Allianz Achieves Record Operating Profit and Shareholders’ Core Net Income
Higher Payout Ratio, Increased Dividend Per Share Plus New Share Buy-back Announced
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12M 2023:
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Total business volume rises 5.5 percent to
161.7 billion euros -
Operating profit increases 6.7 percent to
14.7 billion euros primarily driven by the Life/Health business segment -
Shareholders’ core net income excellent at
9.1 billion euros , up by 30.3 percent
4Q 2023:
-
Total business volume advances 7.8 percent to
39.6 billion euros -
Operating profit surges by 17.0 percent to
3.8 billion euros driven by the Life/Health business segment, supported by solid results in all other business segments -
Shareholders’ core net income of
2.4 billion euros , up by 46.4 percent - Strong Solvency II capitalization ratio of 206 percent1 after proposed dividend pay-out
Outlook:
-
2024 operating profit target at
14.8 billion euros , plus or minus1 billion euros 2
Other:
-
Management to propose a dividend per share of
13.80 euros , an increase of 21.1 percent from 2022 - Regular dividend payout ratio increased to 60 percent (from 50 percent). This new dividend policy shall already apply to the dividend for fiscal year 2023
-
In addition to this, a renewed share buy-back program of up to
1 billion euros announced
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 |
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1 |
Excluding the application of transitional measures for technical provisions. |
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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 extended our track record of delivering a record operating profit and core net income, consolidating our leading position as one of the world’s most resilient global insurers and active asset managers.
Our results demonstrate the trust that our customers place in
The discipline of our strategy, execution, and capital management bolsters our operating profit outlook for 2024, our new dividend policy, and our renewed share buy-back program. In the coming year, we will continue to focus on unlocking the benefits of our scale to further increase our productivity, and on converting our excellent customer experience into profitable customer growth.”
-
FINANCIAL HIGHLIGHTS |
Total business volume
12M 2023: Total business volume rose by 5.5 percent to
Internal growth, which adjusts for foreign currency translation and consolidation effects, was at 8.0 percent, primarily driven by the Property-Casualty and Life/Health business segments.
4Q 2023: Total business volume rose by 7.8 percent to
Internal growth was 10.9 percent, driven by all business segments.
Earnings
12M 2023: Operating profit increased 6.7 percent to 14.7 (12M 2022: 13.8) billion euros. This was mainly due to our Life/Health business segment while the result of our Property-Casualty business segment increased slightly amid higher claims from natural catastrophes. Operating profit from our Asset Management business segment softened slightly as a result of foreign currency translation effects.
Shareholders’ core net income grew to 9.1
Core earnings per share (core EPS)3 increased to 22.61
Core return on equity (RoE)3 grew to 16.0 percent (12.7 percent).
On
4Q 2023: Operating profit was strong at 3.8 (4Q 2022: 3.2) billion euros, up by 17.0 percent, driven by the Life/Health business segment, primarily due to a higher result in protection and health and transitional impacts linked to the adoption of IFRS 17 in
Shareholders’ core net income increased to 2.4
3 |
Core EPS and core RoE calculation based on shareholders‘ core net income. |
Solvency II capitalization ratio
The Solvency II capitalization ratio was 206 percent at the end of 2023 compared with 201 percent at the end of 2022. When including the application of transitional measures for technical provisions, the Solvency II capitalization ratio was 229 percent at the end of 2023 compared with 230 percent at the end of 2022.
SEGMENTAL HIGHLIGHTS |
“We’ve achieved another year of record results and all operating segments finished the year above or close to their operating profit target mid-points.
- In our Property-Casualty business we recorded strong revenue growth, driven by healthy pricing and higher volumes. Growth was spread across our entities, reflecting the strength of our diversified global franchise. Our focus on technical excellence helped us to successfully mitigate the impact of inflation on our operating profit, which faced an above-average level of natural catastrophes. Our investment result benefited from higher interest rates.
