Allianz posts financial results for Q4 and full year 2023

Only one segment saw a decrease

Allianz posts financial results for Q4 and full year 2023

Insurance News

By Kenneth Araullo

Allianz has reported its operating profit and shareholders' core net income for both the fourth quarter (4Q) and the full year (12M) of 2023, marking a record performance for the insurance giant.

In 2023, Allianz's total business volume climbed by 5.5% to €161.7 billion, with the property-casualty segment leading this growth due to positive pricing and volume effects, and strong support from the life/health segment, particularly in the United States.

However, this increase was slightly offset by decreased revenues in the asset management segment. The internal growth rate, adjusted for foreign currency and consolidation effects, stood at 8.0%, primarily driven by the property-casualty and life/health segments.

It is worth noting that the firm is seeking to bolster this area, with Allianz recently reporting a strategic investment in money manager AlTi Global Inc. to expand the insurance giant’s global holdings in wealth management.

The fourth quarter saw a 7.8% rise in Allianz’s total business volume to €39.6 billion, with contributions from all business segments. The life/health segment's growth was notably strong in the United States and Italy, while the property-casualty segment benefited from price-driven growth. The asset management segment also saw gains from higher performance fees, contributing to a 10.9% internal growth rate across all segments.

Operating profit for the year increased by 6.7% to €14.7 billion, led by the life/health segment, despite higher natural catastrophe claims impacting the property-casualty segment. Shareholders' core net income surged to €9.1 billion, up from €7.0 billion the previous year, propelled by an improved operating and non-operating result, which included a one-time provision in the prior year. Net income attributable to shareholders rose by 33.0% to €8.5 billion.

The company has also decided to raise its payout ratio to 60% from 50%, proposing a dividend per share of €13.80 for 2023, marking a 21.1% increase from 2022. Additionally, Allianz announced a new share buy-back programme of up to €1 billion on February 22, 2024.

Allianz segments – how did they fare?

For the fourth quarter, operating profit was robust at €3.8 billion, up 17.0%, mainly due to the life/health business segment's performance. Shareholders' core net income increased to €2.4 billion, and net income attributable to shareholders doubled to €2.2 billion.

In the property-casualty insurance sector, total business volume grew by 8.4% to €76.5 billion for the year, with internal growth reflecting strong performance, supported by significant price and volume effects. Operating profit saw a slight increase to €6.9 billion, despite a minor rise in the combined ratio due to higher claims from natural catastrophes.

The life/health insurance segment reported strong operating profits, with the present value of new business premiums (PVNBP) increasing to €67.3 billion, driven by higher volumes in the United States. Operating profit for the year rose to €5.2 billion, mainly due to performance in the United States and other regions.

In asset management, operating revenues slightly decreased by 1.8% to €8.1 billion for the year, though operating profit remained solid at €3.1 billion. The segment saw resilient net inflows, with third-party assets under management reaching €1.712 trillion by the end of 2023.

“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,” CEO Oliver Bäte said.

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