Allianz, 1H2020: Total revenues remained stable, net income shrunk by more than a fourth

5 August 2020 — press.release
Allianz Group ended the first half of 2020 with a net income of EUR 3.1 billion, 28.2% lower than the value reported in the first half of the prior year. The decrease in the net income attributable to shareholders was largely driven by the drop in operating profit, the group reports.

Total revenues remained stable year-on-year, at EUR 73.5 billion at the end of the first half of 2020. Operating profit fell to EUR 4.9 billion (-20.5%), with COVID-19 having a significant negative impact on the group's insurance businesses' operating profit.

"The COVID-19 crisis caused one of the most severe economic and financial market turmoils. While financial markets have rallied in the second quarter of 2020, the economic recovery remains fragile. However, Allianz with its well-diversified business portfolio and robust balance sheet has continued to successfully navigate through the current crisis and has achieved solid results in the second quarter of 2020. Due to the continuing uncertainties we currently do not give an updated operating profit outlook for 2020," the group mentions.


Allianz 1H2020 preliminary figures, y-o-y changes

  • Total revenues: EUR 73,495million (+0.0%), of which:
    • P&C GWP: EUR 32,933 million (+3.2%)
    • L&H statutory premiums: EUR 36,356 million (-2.8%)
    • Asset Management revenues: EUR 3,493 million (+5.2%)
  • Combined ratio: 96.7% (+2.7 pp.)
  • Return on equity: 10.5% (-3.5 pp.)
  • Solvency II ratio: 187% (-26 pp.)
  • Operating profit: EUR 4,869 million (-20.5%)
  • Net income: EUR 3,101 million (-28.2%)


Property & Casualty

In the first half-year of 2020, total revenues rose to EUR 33.8 billion (1H2019: 32.9). Adjusted for foreign currency translation and consolidation effects, internal growth totaled 0.3 percent, mostly driven by AGCS, Asia-Pacific, and Germany. As particularly the underwriting result decreased sharply due to higher claims from natural catastrophes and a severe impact of COVID-19 amounting to EUR -0.8 billion. The operating profit deteriorated to EUR 2.2 billion (-23.4%) compared to the same period of the prior year. This negative development was partly offset by a strong improvement in the expense ratio. Overall, the combined ratio for the first half-year worsened by 2.7 percentage points to 96.7%.


Life & Health

In the first half-year of 2020, the PVNBP decreased to EUR 29.6 billion (1H2019: 32.9) largely because of the lower sales in the German and U.S. life insurance business. Operating profit went down to EUR 1.8 billion (1H2019: 2.3), driven mainly due to a favorable one-off profit in the United States in the second quarter of 2019. A lower investment margin due to higher impairments in the first quarter of 2020, higher hedging expenses in the United States, and the disposal of Allianz Popular in Spain also contributed to this development. The new business margin decreased to 2.9% (1H2019: 3.5%) bringing the value of new business to EUR 851 million (1H2019: 1,153).


Asset Management

In the first half-year of 2020, operating revenues grew to EUR 3.5 billion (+5.2%), driven by higher AuM-driven revenues. The cost-income ratio remained almost unchanged at 62.2% (1H2019: 62.3%). Operating profit rose to EUR 1,319 million (+5.4%). On an internal basis, operating profit increased by 3.0%. Net outflows, unfavorable market effects, as well as negative foreign currency translation effects resulted in third-party assets under management of EUR 1,658 billion, representing a decrease of EUR 28 billion (-1.7%), compared to year-end 2019.


Oliver Bate, Chief Executive Officer of Allianz SE, commented:

"The pandemic continues to be a challenge for all industries. Nevertheless, Allianz has achieved robust results and shown a remarkable resilience in the first six months of 2020. It makes us confident that we will see a solid financial performance also in the second half of 2020."





More financial information about Allianz Group can be found at www.allianz.com/en/investor_relations


Source: allianz.com

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