ALLIANZ, 1H2015: strong reasons to expect a high profit for 2015

27 August 2015 — Daniela GHETU
Total revenues of the ALLIANZ Group rose by 7.1% y-o-y in 1H2015, to EUR 67.9 billion. Operating profit climbed 3.7% to EUR 5.70 billion, while net income attributable to shareholders advanced 13.1%, to EUR 3.84 billion.

Solvency II capitalization rose 22 pp to 212% as of June 30, 2015, from 191% at the end of 2014. Shareholders' equity remained stable at EUR 60.69 billion compared to EUR 60.75 billion at year end.

"Despite negative one-offs, we have achieved an excellent performance in the first six months," said Oliver Bate, Chairman of the Board of Management of Allianz SE. "We confirm our operating profit outlook for 2015 at the upper end of the target range at EUR 10.8 billion."

Gross written premium in Property & Casualty insurance worldwide amounted to EUR 29.18 billion, up by about 12% y-o-y, with operating revenues for this line of business reaching EUR 26.05 billion in 1H2015. At the same time, claims and insurance benefits incurred totalled, in net value, EUR 15.24 billion, 10% up y-o-y, while operating expenses rose to EUR 23.03 billion, also about 10% up y-o-y. The consolidate combined ratio stood at 94.1%.

Central and Eastern Europe's contribution to the total GWP figure was of EUR 1.03 billion, down by about 18.5% y-o-y, entirely driven by the shrinking Russian motor business of the Group.


Statutory premiums in Life & Health insurance were 4.2% above the first half year of 2014 and amounted to EUR 35,540 million. This represents a decrease of 0.5 % on an internal basis which was largely driven by decreased single premium fixed-indexed annuity sales in the United States, lower traditional life business in Germany and reduced business resulting from cooperation between ALLIANZ companies in France and Luxembourg. This was largely offset by increased unit-linked business in Italy and Taiwan.

Premiums in Central and Eastern Europe decreased by 10.5% to EUR 219 million, mainly driven by lower unit-linked business in the Czech Republic and Hungary, partly offset by higher unit-linked business in Poland.

Our Life & Health insurance operating profit increased by EUR 92 million to EUR 1,957 million, "mainly due to higher loadings and fees in the first half year of 2015 - a result of increased sales in Asia-Pacific and increased fees earned in Italy. It was also because of a higher investment spread margin, due to an increased asset base, and favorable interest rate movements in the United States. Unfavorable impacts of change in DAC - largely due to the higher DAC amortization associated with our variable annuity business in the United States - partly offset this increase", as the Group's interim report shows.


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