Management Summary: All segments contribute to Group success
Allianz achieved very good results in the second quarter of 2017. Total revenues grew by 2.0 percent to 30.0 (second quarter of 2016: 29.4) billion euros. All business segments contributed to this increase with the majority coming from our Life and Health business segment. Operating profit amounted to 2.9 (2.3) billion euros, an increase of 22.9 percent, supported by all business segments, in particular by our Property and Casualty business. Net income attributable to shareholders increased by 83.4 percent to 2.0 (1.1) billion euros, driven by both the higher operating profit and improved non-operating result. The non-operating result in the prior year was burdened by the negative impact from our South Korean life business.
Basic Earnings per Share (EPS) amounted to 4.45 (2.39) euros. Annualized Return on Equity (RoE) was 13.4 percent (full year 2016: 12.3 percent). Annualized figures are not a forecast for full year numbers. The Solvency II capitalization ratio rose to 219 percent at the end of the quarter, compared to 212 percent at the end of the first quarter of 2017, mostly driven by favorable market developments.
The first half of 2017 was also a success, with all business segments contributing. Total revenues increased in all segments in the first six months of 2017. Operating profit in the half-year period rose 15.7 percent to 5.9 billion euros, well past the middle point of our earnings target for the full year. During the first half of the year, net income attributable to shareholders increased by an impressive 17.9 percent to 3.8 billion euros. The strongest growth was achieved by our Life and Health business, which alone saw a 78 percent increase in net income attributable to shareholders in the six-month period to 1.5 billion euros. Just as importantly, the Asset Management segment saw a 19.5 percent increase to 700 million euros while the Property and Casualty insurance segment saw a 7.7 percent increase in net income attributable to shareholders to 1.98 billion euros.
“We’re half way through our three-year Renewal Agenda plan, and at this stage it is clear that those efforts are bearing fruit for all our stakeholders,” said Oliver Bäte, Chief Executive Officer of Allianz SE. “We had a very good half-year with double-digit growth in operating profit and net income. Our diversified portfolio across business segments and regions can clearly deliver outstanding results. The strong capitalization reinforces the resilience and flexibility of Allianz. We can now say that we expect operating result for 2017 near the upper end of the target range of 10.8 billion euros, plus or minus 500 million euros.”