Allianz quarterly figures: Insurance group exceeds expectations

Insurance group Allianz reported a profit increase of almost 15 percent to 7.5 billion euros in the first half of the year, exceeding analysts' expectations. For the full year, the company confirmed its profit forecast of 14.2 billion euros, with a range of one billion euros up or down. Group CEO Oliver Bäte gave a positive assessment of the results and stressed that the company was on track to achieve its full-year targets. CFO Giulio Terzariol expressed the view that Allianz would probably close the year at the upper end of the forecast range.

Property and casualty insurance in particular proved to be a growth driver for the Group. But Allianz also recorded growth in life and health insurance. By contrast, the company's own asset management business showed weaknesses. Nevertheless, Allianz CEO Oliver Bäte's figures for the first half of the year were largely in step with his main competitors. The trend was similar, with high demand for general insurance in the face of global catastrophes and life insurance under pressure due to the interest rate turnaround.

Its largest competitors, such as Axa and Generali, also reported rising first-half profits. Axa reported a rise in adjusted profit of just over a fifth to 4.1 billion euros, while Generali announced an increase in adjusted net income of more than 60 percent to 2.3 billion euros.

The insurers reported for the first time in accordance with the new international standard IFRS 17, which focuses on revenue as the most important measure of business performance. Allianz increased its revenue in the first half of the year by 4.8 percent to 85.6 billion euros. The development of premium income, the previous measure, was thus replaced.

The financial ratios showed relief, especially in return on equity and earnings per share. Both met the plan targets of the three-year strategy "Simplicity at Scale" issued by the Group for the years 2022 to 2024. Return on equity was 16.7 percent in the first half of the year, while earnings per share amounted to 11.40 euros.

The property and casualty insurance segment recorded particularly strong growth. Sales in this profitable Group division rose by almost ten percent to 41.7 billion euros. Prices and customer demand for insurance cover increased in most regions. The operating profit of the division increased by more than 16 percent to 3.9 billion euros in the first half of the year.

Life/Health benefited from developments in the important U.S. market, which had a positive impact on earnings. Operating profit rose to 2.5 billion euros, compared with 1.8 billion euros in the previous year. The turnaround in interest rates on the capital markets had a positive impact here. The asset management business, which comprises the asset managers Pimco and AGI, suffered from negative currency effects and high inflation. The unit earned only 1.4 billion euros in the first half of the year, more than eleven percent less than in the prior-year period.