15.05.2018 Allianz SE  DE0008404005

DGAP-News: Allianz SE: Allianz 1Q results signal good start into 2018, on track to meet targets

DGAP-News: Allianz SE / Key word(s): Quarter Results
Allianz SE: Allianz 1Q results signal good start into 2018, on track to meet

15.05.2018 / 06:59
The issuer is solely responsible for the content of this announcement.


* 1Q 2018 internal revenues grow 4.9 percent

* 1Q 2018 operating profit down 6.0 percent or 176 million euros to 2.8
billion euros, including 142-million-euro negative currency translation

* 1Q 2018 operating profit at 25 percent of full-year target-range

* 1Q 2018 net income attributable to shareholders up 6.8 percent to 1.9
billion euros due to lower tax charge and lower restructuring charges

* Solvency II ratio at strong 225 percent at the end of 1Q 2018 versus 229
percent at end-2017

* 1Q 2018 results put Allianz Group on track to meet its 2018 performance

Management Summary: Strong top and bottom lines, operating result eases
largely due to currency shifts

Allianz Group had a good start into 2018, posting a 6.8 percent rise in net
income attributable to shareholders. Internal revenue growth, which adjusts
for currency and consolidation effects, was 4.9 percent with positive
contributions from all business segments. Total revenues increased 0.7
percent to 36.5 (first quarter of 2017: 36.2) billion euros. Operating
profit decreased 6.0 percent or 176 million euros to 2.8 (2.9) billion
euros. The main drivers for the decrease were 142 million euros currency
translations and 148 million euros benefit in the prior year related to our
corporate pension administration. Operating performance for the quarter is
precisely at 25 percent of the Group's full-year operating profit target,
signaling that results are well on track.

Net income attributable to shareholders rose to 1.9 (1.8) billion euros, a
6.8 percent increase versus the first quarter of 2017, driven by a higher
non-operating investment result, a decrease in restructuring charges and a
lower effective tax rate.

Basic Earnings per Share (EPS) rose to 4.46 (4.00) euros. Annualized Return
on Equity (RoE) was 13.8 percent (full year 2017: 11.8 percent). The
Solvency II capitalization ratio remained a strong 225 percent at the end of
the quarter compared to 229 percent recorded at the end of 2017.

On April 27, 2018, Allianz Group successfully completed the acquisition of
Euler Hermes minorities and delisted Euler Hermes' shares from Euronext
Paris. This operation marked an important step in Allianz Group's strategy
to deploy capital in strategic businesses that deliver solid operating
performance, and to strengthen positions in core markets and in Property and
Casualty insurance in particular.

Separately, the Group completed its second share buy-back program, which was
launched in early 2018, with a volume of 2.0 billion euros and 10.4 million
shares in early May.
"Allianz enjoyed a good start into 2018. We had increases in both the top
and the bottom lines, even if market volatility was visible at an operating
level in the first quarter. This good performance puts Allianz on track to
meet its 2018 yearly targets," said Oliver Bäte, Chief Executive Officer of
Allianz SE. Property and Casualty insurance: Robust improvements in
underlying business

* Gross premiums written increased by 1.1 percent to 17.9 (17.7) billion
euros in the first quarter of 2018. Adjusted for foreign exchange and
consolidation effects, internal growth totaled 4.9 percent, with price
and volume effects contributing 1.2 percent and 3.7 percent,
respectively. Internal growth came across many countries and lines of
business, including AGCS, Germany and Allianz Partners.

* Operating profit increased 1.2 percent to 1.3 billion euros compared to
the first quarter of 2017, as a higher underwriting result was mostly
offset by lower investment income. Claims from natural catastrophes
rose, primarily due to European storm Friederike, which caused some 220
million euros in claims. The Group's underwriting result improved
nonetheless due to a general improvement in the underlying loss ratio,
lower claims from large losses, plus better run-off- and expense ratios.

* The combined ratio improved by 0.8 percentage points to 94.8 percent.

"Premium income rose and the combined ratio improved in the quarter,
underscoring the health of our Property and Casualty business. Our
underwriting result strengthened due to disciplined efforts to improve
technical excellence and productivity. We remain on track to meet our target
of 94 percent in the combined ratio," said Giulio Terzariol, Chief Financial
Officer of Allianz SE. Life and Health insurance: U.S. dollar weakness dents
strong underlying result

* PVNBP, the present value of new business premiums, rose 1.7 percent in
the quarter to 15.0 (14.7) billion euros, mainly due to rising sales of
capital-efficient Life products in Germany and of unit-linked products
in Taiwan.

* Operating profit decreased 7.4 percent to 1.1 (1.2) billion euros
reflecting volatile market conditions and foreign currency translation
effects in the United States. This was partly offset by higher
investment margins in Germany and Spain and increased income from
unit-linked business in Italy and Taiwan.

