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Allianz SE
Interim / Quarterly Report • Aug 9, 2024
29_10-q_2024-08-09_26f289a7-2802-4e17-8ea1-4bcd37fb69d1.pdf
Interim / Quarterly Report
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Allianz (11)
ALLIANZ GROUP
Interim Report
First Half-Year
- To go directly to any chapter, simply click on the headline or the page number.
CONTENT
A _ Interim Group Management Report
4 Executive Summary
6 Property-Casualty Insurance Operations
8 Life/Health Insurance Operations
10 Asset Management
12 Corporate and Other
13 Outlook
15 Balance Sheet Review
17 Reconciliations
Pages 3 - 17
B Condensed Consolidated Interim Financial Statements
19 Consolidated Balance Sheet
20 Consolidated Income Statement
21 Consolidated Statement of Comprehensive Income
22 Consolidated Statement of Changes in Equity
23 Consolidated Statement of Cash Flows
Notes to the Condensed Consolidated Interim Financial Statements
24 General Information
33 Notes to Insurance Operations
42 Notes to Financial Operations
53 Other Information
C _ Further Information
58 Responsibility Statement
59 Review Report
Disclaimer regarding roundings
The condensed consolidated interim financial statements are presented in millions of euro (€ 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.
Guideline on Alternative Performance Measures
For further information on the definition of our alternative performance measures and their components, as well as the basis of calculation adopted, please refer to the Allianz company website.
INTERIM GROUP MANAGEMENT REPORT
EXECUTIVE SUMMARY
Key figures
Key figures Allianz Group ${ }^{1}$
| Six months ended 30 June | 2024 | 2023 | Delta | |
|---|---|---|---|---|
| Total business volume ${ }^{1}$ | € mn | 91,045 | 85,588 | 5,457 |
| Operating profit ${ }^{1}$ | € mn | 7,911 | 7,513 | 398 |
| Net income ${ }^{1}$ | € mn | 5,293 | 4,647 | 646 |
| thereof: attributable to shareholders | € mn | 4,988 | 4,369 | 620 |
| Shareholders' core net income ${ }^{1)}$ | € mn | 5,049 | 4,690 | 360 |
| Solvency II capitalization ratio ${ }^{2}$ | \% | 206 | 206 | $0 \%$-p |
| Core return on equity ${ }^{3}$ | \% | 17.5 | 16.1 | $1.4 \%$-p |
| Core earnings per share ${ }^{3}$ | € | 12.57 | 11.40 | 1.17 |
| Core diluted earnings per share ${ }^{3}$ | € | 12.55 | 11.38 | 1.17 |
- Total business volume of the Allianz Group comprises gross premiums written and fee ond commission income in Property-Casualty, statutory gross premiums in Life/Health, and operating revenues in Asset Management.
2.The Allianz Group uses operating profit, net income and shareholders' core net income as key financial indicators to assess the performance of its business segments and of the Group as a whole. - Presents the portion of net income attributable to shareholders before non-operating market movements and before amortization of intangible assets from business combinations (including any related income tax effects).
- 2023 figures as of 31 December 2023. 2024 figures as of 30 June 2024. The Solvency II capitalization ratio is based on quarterly dividend accrual. The regulatory ratio which requires the full annual accrual amounted to $200 \%$ as of 30 June 2024.
- Represents the annualized ratio of shareholders' core net income to the average shareholders' equity at the beginning and at the end of the period. Shareholders' core net income is adjusted for net financial charges related to undated subordinated bonds classified as shareholders' equity. From the average shareholders' equity, undated subordinated bonds classified as shareholders equity, unrealized gains and losses from insurance contracts and other unrealized gains and losses are excluded. Annualized figures are not a forecast for full year numbers. For 2023, the core return on equity for the full year is shown. Due to an adjustment of prior periods comparative figures for the balance sheet, the core RoE changed by $+0.1 \%$ p compared to the published figure as of 31 December 2023.
- Calculated by dividing the respective period's shareholders' core net income, adjusted for net financial charges related to undated subordinated bonds classified as shareholders' equity, by the weighted average number of shares outstanding (basic core EPS).
- From basic core EPS, the number of common shares outstanding and the shareholders' core net income are adjusted to include the effects of potentially dilutive common shares that could still be exercised. Potentially dilutive common shares result from share-based compensation plans (diluted core EPS).
Earnings summary
Economic and industry environment
The pattern of the previous year was repeated in the first half of 2024: while growth was generally more resilient than expected, inflation also proved to be more persistent. The strong wage increases played a decisive role here, which was particularly noticeable in the laborintensive service sector. The delayed decline in inflation meant that only the European Central Bank has so far cut interest rates, by 25 basis points. The U.S. Federal Reserve, on the other hand, is continuing to wait until it feels that the decline in inflation has clearly solidified. In contrast to the situation in the United States and Europe, deflationary tendencies were evident in China as a result of ongoing consumer uncertainty due to the real estate crisis and a strong expansion in industrial production. The latter is also having an increasingly negative impact on international trade relations, with the United States and Europe imposing higher import tariffs on Chinese electric cars.
The central banks' restraint was also reflected in the financial markets: in the first half of the year, long-term interest rates rose by around 50 basis points in both the United States and Europe. At the same time, the stock markets continued to rise, with three main factors contributing to this: the good corporate earnings situation, the euphoria surrounding artificial intelligence, and the expectation of imminent interest rate cuts.
The insurance industry was able to thrive in this environment, characterized by relatively stable economic growth, rising incomes, and higher interest rates, during the first half of the year. Price increases in property and casualty insurance continued due to persistently high claims inflation. In the Life insurance business, demand recovered in line with the higher level of long-term interest rates. The need for risk protection and old-age provision remained high. Investment income also benefited from the rise in interest rates.
In the first six months of 2024, revenues in the asset management industry continued to grow. This was based on higher asset levels supported by inflows, especially in the fixed income space, and market development, notably in the equity segment.
Due to current interest rate levels, bonds continue to offer appealing yields and present opportunities for active managers to demonstrate added value by drawing on their investment processes. However, passive investments are becoming increasingly popular and continue to gain market share, especially in equity. Despite the current market levels, alternatives - and especially private investments remain an attractive asset class due to their stability in a challenging market environment, their potential for diversification as well as additional premiums for illiquid assets.
Across all asset classes, there is continuous demand from investors for ESG (environmental, social and governance) and sustainabilityrelated investment strategies, despite the recent slowdown.
Management's assessment
Our total business volume increased by $7.5 \%$ on an internal basis ${ }^{2}$, compared to the previous year's period. This was mostly driven by our Property-Casualty business segment due to positive price effects and volume effects, from many entities including Allianz Reinsurance, Germany, and Australia. The Life/Health business segment also achieved good internal growth, driven by higher sales in the United States and Italy. The Asset Management business segment also recorded positive internal growth.
Our operating profit increased by $5.3 \%$ compared to the first half of 2023. This was mainly due to positive development in nearly all regions in the Life/Health business segment. It includes a higher result on investment contracts in Italy, and a positive contribution from registered index-linked and variable annuities in the United States. Our Property-Casualty business segment recorded a strong operating profit driven by a higher operating investment result; this was partly offset by a slightly lower operating insurance service result. Operating profit from our Asset Management business segment increased, mainly as a result of higher net fee and commission income.
Our operating investment result increased by $€ 144 \mathrm{mn}$ to $€ 2.2 \mathrm{bn}$. This was largely driven by our Property-Casualty business segment due to higher interest and similar income mostly due to higher interest rates supported by higher asset volume.
[^0]business volume growth for each of our business segments and the Allianz Group as a whole, please refer to the chapter Baccosilations.
[^0]: 1. For further information on the Allianz Group figures, please refer to note 5 to the condensed consolidated Interim financial statements
Our non-operating result improved by $€ 643 \mathrm{mn}$ to a loss of $€ 0.9$ bn as a result of stronger non-operating net investment income.
Income taxes increased by $€ 394 \mathrm{mn}$ to $€ 1.7 \mathrm{bn}$ due to higher profits before tax. The effective tax rate increased to $24.1 \%(21.7 \%)$, due to lower beneficial one-off effects in 2024. Impacts from the Global Minimum Tax have been considered in the income tax provisions. The impact on the effective tax rate is not material.
The increase in net income was driven by the operating profit growth, higher non-operating result, partly offset by the increase in income taxes. Compared to the same period of the prior year, shareholders' core net income rose to $€ 5.0$ bn.
Our shareholders' equity ${ }^{1}$ decreased by $€ 2,727 \mathrm{mn}$ to $€ 55.5 \mathrm{bn}$, compared to 31 December 2023. The decrease was driven by the dividend payout, the share buy-back program and a negative net OCI. This was partly compensated by the shareholders' net income and positive foreign currency translation adjustments. Over the same period, our Solvency II capitalization ratio remained stable at $206 \%{ }^{2}$.
For a more detailed description of the results generated by each individual business segment (Property-Casualty insurance operations, Life/Health insurance operations, Asset Management, and Corporate and Other), please consult the respective chapters on the following pages.
Risk and opportunity management
In our Annual Report 2023, we described our risk and opportunity profile and addressed potential risks that could adversely affect both our business and our risk profile. The statements contained in that report remain largely unchanged. Overall, we continue to carefully monitor geopolitical conflicts, regional political crises, political elections, as well as ESG and digital risks, their impacts on the global economy, on financial markets and on the Allianz Group, so that we can react in a timely and appropriate manner, should the need arise. The risks are managed via our continuous own risk and solvency management processes. For further information, please refer to the chapter Outlook.
Events after the balance sheet date
For information on any events occurring after the balance sheet date, please refer to note 8.12 to the condensed consolidated interim financial statements.
Other information
Recent organizational changes
Only minor reallocations between the reportable segments have been made.
Strategy
The Allianz Group's strategy is described in the Risk and Opportunity Report that forms part of our Annual Report 2023. There have been no material changes to our Group strategy.
Products, services and sales channels
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 chapter in our Annual Report 2023.
Allianz group and business segments
The Allianz Group operates and manages its activities through the four business segments: Property-Casualty insurance operations, Life/Health insurance operations, Asset Management, and Corporate and Other. For further information, please refer to note 5 to the condensed consolidated interim financial statements, or to the Business Operations chapter in our Annual Report 2023.
[^0]
[^0]: 1. In the first quarter of 2024 Allianz reclassified certain minority interests between equity and liabilities. Prior periods comparative figures for the balance sheet have been adjusted with a minor impact on
PROPERTY-CASUALTY INSURANCE OPERATIONS
Key figures
| Key figures Property-Casualty ${ }^{1}$ | ||||
|---|---|---|---|---|
| Six months ended 30 June | 2024 | 2023 | Delta | |
| Total business volume ${ }^{2}$ | € mn | 44,766 | 41,729 | 3,036 |
| Operating profit | € mn | 3,981 | 3,855 | 126 |
| Net income | € mn | 2,746 | 2,503 | 243 |
| thereof: attributable to shareholders | € mn | 2,669 | 2,432 | 237 |
| Shareholders' core net income | € mn | 2,673 | 2,556 | 117 |
| Loss ratio ${ }^{2}$ | \% | 68.3 | 67.2 | $1.1 \%$-p |
| Expense ratio ${ }^{2}$ | \% | 24.4 | 24.8 | $(0.4) \%$-p |
| Combined ratio ${ }^{2}$ | \% | 92.7 | 92.0 | $0.7 \%$-p |
| 1. Total business volume in Property-Casualty comprises gross written premiums and fee and commission income. 2. Represents claims and benefits and the reinsurance result, divided by insurance revenue. 3. Represents operating acquisition and administrative expenses including non-attributable acquisition and administrative expenses, divided by insurance revenue. 4. Represents the total of claims and benefits, operating acquisition and administrative expenses including non-attributable acquisition and administrative expenses, and the reinsurance result, divided by insurance revenue. |
Total business volume
On a nominal basis, we recorded a rise of $7.3 \%$ in total business volume compared to the first six months of the previous year.
This included unfavorable foreign currency translation effects of $€ 599 \mathrm{mn}^{2}$ and positive (de)consolidation effects of $€ 296 \mathrm{~mn}$. On an internal basis ${ }^{3}$, our total business volume increased by $8.1 \%$. This was driven by a positive price effect of $7.3 \%$, a positive volume effect of $0.6 \%$, and a positive service effect of $0.2 \%$.
The following entities contributed positively to internal growth:
Allianz Reinsurance: Total business volume increased to $€ 3,513 \mathrm{mn}$, an internal growth of $22.3 \%$, mainly driven by favorable volume effects in our third-party business.
Germany: Total business volume went up $7.3 \%$ on an internal basis, totaling $€ 8,047 \mathrm{mn}$. This was mainly caused by price increases, predominantly from the motor and property business.
Australia: Total business volume went up $13.6 \%$ on an internal basis, totaling $€ 2,569 \mathrm{mn}$. This development was driven by price increases and to a lesser extent by volume increases.
The following entities strongly contributed to internal growth, while operating in hyperinflationary economies ${ }^{4}$ :
Türkiye: Total business volume increased to $€ 1,067 \mathrm{mn}$, an internal growth of $84.1 \%$. This development was driven by strong price increases due to the hyperinflationary environment and to a lesser extent by volume effects.
Argentina: Total business volume amounted to $€ 162 \mathrm{mn}$ - up $303.7 \%$ on an internal basis. This development was driven by strong price increases due to the hyperinflationary environment and to a lesser extent due to volume effects, predominantly from our commercial business.
The following entity weighed on internal growth:
Allianz Partners: Total business volume amounted to $€ 5,384 \mathrm{mn}$, an internal decline of $2.5 \%$, driven by unfavorable volume effects due to underwriting actions.
Operating profit
Operating profit
€ mn
Six months ended 30 June Operating insurance service result Operating investment result Operating fee and other result Operating profit increase was due to a strong operating investment result and improved operating fee and other result, partly offset by a decrease in our insurance service result.
Despite our strong insurance revenue growth, our operating insurance service result decreased slightly resulting in an increase of our combined ratio by 0.7 percentage points to $92.7 \%$. An increase of our accident year loss ratio was partly offset by an improvement in both our contribution from our run-off result and our expense ratio.
Operating insurance service result
€ mn
| Six months ended 30 June | 2024 | 2023 | Delta |
| :-- | --: | --: | --: |
| Insurance revenue | 36,116 | 33,338 | 2,778 |
| Claims and benefits including | $(24,658)$ | $(22,409)$ | $(2,249)$ |
| reinsurance result | $(8,822)$ | $(8,276)$ | $(546)$ |
| Acquisition and administrative | - | 3 | $(3)$ |
| expenses | 2,636 | 2,656 | $(20)$ |
[^0]
[^0]: 1.For further information on Property-Casualty figures, please refer to note 3 to the condensed consolidated interim financial statements.
2.Based on average exchange rates in 2024 compared to 2023 and based on spot rates in economies with hyperinflation (Türkiye, Argentina, Lebanon).
3. Internal total business volume growth, excludes the effects of foreign currency translation as well as acquisitions and disposals. For a reconciliation of nominal total business volume growth to internal total business volume growth for each of our business segments and the Allianz Group as a whole, please refer to the chapter Beconsolidations.
Our accident year loss ratio ${ }^{1}$ stood at $70.8 \%$ - an increase of 1.4 percentage points compared to the previous year period. The impact of claims from natural catastrophes on our combined ratio increased by 1.1 percentage points to $2.0 \%$.
Leaving aside losses from natural catastrophes, our accident year loss ratio increased by 0.3 percentage points to $68.8 \%$. The riots in New Caledonia impacted our accident year loss ratio by approximately 0.7 percentage points. The positive discounting impact stood at $3.2 \%$, a change of 0.1 percentage points compared to the first six months of the previous year.
The following operations mainly contributed negatively to the development of our accident year loss ratio:
Germany: 0.9 percentage points, driven by a high level of claims from natural catastrophes in the first six months of 2024.
Reinsurance: 0.3 percentage points, driven by impacts from the riots in New Caledonia.
The main operation positively contributing to the development of our accident year loss ratio:
United Kingdom: 0.3 percentage points, due to improved business profitability.
Our run-off ratio ${ }^{2}$ increased to $2.5 \%$ - compared to $2.1 \%$ in the first six months of 2023 - and is in line with expectations. Most of our operations contributed positively to our run-off result.
Acquisition and administrative expenses amounted to $€ 8,822 \mathrm{mn}$ in the first six months of 2024 , compared to $€ 8,276 \mathrm{mn}$ in the prior year period. Our expense ratio improved by 0.4 percentage points to $24.4 \%$, driven by the administrative cost ratio.
Operating investment result
$\epsilon \mathrm{mn}$
| Six months ended 30 June | 2024 | 2023 | Delto |
|---|---|---|---|
| Interest and similar income (net of interest expenses) | 2,452 | 2,013 | 439 |
| Interest accretion | (709) | (401) | (308) |
| Valuation results \& other ${ }^{1}$ | (386) | (372) | (14) |
| thereof: Investment expenses | (264) | (232) | (32) |
| Operating investment result | 1,357 | 1,240 | 117 |
- Valuation results \& other comprises realized gains/losses (net), investment expenses, foreign currency gains/losses (net) on (re-)insurance contracts issued and held, and other items.
The rise in our operating investment result was driven by higher interest and similar income (net of interest expenses), mostly due to higher interest rates supported by higher asset volume. This was partially offset by a higher impact from interest accretion, due to higher locked-in rates and a higher level of reserves, as well as by our valuation results and other.
Operating fee and other result
$\epsilon \mathrm{mn}$
| Six months ended 30 June | 2024 | 2023 | Delto |
|---|---|---|---|
| Fee and commission income | 1,304 | 1,217 | 87 |
| Other income | 9 | 3 | 6 |
| Fee and commission expenses | $(1,285)$ | $(1,241)$ | $(44)$ |
| Other expenses | $(40)$ | $(20)$ | $(20)$ |
| Operating fee and other result | $(12)$ | $(41)$ | 29 |
Our operating fee and other result improved, driven by a favorable fee and commission result, mainly because of a performance improvement at Allianz Partners and a higher service margin at Allianz Trade.
Net income
Our net income increased by $€ 243 \mathrm{mn}$, driven by both our operating profit and non-operating result. The $€ 118 \mathrm{mn}$ rise in our nonoperating result was due to the higher non-operating investment result, which increased by $€ 219 \mathrm{mn}$, mainly due to positive development from favorable valuation of funds, partly offset by a lower non-operating other result, mainly due to effects from hyperinflation in Türkiye and Argentina.
Shareholders' core net income
Compared to the previous year's period, our shareholders' core net income rose by $€ 117 \mathrm{mn}$ to $€ 2,673 \mathrm{mn}$, a development in line with our net income.
