Slide 1: Group financial results 2023
Group financial results 2023 Allianz Investor Relations App Apple App Store Google Play Store © Allianz 2023 Munich August 10, 2023
Slide 2: Content/topics
Content/topics Group financial results 2Q 2023 Glossary Disclaimer Note: The financial results are based on the new IFRS 9 (Financial Instruments) and IFRS 17 (Insurance Contracts) accounting standards, which have been adopted as of 1 January 2023. Comparative periods have been adjusted to reflect t
Slide 3: Group 6M: strong profitable growth
GROUP FINANCIAL RESULTS 2Q 2023 Group 6M: strong profitable growth Group Property-Casualty Life/Health Asset Management Total business volume 6M 23 in EUR bn (internal growth vs. prior year in %) 85.6 (+6.4%) 41.7 (+11.8%) 40.4 (+2.2%) 3.8 (-5.1%) Operating profit 6M 23 in EUR mn (vs. prior year in
Slide 4: Group 6M: strong profitable growth – comments
GROUP FINANCIAL RESULTS 2Q 2023 Group 6M: strong profitable growth Comments • Internal growth at 6.4% • P/C – very good profitability and double-digit growth Internal growth in P/C at 11.8%. Consolidation (+0.1%) OP of EUR 3.9bn (+16%) at 55% of FY outlook mid-point. and F/X (-1.7%) lead to total re
Slide 5: Group 2Q: profitability at very good level
GROUP FINANCIAL RESULTS 2Q 2023 Group 2Q: profitability at very good level Group Property-Casualty Life/Health Asset Management Total business volume 2Q 23 in EUR bn (internal growth vs. prior year in %) 39.6 (+8.7%) 17.6 (+11.4%) 20.3 (+7.4%) 1.9 (-2.0%) Operating profit 2Q 23 in EUR mn (vs. prior
Slide 6: Group 2Q: profitability at very good level – comments
GROUP FINANCIAL RESULTS 2Q 2023 Group 2Q: profitability at very good level Comments • Internal growth at 8.7% • P/C – operating profit at EUR 2.0bn Internal growth in P/C at 11.4% and L/H at 7.4%. OP up 11% due to better insurance service result and Consolidation (-0.2%) and F/X (-2.5%) lead to tota
Slide 7: Group: 208% solvency II ratio
GROUP FINANCIAL RESULTS 2Q 2023 Group: 208% solvency II ratio Comprehensive s/h capital S/h equity – key sensitivities2 (EUR bn) -2.5% +30% +4% Equity markets -30% -4% 86.1 88.9 86.7 -1% Interest rate +50bps 31.7 32.1 32.4 SII non-parallel -50bps +1% Net CSM S/h equity 54.4 56.8 54.3 on gov. bonds -
Slide 8: Group: 208% solvency II ratio – comments
GROUP FINANCIAL RESULTS 2Q 2023 Group: 208% solvency II ratio Comments • Comprehensive shareholders’ capital • SII ratio In 2Q 2023, shareholders’ equity decreases by EUR 2.5bn. Increase of 3%-p from 206% to 208%. Major drivers: Major drivers: + 8%-p organic capital generation (+3%-p after tax and +
Slide 9: Group: 8%-p capital generation
GROUP FINANCIAL RESULTS 2Q 2023 Group: 8%-p capital generation Own funds +3.8 (EUR bn) 79.9 +0.1 -0.0 80.7 77.9 -2.2 -0.9 +2.0 +1.4 83.7 81.6 79.9 79.8+0.7 80.7 -0.2 P/C AM L/H CO/Conso. 31.12.22 31.03.23 31.12.2021 Regulatory/ Regulatory Operating SII SII Market Market impact Capital Capitalmgmt./
Slide 10: Group: 8%-p capital generation – comments
GROUP FINANCIAL RESULTS 2Q 2023 Group: 8%-p capital generation Comments • 8%-p SII capital generation pre-tax/dividend • Capital management/management actions Capital generation after tax and dividend at a good level of -6%-p, driven by negative impacts from share buy-back +3%-p despite growth-relat
Slide 11: P/C: strong growth across operating entities
