Allianz Se · XETR:ALV
Allianz — Q2 2024 Earnings Presentation
52 slides from Allianz's earnings presentation, Aug 8, 2024
Slide 1: Group financial results 2024
Group financial results 2024 Allianz Investor Relations App Apple App Store Google Play Store © Allianz 2024 Munich August 8, 2024
Slide 2: Content/topics
Content/topics 1 Key developments in 1H 2024 2 Group financial results 2Q 2024 3 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: Summary – fully on track for 2024 outlook
KEY DEVELOPMENTS IN 1H 2024 Summary – fully on track for 2024 outlook 91.0bn 7.9bn 14.8bn +6.4% +5.3% +/- 1bn Facts Total business volume Operating profit OP outlook 2024 and figures 6M 2024 (EUR) 5.0bn 206% 1 1bn + 0.5bn +7.7% Target: ≥ 180% Shareholders’ Extension of share buy- Solvency II ratio c
Slide 4: "We secure your future" – our purpose in action
KEY DEVELOPMENTS IN 1H 2024 “We secure your future” – our purpose in action Impact – floodings Southern Germany U/w & claims capabilities mitigate impact 11.5k claims notifications estimated P/C Germany 9% Flood Bernd5 EUR 25k gross loss Western Germany average claim share July 2021 +46%1 14% increa
Slide 5: Continued business portfolio optimization
KEY DEVELOPMENTS IN 1H 2024 Continued business portfolio optimization Freeing up capital … … investing in structural growth markets Sale of US mid-corp and entertainment business Acquisition2 of Income Insurance Singapore Disposal Market rank > #20 Market rank3 #1 P/C, #3 Health, #6 Life GPW USD ~1.
Slide 6: Content/topics
Content/topics 1 Key developments in 1H 2024 2 Group financial results 2Q 2024 3 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 7: Group 6M: sustained strong momentum
GROUP FINANCIAL RESULTS 2Q 2024 Group 6M: sustained strong momentum Group Property-Casualty Life/Health Asset Management Total business volume 6M 24 in EUR bn (internal growth vs. prior year in %) 91.0 (+7.5%) 44.8 (+8.1%) 42.7 (+7.2%) 4.0 (+4.9%) Operating profit 6M 24 in EUR mn (vs. prior year in
Slide 8: Group 6M: sustained strong momentum – comments
GROUP FINANCIAL RESULTS 2Q 2024 Group 6M: sustained strong momentum Comments • Strong internal growth of 7.5% • EUR 1bn share buy-back executed by July Internal growth in P/C at 8.1%, L/H at 7.2% and AM at 3.8mn shares acquired by the end of July 2024 representing 1.0% of 4.9%. Consolidation (-0.1%)
Slide 9: Group 2Q: profitability at very good level
GROUP FINANCIAL RESULTS 2Q 2024 Group 2Q: profitability at very good level Group Property-Casualty Life/Health Asset Management Total business volume 2Q 24 in EUR bn (internal growth vs. prior year in %) 42.6 (+8.8%) 19.3 (+10.5%) 21.5 (+7.7%) 2.0 (+4.4%) Operating profit 2Q 24 in EUR mn (vs. prior
Slide 10: Group 2Q: profitability at very good level – comments
GROUP FINANCIAL RESULTS 2Q 2024 Group 2Q: profitability at very good level Comments • Strong internal growth of 8.8% • P/C – strong underlying performance Internal growth in P/C at 10.5%, L/H at 7.7% and AM at Excellent internal growth of +10.5% benefiting from high rate change. 4.4%. Consolidation
Slide 11: Group: strong Solvency II ratio at 206%
