Allianz Se · XETR:ALV
Allianz — Q1 2024 Earnings Presentation
50 slides from Allianz's earnings presentation, May 15, 2024
Slide 1: Group financial results 2024
Group financial results 2024 Allianz Investor Relations App Apple App Store Google Play Store © Allianz 2024 Munich May 15, 2024
Slide 2: Content/topics
Content/topics 1 Group financial results 1Q 2024 2 Additional information Glossary Disclaimer Note: Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
Slide 3: Group: very good start into 2024
GROUP FINANCIAL RESULTS 1Q 2024 Group: very good start into 2024 Group Property-Casualty Life/Health Asset Management Total business volume 1Q 24 in EUR bn (internal growth vs. prior year in %) 48.4 (+7.5%) 25.5 (+7.5%) 21.1 (+7.6%) 2.0 (+5.7%) Operating profit 1Q 24 in EUR mn (vs. prior year in %)
Slide 4: Group: very good start into 2024 - comments
GROUP FINANCIAL RESULTS 1Q 2024 Group: very good start into 2024 Comments • Strong internal growth of 7.5% • P/C – strong performance Internal growth in P/C at 7.5%, L/H at 7.6% and AM at OP up 10% supported by improvements in insurance service and 5.7%. Consolidation (+0.0%) and F/X (-2.1%) lead to
Slide 5: Group: strong solvency II ratio at 203%
GROUP FINANCIAL RESULTS 1Q 2024 Group: strong solvency II ratio at 203% Comprehensive s/h capital S/h equity – sensitivities (EUR bn) +2.4% +30% +4% Equity markets -30% -4% 91.0 93.2 Interest rate +50bps -1% 32.7 33.2 SII non-parallel -50bps +0% Net CSM1 58.2 60.0 S/h equity2 Credit spread on gov. b
Slide 6: Group: strong solvency II ratio at 203% - comments
GROUP FINANCIAL RESULTS 1Q 2024 Group: strong solvency II ratio at 203% Comments • Comprehensive shareholders’ capital • Solvency II ratio Shareholders’ equity increases by EUR 1.7bn. Main Decrease by 3%-p from 206% to 203%. Major drivers: drivers: + 6%-p organic capital generation (+1%-p after tax
Slide 7: Group: 6%-p capital generation
GROUP FINANCIAL RESULTS 1Q 2024 Group: 6%-p capital generation Own funds (EUR bn) +3.7 +0.1 90.4 89.6 -0.1 -2.7 -0.1 +2.0 89.5 89.1+1.3 93.2 90.6 90.5 +0.7 -0.4 P/C AM L/H CO/Conso. 31.12.23 31.12.2021 Regulatory/ Regulatory Operating SII SII Market Market impact Capital Capitalmgmt./ mgmt Tax/ Tax/
Slide 8: Group: 6%-p capital generation - comments
GROUP FINANCIAL RESULTS 1Q 2024 Group: 6%-p capital generation Comments • +6%-p SII capital generation pre tax/dividend • Tax/other +1%-p capital generation after tax and quarterly dividend -1%-p impact mainly driven by taxes. accrual, driven by capital requirements for business growth • Outlook and
Slide 9: P/C: internal growth strong
GROUP FINANCIAL RESULTS 1Q 2024 P/C: internal growth strong (EUR mn) Total business volume Rate change on renewals 1Q 24 Total growth Internal growth 3M 24 12M 23 ∆ p.y. ∆ p.y. Total P/C segment 25,488 +5.7% +7.5% +7.4% +7.1% Selected OEs Germany 5,474 +6.6% +6.6% +7.6% +6.6% United Kingdom 1,288 +8
Slide 10: P/C: internal growth strong - comments
GROUP FINANCIAL RESULTS 1Q 2024 P/C: internal growth strong Comments • Internal growth at 7.5% • Australia – double-digit internal growth IG driven by positive momentum in retail (+9%, incl. SME Retail motor and non-motor as well as MidCorp lift top-line. & fleet). Commercial lines grow +4%. Price e
Slide 11: P/C: operating profit very good at EUR 2.1bn
GROUP FINANCIAL RESULTS 1Q 2024 P/C: operating profit very good at EUR 2.1bn Operating profit drivers Combined ratio +0.0%-p (EUR mn) (in %) 91.9 91.9 +10.4% Retail1 92.8 93.0 +97 +100 2,066 Commercial1 90.7 89.9 1,872 -3 1Q 23 1Q 24 Loss ratio2 67.0% 67.3% t/o NatCat impact 0.7% 0.4% t/o run-off ra
Slide 12: P/C: operating profit very good at EUR 2.1bn - comments
GROUP FINANCIAL RESULTS 1Q 2024 P/C: operating profit very good at EUR 2.1bn Comments • Operating profit at 28% of outlook midpoint • Expense ratio improves by 0.3%-p OP up 10% supported by better insurance service result and Better ER driven by continuous productivity enhancements investment result
Slide 13: P/C: combined ratio excellent at 91.9%
