In their results for the second quarter of 2024, Allianz has posted a €3.9 billion operating profit, with all of the company’s segments contributing to this result, whilst the firm’s property & casualty (P&C) segment business produced a strong underlying performance which largely offset the impact of elevated natural catastrophes.
At the same time, Allianz also reported a net income of €2.6 billion for the quarter, compared to €2.5 billion from last year, which was primarily driven by operating profit growth, and a higher non-operating result.
As well as this, total business volume rose by 7.6% in Q2’24 to €42.6 billion, which the firm stated was driven by strong momentum across all business segments.
Moreover, Allianz reported that its Solvency II capitalization ratio was 206% at the end of the second quarter of 2024, compared with 203% at the end of the first quarter of 2024.
Within the firm’s P&C segment, total business volume increased by 9.4% to €19.3 billion, while the segment also produced an operating profit of €1.9 billion, which the firm said was a “resilient performance in light of elevated natural catastrophe and weather losses.”
The P&C segment’s combined ratio amounted to 93.5%, compared to 92.2% from last year. The segments loss ratio stood at 69.2%, as significantly higher claims from natural catastrophes were partly offset by better run-off.
Within Life & Health, Allianz has reported that the present value of new business premiums (PVNBP) increased to €18.8 billion in Q2’24, driven primarily by higher volume in most entities. At the same time, the new business margin (NBM) was 5.8%, while the value of new business (VNB) remained at a very good level of €1.1 billion.
Moving forward, Allianz also reported that total assets under management rose to €2.309 trillion euros at the end of the second quarter of 2024, up by a staggering €12 billion euros from the end of the first quarter 2024.
Claire-Marie Coste-Lepoutre, Chief Financial Officer of Allianz SE, said: “Allianz’s results for the second quarter and the consistency of our performance confirm our sustained momentum and the resilience of our business model.
“In our Property-Casualty segment, we achieved a very good operating profit. This shows our ability to deliver strong results even as we were impacted by severe natural catastrophes in particular in Germany. Our continuous focus on productivity is as well supporting our performance. We have reached an excellent operating profit in our Life/Health operations. Our strong new business generation and a healthy new business margin speak for the attractiveness of our products.
“In Asset Management, continued net inflows of 14.1 billion euros in the second quarter bring our net inflows for the first half to 48.4 billion euros. Our third-party assets under management exceeded 1.8 trillion euros for the first time since 1Q 2022. This is a good basis for future profit growth.
“We look with confidence to the second half of 2024 and affirm our outlook for an operating profit of 14.8 billion euros plus or minus 1 billion euros for the full year.”
Switching attention towards the first half of 2024, Allianz’s operating profit came in at €7.9 billion, up by 5.3% from last years €7.5 billion. Allianz noted that the Life & Health segment achieved widespread growth across most regions, while within Asset Management, higher AuM-driven revenues were the main drivers while the firm’s P&C business benefited from strong growth and underlying performance.
Net income for H1’24 sat at €5.2 billion, a 13.9% increase from €4.6 billion in H1’23, while total business volume increased by 6.4% to €91.0 billion euros, with all business segments contributing towards this growth.
Within P&C, total business volume increased by 7.3% to reach €44.8 billion in the first half of 2024, while the segments operating profit climbed 3.3% to €4.0 billion.
The segments combined ratio came in at 92.7% for H1’24, compared to 92% from last year. The loss ratio was 68.3% as higher claims from natural catastrophes were partly offset by better run-off.
Going back to Life & Health, PVNBP rose to €41.1 billion in the period, which Allianz noted was supported by strong sales in capital efficient products, while the segments NBM came in at 5.7%, and the value of new business rose to €2.4 billion.
Oliver Bäte, Chief Executive Officer of Allianz SE, commented: ”Allianz delivered strong results in the first six months of the year and we are confident in our ability to achieve our full-year ambitions. Our performance demonstrates the core strengths and resilience of our company, particularly as our results were achieved amid significant natural catastrophe activity in the second quarter – and notably in our home market. The way that Allianz responded to our customers affected by the floods in Germany reflected the best possible blend of compassion, speed, and expertise. Teams enabled by digital claims processing tools visited nearly all affected properties within two weeks of the event, which reassured our customers and limited damages.
“These excellent property and casualty outcomes were complemented by strong delivery in our life/health, and asset management segments, demonstrating how we translate our customer-centric strategy into resilient earnings growth.”
