DGAP-News: Allianz SE / Key word(s): Half Year Results/Quarter Results Allianz SE: Allianz stays well on course in second quarter 2013 02.08.2013 / 06:59 --------------------------------------------------------------------- *Revenues increase 6.3 percent to 26.8 billion euros *Operating profit rises 5.2 percent to 2.4 billion euros *Net income attributable to shareholders grows 26.8 percent to 1.6 billion euros *Allianz confirms operating profit outlook for 2013 of 9.2 billion euros plus/minus 0.5 billion euros - upper end of target range in reach 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, 2012 (1). 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 a decrease 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 our operating 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.' Property and Casualty insurance with high profitability Revenues in the Property and Casualty insurance business rose to 10.8 billion euros for the second quarter of 2013, 0.3 percent up in a year-on-year comparison from 10.7 billion euros. Strong growth in markets such as Australia, Latin America and Turkey as well as at Allianz Worldwide Partners offset declines in revenues especially from the industrial insurer Allianz Global Corporate & Specialty and the reduction of crop insurance business in the US. Excluding this crop business in the US, internal growth amounted to 2.3 percent. Operating profit rose 12.3 percent in the second quarter of 2013 to 1.2 billion euros from 1.1 billion euros in the previous year's second quarter. Australia, France, Italy and the US made strong contributions to this operating profit growth. Overall, the underwriting result increased to 357 million euros from 234 million euros, also driven by a favorable price environment in Australia, France, Germany and the US. The combined ratio for the second quarter of 2013 improved to 96.0 percent, 1.2 percentage points down from 97.2 percent the year before. For Allianz, after reinsurance, the net impact of the June floods in Central Europe was approximately 330 million euros. Together with floods in France and Canada and hailstorms in Germany and Switzerland, the total impact from natural catastrophes on the loss ratio was 5.3 percentage points. However, the loss ratio ultimately improved to 67.3 percent from 69.4 percent for the previous year's second quarter. 'Our efforts in recent years are paying off. We were able to help our customers and maintain our profitability, even during the many natural catastrophes in the second quarter,' said Dieter Wemmer, Chief Financial Officer of Allianz SE. 'That includes the record June floods in Central Europe - here we expect benefits to our customers to exceed 700 million euros. We have received flood claims from over 50,000 customers and have already settled more than 32,000 of them.' Life and Health insurance solid Life and Health insurance saw revenues grow 9.8 percent in the second quarter of 2013 to 14.1 billion euros from 12.9 billion euros over the same period the year before. France and Italy in particular showed very healthy increases. Growth came largely from unit-linked products, continuing the trend from the first quarter. Operating profit reached 669 million euros from April to June, declining 18.2 percent from 818 million euros the year before. The difference stemmed primarily from a lower investment result in Germany. The new business margin in the second quarter of 2013 remained unchanged from the previous year at 1.7 percent. The value of new business increased due to higher volumes year-on-year by 16.6 percent to 190 million euros from 163 million euros. 'Life insurance remains under pressure from two sides: low interest rates and increased regulatory demands that are limiting our investment options. The environment is very difficult for savers. Allianz is responding to these conditions by providing our clients with innovative products and the chance of higher returns while retaining the very security they expect from us,' said Dieter Wemmer. Asset Management going strong The Asset Management segment again produced strong results. Revenues grew 21.2 percent to 1.8 billion euros in the second quarter of 2013 from 1.5 billion euros for the same period in 2012. In the second quarter of 2013, operating profit grew 39.8 percent to 804 million euros from 575 million euros the year before, driven by higher net fee and commission income. The cost-income ratio improved to 55.7 percent from 61.6 percent. On June 30, 2013, total assets under management were 1,863 billion euros, 6.6 percent up from 1,748 billion euros at the end of the second quarter of 2012. Over the same period, third-party assets under management rose to 1,456 billion euros from 1,354 billion euros. The quarter saw third-party net inflows of 6.9 billion euros, compared to 18.6 billion euros the year before. 