For the third consecutive quarter in 2021, the Allianz Group has delivered a strong operating performance across all business segments. This demonstrates that our business model is well-positioned to leverage the opportunities arising from a recovery in the global economic environment and in financial markets. In the first nine months of 2021, the Group has achieved 82 percent of the operating profit target of 12 billion euros for the year, driven by all three business lines. The Asset Management and the Life/Health business segments reported their best-ever third quarter operating results; the Property-Casualty business segment maintained its strong underlying profitability, even in an environment marked by intense natural catastrophes.
Internal revenue growth, which adjusts for currency and consolidation effects, was 9.0 percent in the third quarter of 2021, driven by all business segments. Total revenues increased 9.5 percent to 34.4 (3Q 2020: 31.4) billion euros. Operating profit grew 11.3 percent to 3.2 (2.9) billion euros, driven by our Asset Management and Life/Health business segments. In the Asset Management business segment, operating profit increased due to higher assets under management driven revenues and an improved cost-income ratio. Our Life/Health business segment recorded an increase in operating profit, to a significant extent due to a higher investment margin. The Property-Casualty business segment operating profit was largely stable as the improvement in the underwriting result was offset by a lower investment result. Net income attributable to shareholders increased 2.3 percent to 2.1 (2.1) billion euros in the third quarter of 2021. The strong growth in operating profit was offset to a major extent by a decrease in the non-operating investment result.
Basic Earnings per Share (EPS) increased 37.8 percent to 16.64 (12.07) euros in the first nine months of 2021. Annualized Return on Equity (RoE) was 14.8 percent (full year 2020: 11.4 percent). The Solvency II capitalization ratio was at 207 percent at the end of the third quarter of 20213, compared to 206 percent at the end of the second quarter 2021.
In the first nine months of 2021, operating profit increased by 27.2 percent to 9.9 (7.8) billion euros. Our Life/Health business segment’s operating profit grew due to an improved investment margin and higher loadings and fees. The Property-Casualty business segment operating profit rose due to a higher underwriting result. In our Asset Management business segment, an increase in operating revenues and continued cost efficiency resulted in operating profit growth. There was a double-digit increase of 38.3 percent in net income attributable to shareholders, driven by the operating profit.
On August 5, 2021 Allianz announced a new share buy-back program of up to 750 million euros. 3.8 million shares have been acquired by October 22, 2021, representing 0.93 percent of outstanding capital.
“This was our strongest-ever third quarter. I see this as a confirmation of our ability to serve customers and investors alike,” said Oliver Bäte, Chief Executive Officer of Allianz SE. “Extreme weather events and rapid macroeconomic shifts highlight the important contribution that insurers and asset managers can make to society. And our solid numbers prove that we can do so with a healthy financial performance.”
“These results demonstrate the good momentum in all our business segments. Our franchise is in an excellent shape,” said Giulio Terzariol, Chief Financial Officer of Allianz SE. “I see Allianz as being on track to reach an operating profit at the higher end of our target range.”