DGAP-News: Allianz SE: Allianz achieves operating profit of 1.9 billion euros and confirms 2011 operating profit outlook
(firmenpresse) - DGAP-News: Allianz SE / Key word(s): Quarter Results
Allianz SE: Allianz achieves operating profit of 1.9 billion euros and
confirms 2011 operating profit outlook
11.11.2011 / 06:59
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*Stable revenues of 24.1 billion euros
*Net income of 258 million euros; heavily impacted by financial market
turmoil
*Capital position remains resilient
*Operating profit outlook for 2011 of 8.0 billion euros plus/minus 0.5
billion euros confirmed
In the third quarter of 2011, Allianz maintained revenues at a high level
and achieved a solid operating profit. At the same time, it preserved its
strong capital base despite the downturn of equity markets and the ongoing
sovereign debt crises.
Allianz Group recorded total revenues of 24.1 billion euros, coming just
1.8 percent below the level from the third quarter of last year. When
adjusted for currency conversion and consolidation effects, revenues for
the Group rose by 0.2 percent.
Operating profit of 1.906 billion euros was off by 7.3 percent compared to
the year before but remains on target. The decline in the result was
largely due to lower investment results in Life and Health insurance
compared to 2010. In Property and Casualty insurance operating profit
remained stable, while Asset Management continued its successful path and
again increased its operating profit.
Quarterly net income stood at 258 million euros, compared to 1.3 billion
euros the year before. Non-operating impairments amounted to 931 million
euros, in particular from investments in the financial sector and from
Greek sovereign debt. In addition, the effective tax rate of Allianz Group
surged to 60 percent, up from 34.4 percent in last year's third quarter as
impaired investments were largely excluded from tax consideration.
Allianz maintained its capital strength: The regulatory solvency ratio
stood at 179 percent, almost unchanged from 180 percent at the end of the
second quarter. Shareholders' equity increased by 2.2 percent to 43.564
billion euros during the same period.
'All market participants have to face the uncertainty and high volatility
of the capital markets. Because of our solid operating results and
unwavering capital strength, Allianz is well able to withstand this
adversity,' said Oliver Bäte, Chief Financial Officer of Allianz SE. 'We
remain committed to achieving our operating profit target for 2011 of 8.0
billion euros, plus or minus 0.5 billion euros.'
Property and Casualty insurance segment steady
In Property and Casualty insurance business, gross premiums written in the
third quarter increased by 2.2 percent to 10.8 billion euros from 10.6
billion euros over the same period last year. Internal growth was 4.2
percent.
Higher premiums in the US, UK, Australia and in the Asia-Pacific region
offset declines in other markets, specifically in Germany and Reinsurance.
Most of this growth stemmed from crop insurance in the US where higher
commodity prices drove up revenues.
Operating profit remained robust at 1.111 billion euros, only 1.0 percent
lower compared to 1.122 billion euros in the third quarter of 2010.
The expense ratio improved to 27.1 percent, down from 28.4 percent last
year. However, an unusually high level of natural catastrophes added 4
percentage points to the accident year loss ratio. This resulted in a
combined ratio of 97.6 percent compared to 97.1 percent in the previous
year, while the run-off ratio of 3.6 percent also remained similar to 3.4
percent in 2010.
'Even though we again experienced an above-average burden from natural
catastrophes, our Property and Casualty insurance business continued its
stable development in the third quarter,' said Oliver Bäte. 'This is a
clear demonstration of the balance and robustness of our portfolio.'
Life and Health insurance segment showing stable demand for traditional
products
The Life and Health insurance business was strongly influenced by
uncertainty in the financial markets. Statutory premiums reached 11.8
billion euros compared to 12.6 billion euros in the same quarter the year
before. The decline of 6.0 percent is entirely attributable to
investment-oriented products. Premiums for traditional life products, on
the other hand, achieved the previous year's level of 5.6 billion euros.
Premium volume grew in most major European markets or maintained at least
last year's level; in Asia and the US the volume declined primarily due to
one-off effects.
Operating profit stood at 520 million euros, 20.6 percent down from 655
million euros in the third quarter the year before. This decline is due to
the net investment result which was lower by 224 million euros.
The average asset base for Life and Health insurance grew further to 357.7
billion euros in the third quarter of 2011, an increase of 3.2 percent from
346.7 billion euros at the same time in 2010. The value of new business was
also higher, at 233 million euros compared to 206 million euros in the
third quarter of 2010. The new business margin rose to 2.7 percent from the
previous year's third-quarter level of 2.2 percent.
'Our Life and Health insurance business held up well in a difficult capital
market environment. Despite a significant decline in investment income due
to the crisis, we were able to achieve a solid result. The essentially
stable demand for our products shows that especially in turbulent times
Allianz is still considered a reliable partner for retirement provision,'
said Oliver Bäte.
Asset Management remains outstanding performer
Asset Management continued its course of profitable growth. In the third
quarter of 2011, net fee and commission income increased by 8.1 percent to
1.335 billion euros from 1.235 billion euros the year before. Adjusted for
currency and consolidation effects, the increase was 15.9 percent.
Operating profit stood at 537 million euros, compared to 521 million euros
in the third quarter of 2010. Ongoing strong margins led to this 3.1
percent increase. Adjusted for foreign currency effects, growth amounted to
10.6 percent.
Total assets under management expanded by 10.3 percent to their
highest-ever level of 1,592 billion euros from 1,443 billion euros at the
end of the third quarter 2010. Third-party assets under management totaled
1,222 billion euros as of September 30, 2011, compared to the previous
year's level of 1,131 billion euros. The cost-income ratio for the segment
increased 1 percentage point to 59.5 percent.