GROUP FINANCIAL RESULTS 2Q 2024 Group: strong solvency II ratio at 206% Comprehensive s/h capital S/h equity – sensitivities (EUR bn) -4.3% +30% +4% Equity markets -30% -5% 91.0 93.2 89.2 Interest rate +50bps -0% 32.7 33.2 33.7 SII non-parallel -50bps +0% Net CSM1 58.2 60.0 55.5 on gov. bonds -1% S/
Slide 12: Group: strong Solvency II ratio at 206% – comments
GROUP FINANCIAL RESULTS 2Q 2024 Group: strong solvency II ratio at 206% Comments • Comprehensive shareholders’ capital • Solvency II ratio In 2Q 2024, shareholders’ equity decreases by EUR 4.5bn. Increase by 3%-p from 203% to 206%. Major drivers: Main drivers: + 7%-p organic capital generation (+2%-
Slide 13: Group: 7%-p capital generation
GROUP FINANCIAL RESULTS 2Q 2024 Group: 7%-p capital generation Own funds +4.0 (EUR bn) 89.6 90.4 91.6 +0.0 -0.2 -1.4 -1.2 +2.1 94.2 92.8 90.4 90.2+1.5 91.6 +0.7 -0.2 P/C AM L/H CO/Conso. 31.12.23 31.03.24 31.12.2021 Regulatory/ Regulatory Operating SII SII Market Market impact Capital Capitalmgmt./
Slide 14: Group: 7%-p capital generation – comments
GROUP FINANCIAL RESULTS 2Q 2024 Group: 7%-p capital generation Comments • +7%-p SII capital generation pre tax/dividend • Outlook +2%-p capital generation after tax and quarterly dividend FY 2024: We continue to anticipate +6%-p to +8%-p net operating accrual, a very good level given growth-related
Slide 15: P/C: excellent internal growth
GROUP FINANCIAL RESULTS 2Q 2024 P/C: excellent internal growth (EUR mn) Total business volume Rate change on renewals 2Q 24 Total growth Internal growth 6M 24 12M 23 ∆ p.y. ∆ p.y. Total P/C segment 19,278 +9.4% +10.5% +7.3% +7.1% Selected OEs Germany 2,573 +8.7% +8.7% +7.5% +6.6% United Kingdom 1,40
Slide 16: P/C: excellent internal growth – comments
GROUP FINANCIAL RESULTS 2Q 2024 P/C: excellent internal growth Comments • Internal growth at 10.5% • Australia – double-digit growth in retail and commercial Internal growth driven by price (+7.2%), volume (+2.9%), Positive price and volume effects support strong growth. and service fees (+0.4%). Co
Slide 17: P/C: OP at 26% of FY outlook midpoint
GROUP FINANCIAL RESULTS 2Q 2024 P/C: OP at 26% of FY outlook midpoint Operating profit drivers Combined ratio +1.3%-p (EUR mn) (in %) 92.2 93.5 -3.4% Retail1 95.4 94.7 1,983 +17 +32 1,915 Commercial1 86.3 91.3 -117 2Q 23 2Q 24 Loss ratio2 67.4% 69.2% t/o NatCat impact 0.9% 3.5% t/o run-off ratio -2.
Slide 18: P/C: OP at 26% of FY outlook midpoint – comments
GROUP FINANCIAL RESULTS 2Q 2024 P/C: OP at 26% of FY outlook midpoint Comments • Underlying performance strong • Expense ratio excellent OP decreases 3% driven by lower insurance service result, Better ER driven by lower admin expenses. while investment and other results both slightly improve. • Run
Slide 19: P/C: operating profit strong at EUR 1.9bn
GROUP FINANCIAL RESULTS 2Q 2024 P/C: operating profit strong at EUR 1.9bn (EUR mn) Operating profit Combined ratio NatCat impact 2Q 24 ∆ p.y. 2Q 24 ∆ p.y. 2Q 24 ∆ p.y. Total P/C segment 1,915 -3.4% 93.5% +1.3%-p 3.5%-p +2.5%-p Selected OEs Germany 132 -66.3% 99.8% +9.5%-p 14.1%-p +9.8%-p United King
Slide 20: P/C: operating profit strong at EUR 1.9bn – comments
GROUP FINANCIAL RESULTS 2Q 2024 P/C: operating profit strong at EUR 1.9bn Comments • Germany – impacted from several weather events • Spain – CR remains stable Positive trend in undiscounted attritional LR and ER, Better ER offset by higher LR due to less favorable run-off. overcompensated by high N
