DGAP-News: Allianz SE / Key word(s): Half Year Results/Quarter Results Allianz SE: Allianz achieves good quarterly results - outlook confirmed at upper end of range 07.08.2015 / 06:59 --------------------------------------------------------------------- * Total revenues rise 2.4 percent to 30.2 billion euros * Operating profit increases 2.6 percent to 2.84 billion euros * Net income attributable to shareholders up 15.0 percent to 2.02 billion euros * Solvency II capitalization increases to 212 percent * Allianz confirms operating profit outlook for 2015 at upper end of target range at 10.8 billion euros Allianz Group continued its good performance in the second quarter of 2015. Total quarterly revenues increased 2.4 percent to 30.2 (second quarter of 2014: 29.5) billion euros. Operating profit climbed 2.6 percent to 2.84 (2.77) billion euros. Net income attributable to shareholders amounted to 2.02 (1.76) billion euros, an increase of 263 million euros or 15.0 percent. This increase was mainly driven by non-operating realized gains/losses (net) that were 181 million euros higher compared to the second quarter of 2014. In the first half of the year, total revenues rose 7.1 percent to 67.9 (63.4) billion euros. Operating profit climbed 3.7 percent to 5.70 (5.49) billion euros, while net income attributable to shareholders advanced 13.1 percent to 3.84 (3.40) billion euros. In the second quarter, the segment Property and Casualty insurance saw a strong increase in operating profit supported by a lower impact from natural catastrophes and the net gain from the sale of the personal insurance business of Fireman's Fund Insurance Company. In the Life and Health insurance segment, demand for non-traditional life insurance products continued to increase amid overall lower sales. Asset Management performed within expectations. Solvency II capitalization rose 22 percentage points to 212 percent as of June 30, 2015, from 191 percent at the end of 2014. Shareholders' equity remained stable at 60.69 billion euros compared to 60.75 billion euros at year end. "Despite negative one-offs, we have achieved an excellent performance in the first six months," said Oliver Bäte, Chairman of the Board of Management of Allianz SE. "We confirm our operating profit outlook for 2015 at the upper end of the target range at 10.8 billion euros." Property and Casualty insurance with strong increase in operating profit Gross premiums written in Property and Casualty insurance climbed 9.2 percent to 11.84 (10.85) billion euros in the second quarter. Excluding foreign exchange and consolidation effects, internal growth stood at 1.6 percent. Strong internal growth was recorded by Allianz Worldwide Partners, Turkey and AGCS in particular. Operating profit climbed 29.7 percent to 1.75 (1.35) billion euros. The combined ratio improved by 1.1 percentage points to 93.5 (94.6) percent. In total, costs from natural catastrophes amounted to 122 (172) million euros and were mainly caused by storms and hail in Australia. "All profit components contributed to the strong growth, including investment and underwriting results as well as the net gain from the sale of the Fireman's Fund personal insurance business," said Dieter Wemmer, Chief Financial Officer of Allianz SE. Life and Health insurance with targeted growth in new products Statutory premiums in Life and Health insurance decreased by 1.4 percent to 16.72 (16.96) billion euros in the second quarter. Excluding foreign exchange and consolidation effects, statutory premiums were 6.0 percent lower. In Italy and Taiwan, growth in unit-linked products was strong. In Germany and France, sales of new life insurance products with alternative guarantees continued to increase. As a result of the change in product strategy, sales for traditional products declined. In the United States, sales of fixed-indexed annuities declined but were in line with expectations following pricing changes in 2015. Demand for life insurance products increased the most in the Asia-Pacific region. Total internal growth in statutory premiums in the region was 23.0 percent. The new business margin was down 1.1 percentage points in the second quarter of 2015 to 1.5 (2.6) percent due to the low-interest rate environment. Compared to the first quarter it remained stable. The value of new business decreased to 210 (385) million euros. Operating profit declined 13.4 percent to 853 (985) million euros. This decrease was mainly driven by a lower investment margin