GROUP FINANCIAL RESULTS 2Q 2023 P/C: strong growth across operating entities (EUR mn) Total business volume Rate change on renewals 2Q 23 Total growth Internal growth 6M 23 12M 22 ∆ p.y. ∆ p.y. Total P/C segment 17,621 +8.0% +11.4% +7.4% +4.9% Selected OEs Germany 2,367 +4.8% +5.6% +6.6% +3.5% Franc
Slide 12: P/C: strong growth across operating entities – comments
GROUP FINANCIAL RESULTS 2Q 2023 P/C: strong growth across operating entities Comments • Internal growth excellent at 11.4% • Switzerland – appreciation of CHF drives total growth IG driven by price (+7.1%) and volume (+4.7%), partly • Spain – positive price effect main driver offset by service fees
Slide 13: P/C: double-digit operating profit growth
GROUP FINANCIAL RESULTS 2Q 2023 P/C: double-digit operating profit growth Operating profit drivers Combined ratio -0.4%-p (EUR mn) (in %) 92.6 92.2 +10.8% Retail1 95.0 95.4 +164 +81 1,983 1,790 Commercial1 87.4 86.3 -53 2Q 22 2Q 23 Loss ratio2 67.9% 67.4% t/o NatCat impact 3.0% 0.9% t/o run-off rati
Slide 14: P/C: double-digit operating profit growth – comments
GROUP FINANCIAL RESULTS 2Q 2023 P/C: double-digit operating profit growth Comments • Operating profit up 11% • Run-off ratio at -2.3% OP supported by higher insurance service result due to Prior year level elevated due to COVID-19 related reserve releases. excellent growth and strong profitability i
Slide 15: P/C: combined ratio at 92%
GROUP FINANCIAL RESULTS 2Q 2023 P/C: combined ratio at 92% (EUR mn) Operating profit Combined ratio NatCat impact 2Q 23 ∆ p.y. 2Q 23 ∆ p.y. 2Q 23 ∆ p.y. Total P/C segment 1,983 +10.8% 92.2% -0.4%-p 0.9%-p -2.0%-p Selected OEs Germany 391 -6.8% 90.3% +0.6%-p 4.4%-p -0.8%-p France 135 +199.6% 94.3% -9
Slide 16: P/C: combined ratio at 92% – comments
GROUP FINANCIAL RESULTS 2Q 2023 P/C: combined ratio at 92% Comments • Germany – profitability on very good level • CEE – continued strong performance Higher large losses as well as inflation in motor and OP driven by better investment result and good top-line growth. property, partly offset by favor
Slide 17: P/C: investment result up 13%
GROUP FINANCIAL RESULTS 2Q 2023 P/C: investment result up 13% Operating investment result Current yield Economic reinvestment yield (EUR mn) (debt securities; in %) (debt securities, in %) +13.0% 4.6 0.88 0.64 3.3 708 627 2Q 22 2Q 23 2Q 22 2Q 23 2Q 22 2Q 23 Total average asset base3 Duration4 Assets
Slide 18: P/C: investment result up 13% – comments
GROUP FINANCIAL RESULTS 2Q 2023 P/C: investment result up 13% Comments • Interest & similar income • Reinvestment yield (debt securities) Driven by income from debt and cash due to higher Economic reinvestment yield rises to 4.6% benefitting from interest rates. changed yield environment. • Interest
Slide 19: L/H: value of new business up 6%
GROUP FINANCIAL RESULTS 2Q 2023 L/H: value of new business up 6% New business Value of new (EUR mn) PVNBP PVNBP by LoB margin business 2Q 23 ∆ p.y. 2Q 23 ∆ p.y. 2Q 23 ∆ p.y. 7% Total L/H segment 17,663 +7.3% 6.2% -0.1%-p 1,096 +6.4% 21% EUR mn 17,663 47% USA 5,348 +24.0% 6.4% -1.6%-p 340 -1.5% (+7.3
Slide 20: L/H: value of new business up 6% – comments
GROUP FINANCIAL RESULTS 2Q 2023 L/H: value of new business up 6% Comments • Value of new business up 6.4% to EUR 1.1bn • USA – largest contributor to VNB VNB growth driven by volume with attractive NBM. Sales increase supported by FIA sales promotion. NBM strong at • PVNBP grows by EUR 1.2bn 6.4% wi
Slide 21: L/H: normalized CSM growth at 1.5%
