Successful first quarter 2013 for Allianz

Property and Casualty insurance with one of the best quarters since the start of the financial crisis

The Property and Casualty insurance business achieved revenues of 15.2 billion euros in the first quarter of 2013, up 2.7 percent from 14.8 billion euros in the previous year’s first quarter. This development is mainly due to positive price effects in many markets and product lines. Germany, Turkey, Allianz Worldwide Partners and Latin America contributed to most of the growth.

Operating profit reached 1.3 billion euros, up 11.5 percent from 1.2 billion euros in the previous year's first quarter. The underwriting result rose to 540 million euros from 333 million euros, driven by an improvement in the accident year loss ratio and positive price momentum.

At 94.3 percent, the quarterly combined ratio improved 1.9 percentage points from 96.2 percent the previous year. Combined ratios in most markets were well below 100 percent, also due to low impacts from natural catastrophes. The loss ratio improved to 66.1 percent from 68.3 percent in the previous year's first quarter. The expense ratio was 28.2 percent, slightly above 27.9 percent for the first quarter of 2012. In particular, higher costs as a result of last year's acquisition of the French insurance company Gan Eurocourtage, a reduction of crop business in the United States with a below-average expense ratio, and a regulatory change of fees in Brazil drove this development.

Dieter Wemmer: "For our Property and Casualty insurance this was one of the best quarters in a number of years. We were successful both in our core markets in industrialized countries and in growth markets. The lack of major natural catastrophes certainly helped, but we also achieved excellent results even in highly competitive markets like Italy and Spain."

Life and Health insurance grows in revenue and profit

Revenues in Life and Health insurance grew 8.3 percent to 14.8 billion euros in the first quarter of 2013 from 13.7 billion euros in the same quarter the previous year.

Revenue growth was mainly driven by unit-linked products. Despite strong competition and persistent low interest rates, premiums increased by double digits in most core markets, including France, Germany, Italy and the Asia-Pacific region. On the other hand, there were declines in premiums in the United States due to product and commission changes implemented in 2012 for fixed-indexed and variable annuity products as well as in Poland due to regulatory changes.

Operating profit was 855 million euros in the first three months of 2013, a 3.6 percent increase compared to 825 million euros achieved in the same period last year. Operating profit was impacted by a decrease in the operating investment result but benefited from lower acquisition and administrative expenses.

Allianz achieved a new business margin of 1.8 percent, close to the level of the first quarter of 2012 of 1.9 percent. The value of new business rose to 238 million euros from 223 million euros.

"The Life and Health insurance segment continues to face challenges. We can expect markets to stay difficult amid low interest rates, which affect both savers and investors. However, despite that, we showed growth this quarter in revenues and profits, which indicates the value of the products and returns we offer," said Dieter Wemmer.

Asset Management going strong

The Asset Management business had another outstanding quarter. Revenues rose in the first quarter of 2013 to 1.9 billion euros from 1.4 billion euros, an increase of 32.8 percent from the first quarter of 2012.

Operating profit reached 900 million euros, an increase of 46.8 percent from 613 million euros in the previous year’s first quarter. This was due to increased performance fees, higher assets under management and greater margins. The cost-income ratio further improved to 52.9 percent from 57.4 percent.

Total assets under management amounted to 1,934 billion euros at the end of the first quarter of 2013, 17.0 percent up from 1,653 billion euros at the end of the first quarter of 2012. Third-party assets under management increased to 1,517 billion euros from 1,266 billion euros. Third-party net inflows increased to 42.6 billion euros. In the previous year's first quarter they amounted to 23.5 billion euros.

"Our Asset Management segment remained a dynamic source of high returns for our customers, our shareholders and the Allianz Group once again in the first quarter," said Dieter Wemmer. "The Allianz Group results affirm our strategy of being broadly positioned across business segments and regions worldwide."

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