Slide 21: P/C: investment result on very good level
GROUP FINANCIAL RESULTS 2Q 2024 P/C: investment result on very good level Operating investment result Current yield Economic reinvestment yield (EUR mn) (debt securities, in %) (debt securities, in %) +2.4% 0.88 0.97 4.6 4.3 708 725 2Q 23 2Q 24 2Q 23 2Q 24 2Q 23 2Q 24 Total average asset base3 Durat
Slide 22: P/C: investment result on very good level – comments
GROUP FINANCIAL RESULTS 2Q 2024 P/C: investment result on very good level 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 slightly interest rate environmen
Slide 23: L/H: value of new business strong at EUR 1.1bn
GROUP FINANCIAL RESULTS 2Q 2024 L/H: value of new business strong at EUR 1.1bn New business Value of new (EUR mn) PVNBP PVNBP by LoB margin business 2Q 24 ∆ p.y. 2Q 24 ∆ p.y. 2Q 24 ∆ p.y. 7% 15% Total L/H segment 18,807 +6.5% 5.8% -0.4%-p 1,090 -0.5% EUR mn Germany Life 4,715 +35.6% 4.8% -1.1%-p 227
Slide 24: L/H: value of new business strong at EUR 1.1bn – comments
GROUP FINANCIAL RESULTS 2Q 2024 L/H: value of new business strong at EUR 1.1bn Comments • Value of new business strong at EUR 1.1bn • Germany Life – sales increase Good new business sales growth offsets slightly lower Sales supported by strong demand for products with a shorter margin. Share for cap
Slide 25: L/H: normalized CSM growth good at 1.3%
GROUP FINANCIAL RESULTS 2Q 2024 L/H: normalized CSM growth good at 1.3% Contractual service margin CSM – sensitivities (EUR mn) +744 54,871 +30% +6% +1,196 53,630 53,231 -19 Equity markets -282 -30% -6% -1,241 VNB (2Q 24) 1,090 +50bps -1% Interest rate 32,372 + Non-attr. expenses 144 32,829 -50bps +
Slide 26: L/H: normalized CSM growth good at 1.3% – comments
GROUP FINANCIAL RESULTS 2Q 2024 L/H: normalized CSM growth good at 1.3% Comments • Gross CSM up 0.7% resp. EUR 0.4bn • Economic variances negligible Normalized CSM growth (EUR 0.7bn) partially offset by Positive impact from equity markets and F/X offset by adverse impact non-economic variances/assum
Slide 27: L/H: operating profit excellent at EUR 1.4bn
GROUP FINANCIAL RESULTS 2Q 2024 L/H: operating profit excellent at EUR 1.4bn Operating profit by profit sources Operating profit by operating entities (EUR mn) (EUR mn) 2Q 23 2Q 24 ∆ p.y. CSM release 1,245 1,241 -4 Other OEs Germany Life 159 (+18.3%) 295 (+9.5%) Release of risk adjustment 128 123 -6
Slide 28: L/H: operating profit excellent at EUR 1.4bn – comments
GROUP FINANCIAL RESULTS 2Q 2024 L/H: operating profit excellent at EUR 1.4bn Comments • Operating profit at 27% of FY outlook midpoint • Germany Life – strong result CSM release of EUR 1.2bn in line with expectations with Profit growth supported by business growth and higher 6M CSM release at health
Slide 29: AM: total AuM at EUR 2.3tn / 3rd party at EUR 1.8tn
GROUP FINANCIAL RESULTS 2Q 2024 AM: total AuM at EUR 2.3tn / 3rd party at EUR 1.8tn 3rd party assets under management development 3rd party net flow split (EUR bn) (EUR bn) +1.1% PIMCO: +1.1% Fixed income +13.5 Asset AllianzGI: +1.0% classes Equities -0.6 1,784 +13.4 +0.7 +5.9 1,803 Multi-assets +0.
