Based on preliminary figures, Allianz Group achieved a 23 percent increase in operating profit in the second quarter of 2017 to 2.9 billion euros (second quarter of 2016: 2.4 billion euros). Total revenues rose 2.0 percent to 29.994 (29.402) billion euros in the second quarter. Net income attributable to shareholders rose 83.4 percent in the second quarter to 2.0 (1.1) billion euros. The tax rate fell to 27 percent from 33 percent in the year-ago period.
Performance in all business segments improved in the second quarter of 2017. In the Property and Casualty insurance segment, operating profit rose 28.0 percent to 1.4 (1.1) billion euros in the second quarter of 2017. Total revenues in the quarter edged up 0.6 percent to 11.685 (11.611) billion euros. The combined ratio improved to 93.7 (96.4) percent. Claims from natural catastrophes amounted approximately to 1.0 percent after 4.4 percent in the second quarter last year. The run-off ratio fell to 3.8 percent from 6.5 percent one year ago, while the underlying loss ratio improved by 1.7 percentage points.
In the Life and Health insurance segment, operating profit rose 12.0 percent to 1.1 (1.0) billion euros. Present value of new business premiums rose 2.8 percent to 13.606 (13.240) billion euros. The new business margin strengthened to 3.4 (2.6) percent in the second quarter of 2017.
In Asset Management, operating profit rose 16.8 percent to 584 (500) million euros. Third-party assets under management increased by 7.6 percent to 1,406 billion euros at the end of the second quarter of 2017 compared to the second quarter of 2016. Net third party asset inflows reached 55 billion euros in the second quarter of 2017.
For the full year, Allianz now expects to arrive near the upper end of its operating profit target range of 10.8 billion euros, plus or minus 500 million euros, barring unforeseen events, crises or natural catastrophes.
Prior-year figures have been restated due to an updated operating profit definition and an accounting policy change, as already described in the first quarter of the year. As announced, Allianz will publish further details on business developments in the second quarter and the first half year of 2017 on August 4, 2017.