Group Affirms Full-year Outlook
November 10, 2023
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Oliver Bäte, Chief Executive Officer of
Allianz SE (Photo: Allianz SE)
3Q 2023:
- Total business volume increases 4.5 percent to 36.5 billion
euros
- Operating profit softens by 14.6 percent to 3.5 billion euros;
driven by the Property-Casualty business segment affected by a 7.3
percentage point impact by natural catastrophes on the combined
ratio, the highest in a decade
- Shareholders’ core net income 2.1 billion euros, down by 29.3
percent
9M 2023:
- Total business volume rises 4.7 percent to 122.1 billion
euros
- Operating profit increases 3.6 percent to 11.0 billion euros:
primarily driven by the Life/Health business segment
- Shareholders’ core net income 6.8 billion euros, up by 25.5
percent
- Further improved Solvency II capitalization ratio of 212
percent, compared with 201 percent at the end of 4Q 20221
Outlook:
- 2023 operating profit target confirmed at 14.2 billion euros,
plus or minus 1 billion euros2
Other:
- Share buy-back of up to 1.5 billion euros close to
completion
Note: The financial results are based on
the new IFRS 9 (Financial Instruments) and IFRS 17 (Insurance
Contracts) accounting standards, which have been adopted as of
January 1, 2023. Comparative periods have been adjusted to reflect
the application of these new accounting standards.
1
Excluding the application of transitional
measures for technical provisions.
2
As always, natural catastrophes and
adverse developments in the capital markets, as well as factors
stated in our cautionary note regarding forward-looking statements
may severely affect the operating profit and/or net income of our
operations and the results of the Allianz Group.
“In the first nine months of this year, we have seen robust
growth in our business volume, operating profit as well as core net
income. We have also further strengthened our solvency position at
212%. Our focus on execution and operational efficiency is enabling
our profitable growth with healthy margins, and this places Allianz
on an excellent trajectory to achieve our targets. We confirm with
confidence our operating profit target of 14.2 billion euros, plus
or minus 1 billion euros.
Our resiliency as a company reflects the distinctive advantages
of our global scale, diversified business mix, and the
industry-leading levels of trust and engagement that we have earned
with our stakeholders.”
- Oliver Bäte, Chief Executive Officer of
Allianz SE
FINANCIAL HIGHLIGHTS
Total business volume
3Q 2023: Total business volume rose by 4.5 percent to 36.5
billion euros, driven by the Property-Casualty business segment
which benefitted from higher prices and volumes while the growth of
the Life/Health business segment was primarily linked to strong
single-premium volumes in the United States. This growth was
partially offset by softer AuM-driven revenues in our Asset
Management business segment.
Internal growth, which adjusts for foreign currency translation
and consolidation effects, was 9.3 percent, driven by the
Property-Casualty and Life/Health business segments.
9M 2023: Total business volume rose by 4.7 percent to 122.1
billion euros, driven by the Property-Casualty business segment,
supported by the Life/Health business segment, and partially offset
by the development in our Asset Management business segment.
Internal growth was at 7.0 percent, driven by the
Property-Casualty business segment.
Earnings
3Q 2023: Operating profit was 3.5 (3Q 2022: 4.1) billion euros,
down by 14.6 percent. This was mainly due to a lower operating
insurance service result in the Property-Casualty business segment
driven by an exceptional high level of claims from natural
catastrophes.
Shareholders’ core net income declined to 2.1 (3Q 2022: 2.9)
billion euros due to a lower operating profit and non-operating
result. The prior year non-operating result benefitted from the
Voya transaction.
Net income attributable to shareholders was 2.0 (3Q 2022: 2.9)
billion euros.
Core earnings per share (core EPS)3 was 16.62 (9M 2022: 12.97)
euros.
The annualized core return on equity (RoE)3 was 15.8 percent
(full year 2022: 12.7 percent).
9M 2023: Operating profit increased 3.6 percent to 11.0 (9M
2022: 10.6) billion euros. This was mainly due to a higher
operating investment result in our Life/Health business segment,
supported by our Property-Casualty business segment. Operating
profit from our Asset Management business segment developed in line
with lower AuM-driven revenues, partially compensated by higher
performance fees and lower expenses.
Shareholders’ core net income was 6.8 (9M 2022: 5.4) billion
euros due to a lower non-operating profit in the prior period
related to the AllianzGI US Structured Alpha provision, and an
improved operating profit in the current period.
Net income attributable to shareholders was 6.4 (9M 2022: 5.3)
billion euros.
3
Core EPS and core RoE calculation based on
shareholders‘ core net income.