GROUP FINANCIAL RESULTS 1Q 2024 P/C: combined ratio excellent at 91.9% (EUR mn) Operating profit Combined ratio NatCat impact 1Q 24 ∆ p.y. 1Q 24 ∆ p.y. 1Q 24 ∆ p.y. Total P/C segment 2,066 +10.4% 91.9% +0.0%-p 0.4%-p -0.3%-p Selected OEs Germany 420 -6.1% 90.2% +2.9%-p 0.0%-p 0.0%-p United Kingdom 9
Slide 14: P/C: combined ratio excellent at 91.9% - comments
GROUP FINANCIAL RESULTS 1Q 2024 P/C: combined ratio excellent at 91.9% Comments • Germany – very strong performance • Spain – better underlying performance Very good CR. Better ER vs. 1Q 2023 is more than offset CR improves from lower undiscounted attritional LR and ER. by less favorable run-off and
Slide 15: P/C: investment result up 19%
GROUP FINANCIAL RESULTS 1Q 2024 P/C: investment result up 19% Operating investment result Current yield Economic reinvestment yield (EUR mn) (debt securities; in %) (debt securities, in %) +18.9% 0.92 4.3 0.78 4.0 632 532 1Q 23 1Q 24 1Q 23 1Q 24 1Q 23 1Q 24 Total average asset base3 Duration4 Assets
Slide 16: P/C: investment result up 19% - comments
GROUP FINANCIAL RESULTS 1Q 2024 P/C: investment result up 19% Comments • Interest & similar income • Economic reinvestment yield (debt securities) Income from debt and cash main driver, due to favorable Economic reinvestment yield strong at 4.3%, thereby interest rate environment and higher average
Slide 17: L/H: strong new business momentum
GROUP FINANCIAL RESULTS 1Q 2024 L/H: strong new business momentum New business Value of new (EUR mn) PVNBP PVNBP by LoB margin business 1Q 24 ∆ p.y. 1Q 24 ∆ p.y. 1Q 24 ∆ p.y. 8% Total L/H segment 22,333 +20.6% 5.7% +0.2%-p 1,268 +25.4% 39% EUR mn Germany Life 3,826 +3.4% 5.3% -0.3%-p 202 -2.7% 33% 2
Slide 18: L/H: strong new business momentum - comments
GROUP FINANCIAL RESULTS 1Q 2024 L/H: strong new business momentum Comments • Value of new business strong at EUR 1.3bn • USA – strong sales performance in RILA VNB growth driven by volume and higher NBM. Share for FIA maintains at high sales level after successful sales campaign Protection & health
Slide 19: L/H: normalized CSM growth at 1.7%
GROUP FINANCIAL RESULTS 1Q 2024 L/H: normalized CSM growth at 1.7% Contractual service margin CSM – sensitivities (EUR mn) +735 54,507 +1,455 +30% +5% 52,601 53,231 -58 -226 Equity markets -1,276 -30% -6% VNB (1Q 24) 1,268 +50bps -1% Interest rate 31,955 + Non-attr. expenses 220 32,372 -50bps +0% +
Slide 20: L/H: normalized CSM growth at 1.7% - comments
GROUP FINANCIAL RESULTS 1Q 2024 L/H: normalized CSM growth at 1.7% Comments • Gross CSM up 1.2% resp. EUR 0.6bn • Economic variances negligible Normalized CSM growth (EUR 0.9bn) partially offset by Positive impact from equity markets offset by adverse non-economic variances/assumption changes impact
Slide 21: L/H: operating profit in line with expectations
GROUP FINANCIAL RESULTS 1Q 2024 L/H: operating profit in line with expectations Operating profit Operating profit by LoB (EUR mn) (EUR mn) 1Q 23 1Q 24 ∆ p.y. CSM release 1,215 1,276 +61 24% 32% Release of risk adjustment 129 120 -9 EUR mn 1,327 Variances from claims & expenses1 -62 -37 +25 (+0.5%) L
Slide 22: L/H: operating profit in line with expectations - comments
GROUP FINANCIAL RESULTS 1Q 2024 L/H: operating profit in line with expectations Comments • Operating profit at 26% of FY outlook midpoint • Operating profit by LoB CSM release of EUR 1.3bn in line with expectations. CSM Share of preferred lines of business at 76%. release ratio at 2.3%. Good contrib
Slide 23: L/H: good results across operating entities
GROUP FINANCIAL RESULTS 1Q 2024 L/H: good results across operating entities (EUR mn) CSM Operating profit ∆ QTD t/o CSM 1Q 24 ∆ QTD 1Q 24 ∆ p.y. normalized1 release Total L/H segment 53,231 +1.2% +1.7% 1,327 +0.5% 1,276 Germany Life 16,492 +1.7% +1.3% 276 +9.8% 271 USA 12,244 +4.6% +1.0% 286 -9.3% 3
Slide 24: L/H: good results across operating entities - comments
GROUP FINANCIAL RESULTS 1Q 2024 L/H: good results across operating entities Comments CSM Operating profit • USA • USA – profitability remains on strong level Normalized CSM growth (EUR 0.1bn) and economic Lower contribution from VA business mainly due to favorable variances (EUR 0.4bn), the latter d
