Allianz boasts record H1 2024 profits

Allianz boasts record H1 2024 profits | Insurance Business Canada

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Allianz boasts record H1 2024 profits

Executives eye strong finish for 2024

Insurance News

By
Roxanne Libatique

Allianz SE (Allianz) has announced strong financial results for the first half of 2024 (H1 2024), affirming its confidence in meeting full-year targets.

Allianz SE CEO Oliver Bäte said the insurance giant demonstrated resilience and core strengths, despite significant natural catastrophe activity in the second quarter (Q2 2024), including severe flooding in Germany.

“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,” he said. “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.”

Allianz’s Q2 and H1 2024 financial results

Total business volume

Q2 2024: Total business volume rose 7.6% to 42.6 billion euros, driven by strong momentum across all business segments. Adjusted for foreign currency and consolidation effects, internal growth was 8.8%.

H1 2024: Total business volume increased by 6.4% to 91.0 billion euros, with all segments contributing. Internal growth was 7.5%.

Earnings

Q2 2024: Operating profit reached 3.9 billion euros, with all segments contributing positively. The property and casualty (P&C) segment’s strong performance offset natural catastrophe impacts. Shareholders’ core net income remained stable at 2.5 billion euros. Net income attributable to shareholders increased to 2.5 billion euros.

H1 2024: Operating profit grew by 5.3% to 7.9 billion euros, with all segments showing growth. Shareholders’ core net income rose by 7.7% to 5.0 billion euros. Net income attributable to shareholders increased by 14.2% to 5.0 billion euros. Core earnings per share were 12.57 euros. The annualised core return on equity was 17.5%. The share buy-back program of 1 billion euros, announced in February, was completed by July, with an additional 500 million euros planned.

Solvency II capitalisation ratio

Allianz’s solvency II capitalisation ratio stood at 206% at the end of the second quarter, up from 203% at the end of the first quarter.

Allianz Q2 and H1 2024 segmental highlights

Property and casualty insurance

Q2 2024: Business volume increased by 9.4% to 19.3 billion euros, with internal growth at 10.5%. Operating profit was 1.9 billion euros despite high natural catastrophe losses. The combined ratio was 93.5%, with a loss ratio of 69.2% and an expense ratio of 24.2%.

H1 2024: Business volume rose by 7.3% to 44.8 billion euros, with internal growth at 8.1%. Operating profit increased by 3.3% to 4.0 billion euros. The combined ratio was 92.7%, with a loss ratio of 68.3% and an expense ratio of 24.4%.

Life and health insurance

Q2 2024: The present value of new business premiums (PVNBP) rose to 18.8 billion euros. Operating profit increased to 1.4 billion euros. The contractual service margin (CSM) grew to 53.6 billion euros, with a new business margin (NBM) of 5.8%.

H1 2024: PVNBP increased to 41.1 billion euros. Operating profit rose to 2.7 billion euros. The CSM grew to 53.6 billion euros, with an NBM of 5.7%.

Asset management

Q1 2024: Operating revenues increased to 2.0 billion euros, with operating profit rising to 742 million euros. Third-party assets under management reached 1.803 trillion euros.

H1 2024: Operating revenues rose to 4.0 billion euros, with operating profit increasing to 1.5 billion euros. Third-party assets under management grew by 91 billion euros to 1.803 trillion euros.

Allianz SE CFO Claire-Marie Coste-Lepoutre said the results for the second quarter of the year reflect the resiliency of the company’s business model.

“Allianz’s results for the second quarter and the consistency of our performance confirm our sustained momentum and the resilience of our business model,” she said. “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.”

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