Allianz has said that it saw an operating profit of 3.2 billion euros with total revenues which rise by 6.2 percent to 44 billion euros in Q1 2022
The group also said that it on track to meet full-year targets.
It however reported slight decline of 2.9 percent which reflected impact of higher claims from natural catastrophes
In a statement, the group said that net income attributable to shareholders 0.6 billion euros, down 78.1 percent following an additional after-tax provision of 1.6 billion euros related to the AllianzGI U.S.
Structured Alpha proceedings. Excluding the provision, net income was 2.2 billion euros, down 16.0 percent mainly due to a lower non-operating result
Robust Solvency II capitalization ratio of 199 percent1
Outlook:
2022 operating profit target confirmed at 13.4 billion euros, plus or minus 1 billion euros2
Other:
Share buy-back program of 1 billion euros on track: 2.4 million shares acquired for 500 million euros until the end of April 2022
“The results of this quarter demonstrate that our business can withstand significant geopolitical and economic pressures. This is matched by the strength of our people. Allianz has taken clear business decisions in response to the Russian invasion of Ukraine. Also, we worked hard to achieve fair settlements with investors in the Structured Alpha funds in the U.S. and move toward a final resolution.” – Oliver Bäte, Chief Executive Officer of Allianz SE.
Financial highlights
Revenues
1Q 2022: Total revenues rose by 6.2 percent to 44.0 billion euros.
The Property-Casualty business segment benefited from higher prices and volumes while the Asset Management business recorded higher assets under management-driven revenues. Increased sales in the United States and Germany contributed to revenue growth in the Life/Health business segment.
Internal revenue growth, which adjusts for foreign currency translation and consolidation effects, increased to a strong 3.8 percent, driven by all business segments.
Earnings
1Q 2022: Operating profit 3.2 (1Q 2021: 3.3) billion euros, down 2.9 percent as claims from natural catastrophes nearly quadrupled, leading to a decline in the underwriting result in the Property-Casualty business segment.
This was partly offset by a strong operating result in the Asset Management business segment due to higher average third-party assets under management (AuM). In the Life/Health business segment, operating profit remained stable.
Net income attributable to shareholders was 0.6 billion euros, down 78.1 percent.
The decline reflects the impact of an additional pre-tax provision of 1.9 billion euros related to the AllianzGI U.S. Structured Alpha proceedings, which reduced the group’s first-quarter net income by 1.6 billion euros.
Annualized Return on Equity (RoE) was 3.5 percent (full year 2021: 10.6 percent).
Basic Earnings per Share (EPS) was 1.38 (6.23) euros, down 77.9 percent.
Solvency II Capitalization Ratio
The Solvency II capitalization ratio was 199 percent at the end of 1Q 2022 compared with 209 percent at the end of 4Q 2021. Including the application of transitional measures for technical provisions, the Solvency II capitalization ratio was 226 percent at the end of the first quarter of 2022 compared with 239 percent at the end of 2021.
Segmental highlights
“Even in a quarter marked by severe economic and geopolitical challenges, we maintained our first-quarter operating profit close to the strong level of the prior year. We have achieved nearly a fourth of our full-year target, which shows our operating performance remains on track.
In our Property-Casualty business, we witnessed strong internal growth, driven by healthy pricing and robust volume growth as our business benefits from its solid position in a recovering economy. Our operating profit was affected by the highest level of claims from natural catastrophes for a first-quarter in a decade.
In Life/Health, the strong improvement in our new business margin and value reflects an improved business mix and increase in volumes across most entities. This bodes very well for our future profitability.
