Allianz reveals financial results for half-year 2023

CEO reflects on an "agonizing period of inflation and polarization"

Allianz reveals financial results for half-year 2023

Insurance News

By Mia Wallace

The global insurance giant Allianz has today announced its Q2 and H1 operating results, and affirmed its 2023 operating profit target at €14.2 billion.

In Q2, the group saw its total business volume surge 5.9% to €39.6 billion while its operating profit increased 7.1% to €3.8 billion, which was largely attributed to strong performance in its property-casualty (P&C) and life/health segments and partially offset by a decrease in the asset under management (AuM)-driven revenues in its asset management segment.

For H1 2023, Allianz saw its total business volumes rise 4.8% to €85.6 billion while its operating profit increased 14.9% to €7.5 billion, again largely driven by its life/health and P&C business segments.

Among the financial highlights shared, Allianz revealed that the Q2 uptick in total business volume seen in its P&C segment was the result of higher prices and volumes while the growth of its life/health business was linked to strong single-premium volumes in the US. Internal growth was also strong for the quarter at 8.7%, driven by the P&C segment and supported by the life/health segment.

For the half-year period, internal growth was strong at 6.4%, driven by the P&C business segment.

Double digit growth for P&C insurance

In Q2 2023, Allianz’s P&C business segment saw its total business volume rise 8% to €17.6 billion while the unit’s operating profit increased 10.8% to €2 billion, benefiting from a higher operating insurance service result as well as an improved operating investment result. The combined ratio for the segment improved 0.4 percentage points to 92.2%.

For H1 2023, the segment saw total business volume surge 9.8% to €41.7 billion. Meanwhile, its operating profit rose 16.3% to €3.9 billion - driven by a significantly higher operating insurance service result and an improved operating investment result – and its combined ratio improved by 1.1 percentage points to 92%.

Strong operating profit in life/health insurance

In Q2 2023, Allianz’s life/health business segment saw PVNBP, the present value of new business premiums, amount to €17.7 billion, up year-on-year from €16.5 billion. Operating profit for the division increased to €1.2 billion while the value of new business (VNB) increased slightly to €1.1 billion.

For H1 2023, however, PVNBP declined slightly to €36.2 billion, down year-on-year from €37.6 billion, as increases in the United States and Allianz Reinsurance were offset by a lower contribution from Germany and Italy. Operating profit rose to €2.5 billion while its NVB remained stable at €2.1 billion.

Operating revenues down in asset management

Allianz’s asset management division saw operating revenues of €1.9 billion in Q2 2023, down 2.0%, with higher performance fees more than offset by lower AuM-driven revenues. Operating profit for the division was down 9% from the prior-year to €703 million.

For H1 2023, operating revenues decreased 7.5% to €3.8 billion as a result of lower AuM-driven revenues. Operating profit was €1.4 billion, down 11.1% from the prior-year period.

A period of “solid growth”

Commenting on the results, CEO of Allianz SE Oliver Bäte said the “excellent” figures reflected the strength of the insurer’s fundamentals as it capitalises on its global scale and diversified business mix to the advantage of customers and shareholders alike.

“With our double-digit growth in profits we are well on track to achieving our group targets for the year,” he said. “I am particularly pleased by the strong performance in the property & casualty business where we have achieved a strong 92% combined ratio, by the continued volume and profit growth of our life & health business, as well as by the resilience of our asset management segment, which recorded positive third-party net inflows for the second quarter in a row despite cautious investor sentiment.”

Bäte added that Allianz’s “solid growth” mirrors customers’ continued trust in the business to support them through an “agonising period of inflation and polarisation”.

“These trends not only challenge our global economy,” he said, “but also affect people deeply at an individual financial level. With our results and capital position, we demonstrate that Allianz is a company that unfailingly delivers relevant solutions that people need, especially in our turbulent age.”

What are your thoughts on Allianz’s results? Feel free to share them in the comment box below.

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