Slide 30: AM: total AuM at EUR 2.3tn – comments
GROUP FINANCIAL RESULTS 2Q 2024 AM: total AuM at EUR 2.3tn / 3rd party at EUR 1.8tn Comments • Business highlights • 3rd party net flows AM segment: EUR +14bn Investment performance: 78% of 3rd party AuM outperform 2Q 2024: 3rd party net inflows driven by fixed income business, also benchmarks on a
Slide 31: AM: 5% revenue growth
GROUP FINANCIAL RESULTS 2Q 2024 AM: 5% revenue growth Revenues PIMCO AllianzGI (EUR mn) (EUR mn) (EUR mn) +5.2% +5.2% +6.5% Internal growth +4.4% +4.1% +6.9% 1,974 1,477 1,877 1,405 80 43 Performance fees 103 72 AuM driven & 497 other revenues1 466 37 31 1,775 1,894 1,333 1,434 436 460 3rd party AuM
Slide 32: AM: 5% revenue growth – comments
GROUP FINANCIAL RESULTS 2Q 2024 AM: 5% revenue growth Comments • Segment revenues – ongoing good growth • Segment margin – 38.2bps Revenues increase by 5% due to higher AuM driven Margin stable vs. 1Q 2024 (38.1bps). Slight decrease from 38.6bps in revenues – following higher average 3rd party AuM –
Slide 33: AM: 6% operating profit growth
GROUP FINANCIAL RESULTS 2Q 2024 AM: 6% operating profit growth Operating profit drivers PIMCO (EUR mn) (EUR mn) +5.6% +6.3% +4.8% Internal growth 7031 +83 +5 7421 547 582 53 23 Performance fee impact2 -50 OP excl. performance CIR (in %) 61.0 60.6 fee impact2 650 +10.6% 719 fee impact2 2Q 23 2Q 24 62
Slide 34: AM: 6% operating profit growth – comments
GROUP FINANCIAL RESULTS 2Q 2024 AM: 6% operating profit growth Comments • Segment – OP up 6% • AllianzGI – OP up 6% EUR 742mn OP; increase mainly due to higher levels of EUR 164mn OP. 9% higher average 3rd party AuM drive AuM AuM driven revenues following higher average 3rd party revenues. Higher pe
Slide 35: CO: better than expected
GROUP FINANCIAL RESULTS 2Q 2024 CO: better than expected Operating result development and components (EUR mn) +17 +2 +0 -111 -21 -112 +1.1% Operating Holding & Banking Alternative Consoli- Operating result Treasury Investments dation result 2Q 23 2Q 24 2Q 24 -175 51 13 0 2Q 23 -193 48 33 0 35
Slide 36: CO: better than expected – comments
GROUP FINANCIAL RESULTS 2Q 2024 CO: better than expected Comments • Operating loss at 14% of FY outlook midpoint (better) Higher contribution from Holding & Treasury offset by decline in result from Alternative investments. Overall result supported by income from inflation linked bonds. 36
Slide 37: Group: s/h core net income strong at EUR 2.5bn
GROUP FINANCIAL RESULTS 2Q 2024 Group: s/h core net income strong at EUR 2.5bn (EUR mn) 2Q 23 2Q 24 p.y. Operating profit 3,783 3,926 +143 Non-operating items -761 -441 +320 Realized gains/losses (net) -31 -5 +26 Expected credit loss and impairments (net) -84 -26 +58 Result from assets and liabili
Slide 38: Group: s/h core net income strong at EUR 2.5bn – comments
GROUP FINANCIAL RESULTS 2Q 2024 Group: s/h core net income strong at EUR 2.5bn Comments • S/h core net income slightly up to EUR 2.5bn • Non-operating result improves by EUR 0.3bn Higher non-operating result (∆ EUR +0.3bn) Improvement supported by lower impairments and better result from and operati
Slide 39: Summary – fully on track for 2024 outlook
GROUP FINANCIAL RESULTS 2Q 2024 Summary – fully on track for 2024 outlook 91.0bn 7.9bn 14.8bn +6.4% +5.3% +/- 1bn Facts Total business volume Operating profit OP outlook 2024 and figures 6M 2024 (EUR) 5.0bn 206% 1 1bn + 0.5bn +7.7% Target: ≥ 180% Shareholders’ Extension of share buy- Solvency II rat
Slide 40: Content/topics
Content/topics 1 Key developments in 1H 2024 2 Group financial results 2Q 2024 3 Additional information Glossary Disclaimer
Slide 41: 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 42: Content/topics
Content/topics 1 Key developments in 1H 2024 2 Group financial results 2Q 2024 3 Additional information Glossary Disclaimer
Slide 43: 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 44: 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 45: 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 46: 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 47: 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 48: 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 49: Glossary (7)
GLOSSARY Glossary (7) PVFCF Present value of future cash flows, balance sheet liability representing the policyholder reserve of the in-force business based on discounted expected cash flows to policyholders including attributable expenses. PVNBP Present value of new business premiums: i.e. the pres
Slide 50: 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 51: Content/topics
Content/topics 1 Key developments in 1H 2024 2 Group financial results 2Q 2024 3 Additional information Glossary Disclaimer
Slide 52: 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