High market volatility in the first two quarters impacted all business segments, with total revenues decreasing 34% year on year to € 2.1 billion. Excluding foreign exchange effects, new business value declined 9% to € 100 million, largely due to weaker unit-linked sales in the banking channels. Despite the lower topline and difficult market conditions, new business margin rose 1.3 percentage points to 5.5%, supported by the active portfolio management in the life business.
Operating profit in the life and health portfolio rose 3% to € 101 million, driven by outperformance in Indonesia and Malaysia. After adjusting for foreign exchange effects, half-year earnings in Property & Casualty declined 22% to € 33 million, burdened by weaker underwriting results in Malaysia and Sri Lanka. The underlying combined ratio for Asia Pacific in the first half stood at 94.7%. On an annualized basis, the region’s return on equity rose 1.9% to a solid 14.8%.
Allianz Continues to Accelerate Regional Growth
In early June, Allianz successfully completed its transaction in the Philippines for a 51% acquisition of Philippines National Bank (PNB), and commenced the 15-year exclusive bancassurance partnership with its subsidiary PNB Life Insurance Inc. This deepens Allianz’s strategic position in Asia, and represents a compelling opportunity to serve the protection needs of a fast-growing customer base in the Philippines.
Allianz also continues to extend its customer reach across its multiple distribution channels in agency, strategic partnerships, bancassurance and digital. The total number of agents grew by 9% in the second quarter, and collectively delivered 60% of new business value in the region. Allianz also advanced towards its Digital Agency model with new strategic initiatives to enhance the value proposition for customers amid a fast-changing financial landscape. Allianz Masters is the group's first regional learning and development program for advisers; while Allianz Discover is a proprietary mobile sales tool that empowers advisers to customize insurance solutions for clients within seconds.
In the same quarter, Allianz also launched a landmark partnership with Indonesia’s largest ride-sharing company Go-Jek, providing health coverage to more than 200,000 drivers and their families. Running on a fully-digitized mobile platform, this health solution complements the cashless system preferred by Go-Jek drivers, allowing Allianz to serve both the protection and practical needs of our customers.
George Sartorel, Regional CEO, Asia Pacific, said, “We have delivered stable progress this first half, which is a direct result of our determined execution, as well as the ongoing transformation to build a more resilient business model. This fundamental shift towards stronger customer relationships, product innovation and digitalization sets the course for our accelerated growth and success. We are very optimistic on our outlook for Asia Pacific, and continue to see compelling opportunities in this region. We remain focused on our strategic priorities to create deep value and long-term profitable growth, which will position us well to support our customers against this challenging market backdrop.”