12M 2023: PVNBP, the present value of new business premiums, increased to 67.3 (66.2) billion euros, primarily due to higher volume in the United States and Allianz Re, partially offset by lower single premiums and economic impacts primarily from discounting in Germany.
Operating profit increased to 5.2 (4.2) billion euros, above our outlook mid-point, mainly driven by the United States, primarily due to transitional impacts linked to the adoption of IFRS 17 in the prior year period, as well as improved Protection and Health performance in France and Asia Pacific. The contractual service margin (CSM) release was fully in line with expectations at 5.0 (5.0) billion euros.
Contractual service margin (CSM) increased to 52.6 (52.2) billion euros, mainly driven by a strong normalized growth of 4.9 percent supported by favorable economics with lower interest rates and higher equity markets, which was partly offset by non-economic variances, due to model and assumption changes.
The new business margin remained stable at 5.9 percent (5.9 percent). The value of new business increased to 4.0 (3.9) billion euros, due to higher volumes in the United States and Allianz Re, partially offset by business mix effects in the United States.
4Q 2023: PVNBP increased to 16.7 (15.2) billion euros, driven by higher volumes in the United States and in Italy, partially offset by foreign currency translation effects in the United States, Asia Pacific, and Türkiye, as well as economic impacts primarily from higher discounting in Germany and Italy.
Operating profit increased to 1.4 (1.1) billion euros. The main contributors were the United States, Asia-Pacific and France. The release of the contractual service margin (CSM) was 1.3 (1.4) billion euros.
Contractual service margin (CSM) increased to 52.6 (52.1) billion euros. New business and expected in-force return were higher than in the previous quarter, which led to normalized growth of 1.6 percent in the fourth quarter. Negative non-economic movements, including experience variances and assumption changes, were largely offset by positive economic developments.
The new business margin (NBM) changed to 5.9 percent (6.4 percent). The value of new business (VNB) remained stable at 1.0 (1.0) billion euros. Higher sales in the United States and Italy were partially offset by foreign currency translation effects as well as business mix effects in the United States.