LIFE/HEALTH INSURANCE OPERATIONS
Key figures
| Six months ended 30 June | 2024 | 2023 | Delta | |
| Total business volume ${ }^{1}$ | € mn | 42,652 | 40,410 | 2,242 |
| Operating profit | € mn | 2,705 | 2,521 | 184 |
| Net income | € mn | 1,975 | 1,738 | 237 |
| thereof: attributable to shareholders | € mn | 1,922 | 1,640 | 282 |
| Shareholders' core net income | € mn | 1,957 | 1,638 | 319 |
| Core return on equity ${ }^{2}$ | \% | 16.9 | 16.3 | $0.6 \% \cdot \mathrm{p}$ |
| Value of new business (VNB) ${ }^{3}$ | € mn | 2,358 | 2,107 | 252 |
| Contractual service margin (CSM) ${ }^{4}$ | € mn | 53,630 | 52,601 | 1,029 |
| 1_Total business volume in Life/Health comprises statutory gross premiums. 2_Core return on equity represents the ratio of shareholders' core net income to the average shareholders' equity at the beginning and at the end of the period. From the average shareholders' equity, unrealized gains and losses from insurance contracts and other unrealized gains and losses are excluded and participations in affiliates not already consolidated in this segment are deducted. For 2023, the core return on equity for the full year is shown. 3_VNB is the additional value to shareholders that results from the writing of new business. The VNB is determined as the present value of pre-tox future profits, adjusted for acquisition expenses overrun or underrun and non-attributable costs, minus a risk adjustment, all determined at issue date. Value of new business is calculated at point of sale, interpreted as at the beginning of each quarter assumptions. 4_2023 figures as of 31 December 2023. 2024 figures as of 30 June 2024. |
||||
| Total business volume | ||||
| On a nominal basis, total business volume increased by $5.5 \%$ for the first half of 2024. This includes both unfavorable foreign currency translation effects of $€ 234 \mathrm{~m}$ and negative (de-)consolidation effects of $€ 423 \mathrm{~m}$. On an internal basis ${ }^{2}$, total business volume increased by $7.2 \%$, or $€ 2,898 \mathrm{~m}$. | ||||
| Germany: Total business volume of Germany Life decreased to $€ 11,301 \mathrm{~m}$, a $7.1 \%$ decrease on an internal basis, mainly driven by lower inflows from single premiums. In the German health business, total business volume increased to $€ 2,149 \mathrm{~m}$, a $4.5 \%$ increase on an internal basis. | ||||
| 1. For further information on Allianz Life/Health figures, please refer to note 5 to the condensed consolidated interim financial statements. 2_Internal total business volume growth, excludes the effects of foreign currency translation as well as acquisitions and disposals. For a reconciliation of nominal total business volume growth to internal total |
United States: Total business volume increased to $€ 10,017 \mathrm{~m}$, a $6.2 \%$ increase on an internal basis. This was due to higher sales in the registered index-linked annuities business.
Italy: Total business volume increased to $€ 6,523 \mathrm{~m}$, a $21.4 \%$ increase on an internal basis, mainly due to increases in unit-linked without guarantees products and capital-efficient products.
France: Total business volume increased to $€ 4,088 \mathrm{~m}$, a $14.0 \%$ increase on an internal basis. Growth can be observed across all lines of business supported by a new product launch.
Asia Pacific: Total business volume increased across the region to $€ 3,258 \mathrm{~m}$, a $13.1 \%$ increase on an internal basis. This was mainly driven by Taiwan with $€ 1,184 \mathrm{~m}$ due to an increase in unit-linked without guarantees products and Indonesia with $€ 537 \mathrm{~m}$, mainly from protection and health products.
The following entity strongly contributed to internal growth, while operating in a hyperinflationary economy ${ }^{3}$ :
Türkiye: Total business volume increased to $€ 692 \mathrm{~m}$, a $124.5 \%$ increase on an internal basis, mainly driven by unit-linked business and higher premiums in the credit-linked portfolio.
Present value of new business premiums (PVNBP) ${ }^{4}$
Our PVNBP increased by $13.7 \%$ to $€ 41,140 \mathrm{~m}$. The increase is predominantly driven by volume in capital-efficient products, due to higher sales in Germany Life and Italy, followed by higher registered index-linked annuities in the United States. The increase in other lines was driven by higher sales across entities.
| Present value of new business premiums (PVNBP) by lines of business | |||
|---|---|---|---|
| Six months ended 30 June | 2024 | 2023 | $\mathrm{Delta}$ |
| Capital-efficient products | 18,523 | 15,178 | 3,345 |
| Unit-linked without guarantee | 9,543 | 8,975 | 567 |
| Protection \& health | 10,045 | 9,345 | 699 |
| Guaranteed savings \& annuities | 3,030 | 2,686 | 343 |
| Total | $\mathbf{4 1 , 1 4 0}$ | $\mathbf{3 6 , 1 8 5}$ | $\mathbf{4 , 9 5 5}$ |
Value of new business (VNB)
Our VNB increased by $12.0 \%$ to $€ 2,358 \mathrm{~m}$. This was primarily driven by higher results in protection and health in Asia Pacific and Germany, as well as higher sales in capital-efficient products, mainly in Germany and Italy.
Value of new business (VNB) by lines of business
€ mn
| Six months ended 30 June | 2024 | 2023 | Delta |
|---|---|---|---|
| Capital-efficient products | 967 | 892 | 75 |
| Unit-linked without guarantee | 390 | 386 | 5 |
| Protection \& health | 856 | 677 | 179 |
| Guaranteed savings \& annuities | 145 | 152 | $(7)$ |
| Total | 2,358 | $\mathbf{2 , 1 0 7}$ | $\mathbf{2 5 2}$ |
[^0]
[^0]: 4_PVNBP before non-controlling interests.
Operating profit
Operating profit by profit sources ${ }^{1}$
Operating profit by profit sources
€ mn
| Six months ended 30 June | 2024 | 2023 | Delta |
|---|---|---|---|
| CSM release ${ }^{1}$ | 2,517 | 2,460 | 56 |
| Release of risk adjustment ${ }^{1}$ | 243 | 257 | $(14)$ |
| Variances from claims \& expenses ${ }^{2}$ | (21) | (158) | 137 |
| Losses and reversals of losses on onerous contracts ${ }^{3}$ | (3) | 5 | (8) |
| Non-attributable expenses ${ }^{4}$ | (530) | (524) | (6) |
| Operating investment result ${ }^{5}$ | 329 | 351 | (22) |
| Other operating result ${ }^{6}$ | 171 | 129 | 41 |
| Operating profit | 2,705 | 2,521 | 184 |
| 1_Please refer to note 6.1 to the condensed consolidated interim financial statements. 2_Including reinsurance result. 3_Excluding amortization of loss component. 4_For further information, please refer to note 8.3 to the condensed consolidated interim financial statements. Non-attributable expenses are the sum of non-attributable acquisition costs, nonattributable administrative expenses and non-attributable settlement costs. The above view includes insurance entities only. 5_For further information, please refer to note 5 to the condensed consolidated interim financial statements. 6_For further information, please refer to note 5 to the condensed consolidated interim financial statements. Other operating result represents the sum of Operating result from investment contracts, Operating fee and commission result, and Operating other result. |
Operating profit increased to $€ 2,705 \mathrm{mn}$, up $7.3 \%$, due to positive developments in nearly all regions. The main drivers of the increase in operating profit are described below:
Contractual Service Margin (CSM) release is the main source of profit. The slight increase was mainly driven by growth in nearly all regions.
Release of risk adjustment decreased, mainly driven by higher discounting in the United States.
Variance from claims and expenses improved, partly due to an improved claims and expense variance in France and better expense variance in Germany Life.
Losses and reversals of losses on onerous contracts worsened slightly due to a positive effect in the previous year.
Non-attributable expenses were stable.
Operating investment result decreased, mainly from an adverse impact from discounting in protection and health in France in line with the evolution of interest rates.
Other operating result increased, driven by Central Europe with growth in pension business across the region, and a negative one-off in Poland in the previous year as well as a positive contribution from the United States.
Contractual service margin (CSM) development
The CSM increased by $2.0 \%$, compared to 31 December 2023, from $€ 52,601 \mathrm{mn}$ to $€ 53,630 \mathrm{mn}$. The drivers of the $€ 1,029 \mathrm{mn}$ increase were as follows:
New business contribution was at $€ 2,651 \mathrm{mn}$, mostly driven by the United States, Germany Life, Asia Pacific and France.
Expected in-force return of $€ 1,479 \mathrm{mn}$ is in line with an implied annualized risk-free rate of $4.7 \%$ plus an overturn yield of $1.0 \%$.
Economic variances of ( $€ 76 \mathrm{mn}$ ) are relatively stable after offsetting effects from strong traded equity performance and foreign exchange gains, partially offset by changing interest rates, real estate losses and widening credit spreads.
Non-economic variances of ( $€ 508 \mathrm{mn}$ ) reduced CSM, with offsetting effects between negative experience variance (mainly from lapse), negative impacts from assumption changes (mainly lapse and cost) and positive impacts from model changes, mainly in the United States and Asia Pacific.
CSM release increased to $€ 2,517 \mathrm{mn}$, in line with expectations.
Net income
Our net income increased by $€ 237 \mathrm{mn}$, driven by the increase in the operating profit and a $€ 258 \mathrm{mn}$ improvement in the non-operating result. The latter was largely driven by a tax reclassification in Germany and France, offset by higher income taxes of $€ 205 \mathrm{mn}$.
Shareholders' core net income
Shareholders' core net income increased by $€ 319 \mathrm{mn}$ to $€ 1,957 \mathrm{mn}$, which is in line with the development of the net income.
Core return on equity
Our core return on equity increased by 0.6 percentage points to $16.9 \%$, mainly as a result of the increase in shareholders' core net income.
ASSET MANAGEMENT
Key figures
Key figures Asset Management ${ }^{1}$
| Six months ended 30 June | 2024 | 2023 | Delta | |
|---|---|---|---|---|
| Operating revenues | € mn | 3,964 | 3,778 | 187 |
| Operating profit | € mn | 1,516 | 1,426 | 90 |
| Cost-income ratio ${ }^{2}$ | \% | 61.8 | 62.3 | $(0.5) \% \cdot p$ |
| Net income | € mn | 1,141 | 1,054 | 87 |
| thereof: attributable to shareholders | € mn | 1,042 | 966 | 76 |
| Shareholders' core net income | € mn | 1,038 | 961 | 77 |
| Total assets under management as of 30 June ${ }^{1}$ | € bn | 2,309 | 2,224 | 85 |
| thereof: Third-party assets under management as of 30 June ${ }^{1}$ | € bn | 1,803 | 1,712 | 91 |
1_Represents operating expenses divided by operating revenues.
2_2023 figure as of 31 December 2023.
Assets under management ${ }^{2}$
Composition of total assets under management
€ bn
| As of 30 June 2024 |
As of 31 December 2023 |
||
|---|---|---|---|
| Type of asset class | 1,708 | 1,648 | 60 |
| 171 | 158 | 12 | |
| Equities | 194 | 184 | 10 |
| Multi-assets ${ }^{1}$ | 236 | 234 | 2 |
| Alternatives | 2,309 | $\mathbf{2 , 2 2 4}$ | $\mathbf{8 5}$ |
| Total |
1.The term "multi-assets" refers to a combination of several asset classes (e.g., bonds, stocks, cash, and real property) used as an investment. Multi-asset class investments increase the diversification of an overall portfolio by distributing investments over several asset classes.
In the first half-year of 2024, net inflows ${ }^{3}$ of total assets under management (AuM) amounted to $€ 46.4 \mathrm{bn}$ and third-party net inflows were $€ 48.4 \mathrm{bn}$. PIMCO contributed to this inflow development substantially ( $€ 46.0$ bn total, $€ 45.8$ bn third-party AuM), and AllianzGI also recorded net inflows of $€ 0.4 \mathrm{bn}$ in total AuM and $€ 2.5 \mathrm{bn}$ in thirdparty AuM.
Positive effects from market and dividends ${ }^{4}$ totaled $€ 4.7 \mathrm{bn}$. Of this, positive effects of $€ 17.4 \mathrm{bn}$ come from AllianzGI and were related to all asset classes besides fixed-income assets, while $€ 12.7 \mathrm{bn}$ of negative effects come from PIMCO and were attributable to fixedincome assets and alternatives.
Positive effects from consolidation, deconsolidation, and other adjustments amounted to $€ 4.8 \mathrm{bn}$.
Favorable foreign currency translation effects amounted to $€ 29.0 \mathrm{bn}$ and were mainly related to PIMCO's AuM.
Third-party assets under management
| As of 30 June 2024 | As of 31 December 2023 | Delta | |
|---|---|---|---|
| Third-party assets under management | € bn | 1,803 | 1,712 |
| Business units' share | |||
| PIMCO | \% | 78.4 | 78.6 |
| AllianzGI | \% | 21.6 | 21.4 |
| Asset classes split | |||
| Fixed income | \% | 76.1 | 76.3 |
| Equities | \% | 8.8 | 8.6 |
| Multi-assets | \% | 10.1 | 10.1 |
| Alternatives | \% | 5.0 | 5.0 |
| Investment vehicle split ${ }^{4}$ | |||
| Mutual funds | \% | 44.9 | 58.2 |
| Separate accounts | \% | 55.1 | 41.8 |
| Regional allocation | |||
| America | \% | 51.3 | 51.0 |
| Europe | \% | 30.2 | 30.9 |
| Asia Pacific | \% | 18.4 | 18.1 |
| Overall three-year rolling investment | |||
1_In the course of aligning definitions for different reporting purposes, some third-party AuM were
reclassed from Mutual Funds to Separate Accounts.
2 Three-year rolling investment outperformance reflects the mandate-based and volumeweighted three-year investment success of all third-party assets. For separate accounts and mutual funds, the investment success (valued on the basis of the closing prices) is compared with the investment success prior to cost deduction of the respective benchmark. For some mutual funds, the investment success, reduced by fees, is compared with the investment success of the median of the respective Morningstar peer group (o position in the first and second quartile is equivalent to outperformance).
3_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.
Operating revenues
Our operating revenues increased by $4.9 \%$ on a nominal basis. This was driven by higher net fee and commission income, mainly at PIMCO but also at AllianzGI. This was due to an increase in the average third-party AuM level. The development was supported by slightly higher performance fees. Other operating revenues also increased, primarily driven by higher net interest income. On an internal basis ${ }^{1}$, operating revenues increased also by $4.9 \%$.
Operating profit
Our operating profit increased by $6.3 \%$ on a nominal basis, as the increase in operating revenues exceeded higher operating expenses. On an internal basis ${ }^{1}$, our operating profit increased by $6.5 \%$.
The nominal increase in administrative expenses stemmed from both PIMCO and AllianzGI.
Our cost-income ratio Improved as a consequence of stronger growth in operating revenues and a smaller increase in operating expenses, compared to the previous year's period.
Asset Management business segment information
€ mm
| Six months ended 30 June | 2024 | 2023 | Delta |
|---|---|---|---|
| Net fee and commission income excl. performance fees | 3,697 | 3,531 | 167 |
| Performance fees | 207 | 202 | 5 |
| Other operating revenues | 60 | 46 | 14 |
| Operating revenues | 3,964 | 3,778 | 187 |
| Administrative expenses (net), excluding acquisition-related expenses | $(2,449)$ | $(2,352)$ | $(97)$ |
| Operating expenses | $(2,449)$ | $(2,352)$ | $(97)$ |
| Operating profit | 1,516 | 1,426 | 90 |
Net income
An increase of $€ 87 \mathrm{~mm}$ in our net income was driven by a higher nonoperating result, partly offset by higher income taxes due to the increase in operating profit.
Shareholders' core net income
Our shareholders' core net income increased by $€ 77 \mathrm{~mm}$ compared to the previous year's period, a development in line with the net income.
CORPORATE AND OTHER
Key figures
| Key figures Corporate and Other ${ }^{1}$ | |||
|---|---|---|---|
| Six months ended 30 June | 2024 | 2023 | Delta |
| Operating investment result | 211 | 201 | 10 |
| Operating administrative expenses ${ }^{1}$ | $(642)$ | $(604)$ | $(38)$ |
| Operating fee and commission result | 140 | 116 | 25 |
| Operating result | $(291)$ | $(287)$ | $(4)$ |
| Net loss | $(570)$ | $(647)$ | 77 |
| thereof: attributable to shareholders | $(645)$ | $(668)$ | 22 |
| Shareholders' core net loss | $(618)$ | $(466)$ | $(153)$ |
| 1.The position operating administrative expenses is part of the operating other result. For further information, please refer to note 5 to the condensed consolidated interim financial statements. |
Earnings summary
The operating result declined slightly, compared to the first six months of the previous year. This was due to the decline in operating result from Alternative Investments, which more than offsets the positive contribution from Banking and Holding \& Treasury.
The decrease in our net loss was mainly because of a higher nonoperating investment result, which profited from higher income from derivatives and a higher valuation result from financial assets and liabilities. This was partly offset by higher income taxes, increased external refinancing costs and higher restructuring costs.
The shareholders' core net loss increased by $€ 153 \mathrm{mn}$ to $€ 618 \mathrm{mn}$ compared to the previous year period, mainly due to a lower non-operating result excluding non-operating market movements.
OUTLOOK
Economic outlook ${ }^{1}$
The stable development in the first half of the year has also slightly improved the outlook for 2024 as a whole. We currently expect growth of $2.3 \%$ in the United States and $0.7 \%$ in the eurozone. The German economy is burdened above all by the ongoing weakness in industry; we therefore only expect minimal growth of $0.1 \%$ for the year as a whole. China is still struggling with problems in the real estate market, which are weighing on consumer confidence as well; overall, the Chinese economy should grow by around 5\%. The decline in inflation is likely to continue with a time lag; we expect the annual average rate to be $2.6 \%$ in the eurozone and $3 \%$ in the United States.
This development should convince the central banks in the United States and Europe to make initial or further interest rate cuts. By the end of the year, key interest rates are forecasted to be at 3.5\% (eurozone) and 5.25\% (United States), respectively. Equity markets have performed well in the first half of the year due to strong earnings and a boost from artificial intelligence euphoria. However, equity valuations remain high making us cautious about further gains. For bond markets, yields are expected to fall slightly from their current levels.
Geopolitical risks remain very high. This applies both to Europe following the elections in France, which have not led to a clear result, and to the United States, where the election campaign is entering its decisive phase. At the same time, there are no solutions in sight to the war in Ukraine and the conflicts in the Middle East, with the danger of further escalation remaining. China's ongoing tensions with Taiwan are intensifying regional instability and raising concerns over potential military confrontations.
Insurance industry outlook
The situation in the insurance industry has improved slightly compared to the beginning of the year. Inflation is falling, albeit slowly, and premium increases should improve the underwriting result overall. Relatively stable economic growth and rising incomes are supporting the demand for insurance. Investment income is continuing to rise thanks to the increased interest income.
In the property and casualty insurance sector, the expected premium growth is likely to result primarily from rising prices. Investment income is expected to increase. At the same time, the promising development of generative artificial intelligence is having an impact on the digitalization of processes along the value chain and giving new momentum to business development.
In the life insurance sector, there are signs of a recovery in demand for savings products for old-age provision, primarily driven by the higher level of long-term interest rates. Higher investment income is also boosting profitability.
