“Allianz’s excellent results in the first half of 2023 demonstrate the strength of our fundamentals as we capitalize on our global scale and diversified business mix for the benefit of our customers and our shareholders. With our double-digit growth in profits we are well on track to achieving our Group targets for the year.
I am particularly pleased by the strong performance in the Property & Casualty business where we have achieved a strong 92% combined ratio, by the continued volume and profit growth of our Life & Health business, as well as by the resilience of our Asset Management segment, which recorded positive third-party net inflows for the second quarter in a row despite cautious investor sentiment.
Our solid growth is a clear reflection of our customers’ continued trust in us to support them through this agonizing period of inflation and polarization. These trends not only challenge our global economy, but also affect people deeply at an individual financial level. With our results and capital position, we demonstrate that Allianz is a company that unfailingly delivers relevant solutions that people need, especially in our turbulent age.”
Financial highlights
Total business volume
2Q 2023: Total business volume rose by 5.9 percent to 39.6 billion euros, driven by the Property-Casualty business segment which benefited from higher prices and volumes while the growth of the Life/Health business segment was primarily linked to strong single-premium volumes in the US. This growth was partially offset by a decrease in AuM-driven revenues in our Asset Management business segment.
Internal growth, which adjusts for foreign currency translation and consolidation effects, was strong at 8.7 percent, driven by the Property-Casualty business segment and supported by the Life/Health business segment.
6M 2023: Total business volume rose by 4.8 percent to 85.6 billion euros, driven by the Property-Casualty business segment, supported by the Life/Health business segment, and partially offset by a decrease in our Asset Management business segment.
Internal growth was strong at 6.4 percent, driven by the Property-Casualty business segment.
Earnings
2Q 2023: Operating profit increased 7.1 percent to 3.8 (2Q 2022: 3.5) billion euros. This is due to a higher result of our US operations in the Life/Health business segment, and a stronger insurance service result in the Property-Casualty business segment. This was partly offset by the Asset Management business segment due to lower AuM-driven revenues.
Shareholders’ core net income was strong at 2.5 (2Q 2022: 2.0) billion euros due to a higher operating profit.
Net income attributable to shareholders was 2.3 (2Q 2022: 2.0) billion euros.
Core earnings per share (core EPS)3 was 11.40 (6M 2022: 5.77) euros.
The annualized core return on equity (RoE)3 was 16.7 percent (full year 2022: 12.7 percent).
6M 2023: Operating profit increased 14.9 percent to 7.5 (6M 2022: 6.5) billion euros. This is due to a higher operating investment result in our Life/Health business segment and a higher operating insurance service result in the Property-Casualty business segment. This was partly offset by the Asset Management business segment due to lower AuM-driven revenues.
Shareholders’ core net income was 4.7 (6M 2022: 2.5) billion euros due to a higher operating profit and an improved non-operating result. Non-operating result in the prior year was impacted by a provision related to the AllianzGI US Structured Alpha matter.
Net income attributable to shareholders was 4.4 (6M 2022: 2.5) billion euros.
Solvency II Capitalization Ratio
The Solvency II capitalization ratio was 208 percent at the end of 2Q 2023 compared with 206 percent at the end of 1Q 2023. Including the application of transitional measures for technical provisions, the Solvency II capitalization ratio was 235 percent at the end of the second quarter of 2023 compared with 232 percent at the end of the first quarter of 2023.