Slide 25: AM: total AuM up 3%
GROUP FINANCIAL RESULTS 1Q 2024 AM: total AuM up 3% Total assets under management 3rd party AuM split (EUR bn) (EUR bn) +3.3% Asset classes Regions Multi-assets Europe 2,297 EUR 180bn (+4.8%) EUR 545bn (+2.9%) 2,224 Equities Asia Pacific EUR 156bn (+6.3%) EUR 327bn (+5.6%) Allianz Group +0.3% 513 51
Slide 26: AM: total AuM up 3% - comments
GROUP FINANCIAL RESULTS 1Q 2024 AM: total AuM up 3% Comments • Total AuM up 3% • Investment performance Total AuM increase to EUR 2.3tn; net inflows, F/X & other 80% of 3rd party AuM outperform benchmarks on a trailing 3-year (mainly USD strengthening) and benign markets as basis before fees. positi
Slide 27: AM: 3rd party AuM up 4%
GROUP FINANCIAL RESULTS 1Q 2024 AM: 3rd party AuM up 4% 3rd party assets under management development 3rd party net flow split (EUR bn) (EUR bn) +4.2% Fixed income +34.9 Asset classes Equities -2.9 1,712 +32.4 +9.6 +27.5 1,784 +1.8 Multi-assets +0.4 Alternatives +1.9 America +17.5 +34.2 Regions Euro
Slide 28: AM: 3rd party AuM up 4% - comments
GROUP FINANCIAL RESULTS 1Q 2024 AM: 3rd party AuM up 4% Comments • 3rd party AuM at EUR 1.8tn • 3rd party net flows AM segment: EUR +34bn 4% increase of 3rd party AuM vs. end of 2023. Strong 3rd 3rd party net inflows driven by fixed income business, also supported party net inflows, in 1Q 2024 alrea
Slide 29: AM: 6% internal revenue growth
GROUP FINANCIAL RESULTS 1Q 2024 AM: 6% internal revenue growth Revenues PIMCO AllianzGI (EUR mn) (EUR mn) (EUR mn) +4.7% +7.1% -2.2% Internal growth +5.7% +8.4% -1.7% 1,990 1,498 1,900 127 1,398 Performance fees 99 93 63 AuM driven & 499 488 other revenues1 36 33 1,802 1,863 1,335 1,405 463 455 3rd
Slide 30: AM: 6% internal revenue growth - comments
GROUP FINANCIAL RESULTS 1Q 2024 AM: 6% internal revenue growth Comments • Segment revenues – very good growth • Segment margin – 38.1bps Revenues increase by 5% mainly due to higher AuM Decrease from 38.8bps to 38.1bps mainly driven by AllianzGI. driven revenues – following higher average AuM – and
Slide 31: AM: operating profit on a very good level
GROUP FINANCIAL RESULTS 1Q 2024 AM: operating profit on a very good level Operating profit drivers PIMCO (EUR mn) (EUR mn) +7.0% +9.3% +8.1% Internal growth 7231 +108 7731 561 613 44 59 Performance fee impact2 -49 -8 OP excl. performance 59.9 59.1 CIR (in %) fee impact2 678 +5.3% 714 fee impact2 1Q
Slide 32: AM: operating profit on a very good level - comments
GROUP FINANCIAL RESULTS 1Q 2024 AM: operating profit on a very good level Comments • Segment – OP at EUR 0.8bn • AllianzGI – OP at EUR 0.2bn EUR 773mn OP at 25% of FY outlook midpoint. Impact from slightly lower revenues mitigated by expense OP up by 7% mainly due to higher levels of AuM driven disc
Slide 33: CO: in line with expectations
GROUP FINANCIAL RESULTS 1Q 2024 CO: in line with expectations Operating result development and components (EUR mn) +17 -176 -3 -0 -179 -16 +1.6% Operating Holding & Banking Alternative Consoli- Operating result Treasury Investments dation result 1Q 23 1Q 24 1Q 24 -234 51 4 0 1Q 23 -218 34 7 0 33
Slide 34: CO: in line with expectations - comments
GROUP FINANCIAL RESULTS 1Q 2024 CO: in line with expectations Comments • Operating loss at 22% of FY outlook midpoint (better) Higher contribution from Banking offset by decline in result from Holding & Treasury. 34
Slide 35: Group: s/h core net income up 16%
GROUP FINANCIAL RESULTS 1Q 2024 Group: s/h core net income up 16% (EUR mn) 1Q 23 1Q 24 p.y. Operating profit 3,731 3,986 +255 Non-operating items -816 -493 +323 Realized gains/losses (net) -26 -77 -51 Expected credit loss and impairments (net) -180 -7 +173 Result from assets and liabilities measur
Slide 36: Group: s/h core net income up 16% - comments
GROUP FINANCIAL RESULTS 1Q 2024 Group: s/h core net income up 16% Comments • S/h core net income up EUR 340mn to EUR 2.5bn • Result from assets and liabilities measured at FV Increase driven by operating profit (∆ EUR +0.3bn) Improvement supported by fair value through P&L assets and a and non-opera