Asset management industry outlook
In 2024, the asset management industry continues to face multiple developments, ranging from declining inflation and interest rates that are higher for longer to uncertain capital market developments and geopolitical tensions. Outperforming benchmarks will remain a top priority for active managers.
In fixed income, current yield levels in public markets remain attractive, especially for investment grade. Equity markets have performed strongly, supported by the growth in the technology sector, where future development is uncertain. Demand for alternatives - and especially private investments - remains high, supported by investors looking for diversification, as well as higher returns or protection against inflation. Infrastructure - including renewable energy - is expected to grow further, driven by the effort to limit $\mathrm{CO}_{2}$ emissions. In this context, ESG-oriented investments and sustainability have become an increasingly important topic for the asset management industry, although recent flows into sustainable funds have decreased. Technology, especially artificial intelligence acceleration, continues to be a priority for the industry across the value chain. If firms are to remain competitive, they must leverage advanced data and analytics in order to support investment decisions and client interactions as well as efficient operations.
Margin pressure is expected to persist, further driven by passive products and fierce competition. Despite this multifaceted situation, the industry meets all the prerequisites to remain attractive and return to a growth path.
Outlook for the Allianz Group
At the end of the first half-year of 2024, the Allianz Group operating profit amounted to $€ 7.9 \mathrm{bn}$. We are fully on track to meet the 2024 Allianz Group operating profit outlook of $€ 14.8 \mathrm{bn}$, plus or minus $€ 1 \mathrm{bn}$.
As always, natural catastrophes and adverse developments in the capital markets, as well as factors stated in our cautionary note regarding forward-looking statements may severely affect the operating profit and/or net income of our operations and the results of the Allianz Group.
Cautionary note regarding forwardlooking statements
This document includes forward-looking statements, such as prospects or expectations, that are based on management's current views and assumptions and subject to known and unknown risks and uncertainties. Actual results, performance figures, or events may differ significantly from those expressed or implied in such forward-looking statements.
Deviations may arise due to changes in factors including, but not limited to, the following: (i) the general economic and competitive situation in Allianz's core business and core markets, (ii) the performance of financial markets (in particular market volatility, liquidity, and credit events), (iii) adverse publicity, regulatory actions or litigation with respect to the Allianz Group, other well-known companies, and the financial services industry generally, (iv) the frequency and severity of insured loss events, including those resulting from natural catastrophes, and the development of loss expenses, (v) mortality and morbidity levels and trends, (vi) persistency levels, (vii) the extent of credit defaults, (viii) interest rate levels, (ix) currency exchange rates, most notably the EUR/USD exchange rate, (x) changes in laws and regulations, including tax regulations, (xi) the impact of acquisitions, including and related to integration issues and reorganization measures, and (xii) the general competitive conditions that, in each individual case, apply at a local, regional, national, and/or global level. Many of these changes can be exacerbated by terrorist activities.
No duty to update
Allianz assumes no obligation to update any information or forwardlooking statement contained herein, save for any information we are required to disclose by law.
BALANCE SHEET REVIEW
Shareholders' equity ${ }^{1,2}$
Shareholders' equity
€ mn
| As of 30 June 2024 |
As of 31 December 2023 |
Delta | |
|---|---|---|---|
| Paid-in capital | 28,902 | 28,902 | |
| Undated subordinated bonds | 4,633 | 4,764 | 69 |
| Retained earnings | 29,073 | 30,464 | $(1,391)$ |
| Foreign currency translation adjustments | $(2,379)$ | $(2,883)$ | 504 |
| Unrealized gains and losses from insurance contracts (net) | 39,078 | 34,207 | 4,871 |
| Other unrealized gains and losses (net) | $(43,996)$ | $(37,215)$ | $(6,780)$ |
| Total | 55,511 | 58,239 | $(2,727)$ |
Compared to 31 December 2023, shareholders' equity decreased by $€ 2.7 \mathrm{bn}$. The retained earnings were mainly decreased by the share buy-back program ( $€ 0.9 \mathrm{bn}$ ) and the dividend payout in May 2024 ( $€ 5.4 \mathrm{bn}$ ). This was compensated by the net income attributable to shareholders of $€ 5.0 \mathrm{bn}$ for the six months ended 30 June 2024. The decrease in other unrealized gains and losses (net) of $€ 6.8 \mathrm{bn}$ was partly offset by the increase of unrealized gains and loss from insurance contracts (net) with an amount of $€ 4.9 \mathrm{bn}$.
Solvency II capital adequacy
The Allianz Group's own funds and capital requirements are based on the market value balance sheet ${ }^{3}$ and our approved Solvency II internal model. Our Solvency II capitalization is shown in the following table.
Solvency II capital adequacy
Our Solvency II capitalization ratio remained stable at $206 \%{ }^{4}$ over the first six months of 2024. This is mainly due to compensating effects as the positive impact of Solvency II capital generation and management actions such as de-risking of equity and sale of entities (e.g., Allianz Saudi Fransi and Euler Hermes Re S.A., Luxembourg) was offset by negative effects from capital market developments, regulatory and model changes, and capital management action such as the net impact of the issuance of subordinated debt and the share buy-back.
Total assets and total liabilities
As of 30 June 2024, total assets amounted to $€ 998.4 \mathrm{bn}$ and total liabilities were $€ 939.5 \mathrm{bn}$. Compared to year-end 2023, total assets and total liabilities increased by $€ 15.2 \mathrm{bn}$ and $€ 17.9 \mathrm{bn}$, respectively.
The following section focuses on our financial investments in debt instruments, equities, real estate, and cash, as these reflect the major developments in our asset base.
For further information on our dominant balance sheet position, the insurance liabilities, please refer to the chapter Insurance Operations in the notes to the condensed consolidated interim financial statements.
2. In the first quarter of 2024, Allianz reclassified certain minority interests between equity and liabilities. Prior periods comparative figures for the balance sheet have been adjusted with a minor impact on
shareholders' equity only (reduced by $€ 0.2$ bn as of 31 December 2023). For further information, please refer to note 2 to the condensed consolidated interim financial statements.
3. Own funds are calculated under consideration of volatility adjustment and yield curve extension, as described on page 140 in the Allianz Group Annual Report 2023.
For further information on our dominant balance sheet position, the insurance liabilities, please refer to the chapter Insurance Operations in the notes to the condensed consolidated interim financial statements.
Structure of investments - portfolio overview
The following portfolio overview covers the Allianz Group's assets held for investment, which are largely driven by our insurance businesses.
Asset allocation and fixed income portfolio overview
| As of 30 June 2024 | As of 31 December 2023 | Delta | As of 30 June 2024 | As of 31 December 2023 | Delta | |
|---|---|---|---|---|---|---|
| Type of investment | € bn | € bn | € bn | \% | \% | \%p |
| Debt instruments, thereof: | 553.1 | 557.1 | (4.0) | 74.6 | 75.6 | (1.0) |
| Government bonds | 182.6 | 187.6 | (5.0) | 33.0 | 33.7 | (0.7) |
| Covered bonds | 42.9 | 44.4 | (1.5) | 7.8 | 8.0 | (0.2) |
| Corporate bonds | 200.2 | 198.9 | 1.3 | 36.2 | 35.7 | 0.5 |
| Other | 127.5 | 126.2 | 1.2 | 23.0 | 22.7 | 0.4 |
| Equities | 49.7 | 48.1 | 1.6 | 6.7 | 6.5 | 0.2 |
| Funds | 80.1 | 73.6 | 6.5 | 10.8 | 10.0 | 0.8 |
| Real estate | 25.0 | 25.7 | (0.7) | 3.4 | 3.5 | (0.1) |
| Other | 33.6 | 32.4 | 1.2 | 4.5 | 4.4 | 0.1 |
| Total | 741.4 | 736.8 | 4.6 | 100.0 | 100.0 | $*$ |
Compared to year-end 2023, our overall asset portfolio increased by $€ 4.6$ bn. We have added to our fund and equity exposure.
Our well-diversified exposure to debt instruments decreased compared to year-end 2023, mainly due to market movements. About $93 \%$ of the debt portfolio was invested in investment-grade bonds and loans. ${ }^{1}$ Our government bonds portfolio contained bonds from France, Germany, Italy, and the United States, representing $12.1 \%, 12.0 \%, 10.6 \%$ and $9.0 \%$ of our portfolio shares. Our corporate bonds portfolio contained bonds from the United States, the eurozone, and Europe excl. the eurozone. They represented $43.4 \%, 29.9 \%$ and $11.9 \%$ of our portfolio shares.
Our exposure to equities increased, mainly due to increasing volume.
RECONCILIATIONS
The analysis in the previous chapters is based on our condensed consolidated interim financial statements and should be read in conjunction with them. In addition to our figures stated in accordance with the International Financial Reporting Standards (IFRS), the Allianz Group uses total business volume, operating profit, shareholders' core net income, 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 5 to the condensed consolidated interim financial statements.
Total business volume
Total business volume comprises gross premiums written as well as fee and commission income in Property-Casualty, statutory gross premiums in Life/Health, and operating revenues in Asset Management.
Composition of total business volume $€ \mathrm{~mm}$
| Six months ended 30 June | 2024 | 2023 |
|---|---|---|
| Property-Casualty | ||
| Total business volume | 44,766 | 41,729 |
| consisting of: | ||
| Gross premiums written | 43,462 | 40,512 |
| Fee and commission income | 1,304 | 1,217 |
| Life/Health | ||
| Statutory gross premiums | 42,652 | 40,410 |
| Asset Management | ||
| Operating revenues | 3,964 | 3,778 |
| consisting of: | ||
| Net fee and commission income | 3,904 | 3,732 |
| Net investment result | 57 | 30 |
| Other income and expenses | 3 | 16 |
| Consolidation | (337) | (329) |
| Allianz Group total business volume | 91,045 | 85,588 |
Internal growth
We believe that an understanding of our total business volume 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 business volume growth, we also present internal growth, which excludes these effects.
Reconciliation of nominal total business volume growth to internal total business volume growth
$\%$
| Six months ended 30 June 2024 | Internal Growth | Changes in scope of consolidation | Foreign currency translation | Nominal Growth |
|---|---|---|---|---|
| Property-Casualty | 8.1 | 0.7 | $(1.4)$ | 7.3 |
| Life/Health | 7.2 | $(1.0)$ | $(0.6)$ | 5.5 |
| Asset Management | 4.9 | - | - | 4.9 |
| Allianz Group | 7.5 | $(0.1)$ | $(1.0)$ | 6.4 |
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEET
Consolidated balance sheet
€ mn
| Note | As of 30 June 2024 | As of 31 December 2023 | |
|---|---|---|---|
| Assets | |||
| Cash and cash equivalents | 28,058 | 29,210 | |
| Investments | 7.2 | 729,065 | 721,802 |
| Financial assets for unit-linked contracts | 8.6 | 160,465 | 152,872 |
| Insurance contract assets | 6.6 | 88 | 172 |
| Reinsurance contract assets | 6.7 | 25,627 | 24,719 |
| Deferred tox assets | 6,305 | 5,992 | |
| Other assets | 8.7 | 29,744 | 29,757 |
| Intangible assets | 8.9 | 19,003 | 18,649 |
| Total assets | 998,354 | 983,174 | |
| Liabilities and equity | |||
| Financial liabilities | 7.3 | 62,690 | 58,301 |
| Insurance contract liabilities | 6.6 | 789,512 | 776,944 |
| Reinsurance contract liabilities | 6.7 | 267 | 231 |
| Investment contract liabilities | 8.6 | 50,252 | 49,686 |
| Deferred tox liabilities | 2,283 | 2,124 | |
| Other liabilities | 8.8 | 34,541 | 34,328 |
| Total liabilities | 939,544 | 921,614 | |
| Shareholders' equity | 8.10 | 55,511 | 58,239 |
| Non-controlling interests | 8.10 | 3,299 | 3,321 |
| Total equity | 58,810 | 61,560 | |
| Total liabilities and equity | 998,354 | 983,174 | |
| Supplementary information for insurance contracts issued | |||
| Contractual service margin (CSM) | 54,875 | 53,818 | |
| Risk adjustment | 6,735 | 6,600 |
1_The Allianz Group reclassified certain non-controlling interests to financial liabilities related to investment vehicles. There is also a cumulative adjustment to shareholders' equity. For further details, please refer to note 2.
CONSOLIDATED INCOME STATEMENT
Consolidated income statement
€ mn
| Six months ended 30 June | Note | 2024 | 2023 |
|---|---|---|---|
| Insurance revenue | 6.1 | 47,286 | 44,481 |
| Insurance service expenses | 6.2 | $(39,374)$ | $(36,810)$ |
| Reinsurance result | 6.3 | $(1,638)$ | $(1,377)$ |
| Insurance service result | 6,275 | 6,293 | |
| Interest result ${ }^{1}$ | 7.1 | 13,747 | 12,282 |
| Realized gains/losses (net) | 7.1 | $(1,857)$ | $(2,860)$ |
| Valuation result | 7.1 | 7,604 | 5,876 |
| Investment expenses | 7.1 | $(993)$ | $(884)$ |
| Net investment income | 16,500 | 14,414 | |
| Finance expenses from insurance contracts (net) | 6.4 | $(16,662)$ | $(13,720)$ |
| Finance income from reinsurance contracts (net) | 6.4 | 347 | 300 |
| Net insurance finance expenses | $(16,315)$ | $(13,421)$ | |
| Investment result | 2,186 | 994 | |
| Fee and commission income | 8.1 | 6,893 | 6,516 |
| Fee and commission expenses | 8.2 | $(2,828)$ | $(2,710)$ |
| Net result from investment contracts ${ }^{2}$ | $(137)$ | $(97)$ | |
| Acquisition and administrative expenses | 8.3 | $(4,812)$ | $(4,612)$ |
| Other income | 12 | 20 | |
| Other expenses | $(245)$ | $(169)$ | |
| Amortization of intangible assets | $(142)$ | $(159)$ | |
| Restructuring and integration expenses | $(224)$ | $(139)$ | |
| Income before income taxes | 6,977 | 5,936 | |
| Income taxes | 8.4 | $(1,684)$ | $(1,290)$ |
| Net income | 5,293 | 4,647 | |
| Net income attributable to: | |||
| Non-controlling interests | 305 | 278 | |
| Shareholders | 4,988 | 4,369 | |
| Basic earnings per share (€) | 8.5 | 12.41 | 10.59 |
| Diluted earnings per share (€) | 8.5 | 12.40 | 10.58 |
| 1 Includes interest expenses from external debt. 2 Excluding investment result and fee income. |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Consolidated statement of comprehensive income
€ mn
| Six months ended 30 June | 2024 | 2023 |
|---|---|---|
| Net income | 5,293 | 4,647 |
| Other comprehensive income | ||
| Items that may be reclassified to profit or loss in future periods | ||
| Foreign currency translation adjustments | ||
| Reclassifications to net income | (5) | 375 |
| Changes arising during the period | 504 | $(610)$ |
| Subtotal | 499 | $(235)$ |
| Debt investments measured at fair value through other comprehensive income | ||
| Reclassifications to net income | 1,401 | 2,033 |
| Changes arising during the period | $(9,567)$ | 4,223 |
| Subtotal | $(8,166)$ | 6,256 |
| Cash flow hedges | ||
| Reclassifications to net income | 97 | (37) |
| Changes arising during the period | (57) | (22) |
| Subtotal | 40 | (59) |
| Share of other comprehensive income of associates and joint ventures | ||
| Reclassifications to net income | - | - |
| Changes arising during the period | 86 | 5 |
| Subtotal | 86 | 5 |
| Insurance liabilities | ||
| Reclassifications to net income | 8,084 | 4,679 |
| Changes arising during the period | $(2,450)$ | $(9,416)$ |
| Subtotal | 5,634 | $(4,757)$ |
| Six months ended 30 June | 2024 | 2023 |
|---|---|---|
| Items that may be reclassified to profit or loss in future periods (continued) | ||
| Reinsurance assets | ||
| Reclassifications to net income | - | - |
| Changes arising during the period | 314 | (99) |
| Subtotal | 314 | (99) |
| Miscellaneous | ||
| Reclassifications to net income | - | - |
| Changes arising during the period | (57) | 27 |
| Subtotal | (57) | 27 |
| Items that may never be reclassified to profit or loss | ||
| Actuarial gains and losses on defined benefit plans | 210 | (71) |
| Equity investments measured at fair value through other comprehensive income | 1,191 | 1,601 |
| Insurance liabilities | $(1,091)$ | $(1,404)$ |
| Miscellaneous | (33) | (35) |
| Total other comprehensive income | $(1,374)$ | 1,228 |
| Total comprehensive income | 3,919 | 5,875 |
| Total comprehensive income attributable to: | ||
| Non-controlling interests | 213 | 232 |
| Shareholders | 3,706 | 5,643 |
For further information on the income taxes associated with different components of other comprehensive income, please see note 8.4.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Consolidated statement of changes in equity
€ mn
CONSOLIDATED STATEMENTOF CASH FLOWS
Consolidated statement of cash flows
$\epsilon$ mn
| Six months ended 30 June | 2024 | $2023^{1}$ |
|---|---|---|
| Summary | ||
| Net cash flow provided by operating activities | 15,267 | 14,360 |
| Net cash flow used in investing activities | $(9,578)$ | $(4,696)$ |
| Net cash flow used in financing activities | $(7,101)$ | $(6,565)$ |
| Effect of exchange rate changes on cash and cash equivalents | 79 | $(411)$ |
| Change in cash and cash equivalents | $(1,334)$ | 2,688 |
| Cash and cash equivalents at beginning of period | 29,210 | 22,896 |
| Cash and cash equivalents reclassified to assets of disposal groups held for sale and disposed of in 2023 | - | 28 |
| Cash and cash equivalents reclassified to assets of disposal groups held for sale and disposed of in 2024 | 182 | |
| Cash and cash equivalents at end of period | 28,058 | 25,612 |
| Cash flow from operating activities | ||
| Net income | 5,293 | 4,647 |
| Adjustments to reconcile net income to net cash flow provided by operating activities | ||
| Share of earnings from investments in associates and joint ventures | $(64)$ | $(37)$ |
| Realized gains/losses (net), impairments of investments (net), valuation result (net) | ||
| Investments measured at fair value through profit or loss/other comprehensive income and at amortized costs, investments in associates and joint ventures, real estate held for investments, non-current assets and disposal groups classified as held for sale | 1,171 | 4,256 |
| Other investments, mainly derivatives | 1,545 | $(2,566)$ |
| Depreciation and amortization | 1,027 | 1,091 |
| Other non-cash income/expenses | $(2,068)$ | 1,112 |
| Net change in: | ||
| Reinsurance contract assets and liabilities | 73 | 450 |
| Insurance contract assets and liabilities | 14,609 | 12,356 |
| Investment contract liabilities | 1,062 | 1,995 |
| Financial assets for unlinked contracts | $(7,738)$ | $(8,259)$ |
| Deferred tax assets/liabilities | 243 | 325 |
| Other (net) | 115 | $(1,010)$ |
| Subtotal | 9,974 | 9,713 |
| Net cash flow provided by operating activities | 15,267 | 14,360 |
| Cash flow from investing activities | ||
| Proceeds from the sale/maturity/repayment of: | ||
| Investments measured at fair value through profit or loss | 10,680 | 9,729 |
| Investments measured at fair value through other comprehensive income | 112,970 | 89,734 |
| Investments measured at amortized cost | 488 | 119 |
| Investments in associates and joint ventures | 61 | 156 |
| Non-current assets and disposal groups classified as held for sale | 228 | 72 |
| Real estate held for investment | 55 | 235 |
| Six months ended 30 June | 2024 | $2023^{1}$ |
|---|---|---|
| Property and equipment | 64 | 53 |
| Subtotal | 124,547 | 100,097 |
| Payments for the purchase or origination of: | ||
| Investments measured at fair value through profit or loss | $(16,593)$ | $(15,602)$ |
| Investments measured at fair value through other comprehensive income | $(112,582)$ | $(88,688)$ |
| Investments measured at amortized cost | $(1,720)$ | $(855)$ |
| Investments in associates and joint ventures | $(335)$ | $(403)$ |
| Non-current assets and disposal groups classified as held for sale | $(150)$ | |
| Real estate held for investment | $(487)$ | $(413)$ |
| Fixed assets from alternative investments | $(76)$ | $(71)$ |
| Property and equipment | $(721)$ | $(639)$ |
| Subtotal | $(132,514)$ | $(106,823)$ |
| Business combinations (note 3): | ||
| Proceeds from sale of subsidiaries, net of cash disposed | 76 | $(27)$ |
| Acquisitions of subsidiaries, net of cash acquired | $(280)$ | $(57)$ |
| Net change from derivative assets and liabilities | $(1,365)$ | 2,191 |
| Other (net) | $(43)$ | $(78)$ |
| Net cash flow used in investing activities | $(9,578)$ | $(4,696)$ |
| Cash flow from financing activities | ||
| Net change in liabilities to banks and customers and other financial liabilities | $(468)$ | $(391)$ |
| Proceeds from the issuance of certificated liabilities and subordinated liabilities | 3,014 | 2,871 |
| Repayments of certificated liabilities and subordinated liabilities | $(2,937)$ | $(3,048)$ |
| Net change in lease liabilities | $(199)$ | $(191)$ |
| Transactions between equity holders | 52 | 127 |
| Dividends paid to shareholders | $(5,633)$ | $(4,778)$ |
| Net cash from sale or purchase of treasury stock | $(917)$ | $(1,069)$ |
| Other (net) | $(14)$ | $(85)$ |
| Net cash flow used in financing activities | $(7,101)$ | $(6,565)$ |
| 1. The Allianz Group reclassified certain non-controlling interests to financial liabilities related to investment vehicles. There is also a cumulative adjustment to shareholders' equity and to the investments measured at fair value through other comprehensive income and measured at fair value through profit or loss. For further details, please refer to note 2. |
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
GENERAL INFORMATION
1_ Nature of operations and basis of presentation
The Allianz Group's condensed consolidated interim financial statements are presented in accordance with the requirements of IAS 34 and have been prepared in conformity with International Financial Reporting Standards (IFRSs) applicable to interim financial reporting, as adopted under European Union regulations.