in Germany and reserve strengthening in South Korea. "In the second quarter, we continued to shift growth toward our new products that are designed to better address the low-interest rate environment for customers and shareholders," said Dieter Wemmer. "Operating profit remained at a solid level." Asset Management within expectations In the second quarter of 2015, Asset Management recorded operating revenues of 1.55 (1.61) billion euros, a decline of 3.6 percent. Operating profit decreased by 25.2 percent to 505 (676) million euros for the quarter. Total assets under management remained stable at 1,811 billion euros at the end of the second quarter of 2015 compared to 1,801 billion euros at the end of 2014. Over the same period, third-party assets under management increased by 0.8 percent to 1,323 billion euros from 1,313 billion euros, due to favorable foreign exchange effects. Third-party net outflows amounted to 22.5 billion euros in the second quarter of 2015, compared to 17.2 billion euros in the previous year's second quarter. Third-party net outflows at PIMCO continued to decrease compared to the end of 2014 and amounted to 29.3 billion euros in the second quarter. Allianz Global Investors recorded strong third-party net inflows in particular in Europe, amounting to 6.7 billion euros over the same period. "Asset Management performed within expectations," said Dieter Wemmer. "Third-party net inflows at Allianz Global Investors reached a new record high while outflows at PIMCO more than halved compared to the first quarter of 2015." Allianz Group - Key figures 2nd quarter and 1st half year of 2015 (1) 2Q 2015 2Q 2014 Total revenues [Euro bn] 30.2 29.5 Operating profit / loss [Euro mn] 2,842 2,770 Property-Casualty [Euro mn] 1,745 1,345 Life/Health [Euro mn] 853 985 Asset Management [Euro mn] 505 676 Corporate and Other[Euro mn] -230 -219 Consolidation [Euro mn] -32 -16 Income before income taxes [Euro mn] 2,979 2,733 Income taxes [Euro mn] -867 -875 Net income / loss [Euro mn] 2,112 1,858 Property-Casualty [Euro mn] 1,344 969 Life/Health [Euro mn] 662 731 Asset Management [Euro mn] 329 419 Corporate and Other[Euro mn] -205 -249 Consolidation [Euro mn] -17 -13 Net income [Euro mn] 2,112 1,858 attributable to non-controlling interests [Euro mn] 94 103 attributable to shareholders [Euro mn] 2,018 1,755 Basic earnings per share [Euro] 4.44 3.87 Diluted earning per share [Euro] 4.38 3.84 Ratios Property/Casualty: Combined ratio 93.5% 94.6% Life/Health: Margin on reserves 58 79 Asset Management: Cost-income ratio 67.4% 57.9% 6M 2015 6M 2014 Total revenues [Euro bn] 67.9 63.4 Operating profit / loss [Euro mn] 5,697 5,494 Property-Casualty [Euro mn] 3,030 2,835 Life/Health [Euro mn] 1,957 1,864 Asset Management [Euro mn] 1,060 1,321 Corporate and Other[Euro mn] -331 -442 Consolidation [Euro mn] -19 -85 Income before income taxes [Euro mn] 5,773 5,339 Income taxes [Euro mn] -1,725 -1,741 Net income / loss [Euro mn] 4,048 3,598 Property-Casualty [Euro mn] 2,266 1,614 Life/Health [Euro mn] 1,401 1,360 Asset Management [Euro mn] 658 825 Corporate and Other[Euro mn] -254 -117 Consolidation [Euro mn] -22 -84 Net income [Euro mn] 4,048 3,598 attributable to non-controlling interests [Euro mn] 209 203 attributable to shareholders [Euro mn] 3,839 3,395 Basic earnings per share [Euro] 8.45 7.48 Diluted earning per share [Euro] 8.45 7.41 Ratios Property/Casualty: Combined ratio 94.1% 93.6% Life/Health: Margin on reserves 70 76 Asset Management: Cost-income ratio 66.0% 57.7% 06/30/15 12/31/14 Shareholders' equity [Euro bn](2) 60.7 60.7 Conglomerate solvency ratio(3) 192% 181% Third-party assets under management [Euro bn] 1,323 1,313 (1) In 4Q 2014 the French International Health business was transferred from L/H France to Allianz Worldwide Partners (P/C) effective 01/01/14 (2) Excluding non-controlling interests (3) Including off-balance sheet reserves (12/31/14: EUR 2.3bn, 06/30/15: EUR 2.4bn). The solvency ratio excluding off-balance sheet reserves would amount to 172% as of 12/31/14 and 184% as of 06/30/15. 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. --------------------------------------------------------------------- 07.08.2015 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP 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: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart; Terminbörse EUREX End of News DGAP News-Service --------------------------------------------------------------------- 384403 07.08.2015