Allianz posts strong second quarter results

The Allianz Group delivered another quarter of robust financial performance, with operating profit climbing 12.2 percent to €4.4 billion in Q2. The Munich-based insurance giant also reported a 17.3 percent increase in shareholders' net income to € 3.0 billion, though this included a one-time gain of € 300 million from the sale of a joint venture with UniCredit. Excluding this special effect, underlying net profit still grew by a healthy 7.1 percent.

CEO Oliver Bäte expressed according to Wirtschaftswoche satisfaction with the results, stating: »Allianz achieved record performance in the first half of the year, supported by continued growth and our disciplined focus on productivity.« The strong quarterly numbers put the company firmly on track to meet its full-year operating profit target of € 15-17 billion.

The positive momentum was broad-based across all business units. Total gross written premiums rose 8 percent year-on-year to € 44.5 billion in the second quarter, representing about 28 percent of the mid-point of the annual target range.

In the Property & Casualty segment, premiums grew 8.7 percent to € 20.1 billion, while operating profit jumped nearly 20 percent to € 2.3 billion. The division's combined ratio – a key measure of underwriting profitability - improved to 91.2 percent from 93.5 percent a year earlier, indicating stronger earnings quality.

The Life/Health insurance business saw more modest but still positive developments, with the present value of new business premiums increasing 3.8 percent to € 19.5 billion and operating profit edging up 1.8 percent to €1.4 billion.

Allianz's asset management arm, comprising PIMCO and Allianz Global Investors, continued to attract new money, with net inflows of € 14 billion during the quarter. Assets under management stood at € 1.842 trillion as of June 30, while the division's operating profit rose 4.9 percent to € 779 million.

The solid second-quarter performance demonstrates Allianz's ability to deliver consistent results across its diversified business portfolio. With all key metrics moving in the right direction and no major surprises in the numbers, the company appears well positioned to achieve its full-year objectives despite ongoing macroeconomic uncertainties. Market observers will be particularly encouraged by the improved underwriting margins in the P&C business and the continued inflow of assets under management.

MK