Allianz reports 2.3 billion euros operating profit in 1Q 2020

Management Summary: Resilient performance in adverse conditions

The COVID-19 induced turmoil in the financial markets and a slowing economy have clearly aggravated business conditions for the financial services industry. However, Allianz with its well-diversified business portfolio and a robust balance sheet is well prepared to manage the Corona crisis and has achieved good results in the first quarter of 2020.

Internal revenue growth, which adjusts for currency and consolidation effects, amounted to 3.7 percent, driven in particular by our Life/Health business segment but also supported by our other business segments. Total revenues increased 5.7 percent to 42.6 (1Q 2019: 40.3) billion euros. Operating profit declined 22.2 percent to 2.3 (3.0) billion euros. Our Asset Management business segment reported a strong increase in operating profit due to a rise in assets under management driven revenues. Our Property-Casualty business segment saw a decrease of the operating profit due to higher claims from natural catastrophes, as well as COVID-19-related losses. Operating profit from our Life/Health business segment also declined mainly driven by the market downturn, which impacted the investment margin and deferred acquisition costs. Net income attributable to shareholders decreased 28.9 percent to 1.4 (2.0) billion euros mostly driven by the lower operating profit. The non-operating result also worsened as realized gains from the sale of Allianz Popular were more than offset by COVID-19-related market impacts. A lower tax rate had a partly offsetting effect.

Basic Earnings per Share (EPS) decreased 27.8 percent to 3.36 (4.65) euros. Annualized Return on Equity (RoE) amounted to 9.3 percent (full year 2019: 13.6 percent). The Solvency II capitalization ratio was at 190 percent at the end of the first quarter of 2020, compared to 212 percent at year-end 2019.

In light of the uncertainties for the macroeconomic development caused by the current pandemic and the now available updated financial plans of the operating entities of the Group, as already announced in the media release from April 30, 2020 the Board of Management does not assume that Allianz Group can achieve the target range for the operating profit for 2020 in the amount of 12 billion euros, plus or minus 500 million euros. A new profit target for 2020 will be announced by the Board of Management upon completion of the revised planning once the impact of the Corona crisis can be better assessed.

"The first quarter of 2020 showed the resilience of Allianz in these unprecedented circumstances," said Oliver Bäte, Chief Executive Officer of Allianz SE. "I am very proud of the operational preparedness of Allianz, the dedication of our employees and our IT that ensures the highest service levels for our customers even in this challenging situation. These are very testing times for us all, but I believe that together we will rise to this challenge."

First-quarter 2020 results analyst conference call

Property-Casualty insurance: Combined ratio burdened by COVID-19 and natural catastrophe claims

  • Total revenues rose by 4.2 percent to 20.3 (19.5) billion euros in the first quarter of 2020. Adjusted for foreign currency translation and consolidation effects, internal growth totaled 1.8 percent, driven by a positive price effect of 3.3 percent and a negative volume effect of 1.4 percent. AGCS, Allianz Asia Pacific, and Allianz Turkey were the main growth drivers.
  • Operating profit decreased strongly by 29.1 percent to 1.0 billion euros in the first quarter of 2020 compared to the year-earlier period. The underwriting result was pressured by an increase in losses from natural catastrophes and COVID-19 impacts. Higher claims were partly offset by a strong improvement of our expense ratio.
  • The combined ratio rose 4.1 percentage points to 97.8 percent in the first quarter of 2020 compared to the year-earlier period.
allianz CFO giulio terzariol
Allianz CFO Giulio Terzariol
"COVID-19 has aggravated operating conditions in our Property-Casualty business segment," said Giulio Terzariol, Chief Financial Officer of Allianz SE. "Our combined ratio adjusted for natural catastrophes and COVID-19 impacts remains at 94 percent as we continue to focus strongly on technical excellence in underwriting and claims management in order to navigate successfully through this crisis jointly with our customers."

Life/Health insurance: Resilient results in times of financial market headwinds

  • PVNBP[1], the present value of new business premiums, increased to 18.0 (17.6) billion euros in the first quarter of 2020. This was largely driven by higher sales of unit-linked products in Italy, as well as of capital-efficient products in the German life business. Weakened sales of savings products in France partly offset this development.
  • The new business margin (NBM) decreased to 2.7 (3.5) percent due to the impact of lower interest rates in the first quarter of 2020. The value of new business (VNB) dropped to 494 (609) million euros in the first quarter of 2020. The negative effects from the worsening of the interest rate environment were partly offset by increased sales, improved products and the continued shift to preferred lines of business.
  • Operating profit decreased to 0.8 (1.1) billion euros in the first quarter of 2020. This was mainly due to a lower investment margin, driven predominantly by higher impairments following the market downturn. Further contributing factors were higher hedge costs and increased deferred acquisition costs (DAC) true-up mainly in the United States. The negative effects were partly compensated by an improved technical margin.

"New business margin in our Life/Health business segment held up very well during the first quarter of 2020 and sales were concentrated on our preferred lines," said Giulio Terzariol. "On the other hand, our operating result reflects the turbulences in financial markets. We continue to manage actively our product range and asset base to ensure the resilience and value proposition of our Life/Health business segment."

[1] PVNBP is shown after non-controlling interests, unless otherwise stated. 

Asset Management: Operating profit increased by 19 percent

  • Third-party assets under management (AuM) decreased by 129 billion euros to 1,557 billion euros in the first quarter of 2020, compared to the end of 2019. This development was driven by negative market effects of 107.6 billion euros and net outflows of 46.4 billion euros, mostly in March. Positive foreign currency translation effects of 25.0 billion euros could not outweigh the aforementioned negative effects.
  • Total assets under management decreased to 2,134 billion euros in the first quarter of 2020.
  • The cost-income ratio (CIR) went down by 2.0 percentage points to 61.7 percent in the first quarter of 2020 compared to the first quarter of 2019. This was due to higher net fee and commission income, largely driven by higher average AuM, supported by an increase in AuM-driven margins. As a result, operating profit increased by 18.6 percent to 679 (573) million euros in the first quarter of 2020 compared to the year-earlier period.

"I am pleased with the operating performance of our Asset Management business segment," said Giulio Terzariol. "We observed headwinds from financial markets towards the end of the first quarter of 2020 which might persist in the coming quarters. As the fundamentals of our business are very solid, I am confident about the mid- and long-term value creation of our Asset Management franchise."

First-quarter 2020 highlights

The Allianz Group is one of the world's leading insurers and asset managers with more than 122 million* private and corporate customers in more than 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 683 billion euros** on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage about 1.6 trillion euros of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are among the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2022, over 159,000 employees achieved total revenues of 152.7 billion euros and an operating profit of 14.2 billion euros for the group.

These assessments are, as always, subject to the disclaimer provided below.

*Including non-consolidated entities with Allianz customers.
** As of December 31, 2022

Press contacts

Holger Klotz
Allianz SE
Daniela Markovic
Allianz SE
Aurika von Nauman
Allianz SE
As with all content published on this site, these statements are subject to our cautionary note regarding forward-looking statements:


The figures regarding the net assets, financial position and results of operations have been prepared in conformity with International Financial Reporting Standards.

This is a translation of the German Quarterly Earnings Release of the Allianz Group. In case of any divergences, the German original is binding.

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