Solvency II capitalization ratio
The Solvency II capitalization ratio was 212 percent at the end
of 3Q 2023 compared with 208 percent at the end of 2Q 2023.
Including the application of transitional measures for technical
provisions, the Solvency II capitalization ratio was 238 percent at
the end of the third quarter of 2023 compared with 235 percent at
the end of the second quarter of 2023.
SEGMENTAL HIGHLIGHTS
“The results of this quarter, characterized by high inflation
and geopolitical tensions, demonstrate again the strength and the
resilience of our diversified business model.
- Our Property-Casualty business showed healthy internal
growth which was well balanced between rate increases and higher
volumes. We supported our customers impacted by an unusually high
level of natural catastrophes which also affected our results.
- Strong growth in the PVNBP in our Life/Health segment is
evidence of the attractive value proposition for our clients in a
competitive environment. Together with healthy new business
margins, this bodes well for future operating profitability.
- In an environment characterized by inflation and capital market
volatility our Asset Management had another quarter with
positive net inflows. The operating result was well supported by
our resilient asset base.
Our ability to grow and generate attractive returns for our
stakeholders is well supported by an excellent capital position
with a solvency ratio of 212 percent.”
- Giulio Terzariol, Chief Financial Officer of
Allianz SE
Property-Casualty insurance: Strong business growth
3Q 2023: Total business volume increased by 6.1 percent to 17.2
(16.2) billion euros. Adjusted for foreign currency translation and
consolidation effects, internal growth was strong at 10.8 percent
due to a price effect of 5.3 percent, a volume effect of 4.9
percent as well as a service effect of 0.6 percent. The primary
contributors were Türkiye and Allianz Partners, among many
entities.
Operating profit softened 25.0 percent to 1.4 (1.9) billion
euros, due to a lower operating insurance service result driven by
an exceptionally high level of natural catastrophes, that was
partly offset by a higher operating investment result.
The combined ratio rose by 3.7 percentage points to 96.2 percent
(92.5 percent). The loss ratio went up 3.0 percentage points to
71.0 percent, reflecting exceptionally higher claims from natural
catastrophes. The expense ratio increased by 0.7 percentage points
to 25.1 percent (24.4 percent) mainly because of a higher
administrative expense ratio.
9M 2023: Total business volume increased by 8.7 percent to 58.9
(54.2) billion euros. Adjusted for foreign currency translation and
consolidation effects, internal growth was very strong at 11.2
percent, supported by a price effect of 6.1 percent, a volume
effect of 4.9 percent and a service effect of 0.2 percent. Allianz
Partners and Türkiye were the main contributors among many
entities.
Operating profit rose by 1.1 percent to 5.3 (5.2) billion euros,
driven by a higher operating investment result.
The combined ratio increased by 0.5 percentage points to 93.5
percent (92.9 percent). The loss ratio went up 0.4 percentage
points to 68.5 percent mainly due to a less favorable run-off
result. That was partially offset by lower large losses and a
favorable impact from discounting. The expense ratio was stable at
24.9 percent (24.8 percent).
Life/Health insurance: Healthy earnings power
3Q 2023: PVNBP, the present value of new business premiums,
increased to 14.4 (13.5) billion euros, driven by higher volumes in
Italy and the United States, partially offset by foreign currency
translation effects in the United States, Asia Pacific, and
Türkiye, as well as unfavorable economic impacts primarily from
discounting in Germany, France, and Italy.
Operating profit softened slightly to 1.3 (1.4) billion euros
primarily driven by foreign currency translation effects and
transitional impacts linked to the adoption of IFRS 17 in the
United States in the prior year. The release of the Contractual
Service Margin (CSM) remained stable at 1.3 (1.3) billion
euros.
Contractual service margin (CSM) decreased to 52.1 (52.9)
billion euros due to unfavorable economic developments with higher
interest rates and lower equity markets, and from a cost correction
at Germany. New business and expected in-force return were lower
than previous quarter, which led to normalized growth of 0.7
percent in the third quarter.
The new business margin (NBM) was 6.2 percent (6.5 percent). The
value of new business (VNB) remained stable at 0.9 (0.9) billion
euros, with increased volume in Italy, and an improved business mix
in Asia Pacific.
9M 2023: PVNBP decreased to 50.6 (51.1) billion euros, including
unfavorable economic impacts primarily from discounting in Germany,
France, and Italy, offset by increases in volume in the United
States.
Operating profit increased to 3.8 (3.2) billion euros as last
year was affected mainly by transitional impacts linked to adoption
of IFRS 17 in the United States. The release of the Contractual
Service Margin (CSM) was stable at 3.7 (3.7) billion euros.
Contractual service margin (CSM) was stable at 52.1 (52.2)
billion euros, with a slight decrease triggered by the third
quarter. The normalized growth was 3.3 percent.