GROUP FINANCIAL RESULTS 2Q 2023 L/H: normalized CSM growth at 1.5% Contractual service margin CSM sensitivities (EUR mn) +848 +48 54,099 +1,209 +30% +7% 52,408 52,854 Equity markets -413 -1,245 -30% -7% VNB (2Q 23) 1,096 +50bps -1% Interest rate + Non-attr. expenses 150 -50bps +1% + Scope/other -37
Slide 22: L/H: normalized CSM growth at 1.5% – comments
GROUP FINANCIAL RESULTS 2Q 2023 L/H: normalized CSM growth at 1.5% Comments • CSM up by EUR 0.4bn • Economic variances Normalized CSM growth of EUR 0.8bn more than offsets Adverse impact due to unfavorable market movements adverse impact from economic variances (EUR -0.4bn). (EUR -0.3bn), mainly rea
Slide 23: L/H: operating profit at EUR 1.2bn
GROUP FINANCIAL RESULTS 2Q 2023 L/H: operating profit at EUR 1.2bn Operating profit Operating profit by LoB (EUR mn) (EUR mn) 2Q 22 2Q 23 ∆ p.y. CSM release 1,164 1,245 +81 28% 30% Release of risk adjustment 140 128 -12 EUR mn 1,202 Variances from claims & expenses1 -75 -96 -21 (+22.5%) Losses on on
Slide 24: L/H: operating profit at EUR 1.2bn – comments
GROUP FINANCIAL RESULTS 2Q 2023 L/H: operating profit at EUR 1.2bn Comments • Operating profit good at EUR 1.2bn • Non-attributable expenses CSM release up 7% and in line with expectations. Non-attributable expenses offset by corresponding CSM release. Annualized CSM release ratio at 9%. All other p
Slide 25: L/H: good results across operating entities
GROUP FINANCIAL RESULTS 2Q 2023 L/H: good results across operating entities (EUR mn) CSM Operating profit ∆ QTD t/o CSM 2Q 23 ∆ QTD 2Q 23 ∆ p.y. normalized1 release Total L/H segment 52,854 +0.9% +1.5% 1,202 +22.5% 1,245 USA 11,815 +1.4% +2.1% 219 +152.9% 288 Germany Life 17,440 +0.6% +1.1% 270 +4.3
Slide 26: L/H: good results across operating entities – comments
GROUP FINANCIAL RESULTS 2Q 2023 L/H: good results across operating entities Comments CSM Operating profit • USA • Germany Life and Germany Health CSM growth supported by strong normalized CSM growth of Profitability again on strong level. 2.1%, partially offset by economic variances including F/X. •
Slide 27: AM: EUR 2.2tn total AuM
GROUP FINANCIAL RESULTS 2Q 2023 AM: EUR 2.2tn total AuM Total assets under management 3rd party AuM split (EUR bn) (EUR bn) -0.5% Asset classes Regions Multi-assets Europe 2,141 2,174 2,163 EUR 171bn (+0.7%) EUR 570bn (+0.4%) Equities Asia Pacific Allianz Group 506 -1.1% 500 EUR 148bn (+1.5%) EUR 25
Slide 28: AM: EUR 2.2tn total AuM – comments
GROUP FINANCIAL RESULTS 2Q 2023 AM: EUR 2.2tn total AuM Comments • Total AuM stable • Business highlights Total AuM nearly unchanged in 2Q 2023 ( -0.5%). Investment performance: 82% of 3rd party AuM outperform Positive market effects are more than offset by F/X and net benchmarks on a trailing 3-ye
Slide 29: AM: 3rd party AuM at EUR 1.7tn
GROUP FINANCIAL RESULTS 2Q 2023 AM: 3rd party AuM at EUR 1.7tn 3rd party assets under management development 3rd party net flow split (EUR bn) (EUR bn) -0.3% Fixed income +6.4 Asset classes Equities -2.8 1,668 +3.6 +2.0 1,662 Multi-assets -0.9 -0.9 -10.3 Alternatives -0.0 America +2.7 +2.7 Regions E
Slide 30: AM: 3rd party AuM at EUR 1.7tn – comments
GROUP FINANCIAL RESULTS 2Q 2023 AM: 3rd party AuM at EUR 1.7tn Comments • 3rd party AuM at EUR 1.7tn • 3rd party net flows PIMCO: EUR +4bn Marginal change of 3rd party AuM versus end of 1Q 2023 2Q 2023: EUR 4bn 3rd party net inflows driven by fixed income ( -0.3%) driven by F/X. business. Average 3
Slide 31: AM: lower average AuM impact revenues
