Allianz records 14 percent operating profit growth for third quarter 2024; Group targets upper half of full-year outlook

“Allianz continued our strong performance through the third quarter, achieving strong growth in business volume, operating profit, and net income, while reinforcing our financial strength.

Natural catastrophes have again tested Allianz’s financial and operational resilience, tests which we have successfully passed, giving us the confidence to now expect an operating profit in the upper half of our target range. These events profoundly affected many of our customers, but they also presented us with another opportunity to demonstrate our purpose and deliver the security of being insured by Allianz.

Moreover, in a world where brand strength is increasingly important, Allianz has again been recognized as the world’s leading insurance brand and has entered the Top 30 Global Brands in the latest Interbrand Ranking. Our fast-growing brand value underscores our ability to translate customer-centricity into profitable growth for our shareholders.”
 

- Oliver Bäte, Chief Executive Officer of Allianz SE

Total business volume 

3Q 2024: Total business volume rose by 17.3 percent to 42.8 billion euros. This increase was driven by sustained momentum across our insurance segments.  

Adjusted for foreign currency translation and consolidation effects, internal growth was 19.1 percent. The main drivers were the Life/Health operations with good contribution also from our Property-Casualty business segment. 

9M 2024: Total business volume increased by 9.6 percent to 133.9 billion euros. 

Adjusted for foreign currency translation and consolidation effects, internal growth was 11.1 percent. All business segments contributed to this growth.

Earnings

3Q 2024: Operating profit was excellent at 3.9 (3Q 2023: 3.5) billion euros. The strong increase of 13.6 percent was primarily driven by the Property-Casualty business with good growth also in the Life/Health segment. 

Shareholders’ core net income advanced to 2.5 (2.1) billion euros, an increase of 23.0 percent. 

Net income attributable to shareholders rose to 2.5 (2.0) billion euros driven by a higher operating profit, and a better non-operating result. 

9M 2024: Operating profit was strong at 11.8 (9M 2023: 11.0) billion euros, an increase of 7.9 percent. All business segments contributed, with our Property-Casualty business being the main driver. 

Shareholders’ core net income advanced 12.3 percent to 7.6 billion euros. 

Net income attributable to shareholders increased by 16.7 percent to 7.5 (6.4) billion euros driven by operating profit growth, and a higher non-operating result. 

Core earnings per share (EPS)³ was 19.11 (9M 2023: 16.62) euros. 

The annualized core return on equity (RoE)³ was 17.5 percent (full year 2023: 16.1 percent).

Solvency II capitalization ratio

“Allianz’s strong performance delivery in the third quarter underlines the proven resilience of our business model.

Our Property-Casualty business achieved excellent operating profit growth. We benefited from lower natural catastrophes compared to last year, which however remained at an elevated level. Continued pricing momentum and resolute business focus fuelled strong internal growth, in particular in our Retail, SME and Fleet segment.

The performance of our Life/Health operations was excellent. Allianz’s ability for sustained value creation for shareholders and customers alike is evidenced by a very good operating profit and excellent new business growth at attractive margins.

Our Asset Management segment recorded continued net inflows and good growth in third-party Assets under Management. This fuelled AuM-driven revenues and positions us well for sustained earnings growth.

The strong performance throughout the first nine months of the year enables us to anticipate a full-year operating profit in the upper half of the target range of 14.8 billion euros, plus or minus 1 billion euros.”
 

- Claire-Marie Coste-Lepoutre, Chief Financial Officer of Allianz SE

Property-Casualty insurance: Strong internal growth

3Q 2024: Total business volume increased by 8.0 percent to 18.6 (17.2) billion euros. Adjusted for foreign currency translation and consolidation effects, internal growth was strong at 9.5 percent. Retail, SME & Fleet achieved excellent internal growth of 11 percent, and Commercial lines advanced by 6 percent.

Operating profit surged by 36.2 percent to 2.0 (1.4) billion euros due to a higher operating insurance service result. Natural catastrophe losses reduced compared to the prior year quarter but remained at an elevated level. 

The combined ratio improved to 93.5 percent (96.2 percent). The loss ratio developed favourably and reached 69.8 percent (71.0 percent), benefiting from lower natural catastrophe claims. The expense ratio improved to 23.7 percent (25.1 percent).