- The operating profit in our Life/Health segment exceeded our outlook mid-point and was also well above the prior year. Our value creation is supported by a healthy new business margin that we maintained by providing attractive solutions to our clients, allowing us to record a solid new business development.
- In Asset Management, our operating profit was above our outlook mid-point, and we achieved positive net inflows in a volatile market environment. A competitive cost-income-ratio and an increase in our third-party assets under management bode well for future profitability.
We will continue to focus on generating attractive and sustainable returns for all of our stakeholders while not compromising on our resilience. We enter 2024 with confidence and target a full-year operating profit of
-
Property-Casualty insurance: Strong business growth
12M 2023: Total business volume increased by 8.4 percent to 76.5
Operating profit rose 1.2 percent to 6.9
The combined ratio increased by 0.6 percentage points to 93.8 percent (93.3 percent). The loss ratio went up 0.9 percentage points to 69.3 percent mainly due to higher claims from natural catastrophes and less run-off. This was partially offset by a favorable impact from discounting and an improvement in the expense ratio by 0.3 percentage points to 24.6 percent (24.9 percent) driven by the acquisition cost ratio.
4Q 2023: Total business volume increased by 7.3 percent to 17.6
Operating profit rose slightly by 1.6 percent to 1.6
The combined ratio went up 0.6 percentage points to 94.9 percent (94.3 percent). The loss ratio went up 2.3 percentage points to 71.4 percent, reflecting higher claims from natural catastrophes, which were partially offset by a better run-off result. The expense ratio improved by 1.7 percentage points to 23.5 percent due to lower acquisition cost and administrative expense ratios.
Life/Health insurance: Strong operating profit
12M 2023: PVNBP, the present value of new business premiums, increased to 67.3
Operating profit increased to 5.2
Contractual service margin (CSM) increased to 52.6
The new business margin remained stable at 5.9 percent (5.9 percent). The value of new business increased to 4.0
4Q 2023: PVNBP increased to 16.7
Operating profit increased to 1.4
Contractual service margin (CSM) increased to 52.6
The new business margin (NBM) changed to 5.9 percent (6.4 percent). The value of new business (VNB) remained stable at 1.0
Asset Management: Solid operating profit and resilient net inflows
12M 2023: Operating revenues softened by 1.8 percent to
Operating profit was 3.1
Third-party assets under managementwere
Total assets under management were
4Q 2023: Operating revenues reached
Operating profit increased in comparison to the prior-year period to 912
Third-party assets under management were
Total assets under management were
4Q & 12M 2023 RESULTS TABLE |
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4Q 2023 |
|
4Q 2022 |
|
Delta |
|
|
12M 2023 |
|
12M 2022 |
|
Delta |
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Total business volume |
€ bn |
|
39.6 |
|
36.7 |
|
7.8% |
|
|
161.7 |
|
153.3 |
|
5.5% |
|
|||
- Property-Casualty |
€ bn |
|
17.6 |
|
16.4 |
|
7.3% |
|
|
76.5 |
|
70.6 |
|
8.4% |
|
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- Life/Health |
€ bn |
|
20.0 |
|
18.5 |
|
8.1% |
|
|
77.9 |
|
75.3 |
|
3.5% |
|
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- Asset Management |
€ bn |
|
2.3 |
|
2.1 |
|
10.1% |
|
|
8.1 |
|
8.2 |
|
-1.8% |
|
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- Consolidation |
€ bn |
|
-0.3 |
|
-0.2 |
|
21.8% |
|
|
-0.8 |
|
-0.8 |
|
1.7% |
|
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Operating profit / loss |
€ mn |
|
3,765 |
|
3,216 |
|
17.0% |
|
|
14,746 |
|
13,814 |
|
6.7% |
|
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- Property-Casualty |
€ mn |
|
1,608 |
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1,583 |
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1.6% |
|
|
6,909 |
|
6,827 |
|
1.2% |
|
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- Life/Health |
€ mn |
|
1,362 |
|
1,056 |
|
29.0% |
|
|
5,191 |
|
4,218 |
|
23.1% |
|
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- Asset Management |
€ mn |
|
912 |
|
805 |
|
