In the second quarter of 2013, Allianz Group again showed healthy growth. Quarterly revenues of 26.8 billion euros were 6.3 percent above the 25.2 billion euros achieved in the second quarter of 2012. Operating profit rose 5.2 percent to 2.4 billion euros from 2.3 billion euros in the same quarter the year before.
All three business segments of Allianz mastered the challenges in the second quarter. Property and Casualty insurance produced stable revenues and strong profits despite several natural catastrophes. In the Life and Health insurance segment, revenues grew strongly by nearly ten percent, whereas operating profit fell amid the changing interest rate environment. Asset Management remained very strong. Despite high bond market volatility and a sudden uptick in key interest rates, the segment saw net inflows and once again recorded double-digit increases in operating profit for the quarter.
The result from non-operating items improved during the second quarter of 2013 to plus 132 million euros from minus 151 million euros the year before due to lower impairments and higher realized gains. Income taxes rose to 824 million euros from 761 million euros the year before. The effective tax rate for the second quarter of 2013 was 33 percent, compared to 36 percent in the same period the previous year. Net income attributable to shareholders amounted to 1.6 billion euros in the second quarter of 2013, a year-on-year increase of 26.8 percent from 1.3 billion euros.
The conglomerate solvency ratio declined four percentage points to 177 percent on June 30, 2013, from 181 percent on December 31, 20121. This change was mainly due to the redemption of a two billion US-dollar subordinated bond. Over the same period, shareholders’ equity declined 5.0 percent to 47.866 billion euros from 50.388 billion euros. This difference stems mainly from a dividend payment in May of 2.039 billion euros and from adecrease in unrealized gains mainly related to debt securities.
“We can look back on a very successful first half year overall,” said Michael Diekmann, CEO of Allianz SE. “Although we faced record floods in Central Europe, persistent low interest rates and erratic capital markets, our business continued to grow profitably.”
“In view of our good half-year results, we are maintaining ouroperating profit outlook for 2013 of 9.2 billion euros, plus or minus 500 million euros, although based on our current projections we see the figure more toward the upper end of this range,” Michael Diekmann added. “As always, this forecast is under the caveat that natural catastrophes and capital market turbulence do not exceed expected levels.”