Allianz Group, 3Q 2023: increased revenues by 4.5% to EUR 36.5 billion; full-year outlook affirmed

13 November 2023 — Daniela GHETU
ALLIANZ Group’s total business volume rose by 4.7% to EUR 122.1 billion in the first nine months (9M) of 2023, driven by the P&C business, supported by the L/H business, and partially offset by the development in its Asset Management business segment.

The operating profit increased by 3.6% to EUR 11.0 billion, primarily driven by the Life/Health business segment, while shareholders’ core net income reached EUR 6.8 billion, up by 25.5% y-o-y. The Solvency II capitalization ratio reached 212%, further improving from 201% at the end of 4Q 20221.

In the first nine months of this year, we have seen robust growth in our business volume, operating profit as well as core net income. We have also further strengthened our solvency position at 212%. Our focus on execution and operational efficiency is enabling our profitable growth with healthy margins, and this places Allianz on an excellent trajectory to achieve our targets. We confirm with confidence our operating profit target of 14.2 billion euros, plus or minus 1 billion euros. Our resiliency as a company reflects the distinctive advantages of our global scale, diversified business mix, and the industry-leading levels of trust and engagement that we have earned with our stakeholders,” Allianz SE’s CEO, Oliver BÄTE.

According to Giulio TERZARIOL, Chief Financial Officer of Allianz SE, “the results of this quarter, characterized by high inflation and geopolitical tensions, demonstrate again the strength and the resilience of Allianz’s diversified business model.

Property-Casualty insurance: Strong business growth

The total business volume increased by 8.7% to EUR 58.9 billion. Adjusted for foreign currency translation and consolidation effects, the internal growth was very strong at 11.2%, supported by a price effect of 6.1%, a volume effect of 4.9% and a service effect of 0.2%. Allianz Partners and Türkiye were the main contributors among many entities.

The operating profit rose by 1.1% to EUR 5.3 billion, driven by a higher operating investment result.

The combined ratio increased by 0.5 percentage points to 93.5%. The loss ratio went up 0.4 percentage points to 68.5% mainly due to a less favorable run-off result. That was partially offset by lower large losses and a favorable impact from discounting. The expense ratio was stable at 24.9%.

Life/Health insurance: Healthy earnings power

The PVNBP (present value of new business premiums) decreased to EUR 50.6 billion, including unfavorable economic impacts primarily from discounting in Germany, France, and Italy, offset by increases in volume in the United States.

The operating profit increased to EUR 3.8 billion as last year was affected mainly by transitional impacts linked to adoption of IFRS 17 in the United States. The release of the Contractual Service Margin (CSM) was stable at EUR 3.7 billion.

Contractual service margin (CSM) was stable at EUR 52.1 billion, with a slight decrease triggered by the third quarter. The normalized growth was 3.3%.

The new business margin increased to 5.9% from 5.7%, driven by overall favorable economics across entities. The value of new business remained stable at EUR 3.0 billion, with slight increase due to higher volumes and favorable economic impacts.

Asset Management: positive net inflows

Operating revenues decreased by 5.9% to EUR 5.8 billion mainly as a result of lower AuM-driven revenues. Operating profit was EUR 2.2 billion, down 7.4% from the prior-year period. Adjusted for foreign currency translation effects, operating profit was down 5.8%. The cost-income ratio (CIR) rose to 61.7%. Third-party assets under management were EUR 1.670 trillion as of September 30, 2023, up by EUR 35 billion from the end of 2022.

For more details on the 3Q and 9M results of the Allianz Group visit the group’s website.