Allianz Group showed a robust performance in a continuing challenging market environment during the first quarter of 2009. Total quarterly revenues increased to 27.7 billion euros, from 27.0 billion euros in the first quarter of 2008. Operating profit of 1.4 billion euros was down by 0.8 billion euros compared to the first quarter of 2008, but up by 0.5 billion euros compared to fourth quarter 2008. All three business segments contributed positive operating results.
Operating profit of 1.4 billion euros achieved
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Following the sale of Dresdner Bank, Allianz’s Asset Management, Alternative Investment Management, and continued Banking operations are now reported in the new Financial Services segment.
Total net income for the first quarter of 2009 was 29 million euros, compared to 1.15 billion euros in the first quarter of 2008. Net income from continued operations stood at 0.4 billion euros, including non-operating items of minus 1.0 billion euros. The net loss from discontinued operations amounted to 0.4 billion euros, reflecting the previously announced final impact from the sale of Dresdner Bank.
Allianz Group's capital position remains strong, with a solvency ratio of 159 percent at March 31, 2009. Shareholders' equity was at 33.0 billion euros as of March 31, 2009, and came in only slightly below the year-end 2008 figure of 33.7 billion euros.
"Allianz continues to cope successfully with the impact of the ongoing financial markets crisis on our business. We are strongly capitalized, our investment portfolio is of high quality and liquid, and our operating profitability proves resilient," said Helmut Perlet, CFO of Allianz SE.
Helmut Perlet: "Allianz continues to cope successfully with the impact of the ongoing financial markets crisis"
Property and Casualty insurance
In the Property and Casualty insurance business, gross premiums written increased to 13.9 billion euros in the first quarter of 2009, compared to 13.7 billion euros in the same quarter of last year. Operating profit amounted to 1.0 billion euros, compared to 1.5 billion euros in the first quarter of 2008. The decline was largely attributable to a lower underwriting result. In addition, in the first quarter of 2008, Allianz benefitted from a one-off effect of 238 million euros from the sale of own-use real estate in Germany. The combined ratio increased to 98.5 percent, compared to 94.8 percent in first quarter 2008.
"Our accident year loss ratio has been rising, but the trend continues to stay below claims inflation. Underwriting discipline remains important, as well as our efficiency programs which continue to focus on consistent claims management. We also see renewal prices starting to rise after almost three years of soft markets," said Helmut Perlet.
Life and Health insurance
The Life and Health insurance business saw first signs of recovery during the first quarter. Revenues improved strongly, based on greater demand for more traditional-style products and recovering sales through bancassurance partners. Statutory premium income grew to 13.0 billion euros in first quarter 2009, from 12.3 billion euros in first quarter 2008. Operating profit amounted to 0.4 billion euros, compared to 0.6 billion euros in the first quarter of 2008 and to an operating loss of 0.3 billion euros in fourth quarter 2008.
"In Life insurance, demand continued to shift to participating products with minimum guarantees. Operating profit of 400 million euros and top-line growth indicate first signs of recovery in the Life business," said Helmut Perlet.
Financial Services
In Financial Services, revenues for the first quarter amounted to 860 million euros, compared to 916 million in the first quarter of 2008. Operating profit stood at 198 million euros, compared to 255 million euros in the previous year's first quarter.
In Asset Management, net inflows and operating profit from the fixed income business were strong, while the remaining business was negatively impacted by the market development. Third-party assets under management amounted to 766 billion euros as of March 31, 2009, after 703 billion euros at the end of 2008.
Helmut Perlet: "Our Asset Management business continues to cope with challenging market conditions and performed quite well in the first quarter."
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