The new business margin increased to 5.9 percent (5.7 percent),
driven by overall favorable economics across entities. The value of
new business remained stable at 3.0 (2.9) billion euros, with
slight increase due to higher volumes and favorable economic
impacts.
Asset Management: Positive net inflows
3Q 2023: Operating revenues were 2.0 billion euros, down 2.7
percent, as higher performance fees were more than offset by lower
AuM-driven revenues. Adjusted for foreign currency translation
effects operating revenues were up 3.3 percent.
Operating profit was stable compared to the prior-year period
with 788 (787) million euros. Adjusted for foreign currency
translation effects, operating profit increased by 6.5 percent. The
cost-income ratio (CIR) improved to 60.5 percent (61.6
percent).
Third-party assets under management were 1.670 trillion euros as
of September 30, 2023, up by 8 billion euros from the end of the
second quarter 2023. Favorable foreign currency translation effects
of 34.4 billion euros and net inflows of 10.5 billion euros were
largely offset by market effects of 37.1 billion euros.
Total assets under management were 2.162 trillion euros at the
end of the third quarter of 2023, down 1 billion euros from the end
of the second quarter 2023, and in line with stable results for the
third-party assets under management, including net inflows of 9.9
billion euros.
9M 2023: Operating revenues decreased by 5.9 percent to 5.8
billion euros mainly as a result of lower AuM-driven revenues.
Operating profit was 2.2 (2.4) billion euros, down 7.4 percent from
the prior-year period. Adjusted for foreign currency translation
effects, operating profit was down 5.8 percent. The cost-income
ratio (CIR) rose to 61.7 percent (61.0 percent). Third-party assets
under management were 1.670 trillion euros as of September 30,
2023, up by 35 billion euros from the end of 2022.
3Q & 9M 2023 RESULTS TABLE
Allianz Group - key figures 3rd quarter and first nine months
2023
3Q 2023
3Q 2022
Delta
9M 2023
9M 2022
Delta
Total business volume
€ bn
36.5
34.9
4.5%
122.1
116.6
4.7%
- Property-Casualty
€ bn
17.2
16.2
6.1%
58.9
54.2
8.7%
- Life/Health
€ bn
17.5
16.9
3.7%
57.9
56.8
2.0%
- Asset Management
€ bn
2.0
2.1
-2.7%
5.8
6.1
-5.9%
- Consolidation
€ bn
-0.2
-0.2
-13.0%
-0.5
-0.5
-7.0%
Operating profit / loss
€ mn
3,468
4,062
-14.6%
10,981
10,598
3.6%
- Property-Casualty
€ mn
1,446
1,928
-25.0%
5,301
5,243
1.1%
- Life/Health
€ mn
1,308
1,375
-4.9%
3,830
3,162
21.1%
- Asset Management
€ mn
788
787
0.1%
2,214
2,392
-7.4%
- Corporate and Other
€ mn
-71
-59
21.8%
-358
-324
10.6%
- Consolidation
€ mn
-4
30
n.m.
-6
124
n.m.
Net income
€ mn
2,130
3,001
-29.0%
6,776
5,676
19.4%
- attributable to non-controlling
interests
€ mn
108
136
-20.1%
386
359
7.7%
- attributable to shareholders
€ mn
2,021
2,866
-29.5%
6,390
5,317
20.2%
Shareholders’ core net income1
€ mn
2,060
2,912
-29.3%
6,750
5,378
25.5%
Core earnings per share2
€
5.22
7.23
-27.8%
16.62
12.97
28.2%
Additional KPIs
- Group
Core return on equity3
%
–
–
–
15.8%
12.7%
3.1%
-p
- Property-Casualty
Combined ratio
%
96.2%
92.5%
3.7%
-p
93.5%
92.9%
0.5%
-p
- Life/Health
New business margin
%
6.2%
6.5%
-0.3%
-p
5.9%
5.7%
0.2%
-p
- Asset Management
Cost-income ratio
%
60.5%
61.6%
-1.1%
-p
61.7%
61.0%
0.6%
-p
09/30/2023
12/31/2022
Delta
Shareholders' equity4
€ bn
56.1
54.4
3.1%
Contractual service margin
(net)
€ bn
32.6
31.7
2.9%
Solvency II capitalization
ratio5
%
212%
201%
11%
-p
Third-party assets under
management
€ bn
1,670
1,635
2.2%
Please note: The figures are
presented in millions of Euros, unless otherwise stated. Due to
rounding, numbers presented may not add up precisely to the totals
provided and percentages may not precisely reflect the absolute
figures.