For existing and unchanged IFRSs, the condensed consolidated interim financial statements use the same accounting policies for recognition, measurement, consolidation, and presentation as applied in the consolidated financial statements for the year ended 31 December 2023. These condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements for the year ended 31 December 2023.
Amounts are rounded to millions of euro (€ mn), unless otherwise stated.
These condensed consolidated interim financial statements of the Allianz Group were authorized for issue by the Board of Management on 7 August 2024.
2 _ Change in presentation and new accounting pronouncements
Change in presentation
The Allianz Group has identified a prior period error through an analysis of certain non-controlling interests in subsidiaries that are either puttable financial instruments or obligations arising on liquidation (the "error"). These interests had been presented as noncontrolling interests in equity despite meeting the requirement to be
presented as financial liabilities in the consolidated financial statements according to IAS 32. A correct classification leads to accounting mismatches for investments, which are not measured at fair value and, hence, also impact shareholders' equity. The error was included in the Allianz Group's financial statements for the years prior to 2023.
The Allianz Group has assessed the materiality of the error based both on quantitative and qualitative criteria and has come to the conclusion that a retrospective error correction would provide users of the financial statements the most relevant information due to the substantial impact on the few balance sheet line items.
The following table summarizes the effect of the error on the consolidated balance sheet as of 31 December 2023.
Effects on consolidated balance sheet
€ mn
| As of 31 December 2023 | As reported | Adjustment | As adjusted |
|---|---|---|---|
| Financial liabilities | 56,282 | 2,019 | 58,301 |
| Total liabilities | 919,594 | 2,019 | 921,614 |
| Shareholders' equity | 58,477 | (238) | 58,239 |
| Non-controlling interests | 5,103 | (1,781) | 3,321 |
| Total equity | 63,580 | (2,019) | 61,560 |
However, the effect of the error on net income as reported for the year 2023 was immaterial:
Effect on net income
€ mn
2023
Net income
Net income attributable to:
Non-controlling interests
23
Shareholders
This is due to the fact that the majority of the error related to the years before 2023. As its correction in the consolidated income statement has been determined to be immaterial, no restatement of the prior period performance has been performed. The effects of the error on net income for 2023 have been reflected through an out-of-period adjustment to net income in 2024.
New accounting pronouncements
Recently adopted accounting pronouncements (effective 1 January 2024)
The following amendments and revisions to existing standards became effective for the Allianz Group's consolidated financial statements as of 1 January 2024:
- IAS 1, Classification of Liabilities as Current or Non-current,
- IAS 1, Non-current Liabilities with Covenants,
- IFRS 16, Lease Liability in a Sale and Leaseback,
- IAS 7 and IFRS 7, Supplier Finance Arrangements.
These changes had no material impact on the Allianz Group's financial results or financial position.
Recently issued accounting pronouncements
The following standards, amendments, and revisions to standards and interpretations have been issued by the IASB but are not yet effective for or have not been adopted early by the Allianz Group.
Recently issued accounting pronouncements ${ }^{1}$
| Standard/Interpretation | Effective date |
|---|---|
| IAS 21, Lack of Exchangeability | Annual periods beginning on or after 1 January 2025 |
| IFRS 9 and IFRS 7, Classification and Measurement of Financial Instruments |
Annual periods beginning on or after 1 January 2026 |
| IFRS 18, Presentation and Disclosure in Financial Statements |
Annual periods beginning on or after 1 January 2027 |
| IFRS 19, Subsidiaries without Public Accountability: Disclosures |
Annual periods beginning on or after 1 January 2027 |
| 1_Endorsement in the EU is still outstanding. |
These amendments are not expected to have a material impact on the financial position and financial results of the Allianz Group. The adoption of IFRS 18 is expected to result in presentation changes in the consolidated financial statements and disclosure changes in the notes. Early adoption is generally allowed but not intended by the Allianz Group.
3 _ Consolidation and classification as held forsale
TUA Assicurazioni S.p.A., Italy
On 1 March 2024, the Allianz Group completed the acquisition of $99.99 \%$ of the shares of TUA Assicurazioni S.p.A., Italy, a non-life insurance business to consolidate Allianz Group's position as a leading insurer in the Italian property-casualty market.
The Allianz Group acquired identifiable assets and liabilities with a preliminary fair value of $€ 651 \mathrm{~mm}$ and $€ 468 \mathrm{~mm}$, respectively. Expected substantial cost synergies through the use of the business platforms of Allianz Italy and leveraging economies of scale on central functions are the main factors that make up the goodwill recognized
at a preliminary amount of $€ 98 \mathrm{~mm}$ and allocated to the CGU Property-Casualty Insurance Western \& Southern Europe.
Classification as held for sale
Non-current assets and disposal groups classified as held for sale
€ mn
| As of 30 June 2024 | As of 31 December 2023 | |
|---|---|---|
| Assets of disposal groups classified as held for sale | ||
| Allianz Saudi Arabia | - | 463 |
| Euler Hermes Re | - | 240 |
| Swedish real estate portfolio | - | 202 |
| Other disposal groups | 9 | 33 |
| Subtotal | 9 | 938 |
| Non-current assets classified as held for sale | ||
| Real estate held for investment | 157 | 100 |
| Real estate held for own use | 16 | 15 |
| Associates and joint ventures | 64 | 69 |
| Subtotal | 237 | 183 |
| Total | 246 | 1,121 |
Liabilities of disposal groups classified as held for sale
| Allianz Saudi Arabia | - | 252 |
|---|---|---|
| Euler Hermes Re | - | 32 |
| Swedish real estate portfolio | - | 9 |
| Other disposal groups | 7 | 38 |
| Total | 7 | 332 |
Allianz Saudi Arabia
On 17 April 2024, the Allianz Group completed the sale of its $51 \%$ stake in Allianz Saudi Fransi to Abu Dhabi National Insurance Company (ADNIC).
The assets and liabilities of Allianz Saudi Fransi classified as held for sale were allocated to the reportable segment Global Insurance Lines \& Anglo Markets, Iberia \& Latin America, Africa (PropertyCasualty and Life/Health).
The impact of the disposal, net of cash disposed, on the consolidated statement of cash flows for the first half year of 2024 was as follows:
Impact of the disposal
$\epsilon \mathrm{mn}$
| Investments | 247 |
|---|---|
| Financial assets for unit-linked contracts | 124 |
| Reinsurance contract assets | 87 |
| Deferred tax assets | 1 |
| Other assets | 10 |
| Intangible assets | 15 |
| Insurance contract liabilities | $(274)$ |
| Other liabilities | $(35)$ |
| Other comprehensive income | $(18)$ |
| Non-controlling interests | $(91)$ |
| Gain on disposal | 28 |
| Proceeds from sale of the subsidiary, net of cash disposed ${ }^{1}$ | 92 |
| 1_Includes cash and cash equivalents at an amount of $€ 33 \mathrm{~mn}$, which were disposed of with the | |
| entity. |
On completion, cumulative gains of $€ 18 \mathrm{~mn}$ previously reported in other comprehensive income were reclassified to profit or loss.
Euler Hermes Re S.A., Luxembourg
On 20 June 2024, the Allianz Group completed the sale of its 100\% stake in Euler Hermes Re S.A., Luxembourg, to a Luxembourg captive reinsurance company.
The assets and liabilities of Euler Hermes Re S.A. classified as held for sale were allocated to the reportable segment Global Insurance Lines \& Anglo Markets, Iberia \& Latin America, Africa (PropertyCasualty).
The impact of the disposal, net of cash disposed, on the consolidated statement of cash flows for the first half year of 2024 was as follows:
| Deferred tox liabilities | |
|---|---|
| Other liabilities | $(32)$ |
| Other comprehensive income | |
| Gain on disposal | 1 |
| Proceeds from sale of the subsidiary, net of cash disposed ${ }^{1}$ | $(16)$ |
| 1 Includes cash and cash equivalents at an amount of $€ 150 \mathrm{~mm}$, which were disposed of with the | |
| entity. |
On completion, cumulative losses of $€ 1 \mathrm{~mm}$ previously reported in other comprehensive income were reclassified to profit or loss.
4 Supplementary information on the consolidated statement of cash flows
Supplementary information on the consolidated statement of cash
flows
$€ \mathrm{~mm}$
| Six months ended 30 June | 2024 | 2023 |
|---|---|---|
| Income taxes paid (from operating activities) | $(1,469)$ | $(1,826)$ |
| Dividends received (from operating activities) | 2,648 | 2,164 |
| Interest received (from operating activities) | 10,927 | 9,831 |
| Interest paid (from operating activities) | $(681)$ | $(558)$ |
Changes in liabilities arising from financing activities $€ \mathrm{~mm}$
| Liabilities to banks and customers and other liabilities |
Conflicated and subor- dinated liabilities |
Lease liabilities |
Total | |
|---|---|---|---|---|
| As of 1 January 2023 | 21,101 | 21,215 | 2,740 | 45,057 |
| Net cash flows | $(391)$ | $(177)$ | $(191)$ | $(759)$ |
| Non-cash changes | ||||
| Changes in the consolidated subsidiaries of the Allianz Group |
1 | - | 9 | 10 |
| Foreign currency translation adjustments |
$(167)$ | $(6)$ | $(23)$ | $(197)$ |
| Fair value and other changes |
243 | 132 | 234 | 609 |
| As of 30 June 2023 | 20,787 | 21,163 | 2,769 | 44,719 |
| As of 1 January 2024 | 22,502 | 21,145 | 2,730 | 46,376 |
| Net cash flows | $(468)$ | 78 | $(199)$ | $(589)$ |
| Non-cash changes | ||||
| Changes in the consolidated subsidiaries of the Allianz Group |
9 | - | 51 | 60 |
| Foreign currency translation adjustments |
234 | 4 | 16 | 254 |
| Fair value and other changes |
20 | 289 | 60 | 370 |
| As of 30 June 2024 | 22,298 | 21,515 | 2,659 | 46,472 |
5 _ Segment reporting
Identification of reportable segments
The business activities of the Allianz Group are 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:
- German Speaking Countries and Central Europe,
- Western \& Southern Europe, Allianz Direct and Allianz Partners,
- Asia Pacific,
- USA (Life/Health only),
- Global Insurance Lines \& Anglo Markets, Iberia \& Latin America, Africa.
Both asset management as well as corporate and other activities represent separate reportable segments. In total, the Allianz Group has identified 11 reportable segments in accordance with IFRS 8.
The types of products and services from which the reportable segments derive revenues are described below.
Property-Casualty
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.
Life/Health
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.
Asset Management
The reportable segment Asset Management operates as a global provider of institutional and retail asset management products and services to third-party investors. It also 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 multi-assets and alternative products. The United States, Canada, Europe, and the Asia-Pacific region represent the primary asset management markets.
Corporate and Other
The reportable segment Corporate and Other 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. Furthermore, it includes the banking activities in France, Italy, and Bulgaria, as well as digital investments.
General segment reporting information
Prices for transactions between reportable segments are set on an arm's length basis in a manner similar to transactions with third parties. Lease transactions are accounted for in accordance with IFRS, except for intra-group lease transactions, which are classified as operating leases (i.e., off-balance sheet treatment by lessee) for internal and segment reporting purposes. Transactions between reportable segments are eliminated in the consolidation. Financial information is recorded based on reportable segments; cross-segmental countryspecific information is not determined.
Reportable segments measures of profit or loss
The Allianz Group uses operating profit and shareholders' core net income 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:
- realized gains/losses (net),
- expected credit loss allowance,
- income from derivatives (net),
- interest expenses from external debt,
- impairments of investments (net),
- valuation result from investments and other assets and financial liabilities measured at fair value through profit or loss,
- specific acquisition and administrative expenses, consisting of acquisition-related expenses (from business combinations), income taxes related incidental benefits/expenses, litigation expenses, and one-time effects from significant reinsurance transactions with disposal character,
- amortization of intangible assets,
- restructuring and integration expenses, and
- income and expenses from the application of hyperinflation accounting.
The following exceptions apply to this general rule:
- In all reportable segments, the valuation result from investments and other assets and financial liabilities measured at fair value through profit or loss is treated as operating profit if it relates to operating business.
- For life/health insurance business and property-casualty insurance products with policyholder participation, all items listed above are included in operating profit if the profit sources are shared with policyholders.
Shareholders' core net income presents the shareholders' portion of income before market movements and amortization of specific intangible assets from business combinations (including any related tax effects). The Allianz Group considers the presentation of
shareholders' core net income to be useful and meaningful because it reduces the volatility and impact caused by non-operating items which are not attendant to the Allianz Group's sustainable performance.
When determining shareholders' core net income, the Allianz Group generally excludes the following non-operating items (including any related tax effects):
- Non-operating market movements:
- valuation result from investments measured at fair value through profit or loss, and
- income from derivatives.
- Non-operating amortization and impairments of intangible assets from business combinations except for insurance, investment or service contracts or agreements for the distribution of such contracts.
Operating profit and shareholders' core net income 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.
Recent organizational changes
Only minor reallocations between the reportable segments have been made.
Business segment information - consolidated balance sheet
Business segment information - consolidated balance sheet
$€$ mn
| Property-Casualty | Life/Health | Asset Management | Corporate and Other | Consolidation | Group | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| As of 30 June 2024 | As of 31 December 2023 | As of 30 June 2024 | As of 31 December 2023 | As of 30 June 2024 | As of 31 December 2023 | As of 30 June 2024 | As of 31 December 2023 | As of 30 June 2024 | As of 31 December 2023 | As of 30 June 2024 | As of 31 December 2023 | |
| Assets | ||||||||||||
| Cash and cash equivalents | 5,602 | 5,887 | 16,501 | 17,700 | 1,326 | 1,183 | 4,922 | 4,689 | (293) | (249) | 28,058 | 29,210 |
| Investments | 119,869 | 116,447 | 582,175 | 573,187 | 1,169 | 1,149 | 126,338 | 129,335 | (100,486) | (98,315) | 729,065 | 721,802 |
| Financial assets for unit-linked contracts | - | - | 160,465 | 152,872 | - | - | - | - | - | - | 160,465 | 152,872 |
| Insurance contract assets | - | 103 | 88 | 69 | - | - | - | - | - | - | 88 | 172 |
| Reinsurance contract assets | 11,390 | 10,855 | 14,311 | 13,915 | - | - | - | - | (75) | (51) | 25,627 | 24,719 |
| Deferred tox assets | 1,650 | 1,554 | 5,006 | 4,813 | 266 | 225 | 1,489 | 1,575 | (2,106) | (2,175) | 6,305 | 5,992 |
| Other assets | 25,202 | 23,562 | 15,452 | 16,752 | 5,845 | 5,890 | 8,769 | 10,109 | (25,525) | (26,556) | 29,744 | 29,757 |
| Intangible assets | 6,518 | 6,284 | 4,609 | 4,596 | 7,582 | 7,476 | 290 | 290 | 3 | 3 | 19,003 | 18,649 |
| Total assets | 170,232 | 164,692 | 798,606 | 783,905 | 16,188 | 15,922 | 141,809 | 145,998 | (128,481) | (127,343) | 998,354 | 983,174 |
| Liabilities and equity | ||||||||||||
| Financial liabilities | 1,983 | 2,502 | 25,470 | 20,398 | 116 | 116 | 42,704 | 42,937 | (7,583) | (7,651) | 62,690 | 58,301 |
| Insurance contract liabilities | 99,699 | 96,339 | 689,908 | 680,654 | - | - | - | - | (96) | (49) | 789,512 | 776,944 |
| Reinsurance contract liabilities | 113 | 125 | 154 | 105 | - | - | - | - | - | - | 267 | 231 |
| Investment contract liabilities | - | - | 50,252 | 49,686 | - | - | - | - | - | - | 50,252 | 49,686 |
| Deferred tox liabilities | 1,752 | 1,863 | 2,064 | 1,914 | 135 | 133 | 444 | 396 | (2,113) | (2,182) | 2,283 | 2,124 |
| Other liabilities | 16,605 | 16,288 | 8,329 | 8,533 | 5,577 | 5,419 | 29,499 | 30,614 | (25,470) | (26,526) | 34,541 | 34,328 |
| Total liabilities | 120,152 | 117,117 | 776,178 | 761,290 | 5,828 | 5,668 | 72,648 | 73,946 | (35,262) | (36,407) | 939,544 | 921,614 |
| Shareholders' equity | 48,595 | 46,216 | 20,779 | 20,934 | 10,246 | 10,131 | 68,890 | 71,863 | (92,999) | (90,904) | 55,511 | 58,239 |
| Non-controlling interests | 1,485 | 1,359 | 1,650 | 1,682 | 114 | 123 | 271 | 189 | (221) | (31) | 3,299 | 3,321 |
| Total equity | 50,080 | 47,574 | 22,428 | 22,615 | 10,360 | 10,254 | 69,161 | 72,052 | (93,219) | (90,936) | 58,810 | 61,560 |
| Total liabilities and equity | 170,232 | 164,692 | 798,606 | 783,905 | 16,188 | 15,922 | 141,809 | 145,998 | (128,481) | (127,343) | 998,354 | 983,174 |
- The Allions Group reclassified certain non-controlling interests to financial liabilities related to investment vehicles. There is also a cumulative adjustment to shareholders' equity. For further details, please refer to note 2.