9M 2024: Total business volume increased by 7.5 percent to 63.3 (58.9) billion euros. Adjusted for foreign currency translation and consolidation effects, internal growth was very good at 8.3 percent. Retail, SME & Fleet achieved strong growth of 10 percent and Commercial lines advanced by 5 percent.

Operating profit rose by 12.3 percent to an excellent level of 6.0 (5.3) billion euros. 

The combined ratio improved to 93.0 percent (93.5 percent). The loss ratio was 68.8 percent (68.5 percent). while the expense ratio improved by 0.7 percentage points to 24.2 percent.

Life/Health insurance: Excellent new business momentum

3Q 2024: PVNBP, the present value of new business premiums, increased strongly by 35.4 percent to 19.5 (14.4) billion euros, with double-digit growth across most regions. 94 percent of our new business was generated in our preferred lines.

Operating profit advanced to 1.4 (1.3) billion euros. Growth was widely spread across our businesses. 

Contractual Service Margin (CSM) rose from 53.6 billion euros in the second quarter to 54.2 billion euros⁵, mainly due to the good normalized CSM growth of 1.5 percent.

The new business margin (NBM) was attractive at 6.1 percent (6.2 percent) and the value of new business (VNB) advanced to 1.2 (0.9) billion euros, an increase of 32.9 percent. 

9M 2024: PVNBP advanced to 60.6 (50.6) billion euros. Growth was favorable across most regions, with particularly strong contributions from the United States and Germany.

Operating profit increased to 4.1 (3.8) billion euros.

Contractual Service Margin (CSM) rose from 52.6 billion euros at the end of 2023 to 54.2 billion euros⁵, mainly due to the strong normalized CSM growth of 4.6 percent.

The new business margin was very good at 5.8 percent (5.9 percent). The value of new business advanced to 3.5 (3.0) billion euros, driven by volume growth.

Asset Management: Strong net inflows and higher third-party AuM

3Q 2024: Operating revenues reached 2.0 billion euros, up 1.1 percent adjusted for foreign currency translation effects. The increase was due to higher AuM-driven revenues.

Operating profit amounted to 782 (788) million euros. Adjusted for foreign currency translation effects, operating profit was stable. The cost-income ratio (CIR) was 61.0 percent (60.5 percent).

Third-party assets under management increased to 1.840 trillion euros as of September 30, 2024, up by 37 billion euros from the end of the second quarter 2024. Favorable market effects of 54.6 billion euros and strong net inflows of 19.8 billion euros were partly offset by negative foreign currency translation effects. 

9M 2024: Operating revenues increased to 6.0 billion euros, up 3.7 percent adjusted for foreign currency translation effects, due to higher AuM-driven revenues.

Operating profit rose to 2.3 (2.2) billion euros, up 3.8 percent. Adjusted for foreign currency translation effects, operating profit advanced by 4.2 percent. The cost-income ratio (CIR) improved to 61.5 percent (61.7 percent). 

Third-party assets under management increased by 128 billion euros from the end of 2023 to 1.840 trillion euros as of September 30, 2024. Strong net inflows of 68.2 billion euros were the main contributor with positive market effects also supporting.

Note: The figures regarding the net assets, financial position and results of operations have been prepared in conformity with International Financial Reporting Standards. This Quarterly Earnings Release is not an Interim Financial Report within the meaning of International Accounting Standard (IAS) 34. This is a translation of the German Quarterly Earnings Release of the Allianz Group. In case of any divergences, the German original is binding.

¹ Based on quarterly dividend accrual; additional accrual to reflect FY dividend would impact Solvency II capitalization ratio by -3%-p as of September 30, 2024.

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 Group.

³ Core EPS and core RoE calculation based on shareholders‘ core net income.

⁴ Based on quarterly dividend accrual; additional accrual to reflect FY dividend would impact Solvency II capitalization ratio by -3%-p as of September 30, 2024.

⁵ Includes gross CSM of 0.8 billion euros and net CSM of 0.3 billion euros as of September 30, 2024, for UniCredit Allianz Vita S.p.A., which was classified as held for sale in the third quarter of 2024.

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