GROUP FINANCIAL RESULTS 2Q 2023 AM: lower average AuM impact revenues Revenues PIMCO AllianzGI (EUR mn) (EUR mn) (EUR mn) -6.9% -4.4% -14.7% Internal growth -2.0% -2.3% -2.5% 2,016 1,877 1,469 51 1,405 Performance fees 19 AuM driven & 103 72 547 other revenues1 31 466 31 1,966 1,775 1,450 1,333 515
Slide 32: AM: lower average AuM impact revenues – comments
GROUP FINANCIAL RESULTS 2Q 2023 AM: lower average AuM impact revenues Comments • Segment revenues – internal growth -2% • Segment margin – down 0.7bps Nominal decrease of 7% due to lower average 3rd party Margin at 38.6bps after 38.8bps in 1Q 2023 and 39.2bps in 2Q 2022. AuM ( -10%) and a slightly
Slide 33: AM: operating profit in line with expectations
GROUP FINANCIAL RESULTS 2Q 2023 AM: operating profit in line with expectations Operating profit drivers PIMCO (EUR mn) (EUR mn) -9.0% -5.8% -7.3% Internal growth 7731 +49 7031 581 547 21 53 Performance fee impact2 -105 -13 60.5 61.0 CIR (in %) OP excl. performance 752 fee impact2 -13.5% 650 fee impa
Slide 34: AM: operating profit in line with expectations – comments
GROUP FINANCIAL RESULTS 2Q 2023 AM: operating profit in line with expectations Comments • Segment – OP at EUR 703mn • AllianzGI – OP at EUR 156mn Lower AuM driven revenues ( -10.8%) partially OP at EUR 156mn. Reduction of 21% mainly due to lower AuM compensated by lower operating expenses ( -5.6%)
Slide 35: CO: better than expectations
GROUP FINANCIAL RESULTS 2Q 2023 CO: better than expectations Operating result development and components (EUR mn) -65 +23 +35 -0 -111 -105 +71.7% Operating Holding & Banking Alternative Consoli- Operating result Treasury Investments dation result 2Q 22 2Q 23 2Q 23 -193 48 33 0 2Q 22 -88 13 10 0 35
Slide 36: CO: better than expectations – comments
GROUP FINANCIAL RESULTS 2Q 2023 CO: better than expectations Comments • Operating loss at 14% of FY outlook mid-point Change in operating loss driven by lower investment income, i.e. inflation-linked bonds and dividends, all reflected in result from Holding & Treasury. Exceptional high level of inve
Slide 37: Group: s/h core net income at EUR 2.5bn
GROUP FINANCIAL RESULTS 2Q 2023 Group: s/h core net income at EUR 2.5bn (EUR mn) 2Q 22 2Q 23 p.y. Operating profit 3,532 3,783 +250 Non-operating items -708 -761 -53 Realized gains/losses (net) -28 -31 -3 Expected credit loss and impairments (net) -25 -84 -60 Result from assets and liabilities mea
Slide 38: Group: s/h core net income at EUR 2.5bn – comments
GROUP FINANCIAL RESULTS 2Q 2023 Group: s/h core net income at EUR 2.5bn Comments • S/h core net income up EUR 0.5bn to EUR 2.5bn • Restructuring expenses Increase driven by operating profit (∆ EUR +0.3bn) and Prior year restructuring expenses impacted by transfer of AGI U.S. better tax result. busin
Slide 39: Summary – strong results across all dimensions
GROUP FINANCIAL RESULTS 2Q 2023 Summary – strong results across all dimensions 85.6bn 7.5bn 14.2bn +4.8% +14.9% +/- 1bn Facts Total business volume Operating profit OP outlook and figures 6M 2023 (EUR) 4.7bn 208% 1.5bn +90.2% Target: ≥ 180% Shareholders’ Share buy-back Solvency II ratio core net inc
Slide 40: Content/topics
Content/topics Group financial results 2Q 2023 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) 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 respective period’s
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 Group financial results 2Q 2023 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