Business segment information - total business volume and reconciliation of operating profit (loss) to net income (loss) and of income (loss) before income taxes to shareholders' core net income (loss)
Business segment information - total business volume and reconciliation of operating profit (loss) to net income (loss)
€ mn
| Property-Casualty | Life/Health | Asset Management | Corporate and Other | Consolidation | Group | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Six months ended 30 June | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Total business volume ${ }^{1}$ | 44,766 | 41,729 | 42,652 | 40,410 | 3,964 | 3,778 | - | - | (337) | (329) | 91,045 | 85,588 |
| Total revenues ${ }^{2}$ | 37,420 | 34,555 | 11,198 | 11,183 | 3,964 | 3,778 | - | - | (332) | (315) | 52,250 | 49,201 |
Operating insurance service result
| Insurance revenue | 36,116 | 33,338 | 11,198 | 11,183 | - | - | - | - | (28) | (40) | 47,286 | 44,481 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Claims and benefits | (23,195) | (21,114) | $(6,306)$ | $(6,316)$ | - | - | - | - | 53 | 23 | $(29,448)$ | $(27,407)$ |
| Acquisition and administrative expenses | $(8,822)$ | $(8,276)$ | $(2,890)$ | $(2,788)$ | - | - | - | - | 42 | 41 | $(11,670)$ | $(11,023)$ |
| Reinsurance result | $(1,463)$ | $(1,295)$ | $(148)$ | $(90)$ | - | - | - | - | $(27)$ | 7 | $(1,638)$ | $(1,377)$ |
| Other insurance service result | - | 3 | 352 | 51 | - | - | - | - | - | - | 352 | 54 |
| Subtotal | 2,636 | 2,656 | 2,205 | 2,041 | - | - | - | - | 41 | 31 | 4,883 | 4,728 |
Operating investment result
| Operating net investment income, excluding interest expenses from external debt | 2,302 | 1,509 | 16,071 | 13,585 | 57 | 30 | 211 | 201 | 279 | 269 | 18,919 | 15,594 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net operating (re)insurance finance income (expenses) | (944) | (269) | $(15,741)$ | $(13,234)$ | - | - | - | - | 1 | - | $(16,685)$ | $(13,504)$ |
| Subtotal | 1,357 | 1,240 | 329 | 351 | 57 | 30 | 211 | 201 | 280 | 268 | 2,234 | 2,091 |
| Operating result from investment contracts | - | - | 106 | 97 | - | - | - | - | 29 | 33 | 135 | 130 |
| Operating fee and commission result | 19 | (24) | 122 | 90 | 3,904 | 3,732 | 140 | 116 | $(416)$ | $(376)$ | 3,769 | 3,537 |
| Operating other result ${ }^{4}$ | $(31)$ | $(17)$ | $(58)$ | $(57)$ | $(2,446)$ | $(2,336)$ | $(642)$ | $(604)$ | 67 | 42 | $(3,110)$ | $(2,972)$ |
| Operating profit (loss) | 3,981 | 3,855 | 2,705 | 2,521 | 1,516 | 1,426 | (291) | (287) | - | (2) | 7,911 | 7,513 |
Non-operating investment result
| Non-operating investment income (net) | (9) | (228) | (7) | (218) | 21 | 6 | (35) | (407) | 1 | 1 | (29) | (846) |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest expenses from external debt | - | - | - | - | - | - | (366) | (291) | - | - | (366) | (291) |
| Subtotal | (9) | (228) | (7) | (218) | 21 | 6 | (401) | (698) | 1 | 1 | (395) | (1,137) |
| Non-operating other result ${ }^{4}$ | (365) | (264) | (79) | (125) | (4) | (18) | (91) | (33) | - | - | (539) | (440) |
| Income (loss) before income taxes | 3,607 | 3,363 | 2,620 | 2,178 | 1,532 | 1,414 | (783) | (1,018) | - | (1) | 6,977 | 5,936 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income taxes | (861) | (859) | (645) | (440) | (390) | (361) | 213 | 371 | - | (1) | $(1,684)$ | $(1,290)$ |
| Net income (loss) | 2,746 | 2,503 | 1,975 | 1,738 | 1,141 | 1,054 | (570) | (647) | - | (2) | 5,293 | 4,647 |
Net income (loss) attributable to:
| Non-controlling interests | 77 | 71 | 53 | 98 | 99 | 88 | 75 | 21 | - | - | 305 | 278 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholders | 2,669 | 2,432 | 1,922 | 1,640 | 1,042 | 966 | (645) | (668) | - | (2) | 4,988 | 4,369 |
1_Total business volume comprises gross written premiums and fee and commission income in Property-Casualty, statutory gross premiums in Life/Health, and operating revenues in Asset Management
2. Total revenues comprise insurance revenue and fee and commission income in Property-Casualty, insurance revenue in Life/Health, and operating revenues in Asset Management.
3. Includes the operating parts of acquisition and administrative expenses, other income, and other expenses.
4. Includes the non-operating parts of acquisition and administrative expenses, other income, other expenses, amortization of intangible assets, and restructuring and integration expenses.
Business segment information - reconciliation of income (loss) before income taxes to shareholders' core net income (loss) $€$ mn
| Property-Casualty | Life/Health | Asset Management | Corporate and Other | Consolidation | Group | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Six months ended 30 June | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Income (loss) before income taxes | 3,607 | 3,363 | 2,620 | 2,178 | 1,532 | 1,414 | (783) | (1,018) | - | (1) | 6,977 | 5,936 |
| Adjustment for non-operating market movements | (26) | 105 | 45 | (15) | (6) | (7) | (98) | 295 | (1) | 1 | (87) | 379 |
| Adjustment for amortization of intangible assets from business combinations | 36 | 41 | 6 | 6 | 1 | 1 | 6 | 6 | - | - | 49 | 53 |
| Core income (loss) before income taxes | 3,617 | 3,509 | 2,670 | 2,169 | 1,527 | 1,408 | (875) | (717) | - | - | 6,939 | 6,369 |
| Income taxes related to core income (loss) | (864) | (881) | (656) | (439) | (389) | (359) | 194 | 294 | - | (1) | (1,715) | (1,385) |
| Core net income (loss) | 2,753 | 2,628 | 2,014 | 1,730 | 1,138 | 1,050 | (681) | (423) | (1) | (1) | 5,223 | 4,983 |
| thereof: Shareholders' core net income (loss) | 2,673 | 2,556 | 1,957 | 1,638 | 1,038 | 961 | (618) | (466) | (1) | (1) | 5,049 | 4,690 |
Reconciliation from external to management reporting
For steering purposes, the Allianz Group classifies certain income and expenses differently than required by IFRS as this is considered to provide more meaningful information. The main line items affected are the operating insurance service result, the operating net result from investment contracts, and the operating net investment income.
The Allianz Group uses the operating insurance service result as a performance indicator. In contrast to the IFRS 17 definition of insurance service result, the following components not included in the IFRS insurance service result are included in the operating insurance service result:
- non-attributable acquisition, administrative, and claims expenses that, before adoption of IFRS 17, were also included in the underwriting result. These expenses are included in the line acquisition and administrative expenses in the consolidated income statement ${ }^{1}$;
- adjustments for experience variances at claims and expenses if the technical result is shared with the policyholders. In the consolidated income statement, these experience variances are part of the net insurance finance expenses;
- specific restructuring charges and amortization of intangible assets, which are shared with the policyholders.
For a better analysis of the result from investment contracts, all related income and expenses are included in the line operating result from investment contracts. For this, fee and commission income and expenses as well as net investment income are reclassified from the respective line items in the Group income statement.
Fee and commission income and expenses are reclassified to operating net investment income if they are related to insurance contracts.
The following table reconciles the amounts in the consolidated Group income statement to the amounts presented in the reconciliation of operating profit (loss) to net income (loss) (OP reconciliation).
Reconciliation for special line items between Group income statement and reconciliation of operating profit to net income
€ $\boldsymbol{n n}$
| Consolidated income statement line items | Consolidated income statement | Reclassification of nonattributable expenses | Reclassification of variances and restructuring expenses | Reclassification of income related to investment contracts | Reclassification of fee income related to insurance contracts | OP reconciliation | OP reconciliation line items | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | ||||||||||||
| Six months ended 30 June | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
| Insurance revenue | 47,286 | 44,481 | - | - | - | - | - | - | - | 47,286 | 44,481 | Insurance revenue | |
| Insurance service expenses | $(39,374)$ | $(36,810)$ | |||||||||||
| thereof incurred claims and other insurance service expenses | $(29,394)$ | $(27,360)$ | (54) | (47) | - | - | - | - | - | - | $(29,448)$ | $(27,407)$ | Claims and benefits |
| thereof acquisition and administrative expenses | $(9,980)$ | $(9,451)$ | $(1,690)$ | $(1,572)$ | - | - | - | - | - | - | $(11,670)$ | $(11,023)$ | Acquisition and administrative expenses |
| Reinsurance result | $(1,638)$ | $(1,377)$ | - | - | - | - | - | - | - | - | $(1,638)$ | $(1,377)$ | Reinsurance result |
| Insurance service result | 6,275 | 6,293 | $(1,744)$ | $(1,619)$ | 352 | 54 | - | - | - | - | 352 | 54 | Other insurance service result |
| Net investment income | 18,500 | 14,414 | - | - | - | - | $(176)$ | $(140)$ | 200 | 182 | 18,524 | 14,457 | Net investment income |
| 18,919 | 15,594 | thereof operating net investment income | |||||||||||
| (29) | (846) | thereof non-operating net investment income | |||||||||||
| (366) | (291) | thereof interest expenses from external debt | |||||||||||
| Net insurance finance expenses | $(16,315)$ | $(13,421)$ | - | - | $(370)$ | $(83)$ | - | - | - | - | $(16,685)$ | $(13,504)$ | Net insurance finance income (expenses) |
| Fee and commission income and expenses (net) | 4,065 | 3,807 | - | - | - | - | $(96)$ | $(87)$ | (200) | (182) | 3,769 | 3,537 | Operating fee and commission income and expenses (net) |
| Net result from investment contracts | (137) | (97) | - | - | - | - | 272 | 227 | - | - | 135 | 130 | Operating net result from investment contracts |
| Other result ${ }^{1}$ | $(5,411)$ | $(5,060)$ | 1,744 | 1,619 | 19 | 29 | - | - | - | - | $(3,649)$ | $(3,411)$ | Other result |
| $(3,110)$ | $(2,972)$ | thereof operating other result | |||||||||||
| (539) | (440) | thereof non-operating other result | |||||||||||
| Income before income taxes | 6,977 | 5,936 | - | - | - | - | - | - | - | - | 6,977 | 5,936 | Income before income taxes |
| Income taxes | $(1,684)$ | $(1,290)$ | - | - | - | - | - | - | - | - | $(1,684)$ | $(1,290)$ | Income taxes |
| Net income | 5,293 | 4,647 | - | - | - | - | - | - | - | - | 5,293 | 4,647 | Net income |
1 Includes acquisition and administrative expenses, other income, other expenses, amortization of intangible assets, and restructuring and integration expenses.
Reportable segment information - key indicators
Reportable segment information - key indicators
€ mn
| Total business volume | Operating profit (loss) | Shareholders' core net income (loss) | Net income (loss) | |||||
|---|---|---|---|---|---|---|---|---|
| Six months ended 30 June | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| German Speaking Countries and Central Europe | 12,066 | 11,284 | 1,012 | 1,274 | 679 | 861 | 703 | 845 |
| Western \& Southern Europe, Allianz Direct and Allianz Partners | 13,536 | 12,216 | 1,049 | 977 | 617 | 665 | 635 | 648 |
| Asia Pacific | 3,573 | 3,251 | 313 | 152 | 217 | 95 | 242 | 115 |
| Global Insurance Lines \& Anglo Markets, Iberia \& Latin America, Africa | 18,904 | 17,925 | 1,609 | 1,452 | 1,159 | 935 | 1,165 | 895 |
| Consolidation | $(3,313)$ | $(2,946)$ | $(3)$ | - | 1 | - | 1 | - |
| Total Property-Cosualty | 44,766 | 41,729 | 3,981 | 3,855 | 2,673 | 2,556 | 2,746 | 2,503 |
| German Speaking Countries and Central Europe | 15,733 | 16,485 | 992 | 903 | 729 | 632 | 742 | 644 |
| Western \& Southern Europe | 12,524 | 10,356 | 761 | 703 | 452 | 438 | 465 | 470 |
| Asia Pacific | 3,258 | 3,020 | 305 | 299 | 203 | 206 | 249 | 246 |
| USA | 10,021 | 9,427 | 544 | 535 | 498 | 440 | 441 | 452 |
| Global Insurance Lines \& Anglo Markets, Iberia \& Latin America, Africa | 1,189 | 1,225 | 122 | 106 | 91 | (57) | 93 | (52) |
| Consolidation and Other | (73) | (103) | (19) | (24) | (16) | (20) | (16) | (20) |
| Total Life/Health | 42,652 | 40,410 | 2,705 | 2,521 | 1,957 | 1,638 | 1,975 | 1,738 |
| Asset Management | 3,964 | 3,778 | 1,516 | 1,426 | 1,038 | 961 | 1,141 | 1,054 |
| Corporate and Other | - | - | (291) | (287) | (618) | (466) | (570) | (647) |
| Consolidation | (337) | (329) | - | (2) | (1) | (1) | - | (2) |
| Group | 91,045 | 85,588 | 7,911 | 7,513 | 5,049 | 4,690 | 5,293 | 4,647 |
6 _ NOTES TO INSURANCE OPERATIONS
6.1 _ Insurance revenue
Insurance revenue
€ mn
| Property-Casualty | Life/Health | Consolidation | Group | |||||
|---|---|---|---|---|---|---|---|---|
| Six months ended 30 June | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Insurance revenue from contracts measured under the premium allocation approach (PAA) | 35,944 | 33,163 | 334 | 537 | (21) | (17) | 36,258 | 33,683 |
| Insurance revenue from contracts not measured under the PAA | ||||||||
| Amounts relating to changes in the liability for remaining coverage | ||||||||
| Insurance service expenses incurred | 89 | 93 | 6,628 | 6,663 | (5) | (26) | 6,711 | 6,730 |
| CSM recognized for services provided | 53 | 55 | 2,517 | 2,460 | (1) | (11) | 2,569 | 2,504 |
| Change in the risk adjustment | 2 | 2 | 243 | 257 | - | - | 245 | 259 |
| Other | 1 | 5 | 106 | (25) | (1) | 13 | 105 | (6) |
| Recovery of insurance acquisition cash flows | 26 | 20 | 1,371 | 1,291 | - | - | 1,397 | 1,310 |
| Subtotal | 172 | 175 | 10,863 | 10,646 | (7) | (24) | 11,028 | 10,798 |
| Total | 36,116 | 33,338 | 11,198 | 11,183 | (28) | (40) | 47,286 | 44,481 |
6.2 _ Insurance service expenses
Insurance service expenses
€ mn
| Property-Casualty | Life/Health | Consolidation | Group | |||||
|---|---|---|---|---|---|---|---|---|
| Six months ended 30 June | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Incurred claims | (23,154) | (21,077) | (6,293) | (6,306) | 53 | 23 | (29,394) | (27,360) |
| Acquisition and administrative expenses | (7,660) | (7,228) | (2,373) | (2,274) | 53 | 51 | (9,980) | (9,451) |
| Total | (30,814) | (28,305) | (8,666) | (8,580) | 106 | 74 | (39,374) | (36,810) |
6.3 _ Reinsurance result
Reinsurance result
€ mn
| Property-Casualty | Life/Health | Consolidation | Group | |||||
|---|---|---|---|---|---|---|---|---|
| Six months ended 30 June | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Allocation of reinsurance premiums | $(3,085)$ | $(3,098)$ | $(1,847)$ | $(1,521)$ | 24 | 29 | $(4,908)$ | $(4,590)$ |
| Amounts recoverable from reinsurers for incurred claims | 1,621 | 1,804 | 1,699 | 1,431 | (50) | (22) | 3,270 | 3,213 |
| Total | $(1,463)$ | $(1,295)$ | $(148)$ | $(90)$ | $(27)$ | 7 | $(1,638)$ | $(1,377)$ |
6.4 _ Net insurance finance result
Net insurance finance result
€ mn
| Six months ended 30 June | 2024 | 2023 | ||||||
|---|---|---|---|---|---|---|---|---|
| Property-Casualty | Life/Health | Consolidation | Group | Property-Casualty | Life/Health | Consolidation | Group | |
| Net insurance finance result | ||||||||
| Finance expenses from insurance contracts (net) | ||||||||
| Interest accreted | (875) | $(3,408)$ | 2 | $(4,281)$ | (510) | $(3,047)$ | - | $(3,556)$ |
| Effect of changes in interest rates and other financial assumptions | 3 | $(1,392)$ | - | $(1,389)$ | 4 | $(2,833)$ | - | $(2,829)$ |
| Change in fair value of underlying items | (68) | $(11,140)$ | 1 | $(11,208)$ | 82 | $(7,803)$ | - | $(7,721)$ |
| Effects of risk mitigation option | - | 543 | - | 543 | - | 421 | - | 421 |
| Foreign exchange gains/losses ${ }^{1}$ | (200) | (126) | - | (326) | 18 | (53) | - | (35) |
| Subtotal | $(1,140)$ | $(15,523)$ | 2 | $(16,662)$ | $(405)$ | $(13,315)$ | - | $(13,720)$ |
| Finance income from reinsurance contracts (net) | ||||||||
| Interest accreted | 166 | 287 | (1) | 451 | 109 | 226 | - | 335 |
| Effect of changes in interest rates and other financial assumptions | 6 | (131) | - | (125) | 7 | (65) | - | (58) |
| Foreign exchange gains/losses ${ }^{1}$ | 24 | (3) | - | 22 | 23 | - | - | 23 |
| Subtotal | 196 | 152 | (1) | 347 | 139 | 161 | - | 300 |
| Total | $(946)$ | $(15,371)$ | 1 | $(16,315)$ | $(266)$ | $(13,154)$ | - | $(13,421)$ |
- Foreign exchange gains/losses are included in the line foreign currency translation adjustments for the analysis of movements in insurance and reinsurance contract balances in notes 6.6 and 6.7 . The amounts disclosed as finance income and expenses (net) in notes 6.6 and 6.7 also include the amounts recognized in other comprehensive income in the period.
