarter
from 7.4 billion euros in the second quarter of 2011.

Operating profit for the second quarter of 2012 rose 20.9 percent to 821
million euros from 679 million euros over the same period in 2011. The
technical and expense results in particular contributed to this increase.

The average asset base reached 376.9 billion euros in the second quarter of
2012, an increase of 8.0 percent from 349.0 billion euros in the same
period of 2011. The value of new business was 163 million euros, compared
to 244 million euros for the second quarter of 2011, reflecting the
pressures of declining interest rates and market volatility.

'Our Life and Health segment is holding up well in this difficult
environment. Profitability remains our primary focus. Quarterly premiums
overall are broadly stable - indeed, premiums are even growing in regions
that have been hit hard by high market volatility,' said Oliver Bäte. 'And
not only that, but operating profit has risen compared to last year based
on improvements across all result components.'

Asset Management finishes another excellent quarter

In Asset Management growth in revenues and profit continued. Net fee and
commission income of 1.5 billion euros for the second quarter was 15.2
percent higher than the result in the second quarter of 2011 of 1.3 billion
euros.

Total assets under management rose 15.9 percent to 1.7 trillion euros at
the end of the second quarter of 2012 from 1.5 trillion euros at the end of
June 2011. Third-party assets under management at the conclusion of the
second quarter of 2012 were 1.4 trillion euros, compared to 1.2 trillion
euros at the same period in 2011.

The segment increased its operating profit in the second quarter of 2012 to
635 million euros from 528 million euros over the same period in 2011, a
rise of 20.3 percent. Adjusted for foreign currency and consolidation
effects, this represents an increase of 7.2 percent. Asset Management
recorded a cost-income ratio in the second quarter of 2012 of 57.6 percent,
an improvement of 1.9 percentage points from 59.5 percent in the second
quarter of 2011.

Oliver Bäte: 'We are more than satisfied with our Asset Management
business. Its performance has been outstanding throughout the last few
years, despite the crisis. And we are now in a virtuous circle of 'flight
to quality', strong margins and growing cash earnings.'

Allianz Group - Key figures 2nd quarter and 1st half year of 2012

                                                  2Q 2012      2Q 2011

Total revenues [Euro bn] 25.2 24.6
Operating profit / loss [Euro mn] 2,364 2,300
Property-Casualty [Euro mn] 1,112 1,329
Life/Health [Euro mn] 821 679
Asset Management [Euro mn] 635 528
Corporate and Other[Euro mn] -191 -205
Consolidation [Euro mn] -13 -31

Income before income taxes [Euro mn] 2,074 1,614

Income taxes [Euro mn] -754 -543

Net income / loss [Euro mn] 1,320 1,071
Property-Casualty [Euro mn] 807 952
Life/Health [Euro mn] 506 214
Asset Management [Euro mn] 345 289
Corporate and Other[Euro mn] -273 -363
Consolidation [Euro mn] -65 -21

Net income [Euro mn] 1,320 1,071
attributable to non-controlling interests [Euro mn] 86 71
attributable to shareholders [Euro mn] 1,234 1,000

Basic earnings per share [Euro] 2.73 2.21
Diluted earning per share [Euro] 2.68 2.17

Ratios
Property/Casualty: Combined ratio 97.4% 95.0%
Life/Health: Margin on reserves(1) 76 66
Asset Management: Cost-income ratio 57.6% 59.5%

                                                  6M 2012      6M 2011

Total revenues [Euro bn] 55.2 54.5
Operating profit / loss [Euro mn] 4,694 3,960
Property-Casualty [Euro mn] 2,301 1,992
Life/Health [Euro mn] 1,647 1,381
Asset Management [Euro mn] 1,248 1,056
Corporate and Other[Euro mn] -475 -428
Consolidation [Euro mn] -27 -41

Income before income taxes [Euro mn] 4,309 3,100

Income taxes [Euro mn] -1,544 -1,114

Net income / loss [Euro mn] 2,765 1,986
Property-Casualty [Euro mn] 1,643 1,509
Life/Health [Euro mn] 1,132 696
Asset Management [Euro mn] 724 598
Corporate and Other[Euro mn] -656 -815
Consolidation [Euro mn] -78 -2

Net income [Euro mn] 2,765 1,986
attributable to non-controlling interests [Euro mn] 160 129
attributable to shareholders [Euro mn] 2,605 1,857

Basic earnings per share [Euro] 5.76 4.11
Diluted earning per share [Euro] 5.73 4.07

Ratios
Property/Casualty: Combined ratio 96.8% 98.1%
Life/Health: Margin on reserves(1) 77 67
Asset Management: Cost-income ratio 57.5% 59.0%

                                                 06/30/12      12/31/11

Shareholders' equity [Euro bn](2) 48.0 44.9
Conglomerate solvency ratio(3) 186% 179%
Third-party assets under management [Euro bn] 1,354 1,281

(1) Operating profit(annualized)divided by average net reserves
(2) Excluding non-controlling interests
(3) Including off-balance sheet reserves (06/30/12:EUR 2.2bn,
12/31/11: EUR 2.2bn). The solvency ratio excluding off-balance sheet
reserves would amount to 177% as of 06/30/12 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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180225 03.08.2012