DGAP-News: Allianz SE / Key word(s): Quarter Results Allianz SE: Allianz continues positive development in third quarter of 2013 08.11.2013 / 06:59 --------------------------------------------------------------------- *Revenues stable at 25.1 billion euros *Operating profit of 2.5 billion euros remains at high level *Net income attributable to shareholders rises 6.3 percent to 1.4 billion euros *Outlook: expected 2013 operating profit slightly above target range In the third quarter of 2013, Allianz Group continued its good development from the first half of the year despite negative foreign currency effects. At 25.1 billion euros, revenues were close to the previous year's level of 25.2 billion euros, a decline of 0.2 percent. Operating profit was 2.5 billion euros, declining 0.7 percent from the previous year's third quarter. Net income attributable to shareholders increased 6.3 percent to over 1.4 billion euros from under 1.4 billion euros. Operating profit in Property and Casualty insurance increased over the reporting period despite storms in Europe in July and August. In the Life and Health insurance segment, statutory premiums rose due to strong demand. At the same time, the volatile investment environment put pressure on the segment's profits. Asset Management produced good results despite prevailing market volatility. The conglomerate solvency ratio of 177 percent on September 30, 2013, remained at the same high level as on June 30, 2013. Shareholders' equity rose over the reporting period to 48,770 million euros from 47,866 million euros on June 30, 2013. 'Given the positive development of the Allianz Group for the first nine months of 2013, we now expect our operating profit for the full year to be slightly above 9.7 billion euros, the upper end of our previously stated target range,' said Michael Diekmann, CEO of Allianz SE. Property and Casualty segment grows operating profit despite natural catastrophes Gross premiums written in Property and Casualty insurance reached 10.7 billion euros in the third quarter, 6.5 percent below the previous year's figure of 11.4 billion euros. The decline stems mainly from the reduction of crop business in the US. Unfavorable foreign exchange effects also added to this development. At the same time, premiums grew significantly in Central and Eastern Europe as well as for the industrial insurer Allianz Global Corporate & Specialty (AGCS). Acquisitions in France and Belgium as well as in Turkey also added to revenues. Operating profit increased 6.4 percent to more than 1.2 billion euros in the third quarter of 2013 from just under 1.2 billion euros, especially due to positive developments in Italy, in the US and at AGCS. The underwriting result rose to 501 million euros from 351 million euros. The combined ratio improved during the reporting period by 1.4 percentage points to 94.8 percent from 96.2 percent in the third quarter of 2012. Natural catastrophes, especially storms in Germany and Ireland in July and August, added 4.3 percentage points to the combined ratio. The net impact amounted to a total of 464 million euros. The combined ratio benefited from a better underlying loss development. 'This is the second quarter in a row that saw major natural catastrophes. And yet, we were able to increase profits. After the first nine months in 2013, the Property and Casualty business is very much on track,' said Dieter Wemmer, CFO of Allianz SE. Revenues increase in Life and Health insurance Statutory premiums in Life and Health insurance rose in the third quarter to 12.7 billion euros from 11.9 billion euros. This represents an increase of 6.6 percent from the previous year's third quarter. Demand was especially healthy in Germany and Italy. Operating profit was 769 million euros, a decrease of 5.6 percent from 815 million euros for the same quarter the year before. A lower investment result in Germany and investment de-risking in Italy were the largest drivers for this development. At the same time, operating profit grew in France, Spain and the US. The new business margin increased to 2.3 percent in the third quarter of 2013 from 1.6 percent for the same period in the previous year. The value of new business increased by 44.3 percent to 215 million euros from 149 million euros. 'Growth in revenues and new business margin in the third quarter makes me confident about our Life and Health insurance segment,' said Dieter Wemmer. 