Allianz reports strong profitability in 2Q 2019. Operating profit outlook for full-year confirmed.

Saturday, 3 August 2019

Allianz reports strong profitability in 2Q 2019. Operating profit outlook for full-year confirmed.



 Internal revenue growth of 4.1 percent in 2Q 2019
 2Q 2019 operating profit up 5.4 percent to 3.2 billion euros
 2Q 2019 net income attributable to shareholders up 13.1 percent to 2.1 billion
euros
 6M 2019 operating profit at 6.1 billion euros reaches 53 percent of full-year outlook
midpoint
 6M 2019 net income attributable to shareholders rises 7.3 percent to 4.1 billion
euros
 Solvency II capitalization ratio at 213 percent at the end of 2Q 2019 compared to
218 percent at the end of 1Q 2019
 Operating profit outlook for 2019 confirmed at 11.5 billion euros, plus or minus
500 million euros

Management Summary: Strong total revenues and profitability
After a successful start into 2019, Allianz Group continued with a very strong operating performance in thesecond quarter of the year. At the heart of this result is Allianz’ focused strategy, strong execution, and its diversified business portfolio. Internal revenue growth, which adjusts for currency and consolidation effects, was 4.1 percent in the second quarter of 2019. Total revenues increased 6.1 percent to 33.2 (second quarter of 2018: 31.3) billion euros. Operating profit grew 5.4 percent to 3.2 (3.0) billion euros in the second quarter of 2019, largely driven by our Life/Health business segment with a good underlying performance and a one-off profit in the United States. Our Asset Management business segment’s operating profit increased mainly as a result of higher assets under management driven revenues. A lower investment result led to a decrease in our Property-Casualty business segment’s operating profit.

Net income attributable to shareholders increased 13.1 percent to 2.1 (1.9) billion euros in the second
quarter of 2019 due to operating profit growth and an improved non-operating result. The latter improvedas the second quarter of 2018 was burdened by a negative impact from the sale of our traditional life insurance portfolio in Taiwan.

Basic Earnings per Share (EPS) increased 10.2 percent to 9.76 (8.86) euros in the first half-year of 2019. Annualized Return on Equity (RoE) amounted to 14.7 percent (full year 2018: 13.2 percent). The Solvency II capitalization ratio decreased from 218 percent at the end of the first quarter 2019 to 213 percent at the end of the second quarter 2019. The decrease was predominantly driven by market movements and capital management actions, which were partially offset by positive operating Solvency II earnings.

In the first half-year of 2019, operating profit grew by 6.4 percent to 6.1 (5.8) billion euros, which is above the mid-point of our full-year target range. Our Life/Health business segment’s operating profit increased, supported by a one-off profit in the United States. Property-Casualty business segment recorded an improved underwriting result while our Asset Management business segment operating profit was stable.
Our operating profit growth was the main driver for the 7.3 percent increase of net income attributable toshareholders to 4.1 billion euros.
On February 14, 2019, Allianz announced a new share buy-back program of up to 1.5 billion euros.
6.2 million shares have been acquired by June 30, 2019, representing 1.5 percent of outstanding capital. “I am proud that the Allianz team has once again delivered a healthy performance,” said Oliver Bäte, Chief Executive Officer of Allianz SE. “Sustainable performance is the result of our rigorous strategy execution that provides desired solutions for our customers. Our half-year results testify that Allianz is on track to achieve its full-year targets.”

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