Allianz’s 1Q operating profit rises following strong contributions from Life/Health and Asset Management
Allianz Group recorded total revenues of 36.2 (first quarter of 2016: 35.4) billion euros in the first quarter of 2017, with all segments contributing to the 2.5 percent increase. Operating profit grew by 9.4 percent to 2.9 billion euros, driven by a strong performance of the Life and Health and Asset Management business segments. Operating profit in the Property and Casualty business segment decreased due to a lower underwriting result. Net income attributable to shareholders fell by 15.3 percent to 1.8 (2.1) billion euros, as the prior year quarter benefited from one-off gains from the sale of financial stakes, as well as significantly lower restructuring expenses and a lower effective tax rate. Basic Earnings per Share (EPS) amounted to 4.00 (4.71) euros. Annualized Return on Equity (RoE) was 12.4 percent (full year 2016: 12.3 percent). Annualized figures are not a forecast for full year numbers. The solvency II capitalization ratio went from 218 percent at the end of 2016 to 212 percent at the end of the first quarter of 2017, reflecting a 9 percentage point negative impact from the share buy-back and a positive 3 percentage point impact from business and market developments.
Allianz Group also marked a successful start to its share buy-back program with 6.7 million shares acquired by 5 May 2017, representing 1.5 percent of outstanding capital.
“Allianz saw a good start into 2017 with results putting the group on track to meet its operating profit target for the full year of 10.8 billion euros, plus or minus 500 million euros, barring unforeseen events, crises or natural catastrophes,” said Dieter Wemmer, Chief Financial Officer of Allianz SE. “The group observed higher claims from large losses as well as natural catastrophes and still posted a strong rise in operating profit due to improvements in Life/Health and Asset Management business segments. The Group’s net income was also solid in the quarter considering the exceptionally strong year-ago period, which benefited from the sale of financial stakes.”