6.5 _ Insurance and reinsurance contract balances
The following tables show the composition of insurance and reinsurance contract balances.
Insurance contracts ${ }^{1}$
€ mn
| As of 30 June 2024 | As of 31 December 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| Property-Cosucity | Life/Health | Consolidation | Group | Property-Cosucity | Life/Health | Consolidation | Group | |
| Liability for remaining coverage | ||||||||
| Contracts measured under the PAA | 26,764 | 1,183 | (18) | 27,928 | 21,237 | 983 | (11) | 22,209 |
| Receivables | $(16,861)$ | (289) | 35 | $(17,115)$ | $(13,894)$ | $(314)$ | 8 | $(14,200)$ |
| Payables and deposits | 1,580 | 8 | (1) | 1,588 | 2,002 | 8 | (4) | 2,006 |
| Subtotal | 11,483 | 903 | 16 | 12,401 | 9,345 | 677 | (7) | 10,015 |
| Contracts not measured under the PAA ${ }^{1}$ | ||||||||
| Present value of future cash flows ${ }^{2}$ | 6,211 | 621,452 | (11) | 627,652 | 6,428 | 613,869 | 28 | 620,325 |
| thereof receivables | (99) | $(2,938)$ | 13 | $(3,025)$ | (169) | $(2,824)$ | 14 | $(2,979)$ |
| thereof payables and deposits | 7 | 1,875 | (19) | 1,864 | 16 | 2,151 | - | 2,167 |
| Risk adjustment | 83 | 4,746 | - | 4,828 | 77 | 4,647 | (1) | 4,724 |
| CSM | 1,255 | 53,630 | (11) | 54,875 | 1,239 | 52,601 | (22) | 53,818 |
| Subtotal | 7,549 | 679,829 | (23) | 687,355 | 7,744 | 671,118 | 5 | 678,867 |
| Subtotal | 19,032 | 680,731 | (7) | 699,756 | 17,088 | 671,795 | (1) | 688,882 |
| thereof asset for acquisition cash flows | $(1,398)$ | (38) | - | $(1,435)$ | $(1,413)$ | $(40)$ | - | $(1,453)$ |
| Liability for incurred claims | ||||||||
| Contracts measured under the PAA | ||||||||
| Present value of future cash flows | 78,407 | 406 | (44) | 78,770 | 77,129 | 439 | (20) | 77,547 |
| thereof receivables | (101) | - | - | (101) | (161) | - | - | (161) |
| thereof payables and deposits | 759 | 118 | (3) | 875 | 975 | 143 | (2) | 1,117 |
| Risk adjustment | 1,824 | 1 | - | 1,825 | 1,782 | 1 | - | 1,783 |
| Subtotal | 80,232 | 407 | (44) | 80,595 | 78,911 | 439 | (20) | 79,330 |
| Contracts not measured under the PAA ${ }^{1}$ | ||||||||
| Present value of future cash flows | 403 | 8,632 | (43) | 8,992 | 200 | 8,292 | (26) | 8,467 |
| thereof receivables | - | (3) | - | (3) | - | - | - | - |
| thereof payables and deposits | 9 | 397 | (3) | 402 | - | 341 | 10 | 350 |
| Risk adjustment | 32 | 51 | (1) | 82 | 37 | 58 | (1) | 93 |
| Subtotal | 435 | 8,682 | (44) | 9,073 | 237 | 8,350 | (27) | 8,560 |
| Subtotal | 80,667 | 9,090 | (88) | 89,668 | 79,148 | 8,789 | (47) | 87,890 |
| Total | 99,699 | 689,821 | (96) | 789,424 | 96,237 | 680,584 | (49) | 776,772 |
1_Amounts relevant for the analysis by measurement component in note 6.6
2_ Includes $€ 114,953 \mathrm{~mm}$ (31 December 2023: $€ 106,937 \mathrm{~mm}$ ) future discretionary benefits.
Reinsurance contracts ${ }^{1}$
€ mn
| As of 30 June 2024 | As of 31 December 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| Property-Casualty | Life/Health | Consolidation | Group | Property-Casualty | Life/Health | Consolidation | Group | |
| Asset (liability) for remaining coverage | ||||||||
| Contracts measured under the PAA | 3,167 | 594 | (18) | 3,743 | 1,959 | 688 | (7) | 2,639 |
| Deposits | (252) | - | (7) | (259) | (152) | - | (4) | (155) |
| Receivables | 2 | (1) | 1 | 2 | (10) | 2 | (3) | (12) |
| Payables | $(3.124)$ | (40) | 49 | $(3.115)$ | $(2,529)$ | (25) | 22 | $(2,532)$ |
| Subtotal | (208) | 553 | 26 | 371 | (732) | 664 | 8 | (59) |
| Contracts not measured under the PAA ${ }^{1}$ | ||||||||
| Present value of future cash flows | (17) | 10,006 | 30 | 10,019 | (20) | 9,576 | (15) | 9,541 |
| thereof deposits | - | $(21,647)$ | 7 | $(21,640)$ | - | $(23,081)$ | 9 | $(23,072)$ |
| thereof receivables | - | 58 | - | 58 | 1 | 52 | - | 53 |
| thereof payables | (8) | (820) | 44 | (784) | (5) | (752) | 3 | (754) |
| Risk adjustment | 5 | 906 | 1 | 912 | 7 | 910 | 1 | 918 |
| CSM | 22 | 1,823 | (2) | 1,843 | 18 | 1,897 | 8 | 1,922 |
| Subtotal | 10 | 12,735 | 29 | 12,773 | 4 | 12,383 | (6) | 12,381 |
| Subtotal | (199) | 13,288 | 54 | 13,144 | (727) | 13,047 | 2 | 12,322 |
| Asset for incurred claims | ||||||||
| Contracts measured under the PAA | ||||||||
| Present value of future cash flows | 10,315 | 128 | (65) | 10,378 | 10,267 | 230 | (38) | 10,460 |
| thereof deposits | $(1,129)$ | - | - | $(1,129)$ | $(1,186)$ | - | 5 | $(1,181)$ |
| thereof receivables | 743 | 98 | (40) | 800 | 1,023 | 202 | - | 1,226 |
| thereof payables | (54) | (3) | 1 | (55) | (49) | - | - | (49) |
| Risk adjustment | 382 | - | - | 382 | 333 | - | - | 333 |
| Subtotal | 10,697 | 128 | (65) | 10,760 | 10,601 | 230 | (38) | 10,793 |
| Contracts not measured under the PAA ${ }^{1}$ | ||||||||
| Present value of future cash flows | 765 | 742 | (62) | 1,444 | 840 | 529 | (13) | 1,356 |
| thereof deposits | - | (148) | - | (148) | - | (176) | - | (176) |
| thereof receivables | 3 | 582 | (20) | 565 | 57 | 325 | (7) | 375 |
| thereof payables | (19) | (23) | 2 | (39) | (18) | 3 | - | (15) |
| Risk adjustment | 14 | (1) | (1) | 12 | 17 | 3 | (1) | 18 |
| Subtotal | 779 | 741 | (63) | 1,456 | 857 | 532 | (15) | 1,374 |
| Subtotal | 11,476 | 869 | (129) | 12,216 | 11,458 | 762 | (53) | 12,167 |
| Total | 11,278 | 14,157 | (75) | 25,360 | 10,730 | 13,810 | (51) | 24,489 |
1_Amounts relevant for the analysis by measurement component in note 6.7 .
6.6 _ Movements in insurance contract balances
The following tables analyze the movements in the net insurance contract liabilities during the reporting period. The first table analyzes
the movements in the liability for remaining coverage and liability for incurred claims for the Allianz Group. The second table analyzes the movements of contracts not measured under the PAA by measurement components.
The corresponding analyses for reinsurance contracts are included in note 6.7.
6.6.1 Analysis by remaining coverage and incurred claims - Allianz Group
Analysis by remaining coverage and incurred claims - Allianz Group
€ mn
6.6.2 Analysis by measurement component - contracts not measured under the PAA - Allianz Group
Analysis by measurement component - contracts not measured under the PAA - Allianz Group
€ mn
6.7 _ Movements in reinsurance contract balances
6.7.1 Analysis by remaining coverage and incurred claims - Allianz Group
Analysis by remaining coverage and incurred claims - Allianz Group
€ mn
6.7.2 Analysis by measurement component - contracts not measured under the PAA - Allianz Group
Analysis by measurement component - contracts not measured under the PAA - Allianz Group
€ mn
| 2024 | 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| Present value of future cash flows | Present value of future cash flows | Risk adjustment | CSM | Total | Present value of future cash flows | Risk adjustment | CSM | |
| Reinsurance contract assets as of 1 January | 11,145 | 936 | 1,922 | 14,003 | 12,274 | 1,302 | 1,976 | 15,551 |
| Reinsurance contract liabilities as of 1 January | (125) | - | - | (125) | (257) | - | - | (257) |
| Net reinsurance contract assets as of 1 January | 11,020 | 936 | 1,922 | 13,878 | 12,017 | 1,302 | 1,976 | 15,294 |
| Changes that relate to current service | ||||||||
| CSM recognized for the services provided | - | - | (115) | (115) | - | - | (173) | (173) |
| Change in risk adjustment | - | (51) | - | (51) | - | (122) | - | (122) |
| Experience adjustments | 1,925 | - | - | 1,925 | 2,295 | - | - | 2,295 |
| Subtotal | 1,925 | (51) | (115) | 1,760 | 2,295 | (122) | (173) | 2,000 |
| Changes that relate to future service | ||||||||
| Changes in estimates that adjust CSM | 84 | 12 | (96) | - | 295 | (231) | (64) | - |
| Changes in estimates that do not adjust CSM (loss recovery component) | - | - | - | - | - | - | - | - |
| Effects of contracts initially recognized in the period | (55) | 5 | 49 | - | (155) | 5 | 150 | - |
| Subtotal | 30 | 17 | (47) | - | 139 | (226) | 87 | - |
| Changes that relate to past service | ||||||||
| Changes in the asset for incurred claims | (46) | (3) | - | (48) | (37) | (7) | - | (45) |
| Cash flows in the period | ||||||||
| Premiums paid | 427 | - | - | 427 | 1,143 | - | - | 1,143 |
| Amounts received | $(3,070)$ | - | - | $(3,070)$ | $(4,294)$ | - | - | $(4,294)$ |
| Deposits | 135 | - | - | 135 | 323 | - | - | 323 |
| Receivables and payables (net) | 139 | - | - | 139 | (150) | - | - | (150) |
| Subtotal | $(2,369)$ | - | - | $(2,369)$ | $(2,978)$ | - | - | $(2,978)$ |
| Finance income and expenses from reinsurance contracts (net) | 595 | 6 | 51 | 651 | 24 | 24 | 75 | 123 |
| thereof effect of changes in the risk of reinsurers' non-performance | - | - | - | - | 1 | - | - | 1 |
| Foreign currency translation adjustments | 371 | 22 | 36 | 428 | (425) | (32) | (54) | (511) |
| Changes in the consolidated subsidiaries of the Allianz Group | - | - | - | - | 2 | - | - | 2 |
| Reclassification into assets of disposal groups classified as held for sale | - | - | - | - | - | - | - | - |
| Other changes | (64) | (3) | (5) | (72) | (18) | (2) | 12 | (8) |
| Net reinsurance contract assets as of 30 June/31 December | 11,462 | 924 | 1,843 | 14,228 | 11,020 | 936 | 1,922 | 13,878 |
| Reinsurance contract assets as of 30 June/31 December | 11,637 | 924 | 1,843 | 14,404 | 11,145 | 936 | 1,922 | 14,003 |
| Reinsurance contract liabilities as of 30 June/31 December | (176) | - | - | (176) | (125) | - | - | (125) |
6.8 _ Discount rates
The table below sets out the continuously compounded rates used to
discount the cash flows of insurance contracts for major currencies:
Discount rates
in \%
| As of 30 June 2024 | As of 31 December 2023 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 year | 5 years | 10 years | 20 years | 30 years | 1 year | 5 years | 10 years | 20 years | 30 years | |
| Unit-linked contracts | ||||||||||
| EUR | 3.46 | 2.81 | 2.77 | 2.70 | 2.71 | 3.40 | 2.39 | 2.46 | 2.47 | 2.54 |
| USD | 4.93 | 3.98 | 3.87 | 3.83 | 3.61 | 4.65 | 3.44 | 3.39 | 3.41 | 3.35 |
| Immediate fixed annuity and property-casualty liability for incurred claims | ||||||||||
| EUR | 3.62 | 2.97 | 2.93 | 2.87 | 2.85 | 3.60 | 2.60 | 2.67 | 2.68 | 2.71 |
| USD | 5.48 | 4.54 | 4.42 | 4.39 | 4.15 | 5.34 | 4.13 | 4.08 | 4.10 | 3.95 |
| Traditional participating and other insurance contracts | ||||||||||
| EUR | 3.58 - 4.14 | 2.93 - 3.49 | 2.89 - 3.45 | 2.82 - 3.39 | 2.81 - 3.29 | 3.55 - 4.03 | 2.54 - 3.03 | 2.61 - 3.10 | 2.63 - 3.11 | 2.67 - 3.07 |
| USD | 6.18 - 6.34 | 5.24 - 5.41 | 5.13 - 5.29 | 5.10 - 5.26 | 4.83 - 4.99 | 5.84 - 6.20 | 4.64 - 5.00 | 4.60 - 4.96 | 4.61 - 4.97 | 4.39 - 4.70 |
7 _ NOTES TO FINANCIAL OPERATIONS
7.1 _ Net investment income
Net investment income
€ mm
| Six months ended 30 June | 2024 | 2023 |
|---|---|---|
| Interest result | 13,747 | 12,282 |
| Realized gains/losses (net) | $(1,857)$ | $(2,860)$ |
| Valuation result | 7,604 | 5,876 |
| Investment expenses | $(993)$ | $(884)$ |
| Total | $\mathbf{1 8 , 5 0 0}$ | $\mathbf{1 4 , 4 1 4}$ |
Net investment income by measurement categories
€ $\mathrm{mn}$
| Six months ended 30 June | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Financial instruments | Other investments | ||||||||
| according to IAS 28 | according to IAS 40 | according to IAS 16 | |||||||
| Fair value through profit or loss | Fair value through other comprehensive income | Amortized cost | Associates and joint ventures | Real estate | Alternative investments ${ }^{1}$ | Other | Financial liabilities | Total | |
| 2024 | |||||||||
| Interest result | |||||||||
| Interest income and similar income | 2,611 | 10,039 | 239 | 64 | 624 | 306 | 596 | - | 14,479 |
| Interest expenses | - | - | - | - | - | - | (133) | (599) | (732) |
| Subtotal | 2,611 | 10,039 | 239 | 64 | 624 | 306 | 463 | (599) | 13,747 |
| Realized gains/losses (net) | |||||||||
| Realized gains | - | 273 | 15 | 60 | 13 | - | 5 | - | 366 |
| Realized losses | - | (2,193) | - | (30) | - | - | - | - | (2,223) |
| Subtotal | - | (1,920) | 15 | 30 | 13 | - | 5 | - | (1,857) |
| Valuation result | |||||||||
| Expected credit loss allowance | - | 188 | (5) | - | - | - | - | - | 183 |
| Impairments (net) | |||||||||
| Impairments | - | - | - | (2) | (39) | - | (5) | - | (46) |
| Reversal of impairment | - | - | - | - | 2 | - | - | - | 2 |
| Subtotal | - | - | - | (2) | (38) | - | (5) | - | (45) |
| Income from derivatives (net) | (1,524) | - | - | - | - | - | - | - | (1,524) |
| Valuation result on investments measured at fair value through profit or loss | 1,514 | - | - | (127) | (854) | (1) | (3) | (169) | 361 |
| Foreign currency gains/losses | - | - | - | - | - | - | 1,774 | - | 1,774 |
| Investment result from unit-linked assets (net) | - | - | - | - | - | - | 6,855 | - | 6,855 |
| Subtotal | (10) | 188 | (5) | (129) | (891) | (1) | 8,621 | (169) | 7,606 |
| Investment expenses | - | - | - | - | (208) | (189) | (596) | - | (993) |
| Total | 2,601 | 8,307 | 249 | (36) | (462) | 116 | 8,493 | (768) | 18,500 |
1_Mainly investments in wind parks.