* The new business margin (NBM) strengthened to 3.3 (3.1) percent, driven
by favorable markets and management decisions to adapt the product mix
to the low interest rate environment. This helped lift the value of new
business (VNB) by 7.9 percent to 489 million euros in the quarter.

"The Allianz Group continued to improve its Life business in the quarter and
the segment delivered a strong set of results. The value of new business
rose 8 percent. Operating profit was also strong at 1.1 billion euros in the
quarter, and we remain successfully on track with our efforts to steer new
business toward preferred products," said Giulio Terzariol.

Asset Management: Third-party net inflows of 20.9 billion euros

* The Asset Management business segment saw strong third-party net inflows
of 20.9 billion euros stemming largely from PIMCO's 19.2 billion euro
contribution. Overall third-party assets under management (AuM) eased
1.3 percent to 1,429 billion euros compared to December 31, 2017, mainly
due to negative foreign currency translation effects.

* Operating profit increased by 4.1 percent to 595 (572) million euros,
due to higher AuM-driven revenues. Adjusted for foreign exchange
effects, operating profit increased a remarkable 16.3 percent.

* The cost-income ratio (CIR) improved by 1.4 percentage points to 61.9

"Customers continued to favor Allianz, placing some 21 billion euros of new
net third-party investments with PIMCO and Allianz Global Investors in the
quarter," said Giulio Terzariol. "This comes on top of the 150 billion euros
in net inflows seen in 2017. It is a sign of customer confidence and
reflects on the strength of the franchise."

Allianz Group - key figures 1st
quarter 2018
1Q 2018 1Q 2017
Total revenues EUR 36.5 36.2
- Property-Casualty EUR 17.9 17.7
- Life/Health EUR 17.1 16.9
- Asset Management EUR 1.6 1.6
- Corporate and Other EUR 0.1 0.1
- Consolidation EUR -0.1 -0.1
Operating profit / loss EUR 2,756 2,932
- Property-Casualty EUR 1,274 1,259
- Life/Health EUR 1,069 1,155
- Asset Management EUR 595 572
- Corporate and Other EUR -182 -41
- Consolidation EUR 1 -12
Net income EUR 2,030 1,920
- attributable to EUR 91 104
non-controlling interests mn
- attributable to shareholders EUR 1,939 1,816
Basic earnings per share EUR 4.46 4.00
Diluted earnings per share EUR 4.40 3.99
Additional KPIs
- Group Return on % 13.8% 11.8%
- Property-Casualty Combined ratio % 94.8% 95.6%
- Life/Health New business % 3.3% 3.1%
- Life/Health Value of new EUR 489 453
business mn
- Asset Management Cost-income % 61.9% 63.3%
03/31/2- 12/31/2-
018 017
Shareholders' equity1 EUR 63.3 65.6
Solvency II capitalization % 225% 229%
Third-party assets under EUR 1,429 1,448
management bn
Please note: The figures are presented in millions of Euros, unless
otherwise stated. Due to rounding, numbers presented may not add up
precisely to the totals provided and percentages may not precisely
reflect the absolute figures.
1 Excluding non-controlling interests.
2 Excluding unrealized gains/losses on bonds, net of shadow
accounting. RoE for 1Q 2018 is annualized. For 1Q 2017, the return
on equity for the full year 2017 is shown. Annualized figures are
not a forecast for full year numbers.
3 Risk capital figures are group diversified at 99.5% confidence
level. Allianz Life US included based on third country equivalence
with 150% of RBC CAL (Risk Based Capital Company Action Level)
since September 30, 2015.

Munich, May 15, 2018

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

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 EUR/USD 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.

The quarterly figures regarding the net assets, financial position and
results of operations have been prepared in conformity with International
Financial Reporting Standards. This Quarterly Earnings Release is not an
Interim Financial Report within the meaning of International Accounting
Standard (IAS) 34.

This is a translation of the German Quarterly Earnings Release of the
Allianz Group. In case of any divergences, the German original is binding.


15.05.2018 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.

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Language: English
Company: Allianz SE
Königinstr. 28
80802 München
Phone: +49 (0)89 38 00 - 41 24
Fax: +49 (0)89 38 00 - 38 99
E-mail: investor.relations@allianz.com
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; Regulated
Unofficial Market in Tradegate Exchange

End of News DGAP News Service

685659 15.05.2018

WKN Kurs in € Einschätzung Börsenwert in Mio. €
840400 191,500 Kaufen 84.307,81
11,68 10,60 1,37 2,54
Dividende '17e in € Dividende '18e in € Div.-Rendite '17
in %
8,00 8,20 4,18 08.05.2019
Q1-Zahlen Q2-Zahlen Q3-Zahlen Bilanz-PK
15.05.2018 03.08.2018 09.11.2018 09.03.2018
Abstand 60Tage-Linie Abstand 200Tage-Linie Performance YtD Performance 52 Wochen
0,71% -0,36% 0,00% 12,78%

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