'This segment remains a benchmark for the industry. The business continues
to grow and deliver attractive returns, a remarkable achievement in the
current environment,' said Oliver Bäte. 'Allianz profits from its
well-balanced business model. Especially in difficult times like these our
regional and business diversification provides stability and reliability.'
Allianz Group - Key figures 3rd quarter 2011 and first 9 months of 2011
3Q 2011 3Q 2010
Total revenues [Euro bn] 24.1 24.5
Operating profit / loss [Euro mn] 1,906 2,055
Property/Casualty [Euro mn] 1,111 1,122
Life/Health [Euro mn] 520 655
Asset Management [Euro mn] 537 521
Corporate and Other[Euro mn] -233 -270Consolidation [Euro mn] -29 27
Income before income taxes [Euro mn] 644 1,932
Income taxes [Euro mn] -386 -664
Net income / loss [Euro mn] 258 1,268
Property/Casualty [Euro mn] 513 872
Life/Health [Euro mn] 235 445
Asset Management [Euro mn] 333 281
Corporate and Other[Euro mn] -832 -454
Consolidation [Euro mn] 9 124
Net income [Euro mn] 258 1,268
attributable to non-controlling interests [Euro mn] 62 4
attributable to shareholders [Euro mn] 196 1,264
Basic earnings per share [Euro] 0.43 2.80
Diluted earning per share [Euro] 0.34 2.78
Ratios
Property/Casualty: Combined ratio 97.6% 97.1%
Life/Health: Cost-income ratio 96.5% 96.0%
Asset Management: Cost-income ratio 59.5% 58.5%
9M 2011 9M 2010
Total revenues [Euro bn] 78.5 80.5
Operating profit /loss [Euro mn] 5,866 6,089
Property/Casualty [Euro mn] 3,103 2,981
Life/Health [Euro mn] 1,901 2,314
Asset Management [Euro mn] 1,593 1,503
Corporate and Other [Euro mn] -661 -676
Consolidation [Euro mn] -70 -33
Income before income taxes [Euro mn] 3,744 5,628
Income taxes [Euro mn] -1,500 -1,600
Net income / loss [Euro mn] 2,244 4,028
Property/Casualty [Euro mn] 2,022 2,300
Life/Health [Euro mn] 931 1,581
Asset Management [Euro mn] 931 654
Corporate and Other [Euro mn] -1,647 -701
Consolidation [Euro mn] 7 194
Net income [Euro mn] 2,244 4,028
attributable to non-controlling interests 191 110
attributable to shareholders 2,053 3,918
Basic earnings per share [Euro] 4.55 8.68
Diluted earnings per share [Euro] 4.42 8.62
Ratios
Property/Casualty: Combined ratio 97.9% 97.9%
Life/Health: Cost-income ratio 96.2% 95.7%
Asset Management: Cost-income Ratio 59.2% 57.8%
09/30/11 12/31/10
Shareholders' equity [Euro bn](1) 43.6 44.5
Conglomerate solvency ratio (2) 179% 173%
Third-party assets under management [Euro bn] 1,222 1,164
(1) Excluding non-controlling interests
(2) Including off-balance sheet reserves (09/30/11: Euro 2.0 bn, 12/31/10:
Euro 2.1 bn). The solvency ratio excluding off-balance sheet reserves
amounts to 171% as of 09/30/11 and 164% as of 12/31/10.
These assessments are, as always, subject to the disclaimer provided below.
Cautionary Note Regarding Forward-Looking Statements
The statements contained herein may include statements of future
expectations and other forward-looking statements that are based on
management's current views and assumptions and involve known and unknown
risks and uncertainties that could cause actual results, performance or
events to differ materially fromthose expressed or implied in such
statements. In addition to statements which are forward-looking by reason
of context, the words 'may', 'will', 'should', 'expects', 'plans',
'intends', 'anticipates', 'believes', 'estimates', 'predicts', 'potential',
or 'continue' and similar expressions identify forward-looking statements.
Actual results, performance or events may differ materially from those in
such statements due to, without limitation, (i) general economic
conditions, including in particular economic conditions in the Allianz
Group's core business and core markets, (ii) performance of financial
markets, including emerging markets, and including market volatility,
liquidity and credit events (iii) the frequency and severity of insured
loss events, including from natural catastrophes and including the
development of loss expenses, (iv) mortality and morbidity levels and
trends, (v) persistency levels, (vi) the extent of credit defaults, (vii)
interest rate levels, (viii) currency exchange rates including the
euro/U.S. dollar exchange rate, (ix) changing levels of competition, (x)
changes in laws and regulations, including monetary convergence and the
European Monetary Union, (xi) changes in the policies of central banks
and/or foreign governments, (xii) the impact of acquisitions, including
related integration issues, (xiii) reorganization measures, and (xiv)
general competitive factors, in each case on a local, regional, national
and/or global basis. Many of these factors may be more likely to occur, or
more pronounced, as a result of terrorist activities and their
consequences. The company assumes no obligation to update any
forward-looking statement.
No duty to update
The company assumes no obligation to update any information contained
herein.
End of Corporate News
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Language: English
Company: Allianz SE
Königinstr. 28
80802 München
Germany
Phone: +49 (0)89 38 00 - 41 24
Fax: +49 (0)89 38 00 - 38 99
E-mail: investor.relations(at)allianz.com
Internet: www.allianz.com
ISIN: DE0008404005
WKN: 840400
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
Standard), Hamburg, Hannover, München, Stuttgart;
Terminbörse EUREX
End of News DGAP News-Service
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