Allianz Group produced a solid result in the first half of the year that reflected difficult market conditions and intensified efforts to increase capital efficiency. Earnings were burdened by claims from natural catastrophes, higher large and weather-related losses and lower returns on investments due to market turbulence. The group successfully advanced a shift in its life insurance segment toward capital efficient products, which led to a decline in total revenues but marked a rise in profitability in new business. Asset Management performed in line with expectations and reported an increase in third-party assets compared to the end of 2015. The expected sale of the group’s South Korean operations will lead upon closing to a stronger capital base but had a significant, one-off impact on net income, as indicated.
“Allianz is transforming itself into an organization that is closer to its customers, is more capital efficient, enjoys higher profitability, and we’re doing this in a difficult environment. The second quarter in particular was shaped by markedly higher damages from heavy floods and storms in Europe this spring. We were happy to support our customers in those difficult times,” said Oliver Bäte, CEO of Allianz SE.
“The good earnings growth in Life and Health insurance business could not fully offset the decline in the Property and Casualty segment. In Asset Management, operating profit remained almost at the level of the previous year and the net outflows at PIMCO have slowed, but we have not yet reached our goals,” said Oliver Bäte.