Net investment income by measurement categories (continued)
€ mn
Six months ended 30 June
7.2 _ Investments
7.2.1 Overview
Investments
€ mn
| As of 30 June 2024 | As of 31 December 2023 | |
|---|---|---|
| Investments measured at fair value through profit or loss ${ }^{1}$ | 115,970 | 104,276 |
| Investments measured at fair value through other comprehensive income ${ }^{2}$ | 555,285 | 560,733 |
| Investments measured at amortized cost ${ }^{3}$ | 10,040 | 8,829 |
| Investments in associates and joint ventures ${ }^{4}$ | 21,697 | 21,187 |
| Real estate held for investment ${ }^{5}$ | 23,238 | 23,924 |
| Fixed assets from alternative investments ${ }^{6}$ | 2,836 | 2,854 |
| Total | 729,065 | 721,802 |
| 1_Includes derivative financial instruments of € 18,141 mn (31 December 2023: € 15,114 mn). 2_As of 30 June 2024, fair value and gross carrying amount with a contractual life of less than one year amounted to $€ 51,689 \mathrm{~mm}$ (31 December 2023: $€ 47,371 \mathrm{~mm}$ ) and $€ 50,523 \mathrm{~mm}$ (31 December 2023: $€ 44,317 \mathrm{~mm}$ ), respectively. 3_As of 30 June 2024, fair value and gross carrying amount with a contractual life of less than one year amounted to $€ 3,045 \mathrm{~mm}$ (31 December 2023: $€ 2,803 \mathrm{~mm}$ ) and $€ 3,027 \mathrm{~mm}$ (31 December 2023: $€ 2,771 \mathrm{~mm}$ ), respectively. 4_Includes investments in associates and joint ventures accounted for using the equity method of $€ 3,280 \mathrm{~mm}$ (31 December 2023: $€ 3,014 \mathrm{~mm}$ ). 5_Corralds of real estate held for investment measured at fair value of $€ 20,300 \mathrm{~mm}$ (31 December 2023: $€ 21,208 \mathrm{~mm}$ ) and measured at amortized cost of $€ 2,938 \mathrm{~mm}$ (31 December 2023: $€ 2,716 \mathrm{~mm}$ ). 6_Mainly investments in wind parks. |
7.2.2 Investments measured at fair value through other comprehensive income
Debt investments - Fair value
€ mn
| Gross carrying amount | Unrealized gains | Unrealized losses | Accrued interest | Fair value | |
|---|---|---|---|---|---|
| 30 June 2024 | |||||
| Government bonds | 202,946 | 3,304 | $(32,475)$ | 2,181 | 175,956 |
| Corporate bonds | 215,204 | 1,197 | $(24,674)$ | 2,507 | 194,235 |
| Covered bonds | 43,560 | 676 | $(3,283)$ | 504 | 41,457 |
| ABS/MBS | 28,751 | 135 | $(1,844)$ | 254 | 27,296 |
| Loans | 79,887 | 196 | $(7,607)$ | 209 | 72,686 |
| Alternative debt | 13,597 | 57 | $(1,520)$ | 92 | 12,226 |
| Other | 2,146 | 98 | $(26)$ | 35 | 2,253 |
| Total | 586,091 | 5,664 | $(71,429)$ | 5,783 | 526,109 |
| 31 December 2023 | |||||
| Government bonds | 203,719 | 4,047 | $(28,096)$ | 2,204 | 181,875 |
| Corporate bonds | 210,450 | 2,105 | $(22,008)$ | 2,429 | 192,976 |
| Covered bonds | 44,338 | 1,074 | $(3,141)$ | 579 | 42,850 |
| ABS/MBS | 27,459 | 104 | $(1,873)$ | 269 | 25,959 |
| Loans | 81,943 | 309 | $(6,206)$ | 208 | 76,255 |
| Alternative debt | 13,534 | 51 | $(1,350)$ | 79 | 12,314 |
| Other | 2,319 | 29 | 62 | 43 | 2,453 |
| Total | 583,763 | 7,719 | $(62,612)$ | 5,811 | 534,681 |
| Reconciliation of gross carrying amount and expected credit loss per stage as of 30 June 2024 and 31 December 2023 | ||||||||
|---|---|---|---|---|---|---|---|---|
| € mn | 12-month | Lifetime, but not credit impaired | Credit impaired ${ }^{1}$ | Total | ||||
| Gross carrying | Gross carrying | Gross carrying | Gross carrying | |||||
| amount | Expected credit loss | amount | Expected credit loss | amount | Expected credit loss | amount | Expected credit loss | |
| 1 January 2024 | 574,940 | 349 | 6,409 | 253 | 2,415 | 524 | 583,763 | 1,125 |
| Additions | 93,388 | 46 | 288 | - | 5 | 2 | 93,680 | 48 |
| Changes in the consolidated subsidiaries of the Allianz Group | 439 | - | 5 | - | (12) | - | 433 | - |
| Changes in models and risk parameters and due to modifications | 79 | - | - | 1 | - | - | 79 | - |
| Matured or sold | (94,750) | (28) | (577) | (25) | (460) | (193) | (95,787) | (247) |
| Reclassification into non-current assets and assets of disposal groups classified as held for sole | (2,201) | (18) | 78 | - | - | - | (2,122) | (19) |
| Transfer to 12-month | 747 | 4 | (635) | (23) | (112) | (1) | - | (20) |
| Transfer to lifetime, but not credit impaired | (748) | - | 748 | 21 | - | - | - | 20 |
| Transfer to credit impaired | (281) | - | (146) | (2) | 427 | 99 | - | 97 |
| Write-offs | - | - | - | 1 | - | - | - | 1 |
| Amortization | 1,222 | (16) | 22 | (16) | 2 | (57) | 1,246 | (89) |
| Foreign currency translation adjustments | 7,073 | 3 | 52 | 5 | 74 | 15 | 7,199 | 23 |
| Other changes | (2,543) | (8) | 121 | 3 | 22 | 4 | (2,400) | (1) |
| 30 June 2024 | 577,365 | 331 | 6,365 | 217 | 2,361 | 392 | 586,091 | 940 |
| 1 January 2023 | 583,975 | 420 | 7,022 | 220 | 3,104 | 796 | 594,101 | 1,436 |
| Additions | 154,522 | 75 | 1,234 | 3 | 108 | 27 | 155,864 | 106 |
| Changes in the consolidated subsidiaries of the Allianz Group | (1,282) | (23) | 21 | (1) | (1) | (2) | (1,262) | (26) |
| Changes in models and risk parameters and due to modifications | - | 1 | - | 2 | - | (3) | - | - |
| Matured or sold | (154,149) | (80) | (2,146) | (108) | (1,267) | (315) | (157,562) | (503) |
| Reclassification into non-current assets and assets of disposal groups classified as held for sole | (92) | 2 | (76) | - | 142 | (8) | (26) | (5) |
| Transfer to 12-month | 2,809 | 16 | (2,809) | (87) | - | - | - | (71) |
| Transfer to lifetime, but not credit impaired | (3,184) | (19) | 3,184 | 200 | - | - | - | 181 |
| Transfer to credit impaired | (266) | (2) | (61) | (5) | 326 | 88 | - | 81 |
| Write-offs | - | - | - | - | (6) | 6 | (6) | 7 |
| Amortization | 297 | (51) | 163 | 17 | 1 | (50) | 461 | (84) |
| Foreign currency translation adjustments | (4,246) | (25) | (178) | (22) | (103) | (38) | (4,527) | (84) |
| Other changes | (3,444) | 34 | 55 | 31 | 109 | 23 | (3,280) | 88 |
| 31 December 2023 | 574,940 | 349 | 6,409 | 253 | 2,415 | 524 | 583,763 | 1,125 |
1 Also includes purchased or originated credit-impaired assets.
7.3 _ Financial liabilities
7.3.1 Overview
Financial liabilities
€ mn
| As of 30 June 2024 | As of 31 December 20231 | |
|---|---|---|
| Financial liabilities measured at fair value through profit or loss | ||
| Mandatory at fair value through profit or loss | ||
| Derivatives | 13,705 | 10,194 |
| Subtotal | 13,705 | 10,194 |
| Designated at fair value through profit or loss ${ }^{1}$ | ||
| Pultable instruments ${ }^{1}$ | 5,172 | 4,461 |
| Other | 47 | 47 |
| Subtotal | 5,219 | 4,508 |
| Subtotal | 18,924 | 14,702 |
| Financial liabilities measured at amortized cost | ||
| Liabilities to banks | 7,517 | 8,838 |
| Liabilities to customers | 12,391 | 11,343 |
| Certificated liabilities | 8,379 | 8,407 |
| Subordinated liabilities | 13,137 | 12,738 |
| Other | 2,343 | 2,273 |
| Subtotal | 43,766 | 43,599 |
| Total | 62,690 | 58,301 |
1_The Alliora Group reclassified certain non-controlling interests to financial liabilities related to investment vehicles. There is also a cumulative adjustment to shareholders' equity. For further details, please refer to 1939.2.
2_A change in the disclosure of puttable instruments from "Financial liabilities measured at fair value through profit or loss - Mandatory at fair value through profit or loss" to "Financial liabilities measured at fair value through profit or loss - Designated at fair value through profit or loss" resulted from a revised assessment of the classification of these instruments.
3_Includes instruments in an amount of € 444 mn (31 December 2023: € 459 mn ) with valuation changes recognized in equity since the non-controlling shareholders have present access to risks and rewards of ownership.
7.3.2 Certificated and subordinated liabilities
Certificated and subordinated liabilities
€ mn
| As of 30 June 2024 | As of 31 December 2023 | |
|---|---|---|
| Senior bonds | 7,401 | 7,423 |
| Money market securities | 1,091 | 1,103 |
| Fair value hedge effects related to certificated liabilities | (113) | (119) |
| Total certificated liabilities ${ }^{1}$ | 8,379 | 8,407 |
| Subordinated bonds | 13,139 | 12,763 |
| Subordinated loans ${ }^{1}$ | 45 | 45 |
| Fair value hedge effects related to subordinated liabilities | (48) | (71) |
| Total subordinated liabilities ${ }^{1}$ | 13,137 | 12,738 |
1_As of 30 June 2024, includes accrued interest of $€ 40 \mathrm{~m}$ (31 December 2023: $€ 80 \mathrm{mn}$ ).
2_Relates to subordinated loans issued by subsidiaries.
3_As of 30 June 2024, includes accrued interest of $€ 351 \mathrm{~m}$ (31 December 2023: $€ 185 \mathrm{~mn}$ ).
Outstanding bonds issued or guaranteed by Allianz SE as of 30 June 2024
7.4 _ Fair values and carrying amounts of financial instruments
Fair values and carrying amounts
The following table compares the carrying amount and fair value of the Allianz Group's financial assets and financial liabilities:
Fair values and carrying amounts of financial instruments
€ mn
| As of 30 June 2024 | As of 31 December 2023 | |||
|---|---|---|---|---|
| Carrying amount | Fair value | Carrying amount | Fair value | |
| Financial assets | ||||
| Cash and cash equivalents | 28,058 | 28,058 | 29,210 | 29,210 |
| Financial assets measured at fair value through profit or loss | 115,970 | 115,970 | 104,276 | 104,276 |
| Financial assets measured at fair value through other comprehensive income | 555,285 | 555,285 | 560,733 | 560,733 |
| Financial assets measured at amortized costs | 10,040 | 10,102 | 8,829 | 8,908 |
| Investments in associates and joint ventures at equity | 3,280 | 3,676 | 3,014 | 3,385 |
| Investments in associates and joint ventures at fair value | 18,418 | 18,418 | 18,173 | 18,173 |
| Real estate held for investment measured at fair value | 20,300 | 20,300 | 21,208 | 21,208 |
| Real estate held for investment measured at cost | 2,938 | 5,858 | 2,716 | 5,753 |
| Financial assets for unit-linked contracts | 160,465 | 160,465 | 152,872 | 152,872 |
| Financial liabilities | ||||
| Financial liabilities measured at fair value through profit or loss ${ }^{1}$ | 18,924 | 18,924 | 14,702 | 14,702 |
| Liabilities to banks and customers | 19,908 | 19,787 | 20,181 | 20,080 |
| Certificated liabilities | 8,379 | 7,943 | 8,407 | 8,138 |
| Subordinated liabilities | 13,137 | 12,642 | 12,738 | 12,258 |
| Other (Financial liabilities measured at amortized costs) | 2,343 | 2,343 | 2,273 | 2,273 |
| Unit-linked investment contracts measured at fair value | 41,088 | 41,088 | 39,489 | 39,489 |
| Non-unit-linked investment contracts measured at amortized cost | 9,164 | 9,191 | 10,196 | 10,189 |
- The Allianz Group reclassified certain non-controlling interests to financial liabilities related to investment vehicles. There is also a cumulative adjustment to shareholders' equity. For further details, please refer to note 2.
Fair value measurement on a recurring basis
The following financial assets and liabilities are carried at fair value on a recurring basis:
- financial assets measured at fair value through profit or loss,
- financial assets measured at fair value through other comprehensive income,
- investments in associates and joint ventures (under the Variable Fee Approach),
- real estate held for investment,
- financial assets for unit-linked contracts
- financial liabilities measured at fair value through profit or loss,
- unit-linked investment contracts
The following table presents the fair value hierarchy for financial instruments carried at fair value in the consolidated balance sheet:
Fair value hierarchy (items carried at fair value)
€ mn
| As of 30 June 2024 | As of 31 December 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| Level 1 ${ }^{1}$ | Level $2^{1}$ | Level $3^{1}$ | Total | Level $1^{1}$ | Level $2^{1}$ | Level $3^{1}$ | Total | |
| Financial Assets | ||||||||
| Financial assets measured at fair value through profit or loss | ||||||||
| Debt investments | 104 | 9,068 | 7,784 | 16,955 | 69 | 9,536 | 5,626 | 15,231 |
| Equity investments | 2 | 2 | 746 | 750 | 2 | - | 317 | 319 |
| Funds | 11,430 | 2,354 | 66,339 | 80,123 | 9,815 | 2,582 | 61,214 | 73,611 |
| Derivatives | 907 | 16,593 | 641 | 18,141 | 689 | 13,476 | 949 | 15,114 |
| Subtotal | 12,443 | 28,016 | 75,511 | 115,970 | 10,574 | 25,595 | 68,106 | 104,276 |
| Financial assets measured at fair value through other comprehensive income | ||||||||
| Corporate bonds | 5,145 | 163,849 | 25,241 | 194,235 | 4,527 | 164,992 | 23,457 | 192,976 |
| Government and government agency bonds | 11,993 | 163,207 | 757 | 175,956 | 12,298 | 169,021 | 555 | 181,874 |
| MBS/ABS | 116 | 21,397 | 5,783 | 27,296 | 119 | 22,290 | 3,550 | 25,959 |
| Covered Bonds | 4,506 | 36,943 | 9 | 41,457 | 4,674 | 38,167 | 9 | 42,850 |
| Loans | 3,676 | 4,546 | 64,464 | 72,686 | 3,651 | 4,649 | 66,311 | 74,611 |
| Other | 2,507 | 1,491 | 12,453 | 16,451 | 1,750 | 1,516 | 12,608 | 15,874 |
| Equity investments | 22,690 | 441 | 4,073 | 27,204 | 21,498 | 355 | 4,736 | 26,589 |
| Subtotal | 50,633 | 391,873 | 112,779 | 555,285 | 48,518 | 400,990 | 111,226 | 560,733 |
| Investments in associates and joint ventures | - | 177 | 18,241 | 18,418 | - | 114 | 18,059 | 18,173 |
| Real estate held for investment | - | - | 20,300 | 20,300 | - | - | 21,208 | 21,208 |
| Financial assets for unit-linked contracts | 123,212 | 35,009 | 2,244 | 160,465 | 116,281 | 34,224 | 2,368 | 152,872 |
| Total | 186,289 | 455,074 | 229,074 | 870,437 | 175,372 | 460,923 | 220,967 | 857,262 |
| - | - | - | - | - | - | - | - | |
| Financial Liabilities | ||||||||
| Financial liabilities measured at fair value through profit or loss ${ }^{4}$ | 2,710 | 12,503 | 3,710 | 18,924 | 2,309 | 9,165 | 3,229 | 14,702 |
| Unit-linked investment contracts measured at fair value | 30,353 | 10,712 | 22 | 41,088 | 28,160 | 11,324 | 6 | 39,489 |
| Total | 33,063 | 23,215 | 3,733 | 60,011 | 30,468 | 20,488 | 3,236 | 54,192 |
1_Quoted prices in active markets.
2_Market observable inputs.
3_Non-market observable inputs.
4_The Allianz Group reclassified certain non-controlling interests to financial liabilities related to investment vehicles. There is also a cumulative adjustment to shareholders' equity. For further details, please refer to note 2.
Reconciliation of level 3 financial instruments
The following tables show reconciliations of the financial instruments carried at fair value and classified as level 3:
Reconciliation of level 3 financial assets
€ mn
| Financial assets measured at fair value through profit or loss | Financial assets measured at fair value through other comprehensive income - Debt securities ${ }^{1}$ | Financial assets measured at fair value through other comprehensive income - Equity securities | Investments in associates and joint ventures | Real estate held for investment | Financial assets for unit-linked contracts | Total | |
|---|---|---|---|---|---|---|---|
| Carrying value (fair value) as of 1 January 2024 | 68,106 | 106,460 | 4,736 | 18,059 | 21,208 | 2,368 | 220,937 |
| Additions through purchases and issues | 5,622 | 8,468 | 378 | 331 | 338 | 197 | 15,334 |
| Net transfers into (out of) level 3 | 346 | 1,246 | - | - | - | (8) | 1,585 |
| Disposals through sales and settlements | (2,918) | (4,345) | (46) | (99) | (117) | (259) | (7,783) |
| Reclassifications | 2,697 | (2,373) | (398) | - | (228) | - | (303) |
| Net gains (losses) recognized in consolidated income statement | 1,081 | 67 | (124) | (142) | (819) | (55) | 8 |
| Net gains (losses) recognized in other comprehensive income | - | (2,011) | (150) | - | - | - | (2,160) |
| Impairments | - | - | (1) | - | - | - | (1) |
| Foreign currency translation adjustments | 181 | 1,278 | 23 | 90 | (83) | - | 1,487 |
| Changes in the consolidated subsidiaries of the Allianz Group | 365 | (169) | (345) | 2 | 1 | - | (147) |
| Change in accrued interest recognized in consolidated income statement | 55 | 1,517 | - | - | - | - | 1,572 |
| Change in accrued interest recognized in other comprehensive income - cash settlement | (24) | (1,464) | - | - | - | - | (1,488) |
| Carrying value (fair value) as of 30 June 2024 | 75,511 | 108,674 | 4,073 | 18,241 | 20,300 | 2,244 | 229,042 |
| Net gains (losses) recognized in consolidated income statement held at the reporting date | 1,105 | 111 | (136) | (142) | (819) | (55) | 64 |
- Primarily include loans.
| Financial liabilities measured at fair value through profit or loss | |
|---|---|
| Carrying value (fair value) as of 1 January 20241 | 3,229 |
| Additions through purchases and issues | 237 |
| Net transfers into (out of) level 3 | (17) |
| Disposals through sales and settlements | (32) |
| Net losses (gains) recognized in consolidated income statement | 277 |
| Foreign currency translation adjustments | 13 |
| Changes in the consolidated subsidiaries of the Allianz Group | - |
| Change in accrued interest recognized in consolidated income statement | 14 |
| Change in accrued interest recognized in other comprehensive income - cash settlement | (12) |
| Net change in fair value (unrealized) | |
| Carrying value (fair value) as of 30 June 2024 | 3,710 |
| Net losses (gains) recognized in consolidated income statement held at the reporting date | 304 |
| 1.The Allianz Group reclassified certain non-controlling interests to financial liabilities related to investment vehicles. There is also a cumulative adjustment to shareholders' equity. For further details, please refer to note 2. |
Fair value measurement on a non-recurring basis
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 7.1
Valuation methodologies of financial instruments
The valuation methodologies used for financial instruments carried at fair value, the policy for determining the levels within the fair value hierarchy, and the significant level-3 portfolios, including the respective narratives, are described in the Allianz Group's Annual Report 2023. No material changes have occurred since this report was published.
Significant transfers of financial instruments carried at fair value
In general, financial assets and liabilities are transferred from level 1 to level 2 when their liquidity, trade frequency, and activity are no longer indicative of an active market. The same policy applies conversely for transfers from level 2 to level 1.
Transfers into/out of level 3 may occur due to a reassessment of input parameters.
