In the face of an extremely challenging environment in 2020, Allianz demonstrated resilience to an unprecedented health crisis and prolonged low interest rates. The financial performance in the fiscal year 2020 has been remarkably robust across all business segments, though the COVID-19 pandemic left its mark on the financial results, especially in the Property-Casualty commercial lines. Despite these major global challenges, Allianz completed its fiscal year with a strong fourth quarter.
Internal revenue growth, which adjusts for currency and consolidation effects, amounted to -1.8 percent in 2020, mostly driven by our Life/Health business segment. Total revenues declined 1.3 percent to 140.5 (2019: 142.4) billion euros and operating profit decreased 9.3 percent to 10.8 (11.9) billion euros, mostly due to the adverse impacts from COVID-19 amounting to approximately 1.3 billion euros. In our Property-Casualty business segment, operating profit fell due to COVID-19-related losses, lower run-off and a lower operating investment result. In our Life/Health business segment, operating profit decreased but still remained on a strong level supported by a resilient investment margin. The decline was mainly due to a positive prior-year impact in the United States and the disposal of Allianz Popular S.L. in Spain. Our Asset Management business segment, on the other hand, registered operating profit growth from higher average AuM and continued cautious cost management. Net income attributable to shareholders decreased 14.0 percent to 6.8 (7.9) billion euros due to the lower operating profit and non-operating result.
Basic Earnings per Share (EPS) decreased 12.8 percent to 16.48 (18.90) euros in 2020. Return on Equity (RoE) amounted to 11.4 percent (13.6 percent). The Solvency II capitalization ratio was at 207 percent at the end of 2020, compared to 212 percent at the end of 20192. The Board of Management will propose a dividend at prior-year level, 9.60 euros per share for 2020.
Aside from the financial results, the key indicator for the quality of our organization is the feedback we receive from our clients. 79 percent of our operating entities worldwide achieved a Net Promoter Score (NPSTM) above market average compared to 70 percent in the previous year, which is an all-time high. The Inclusive Meritocracy Index (IMIX), which measures leadership and performance culture, was at 78 percent in 2020, an improvement of 5 percentage points compared to 2019. These results prove that the Allianz strategy “Simplicity wins” is spot on – also, and especially in times of crisis.
“I am grateful for the trust and confidence that our stakeholders placed in Allianz during the challenging year 2020,” said Oliver Bäte, Chief Executive Officer of Allianz SE. “Our resilient results prove that we continued to deliver value and security to our customers, thanks to our highly-engaged workforce and state-of-the-art operations. We are hence in a good position to deliver on our 2021 ambition.“
In the fourth quarter of 2020, total revenues were stable compared to the previous year. Operating profit increased by 8.2 percent to a strong 3.0 (2.8) billion euros, driven by all business segments. Our Life/Health operating profit increased driven by a higher investment margin, operating profit from our Asset Management business grew due to higher AuM-driven revenues. The operating profit in our Property-Casualty business also increased. The operating profit growth was more than offset by a worsening of our non-operating result, which led to a 2.2 percent decline in the net income attributable to shareholders to 1.8 (1.9) billion euros.
"The Allianz team delivered a strong finish to a very challenging year, showing that Allianz is a reliable partner for all stakeholders," said Giulio Terzariol, Chief Financial Officer of Allianz SE. "Adjusted for adverse COVID-19 impacts, our operating profit stood above prior year’s record level and shows how well diversified and healthy our underlying business performance is. Our capital position has remained strong throughout the pandemic. This is why we look towards 2021 with confidence."