13.2% |
|
|
3,126 |
|
3,198 |
|
-2.2% |
|
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- Corporate and Other |
€ mn |
|
-115 |
|
-216 |
|
-46.6% |
|
|
-474 |
|
-540 |
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-12.3% |
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- Consolidation |
€ mn |
|
-1 |
|
-12 |
|
-91.8% |
|
|
-7 |
|
112 |
|
n.m. |
|
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Net income |
€ mn |
|
2,255 |
|
1,180 |
|
91.1% |
|
|
9,032 |
|
6,856 |
|
31.7% |
|
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- attributable to non-controlling interests |
€ mn |
|
104 |
|
76 |
|
36.9% |
|
|
491 |
|
435 |
|
12.8% |
|
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- attributable to shareholders |
€ mn |
|
2,151 |
|
1,104 |
|
94.9% |
|
|
8,541 |
|
6,421 |
|
33.0% |
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Shareholders’ core net income1 |
€ mn |
|
2,351 |
|
1,606 |
|
46.4% |
|
|
9,101 |
|
6,984 |
|
30.3% |
|
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Core earnings per share2 |
€ |
|
6.00 |
|
3.99 |
|
50.3% |
|
|
22.61 |
|
16.96 |
|
33.3% |
|
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Dividend per share |
€ |
|
– |
|
– |
|
– |
|
|
13.80 |
3 |
11.40 |
|
21.1% |
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Additional KPIs |
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- Group |
|
Core return on equity4 |
% |
|
– |
|
– |
|
– |
|
|
16.0% |
|
12.7% |
|
3.3% |
-p |
|
- Property-Casualty |
|
Combined ratio |
% |
|
94.9% |
|
94.3% |
|
0.6% |
-p |
|
93.8% |
|
93.3% |
|
0.6% |
-p |
|
- Life/Health |
|
New business margin |
% |
|
5.9% |
|
6.4% |
|
-0.4% |
-p |
5.9% |
|
5.9% |
|
0.0% |
-p |
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- Asset Management |
|
Cost-income ratio |
% |
|
60.5% |
|
61.6% |
|
-1.1% |
-p |
|
61.3% |
|
61.2% |
|
0.2% |
-p |
|
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|
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Delta |
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Shareholders' equity5 |
€ bn |
|
|
|
|
|
|
|
|
58.5 |
|
54.4 |
|
7.5% |
|
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Contractual service margin (net) |
€ bn |
|
|
|
|
|
|
|
|
32.7 |
|
31.7 |
|
3.2% |
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Solvency II capitalization ratio6 |
% |
|
|
|
|
|
|
|
|
206% |
|
201% |
|
5% |
-p |
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Third-party assets under management |
€ bn |
|
|
|
|
|
|
|
|
1,712 |
|
1,635 |
|
4.7% |
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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. |
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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). |
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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). |
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3_ |
Proposal. |
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4_ |
Represents the ratio of shareholders’ core net income to the average shareholders’ equity at the beginning and at the end of the year. 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, unrealized gains and losses from insurance contracts and other unrealized gains and losses are excluded. |
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5_ |
Excluding non-controlling interests. |
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6_ |
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 229% as of |
RELATED LINKS |
Media Conference
Analyst Conference
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 |
Annual Report
Annual General Meeting 2024
Financial Results 1Q 2024
More information can be found in the financial calendar.
About
* Including non-consolidated entities with |
**As of |
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
No duty to update
Other
The figures regarding the net assets, financial position and results of operations have been prepared in conformity with International Financial Reporting Standards. Information is based on preliminary figures. Final results for fiscal year 2023 will be released on
This is a translation of the German Quarterly and Full Year Earnings Release of the
Privacy Note
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