1_
Presents the portion of shareholders’ net
income before non-operating market movements and before
amortization of intangible assets from business combinations
(including any related income tax effects).
2_
Calculated by dividing the respective
period’s shareholders' core net income, adjusted for net financial
charges related to undated subordinated bonds classified as
shareholders' equity, by the weighted average number of shares
outstanding (basic core EPS).
3_
Represents the annualized ratio of
shareholders’ core net income to the average shareholders’ equity
at the beginning and at the end of the period. Shareholders’ core
net income is adjusted for net financial charges related to undated
subordinated bonds classified as shareholders’ equity. From the
average shareholders’ equity undated subordinated bonds classified
as shareholders’ equity and net OCI are excluded. Annualized
figures are not a forecast for full year numbers. For 9M 2022, the
core return on equity for the respective full year is shown.
4_
Excluding non-controlling interests.
5_
Risk capital figures are group diversified
at 99.5% confidence level. Including the application of
transitional measures for technical provisions, the Solvency II
capitalization ratio is 238% as of 30 September 2023.
RELATED LINKS
Media Conference November 10, 2023, 11:00 AM CET:
YouTube English line
Analyst Conference November 10, 2023, 2:30 PM CET:
YouTube English line
Results The results and related documents can be found
in the download center.
IFRS 9/17 More details about the new accounting
standards IFRS 9 and 17 can be found here.
UPCOMING EVENTS
Financial Results 4Q & FY 2023 February 23,
2024
More information can be found in the financial
calendar.
About Allianz
The Allianz Group is one of the world's leading insurers and
asset managers with more than 122 million* private and corporate
customers in more than 70 countries. Allianz customers benefit from
a broad range of personal and corporate insurance services, ranging
from property, life and health insurance to assistance services to
credit insurance and global business insurance. Allianz is one of
the world’s largest investors, managing around 706 billion euros**
on behalf of its insurance customers. Furthermore, our asset
managers PIMCO and Allianz Global Investors manage about 1.7
trillion euros** of third-party assets. Thanks to our systematic
integration of ecological and social criteria in our business
processes and investment decisions, we are among the leaders in the
insurance industry in the Dow Jones Sustainability Index. In 2022,
over 159,000 employees achieved total revenues of 152.7 billion
euros and an operating profit of 14.2 billion euros for the
group***.
* Including non-consolidated entities with
Allianz customers.
** As of September 30, 2023.
*** As reported – not adjusted to reflect
the application of IFRS 9 and IFRS 17.
These assessments are, as always, subject to the disclaimer
provided below.
Cautionary note regarding forward-looking statements
This document includes forward-looking statements, such as
prospects or expectations, that are based on management's current
views and assumptions and subject to known and unknown risks and
uncertainties. Actual results, performance figures, or events may
differ significantly from those expressed or implied in such
forward-looking statements.
Deviations may arise due to changes in factors including, but
not limited to, the following: (i) the general economic and
competitive situation in the Allianz’s core business and core
markets, (ii) the performance of financial markets (in particular
market volatility, liquidity, and credit events), (iii) adverse
publicity, regulatory actions or litigation with respect to the
Allianz Group, other well-known companies and the financial
services industry generally, (iv) the frequency and severity of
insured loss events, including those resulting from natural
catastrophes, and the development of loss expenses, (v) mortality
and morbidity levels and trends, (vi) persistency levels, (vii) the
extent of credit defaults, (viii) interest rate levels, (ix)
currency exchange rates, most notably the EUR/USD exchange rate,
(x) changes in laws and regulations, including tax regulations,
(xi) the impact of acquisitions including and related integration
issues and reorganization measures, and (xii) the general
competitive conditions that, in each individual case, apply at a
local, regional, national, and/or global level. Many of these
changes can be exacerbated by terrorist activities.
No duty to update Allianz assumes no obligation to
update any information or forward-looking statement contained
herein, save for any information we are required to disclose by
law.
Other The figures regarding the net assets,
financial position and results of operations have been prepared in
conformity with International Financial Reporting Standards. This
Quarterly Earnings Release is not an Interim Financial Report
within the meaning of International Accounting Standard (IAS)
34.
This is a translation of the German Quarterly Earnings Release
of the Allianz Group. In case of any divergences, the German
original is binding.
Privacy Note Allianz SE is committed to protecting
your personal data. Find out more in our privacy
statement.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231109488225/en/
Holger Klotz Tel. +49 89 3800 90921 email:
holger.klotz@allianz.com Fabrizio Tolotti Tel. +49 151 59956396
email: fabrizio.tolotti@allianz.com Johanna Oltmann Tel. +49 89
3800 13346 email: johanna.oltmann@allianz.com
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