Slide 37: Summary – very good start into 2024
GROUP FINANCIAL RESULTS 1Q 2024 Summary – very good start into 2024 48.4bn 4.0bn 14.8bn +5.3% +6.8% +/- 1bn Facts Total business volume Operating profit OP outlook 2024 and figures 3M 2024 (EUR) 2.5bn 203% 1bn +15.7% Target: ≥ 180% Shareholders’ Share buy-back in Solvency II ratio core net income pr
Slide 38: Content/topics
Content/topics 1 Group financial results 1Q 2024 2 Additional information Glossary Disclaimer
Slide 39: Allianz track record
ADDITIONAL INFORMATION Allianz track record Operating profit 2023: EUR 14.7bn Investment portfolio 2023: EUR 740.3bn5 By segments1 By regions1 Asset allocation Debt instruments by rating P/C Insurance 45% Germany 20% Debt instruments 78% AAA 15% L/H Insurance 34% W&S Europe 24% • Treasury & AA 24% G
Slide 40: Content/topics
Content/topics 1 Group financial results 1Q 2024 2 Additional information Glossary Disclaimer
Slide 41: Glossary (1)
GLOSSARY Glossary (1) AGCS Allianz Global Corporate & Specialty AllianzGI Allianz Global Investors AM (The Allianz business segment) Asset Management APR Accident insurance with premium refund (“Unfallversicherung mit Beitragsrückzahlung”): Special form of accident insurance where the policyholder,
Slide 42: Glossary (2)
GLOSSARY Glossary (2) CE Central Europe CIR Cost-income ratio: Operating expenses divided by operating revenues. CO (The Allianz business segment) Corporate and Other Comprehensive shareholders’ Shareholders’ equity plus net CSM. capital Core EPS Core earnings per share: Calculated by dividing the r
Slide 43: Glossary (3)
GLOSSARY Glossary (3) dNPS Digital net promoter score: A measurement of customers’ willingness to recommend Allianz. ECL Expected credit loss Economic reinvestment yield Reflects the reinvestment yield, including F/X hedging costs on non-domestic hard-currency F/X bonds as well as expected F/X losse
Slide 44: Glossary (4)
GLOSSARY Glossary (4) IFRS International Financial Reporting Standards: As of 2002, the term IFRS refers to the total set of standards adopted by the International Accounting Standards Board. Standards approved before 2002 continue to be referred to as International Accounting Standards (IAS). IMIX
Slide 45: Glossary (5)
GLOSSARY Glossary (5) LatAm Latin America: South America and Mexico LIC Liability for incurred claims LoB Line of business LR Loss ratio: Represents the total of claims and insurance benefits incurred and the reinsurance result divided by insurance revenue. LRC Liability for remaining coverage: Liab
Slide 46: Glossary (6)
GLOSSARY Glossary (6) OP Operating profit: The portion of income before income taxes that is attributable to the ongoing core operations of the Allianz Group, which generally excludes the following non-operating effects: realized gains/losses (net), expected credit loss allowance, income from deriva
Slide 47: Glossary (7)
GLOSSARY Glossary (7) Pre-tax operating capital Represents the change in SII capitalization following regulatory model changes and which is attributable to generation a) changes in own funds as a consequence of operating SII earnings and b) changes in SCR as a consequence of business evolution. Fact
Slide 48: Glossary (8)
GLOSSARY Glossary (8) TBV Total business volume: It presents a measure for the overall amount of business generated during a specific reporting period. According to our business segments, total business volume in the Allianz Group comprises: - Gross premiums written as well as fee and commission inc
Slide 49: Content/topics
Content/topics 1 Group financial results 1Q 2024 2 Additional information Glossary Disclaimer
Slide 50: Cautionary note regarding forward-looking statements
DISCLAIMER Cautionary note regarding forward-looking statements This document includes forward-looking state- dustry generally, (iv) the frequency and severity No duty to update ments, such as prospects or expectations, that of insured loss events, including those resulting Allianz assumes no obliga