Allianz, 9M2019: operating profit grew 4.2%

8 November 2019 — press.release
For the first nine months of 2019, Allianz Group's operating profit grew by 4.2% to EUR 9.1 billion (9M2018: EUR 8.7 billion), mostly due to a one-off profit from Life/Health business in the United States.

Allianz nine months 2019 figures (vs. 9M2018)

  • Total revenues: EUR 106.9 billion (+7.8%), of which:
    • Property-Casualty: EUR 46.1 billion (+6.6%)
    • Life/Health: EUR 55.9 billion (+9.5%)
    • Asset Management: EUR 5.2 billion (+3.3%)
  • Operating profit/loss: EUR 9.1 billion (+4.2%), of which:
    • Property-Casualty: EUR 4.2 billion (-1.1%)
    • Life/Health: EUR 3.4 billion (+6.7%)
    • Asset Management: EUR 2.0 billion (+3.0%)
  • Return on equity: 14.1% (+0.9 pp.)
  • P&C combined ratio:94.1% (+0.1 pp.)
  • L&H NBM: 3.4% (-0.1 pp.)
  • L&H VNB: EUR 1,648 million (+13.2%)
  • Assets management cost-income ratio: 62.1% (+0.1 pp.)
  • Net income attributable to shareholders: EUR 6.1 billion (+5.0%)

Higher AuM-driven revenues from Asset Management business also contributed to the increase of the operating, partly offset by higher administrative expenses. Operating profit from Property-Casualty business decreased as a higher underwriting result could not compensate for the lower investment result and a decrease in the net fee and commission result.

Net income attributable to shareholders grew to EUR 6.1 billion (9M2018: EUR 5.8 billion). This was primarily due to the increase in operating profit, which compensated for the normalization of the result attributable to non-controlling interests.

Property & Casualty

In the first nine months of 2019, total revenues increased to EUR 46.1 billion (9M2018: EUR 43.3 billion). Adjusted for foreign exchange and consolidation effects, internal growth amounted to 4.4%. As a higher underwriting result was offset by a lower investment result and a decrease in net fee and commission income, operating profit declined by 1.1% to EUR 4.2 billion compared to the same period of the prior year. The combined ratio for the first nine months of 2019 held mostly steady at 94.1% (9M2018: 94.0%).

Life & Health

In the first nine months of 2019, the present value of new business premiums increased to EUR 49.0 billion (9M2018: EUR 42.4 billion) mainly driven by the higher sales in the German and U.S. life insurance business. The NBM remained stable at 3.4%. The VNB grew to EUR 1.6 billion (9M2018: EUR 1.5 billion). Operating profit went up to EUR 3.4 billion (9M2018: EUR 3.2 billion) mainly due to the favorable effect from the change in DAC (deferred acquisition costs) amortization period in the second quarter of 2019 in the United States.

Asset Management

In the first nine months of 2019, operating revenues grew by 3.3% to EUR 5.2 billion, driven by higher average third-party AuM. As performance fees decreased and investments in business growth were made, the cost-income ratio went up slightly by 0.1 percentage points to 62.1%. Operating profit rose by 3.0% to EUR 1.95 billion (9M2018: EUR 1.90 billion) million euros. On an internal basis, operating profit declined by 1.7%, mainly due to lower performance fees, only partly offset by lower administrative expenses and increased AuM-driven fees. Furthermore, favorable market and foreign currency effects, net inflows, as well as the acquisition of Gurtin Municipal Bond Management resulted in third-party assets under management of EUR 1,681 billion - an increase of EUR 245 billion or 17.1%, compared to year-end 2018.

Oliver BATE, Chief Executive Officer of Allianz SE, said:

"Allianz has once again delivered very solid results in challenging times. We are proud that so many customers trust in our products and in our brand. We are ready to reach the upper half of our operating profit outlook despite a significant increase in external challenges."

More financial information about Allianz can be found on the group's website.


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