'Our products clearly remain appealing to our customers. This is not least because we combine attractive returns with high security in the ongoing low interest rate environment.' Asset Management achieves good results in difficult markets Developments in Asset Management in the third quarter reflected capital market volatility. Operating revenues reached 1.7 billion euros. They were thus 7.7 percent below the previous year's level of 1.8 billion euros. Lower performance fees and negative foreign currency effects contributed to this development. Operating profit fell 11.1 percent to 754 million euros from 848 million euros. The cost-income ratio was 55.7 percent, compared to 54.0 percent in the third quarter of 2012. On September 30, 2013, total assets under management were 1,811 billion euros, 2.2 percent lower than 1,852 billion euros at the end of 2012. At the end of the third quarter, third-party assets under management amounted to 1,404 billion euros, compared to 1,438 billion euros at the end of the year. The development in assets under management mainly reflects the impact of a weaker US dollar. The third quarter saw third-party net outflows of 26.7 billion euros, compared to net inflows of 31.5 billion euros in the previous year's third quarter. Outflows came mainly from traditional fixed-income products. Overall, however, third-party net inflows for the first nine months amounted to 22.8 billion euros. 'Our Asset Management business produced good results under difficult conditions. This shows the importance of our broad geographic presence and product diversification,' said Dieter Wemmer. Allianz Group - Key figures 3rd quarter and first 9 months of 2013 3Q 2013 3Q 2012 Total revenues [Euro bn] 25.1 25.2 Operating profit / loss [Euro mn] (1,2) 2,519 2,538 Property-Casualty [Euro mn] 1,236 1,162 Life/Health [Euro mn] 769 815 Asset Management [Euro mn] 754 848 Corporate and Other[Euro mn] -230 -261 Consolidation [Euro mn] -10 -26 Income before income taxes [Euro mn] (1) 2,277 2,202 Income taxes [Euro mn] -746 -749 Net income / loss [Euro mn] (1) 1,531 1,453 Property-Casualty [Euro mn] 796 822 Life/Health [Euro mn] 562 539 Asset Management [Euro mn] 482 522 Corporate and Other[Euro mn] -307 -437 Consolidation [Euro mn] -2 7 Net income [Euro mn] (1) 1,531 1,453 attributable to non-controlling interests [Euro mn] 86 94 attributable to shareholders [Euro mn] 1,445 1,359 Basic earnings per share [Euro] (1) 3.19 3.00 Diluted earning per share [Euro] (1) 3.14 2.98 Ratios Property/Casualty: Combined ratio 94.8% 96.2% Life/Health: Margin on reserves [bps](3) 66 73 Asset Management: Cost-income ratio 55.7% 54.0% 9M 2013 9M 2012 Total revenues [Euro bn] 84.0 80.5 Operating profit / loss [Euro mn] (1,2) 7,683 7,121 Property-Casualty [Euro mn] 3,734 3,395 Life/Health [Euro mn] 2,293 2,458 Asset Management [Euro mn] 2,458 2,036 Corporate and Other[Euro mn] -743 -715 Consolidation [Euro mn] -59 -53 Income before income taxes [Euro mn] (1) 7,454 6,546 Income taxes [Euro mn] -2,447 -2,304 Net income / loss [Euro mn] (1) 5,007 4,242 Property-Casualty [Euro mn] 2,814 2,475 Life/Health [Euro mn] 1,664 1,671 Asset Management [Euro mn] 1,538 1,246 Corporate and Other[Euro mn] -981 -1,079 Consolidation [Euro mn] -28 -71 Net income [Euro mn] (1) 5,007 4,242 attributable to non-controlling interests [Euro mn] 267 254 attributable to shareholders [Euro mn] 4,740 3,988 Basic earnings per share [Euro] (1) 10.46 8.81 Diluted earning per share [Euro] (1) 10.33 8.77 Ratios Property/Casualty: Combined ratio 95.0% 96.5% Life/Health: Margin on reserves [bps](3) 66 75 Asset Management: Cost-income ratio 54.7% 57.4% 09/30/13 12/31/12 Shareholders' equity [Euro bn](1,4) 48.8 50.4 Conglomerate solvency ratio(5) 177% 197% Third-party assets under management [Euro bn] 1,404 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 (09/30/13: EUR 2.3bn, 12/31/12: EUR 2.2 bn). The solvency ratio excluding off-balance sheet reserves would amount to 168% as of 09/30/13 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 Munich, November 8, 2013 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 --------------------------------------------------------------------- 08.11.2013 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 --------------------------------------------------------------------- 238632 08.11.2013