Allianz reports 5.7% jump in operating profits to €14.2bn

Johannesburg - Allianz has today announced that its total revenues increased 2.8% to €152.7bn, largely driven by the Property-Casualty business segment due to strong price and volume effects. This was partially offset by lower performance fees and lower AuM-driven revenues in the Asset Management business segment, the insurer said.

The lower AuM was mainly due to market effects and the Voya transaction, it said, adding that revenues also softened in the Life/Health business segment due to a decrease in statutory premiums, mainly related to lower sales of unit­ linked products in Italy and single-premium business in Germany. Internal revenue growth, which adjusts for foreign currency translation and consolidation effects, was minus 0.2%.

Allianz said its 2022 foruth quarter total revenues were €36.7bn, down by 4.5% from the prior year, while statutory premiums declined in the Life/Health business segment, mainly due to softer single-premium sales in Germany and unit-linked products in Italy. Revenues from the Asset Management business segment declined as a result of lower AuM-driven revenues and performance fees, it explained, adding that these results were partially offset by the Property-Casualty business segment, with positive price effect and volume growth. Internal revenue growth was minus 6.3%.

Oliver Bate, Chief Executive Officer of Allianz SE says,  "With our record results for both revenue and operating profit in 2022, Allianz has consolidated its position as one of the world's largest, most resilient, and trusted global financial institutions. Our performance is the product of thoughtful design, reliable execution, relentless simplification, and disciplined capital management.

"Also, customer and employee satisfaction as well as brand strength reached new all-time high scores. In an unpredictable world with growing risks and societal imbalances, we are proudly demonstrating our ability to leverage the benefits of Allianz's scale for our customers, our employees, and our shareholders." 

Operating profit for the year jumped 5.7% to €14.2bn, driven by the Property-Casualty and Life/Health business segments, the insurer said. The Property-Casualty business segment reported higher underwriting and investment results, and in addition, the increase in operating profit in its Life/Health business segment was mainly due to the positive contribution from the acquired Aviva operations in Poland and business growth in Asia. Allianz said its operating profit in Asset Management declined, mainly due to lower performance fees and AuM-driven revenues, which were impacted by a challenging market environment. Its net income atrributable to shareholders was slightly higher at €6.7bn.

Giulio Terzariol, Chief Financial Officer of Allianz SE says, "Allianz's record operating results, especially against the backdrop of heightened political and macroeconomic uncertainties, show that we excel in identifying and capitalizing on opportunities in fast-changing environments. Our focus on long-term value creation through the right balance of risks and returns prepares us well for the future, while our ability to withstand near-term challenges enables us to deliver strong results.

• Our Property-Casualty business had strong revenue growth, driven by healthy pricing and good volumes. In this business segment, we achieved excellent results by successfully managing the impact of inflation, leveraging on higher interest rates and using the scale of our franchise to our advantage.
• In the Life/Health segment, our new business margin has expanded further due to a favorable trend in our business mix. Moreover, our focus on growing Allianz's preferred lines of business is showing tangible results.
• In Asset Management, the efficiency steps we have undertaken have helped us protect our revenue margin and cushion the impact of market challenges.

We look forward with confidence to a strong 2023 and target a full-year operating profit of 14.2 billion euros, plus or minus 1 billion euros."

In 2022, gross premium written (GPW) of AGCS grew year-on-year by €1.683bn (18%) to €11.169bn (2021: €9.486bn), driven by a higher renewals base, higher rates on renewals (11% on average incl. adjustment of terms and conditions), new business as well as favourable foreign exchange effects, with most lines of business achieving business growth, especially Property, Financial Lines, Energy & Construction and MidCorporate.