8 _ OTHER INFORMATION
8.1 _ Fee and commission income
| Fee and commission income € mn |
||
|---|---|---|
| Six months ended 30 June | 2024 | 2023 |
| Property-Casualty | ||
| Fees from credit and assistance business | 915 | 872 |
| Service agreements | 358 | 314 |
| Investment advisory | 30 | 32 |
| Subtotal | 1,304 | 1,217 |
| Life/Health | ||
| Investment advisory | 619 | 564 |
| Service agreements | 105 | 101 |
| Subtotal | 724 | 665 |
| Asset Management | ||
| Management and advisory fees | 4,615 | 4,369 |
| Performance fees | 207 | 202 |
| Loading and exit fees | 174 | 160 |
| Other | 18 | 33 |
| Subtotal | 5,014 | 4,764 |
| Corporate and Other | ||
| Service agreements | 1,978 | 1,941 |
| Investment advisory and banking activities | 366 | 318 |
| Subtotal | 2,345 | 2,259 |
| Consolidation | (2,493) | (2,389) |
| Total | 6,893 | 6,516 |
8.2 _ Fee and commission expenses
| Fee and commission expenses € mn |
||
|---|---|---|
| Six months ended 30 June | 2024 | 2023 |
| Property-Casualty | ||
| Fees from credit and assistance business | (913) | (922) |
| Service agreements | (356) | (301) |
| Other | (17) | (18) |
| Subtotal | (1,285) | (1,241) |
| Life/Health | ||
| Investment advisory | (214) | (203) |
| Service agreements | (88) | (101) |
| Subtotal | (302) | (304) |
| Asset Management | ||
| Commissions | (1,104) | (1,019) |
| Other | (7) | (12) |
| Subtotal | (1,110) | (1,031) |
| Corporate and Other | ||
| Service agreements | (1,953) | (1,933) |
| Investment advisory and banking activities | (252) | (210) |
| Subtotal | (2,204) | (2,144) |
| Consolidation | 2,073 | 2,011 |
| Total | (2,828) | (2,710) |
8.3 _ Acquisition and administrative expenses
The acquisition and administrative expenses disclosed in the following table are the administrative expenses of the Allianz Group's noninsurance entities and the acquisition and administrative expenses, as well as settlement costs of the Allianz Group's insurance entities that are not directly attributable to fulfilling insurance contracts. Expenses that are directly attributable to fulfilling insurance contracts are included in insurance service expenses.
Acquisition and administrative expenses
€ mn
| Six months ended 30 June | 2024 | 2023 |
|---|---|---|
| Property-Casualty | ||
| Non-attributable acquisition costs | (551) | (525) |
| Non-attributable and non-insurance administrative expenses | (601) | (501) |
| Non-attributable settlement costs | (41) | (37) |
| Subtotal | (1,193) | (1,064) |
| Life/Health | ||
| Non-attributable acquisition costs | (249) | (245) |
| Non-attributable and non-insurance administrative expenses | (327) | (349) |
| Non-attributable settlement costs | (13) | (10) |
| Subtotal | (589) | (604) |
| Asset Management | ||
| Personnel expenses | (1,524) | (1,435) |
| Non-personnel expenses ${ }^{1}$ | (924) | (926) |
| Subtotal | (2,448) | (2,362) |
| Corporate and Other | ||
| Administrative expenses | (641) | (616) |
| Subtotal | (641) | (616) |
| Consolidation | 57 | 33 |
| Total | $(4,812)$ | $(4,612)$ |
1_ Includes $€ 88 \mathrm{~min}(2023: € 103 \mathrm{~min})$ changes in assets and $€(88) \mathrm{~min}(2023: €(103) \mathrm{~min})$ changes in liabilities related to certain deferred compensation programs, entirely offsetting each other.
8.4 Income taxes
Income taxes
€ mn
| Six months ended 30 June | 2024 | 2023 |
|---|---|---|
| Current income taxes | $(1,467)$ | $(1,196)$ |
| Deferred income taxes | $(217)$ | $(94)$ |
| Total | $(1,684)$ | $(1,390)$ |
Income taxes relating to components of other comprehensive income
€ mn
| Six months ended 30 June | 2024 | 2023 |
|---|---|---|
| Items that may be reclassified to profit or loss in future periods | ||
| Foreign currency translation adjustments | 36 | (3) |
| Debt investments measured at fair value through other comprehensive income | 2,879 | $(2,241)$ |
| Cash flow hedges | (23) | 32 |
| Share of other comprehensive income of associates and joint ventures | (1) | 1 |
| Insurance liabilities | $(2,560)$ | 2,213 |
| Reinsurance assets | (47) | (4) |
| Miscellaneous | 70 | 166 |
Items that may never be reclassified to profit or loss
$\begin{array}{ll}\text { Actuarial gains and losses on defined benefit } \ \text { plans } & (122) \ \text { Equity investments measured at fair value } \ \text { through other comprehensive income } & (420) \ \text { Insurance liabilities } & 526 \ \text { Miscellaneous } & 10 \ \text { Total } & 348\end{array}$
For the calculation of diluted earnings per share, the nominator and denominator are adjusted for the effects of potentially dilutive shares. These effects arise from various share-based compensation plans of the Allianz Group.
Earnings per share
€ mn
| Six months ended 30 June | 2024 | 2023 |
|---|---|---|
| Net income attributable to shareholders basic | 4,845 | 4,227 |
| Effect of potentially dilutive shares | (1) | (3) |
| Net income attributable to shareholders - diluted | 4,843 | 4,224 |
Weighted-average number of shares outstanding - basic
Potentially dilutive shares
Weighted-average number of shares outstanding - diluted
The Allianz Group also uses core earnings per share as a measure for profitability per share. In the determination of core earnings per share, the net income attributable to shareholders is replaced by the shareholders' core net income. For further information on the shareholders' core net income, please refer to note 5.
For the six months ended 30 June 2024, the core basic earnings per share and the core diluted earnings per share amounted to $€ 12.57$ (2023: $€ 11.40$ ) and $€ 12.55$ (2023: $€ 11.38$ ), respectively.
8.6 _ Financial assets for unit-linked contracts and investment contract liabilities
Financial assets for unit-linked contracts
$€ \mathrm{~mn}$
| As of 30 | As of 31 | |
|---|---|---|
| June 2024 | December 2023 | |
| Financial assets for unit-linked insurance contracts | 119,378 | 113,383 |
| Financial assets for unit-linked investment contracts | 41,088 | 39,489 |
| Total | 160,465 | 152,872 |
Investment contract liabilities
$€ \mathrm{~mn}$
| As of 30 | As of 31 | |
|---|---|---|
| June 2024 | December 2023 | |
| Unit-linked investment contracts | 41,088 | 39,489 |
| Non-unit-linked investment contracts | 9,164 | 10,196 |
| Total | 50,252 | 49,686 |
8.7 _ Other assets
Other assets
€ mn
| As of 30 June 2024 |
As of 31 December 2023 |
|
|---|---|---|
| Property and equipment | ||
| Real estate held for own use ${ }^{1}$ | 3,466 | 3,434 |
| Software | 3,488 | 3,493 |
| Equipment | 1,109 | 1,074 |
| Right-of-use assets | 2,137 | 2,214 |
| Subtotal | 10,200 | 10,216 |
| Receivables | ||
| Gross receivables | 8,218 | 8,045 |
| Expected credit loss | (108) | (102) |
| Subtotal | 8,110 | 7,943 |
| Tax receivables | ||
| Income taxes | 3,302 | 2,914 |
| Other taxes | 2,257 | 2,500 |
| Subtotal | 5,559 | 5,414 |
| Prepaid expenses | 1,013 | 788 |
| Non-current assets and assets of disposal groups classified as held for sale | 246 | 1,121 |
| Other assets ${ }^{2}$ | 4,615 | 4,275 |
| Total | 29,744 | 29,757 |
1_Consists of real estate held for own use measured at fair value of $€ 1,773 \mathrm{~mm}$ (31 December 2023: $€ 1,747 \mathrm{~mm}$ ) and of real estate held for own use measured at smortized cost of $€ 1,692 \mathrm{~mm}$ (31 December 2023: $€ 1,688 \mathrm{~mm}$ ).
2_ Includes $€ 1,700 \mathrm{~mm}$ (31 December 2023: $€ 1,548 \mathrm{~mm}$ ) assets for deferred compensation programs that are mainly level 2 for fair value measurement.
8.8 _ Other liabilities
Other liabilities
€ mn
| As of 30 June 2024 |
As of 31 December 2023 |
|
|---|---|---|
| Tax payables | ||
| Income taxes | 2,347 | 1,980 |
| Other taxes, interest, and penalties | 2,617 | 2,361 |
| Subtotal | 4,964 | 4,341 |
| Payables for social security and other payables | 891 | 873 |
| Unearned income | 836 | 672 |
| Provisions | ||
| Pensions and similar obligations | 8,029 | 8,669 |
| Employee related | 3,004 | 3,124 |
| Share-based compensation plans | 484 | 495 |
| Restructuring plans | 159 | 151 |
| Other provisions | 2,529 | 2,649 |
| Subtotal | 14,205 | 15,088 |
| Liabilities of disposal groups held for sale | 7 | 332 |
| Other liabilities | 13,639 | 13,022 |
| Total | 34,541 | 34,328 |
8.9 _ Intangible assets
Intangible assets
€ mn
| As of 30 June 2024 |
As of 31 December 2023 |
|
|---|---|---|
| Goodwill | 16,891 | 16,621 |
| Distribution agreements ${ }^{1}$ | 1,145 | 1,052 |
| Customer relationships ${ }^{2}$ | 647 | 656 |
| Other ${ }^{3}$ | 320 | 320 |
| Total | 19,003 | 18,649 |
1_Primarily includes the long-term distribution agreements with Banco Bilboo Vizcaya Argentario S.A., Commerzbank AG, and Santander Aviva Life.
2_ Primarily results from business combinations.
8.10 _ Equity
Equity
€ mn
| As of 30 June 2024 |
As of 31 December 2023 |
|
|---|---|---|
| Shareholders' equity | ||
| Issued capital | 1,170 | 1,170 |
| Additional paid-in capital | 27,732 | 27,732 |
| Undated subordinated bonds | 4,833 | 4,764 |
| Retained earnings ${ }^{4}$ | 29,073 | 30,464 |
| Foreign currency translation adjustments | $(2,379)$ | $(2,883)$ |
| Unrealized gains and losses from insurance contracts (net) | 39,078 | 34,207 |
| Other unrealized gains and losses (net) ${ }^{2,4}$ | $(43,996)$ | $(37,215)$ |
| Subtotal | 55,511 | 58,239 |
| Non-controlling interests | 3,299 | 3,321 |
| Total | 58,810 | 61,560 |
1_The Allianz Group reclassified certain non-controlling interests to financial liabilities related to investment vehicles. There is also a cumulative adjustment to shareholders' equity. For further details, please refer to page 2.
2_As of 30 June 2024, includes € $(955) \mathrm{mn}$ (31 December 2023: € (38) mn) related to treasury shares.
3_As of 30 June 2024, includes $€ 722 \mathrm{~mm}$ (31 December 2023: $€ 844 \mathrm{~mm}$ ) related to expected credit losses.
4_As of 30 June 2024, includes $€(778) \mathrm{mn}$ (31 December 2023: € (818) mn) related to cash flow hedges.
Dividends
In the second quarter of 2024, a total dividend of $€ 5,376 \mathrm{~mm}$ (2023: $€ 4,541 \mathrm{~mm}$ ), or $€ 13.80$ (2023: $€ 11.40$ ) per qualifying share, was paid to the shareholders.
8.11 _ Other information
Litigation
Allianz Group companies are involved in legal, regulatory, and arbitration proceedings in Germany and a number of foreign jurisdictions, including the United States. Such proceedings arise in the ordinary course of business, including, amongst others, their activities as insurance, banking and asset management companies, employers, investors and taxpayers. While it is not feasible to predict or determine the ultimate outcome of such proceedings, they may result in substantial damages or other payments or penalties or result in
adverse publicity and damage to the Allianz Group's reputation. As a result, such proceedings could have an adverse effect on the Allianz Group's business, financial condition and results of operations. Apart from the proceedings discussed below, Allianz SE is not aware of any threatened or pending legal, regulatory or arbitration proceedings which may have, or have had in the recent past, significant effects on its and/or the Allianz Group's financial position or profitability. Material proceedings in which Allianz Group companies are involved include in particular the following:
In January 2023, a putative class action complaint was filed against Allianz SE and, in its amended version, against AllianzGI U.S. in the United States District Court for the Central District of California. The complaint alleged violation of Federal U.S. Securities Laws by making false or misleading statements in public disclosures such as the annual reports of Allianz in the period between March 2018 and May 2022 regarding the AllianzGI U.S. Structured Alpha matter and internal controls. In June 2024, the complaint was dismissed in its entirety with prejudice. In July 2024, plaintiff has filed a notice of appeal.
Commitments
Commitments
€ mH
As of 30
June 2024
Commitments to acquire interests in joint ventures, associates and equity investments
Commitments to purchase debt investments
Other commitments
Total
As of 30 June 2024
33,904
8,228
3,430
45,562
As of 31 December 2023
As of 31
December 2023
Hyperinflationary economies
Subsidiaries of the Allianz Group that operate in Türkiye and Argentina have to apply hyperinflation accounting in accordance with IAS 29.
In applying IAS 29, the Allianz Group has adopted the accounting policy to present the combined effect of the restatement in accordance with IAS 29 and the translation according to IAS 21 as a net change for the year in other comprehensive income.
The identities and levels of the price indices applied by the operating entities concerned are as follows:
Hyperinflationary economies
| As of | As of | ||
|---|---|---|---|
| 30 June | 31 December | ||
| Türkiye | Index | 2024 | 2023 |
| Consumer Price Index | |||
| published by the Turkish | |||
| Statistical Institute (TUNKSTAT) | 2,319.29 | 1,859.38 | |
| Argentina | Consumer Price Index | ||
| published by the Argentinian | |||
| Statistical Institute (INDEC) | 6,351.71 | 3,533.19 |
Overall, for the six months ended 30 June 2024, the application of hyperinflation accounting according to IAS 29 had a negative impact on net income of € (199) mn (2023: € (148) mn). For the six months ended 30 June 2023, this also includes an impact of € (35) mn from the Lebanese business operations, which were sold on 3 July 2023.
Related party transactions
Transactions between Allianz SE and its subsidiaries that are to be deemed related parties have been eliminated in the consolidation and are not disclosed in the notes.
Business relations with joint ventures and associates are set on an arm's length basis and are mainly related to loans and reinsurance agreements.
8.12 _ Subsequent events
Issuance and redemption of bonds
At the start of July 2024, Allianz has placed a bond in the amount of € 0.6 bn. The bond has a scheduled maturity in December 2029. The coupon is fixed at $3.25 \%$ per annum.
On 1 August 2024 Allianz called for redemption its remaining $€ 0.6$ bn 3.375\% undated subordinated bond effective 18 September 2024. The bond was issued in 2014 with an original nominal amount of $€ 1.5$ bn.
Allianz makes offer to expand and strengthen its presence in the Singapore insurance market
On 17 July 2024 Allianz announced a pre-conditional voluntary cash general offer to acquire at least $51 \%$ of the shares in the Singapore insurer Income Insurance, subject to regulatory approval. The transaction value is approximately $€ 1.5 \mathrm{bn}$, its closing is expected in the fourth quarter of 2024 or in the first quarter of 2025.
Loss portfolio transfer and reinsurance arrangement
On 5 April 2024, Allianz Global Corporate \& Specialty SE (AGCS), Allianz Group's carrier for large corporate and specialty insurance, entered into a binding agreement to transfer its U.S. mid-corp and entertainment claims portfolio to Arch Insurance North America, part of Arch Capital Group Ltd. (Arch) and to reinsure new business of this business for up to the next 3.5 years.
The transaction was closed on 1 August 2024. At closing, Arch assumed approximately USD 2 bn of loss reserves via a loss portfolio transfer and AGCS received USD 450 mn as compensation for assigned renewal rights and fronting services to be provided. Allianz does not expect a material net income impact from the closing of this transaction.
Going forward, AGCS U.S. will focus on its large corporate and specialty business, where U.S. brokers and clients benefit from Allianz's strong global and industry-specific capabilities across underwriting, claims, and risk consulting, including multinational insurance programs and alternative risk transfer.
Allianz SE has decided to expand the total volume of share buy-backs in the financial year 2024
Allianz SE has decided to expand the total volume of the share buybacks in the financial year 2024 to a total of $€ 1.5$ bn. Allianz SE has therefore resolved to repurchase additional treasury shares in a volume of up to $€ 0.5 \mathrm{bn}$. The buy-back of this additional volume shall start in mid-August and be finalized by 31 December 2024. The buyback of the volume of up to $€ 1$ bn already resolved in February 2024 was already completed in July 2024. Allianz SE will cancel all repurchased shares.
FURTHER INFORMATION
RESPONSIBILITY STATEMENT
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, 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, 7 August 2024
Allianz SE
The Board of Management
Oliver Bòte
Dr. Barbara Karutt MZelle
Christopher Townsend
Sirma Boshnakova
Dr. Klaus-Peter Röhler
R. Wagner
Renate Wagner
Claire-Marie-Gente-Dépoutre
Aubers Wimmer
REVIEW REPORT
To Allianz SE, Munich
We have reviewed the condensed consolidated interim financial statements - comprising the consolidated balance sheet, consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity, consolidated statement of cash flows and selected explanatory notes - and the interim group management report of Allianz SE, Munich, for the period from 1 January to 30 June 2024 which are part of the half-year financial report pursuant to § (Article) 115 WpHG ("Wertpapierhandelsgesetz": German Securities Trading Act). The preparation of the condensed consolidated interim financial statements in accordance with the IFRS applicable to interim financial reporting as adopted by the EU and of the interim group management report in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports is the responsibility of the parent Company's Board of Managing Directors. Our responsibility is to issue a review report on the condensed consolidated interim financial statements and on the interim group management report based on our review.
We conducted our review of the condensed consolidated interim financial statements and the interim group management report in accordance with German generally accepted standards for the review of financial statements promulgated by the Institut der Wirtschaftsprüfer (Institute of Public Auditors in Germany) (IDW). Those standards require that we plan and perform the review so that we can preclude through critical evaluation, with moderate assurance, that the condensed consolidated interim financial statements have not been prepared, in all 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 all material respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports. A review is limited primarily to inquiries of company personnel and analytical procedures 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 express an audit opinion.
Based on our review, no matters have come to our attention that cause us to presume that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU nor that the interim group management report has not been prepared, in all material respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports.
Munich, 7 August 2024
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft
Florian Möller
Wirtschaftsprüfer
(German Public Auditor)
Clemens Koch
Wirtschaftsprüfer
(German Public Auditor)
Imprint
Allianz SE
Königinstrasse 28
80802 Munich
Germany
Phone +49 893800
www.allianz.com
Annual Report online: www.allianz.com/interim-report
Date of publication: 8 August 2024
This is a translation of the German Interim Report of the Allianz Group. In case of any divergences, the German original is legally binding.