Allianz Q1 Profit Surges, Backs FY23 View

Allianz SE, a German financial services provider, reported Friday significantly higher profit in its first quarter with increased business volume in Property-Casualty business segment, despite weakness in both Life/Health insurance and Asset Management. Further, the company maintained its outlook for fiscal 2023 operating profit.

Oliver Baete, Chief Executive Officer, said, “We once again benefited from our diversified business mix and delivered particularly strong performance in the Property-Casualty segment, driven by robust pricing, continued underwriting discipline and focus on further productivity gains. Our strong profitability and capitalization underscore our aspiration to remain the trusted partner for our clients to secure their futures as they continue to navigate a time of hesitation and uncertainty.”

For fiscal 2023, the company continues to expect operating profit to be 14.2 billion euros, plus or minus 1 billion euros.

On May 10, Allianz announced a new share buy-back program of up to 1.5 billion euros, which will start end-May 2023 and be finalized by December 31, 2023, at the latest.

In the first quarter, Allianz’s net income attributable to shareholders climbed to 2.03 billion euros from 474 million euros in the same quarter last year.

Shareholders’ core net income rose to 2.17 billion euros from the prior year’s 417 million euros.

Core earnings per share were 5.43 euros, up from 1.02 euros in the prior year.

Quarterly operating profit jumped 24.2 percent to 3.73 billion euros from last year’s 3 billion euros. The results reflected a higher result of US operations in the Life/Health business segment, and a stronger insurance service result in the Property-Casualty business segment. This was partly offset by the Asset Management business segment.

Total business volumes rose 3.9 percent to 46.0 billion euros from last year’s 44.3 billion euros, driven by the Property-Casualty business segment which benefited from higher prices and volumes.

Internal growth was at 3.5 percent.

In the Property-Casualty insurance, total business volume rose 11.2 percent to 24.1 billion euros. Internal growth was 11.1 percent.

Life/Health insurance’s business volume dropped 2.6 percent to 20.1 billion euros. The PVNBP, the present value of new business premiums, amounted to 18.5 billion euros, driven primarily by lower single premium volumes in Germany and Italy, slightly offset by increased volumes in the United States.

Asset Management operating revenues were 1.9 billion euros, down 8.1 percent as higher performance fees were more than offset by lower AuM-driven revenues.

Third-party assets under management were 1.668 trillion euros as of March 31, up by 33 billion euros from the end of 2022. Positive net inflows of 14.9 billion euros and favorable market impacts of 42.2 billion euros were partially offset by negative foreign currency translation effects of 23.4 billion euros.

Total assets under management were 2.174 trillion euros at the end of the first quarter of 2023, reflecting the trend in the third-party assets under management.

In Germany, Allianz shares were trading at 212.15 euros, up 0.26 percent.

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