'Our Asset Management business has frequently demonstrated its ability to handle changing situations. With these good results, the segment shows why it is an important pillar of our diversified business model, ensuring attractive returns for our customers and shareholders,' said Dieter Wemmer. (1) Restated pro forma to reflect change in accounting for pensions. Allianz Group - Key figures 2nd quarter and 1st half year of 2013 2Q 2013 2Q 2012 Total revenues [Euro bn] 26.8 25.2 Operating profit / loss [Euro mn] (1,2) 2,367 2,250 Property-Casualty [Euro mn] 1,179 1,050 Life/Health [Euro mn] 669 818 Asset Management [Euro mn] 804 575 Corporate and Other[Euro mn] -274 -180 Consolidation [Euro mn] -11 -13 Income before income taxes [Euro mn] (1) 2,499 2,099 Income taxes [Euro mn] -824 -761 Net income / loss [Euro mn] (1) 1,675 1,338 Property-Casualty [Euro mn] 1,001 817 Life/Health [Euro mn] 474 507 Asset Management [Euro mn] 488 345 Corporate and Other[Euro mn] -277 -266 Consolidation [Euro mn] -11 -65 Net income [Euro mn] (1) 1,675 1,338 attributable to non-controlling interests [Euro mn] 87 86 attributable to shareholders [Euro mn] 1,588 1,252 Basic earnings per share [Euro] (1) 3.50 2.77 Diluted earning per share [Euro](1) 3.47 2.72 Ratios Property/Casualty: Combined ratio 96.0% 97.2% Life/Health: Margin on reserves(3) 58 75 Asset Management: Cost-income ratio 55.7% 61.6% 6M 2013 6M 2012 Total revenues [Euro bn] 58.8 55.2 Operating profit / loss [Euro mn] (1,2) 5,164 4,583 Property-Casualty [Euro mn] 2,498 2,233 Life/Health [Euro mn] 1,524 1,643 Asset Management [Euro mn] 1,704 1,188 Corporate and Other[Euro mn] -513 -454 Consolidation [Euro mn] -49 -27 Income before income taxes [Euro mn] (1) 5,177 4,344 Income taxes [Euro mn] -1,701 -1,555 Net income / loss [Euro mn] (1) 3,476 2,789 Property-Casualty [Euro mn] 2,018 1,653 Life/Health [Euro mn] 1,102 1,132 Asset Management [Euro mn] 1,056 724 Corporate and Other[Euro mn] -674 -642 Consolidation [Euro mn] -26 -78 Net income [Euro mn] (1) 3,476 2,789 attributable to non-controlling interests [Euro mn] 181 160 attributable to shareholders [Euro mn] 3,295 2,629 Basic earnings per share [Euro] (1) 7.27 5.81 Diluted earning per share [Euro] (1) 7.18 5.78 Ratios Property/Casualty: Combined ratio 95.1% 96.7 Life/Health: Margin on reserves(3) 66 77 Asset Management: Cost-income ratio 54.3% 59.5% 06/30/13 12/31/12 Shareholders' equity [Euro bn](1,4) 47.9 50.4 Conglomerate solvency ratio(5) 177% 197% Third-party assets under management [Euro bn] 1,456 1,438 (1) All prior period figures herein have been restated to reflect the retrospective application of the amended standard IAS 19 - Employee Benefits, effective as of 01/01/13 (2) As of the first quarter of 2013 all restructuring charges are presented within operating profit. All prior period figures herein have been adjusted to conform to the current accounting presentation (3) Operating profit (annualized) divided by average net reserves (4) Excluding non-controlling interests (5) Including off-balance sheet reserves (06/30/13: EUR 2.3bn, 12/31/12: EUR 2.2 bn). The solvency ratio excluding off-balance sheet reserves would amount to 168% as of 06/30/13 and 188% as of 12/31/12. The conglomerate solvency ratio decreased by approximately 16%-p as of 01/01/13 due to amendments to IAS 19 These assessments are, as always, subject to the disclaimer provided below. Cautionary Note Regarding Forward-Looking Statements The statements contained herein may include prospects, statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such forward-looking statements. Such deviations may arise due to, without limitation, (i) changes of the general economic conditions and competitive situation, particularly in the Allianz Group's core business and core markets, (ii) performance of financial markets (particularly market volatility, liquidity and credit events) (iii) frequency and severity of insured loss events, including from natural catastrophes, and the development of loss expenses, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) particularly in the banking business, the extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates including the euro/US-dollar exchange rate, (ix) changes in laws and regulations, including tax regulations, (x) the impact of acquisitions, including related integration issues, and reorganization measures, and (xi) general competitive factors, in each case on a local, regional, national and/or global basis. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their consequences. No duty to update The company assumes no obligation to update any information or forward-looking statement contained herein, save for any information required to be disclosed by law. End of Corporate News --------------------------------------------------------------------- 02.08.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Allianz SE Königinstr. 28 80802 München Germany Phone: +49 (0)89 38 00 - 41 24 Fax: +49 (0)89 38 00 - 38 99 E-mail: [email protected] Internet: www.allianz.com ISIN: DE0008404005 WKN: 840400 Indices: DAX-30, EURO STOXX 50 Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime Standard), Hamburg, Hannover, München, Stuttgart; Terminbörse EUREX End of News DGAP News-Service --------------------------------------------------------------------- 223961 02.08.2013