Allianz Se · XETR:ALV
Allianz — Q3 2024 Earnings Presentation
48 slides from Allianz's earnings presentation, Nov 13, 2024
Slide 1: Group financial results 2024
Group financial results 2024 Allianz Investor Relations App Apple App Store Google Play Store Apple App Store Google Play Store © Allianz 2024 Munich November 13, 2024
Slide 2: Content/topics
Content/topics 1 Group financial results 3Q 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 9M: sustained strong momentum
GROUP FINANCIAL RESULTS 3Q 2024 Group 9M: sustained strong momentum Group Property-Casualty Life/Health Asset Management Total business volume 9M 24 in EUR bn (internal growth vs. prior year in %) 133.9 (+11.1%) 63.3 (+8.3%) 65.0 (+14.4%) 6.0 (+3.7%) Operating profit 9M 24 in EUR mn (vs. prior year
Slide 4: Group 9M: sustained strong momentum - comments
GROUP FINANCIAL RESULTS 3Q 2024 Group 9M: sustained strong momentum Comments • Outlook 2024: OP in the upper half of target range • EUR 1.5bn share buy-backs finalized in October For the full year, Allianz expects to arrive in the upper half 5.6mn shares acquired representing 1.4% of issued capital.
Slide 5: Group 3Q: very good performance
GROUP FINANCIAL RESULTS 3Q 2024 Group 3Q: very good performance Group Property-Casualty Life/Health Asset Management Total business volume 3Q 24 in EUR bn (internal growth vs. prior year in %) 42.8 (+19.1%) 18.6 (+9.5%) 22.4 (+30.6%) 2.0 (+1.1%) Operating profit 3Q 24 in EUR mn (vs. prior year in %)
Slide 6: Group 3Q: very good performance - comments
GROUP FINANCIAL RESULTS 3Q 2024 Group 3Q: very good performance Comments • Strong internal growth of 19.1% • P/C – strong performance Internal growth in P/C at 9.5%, L/H at 30.6% and AM at Operating profit up +36% driven by significantly improved insurance 1.1%. Consolidation (-0.1%) and F/X (-1.6%)
Slide 7: Group: solvency II ratio increases to 209%
GROUP FINANCIAL RESULTS 3Q 2024 Group: solvency II ratio increases to 209% Comprehensive s/h capital S/h equity – sensitivities (EUR bn) +3.3% +30% +4% Equity markets -30% -4% 91.0 89.2 92.1 Interest rate +50bps -0% 32.7 33.7 34.3 SII non-parallel -50bps +0% Net CSM1 58.2 55.5 57.8 on gov. bonds -1%
Slide 8: Group: solvency II ratio increases to 209% - comments
GROUP FINANCIAL RESULTS 3Q 2024 Group: solvency II ratio increases to 209% Comments • Comprehensive shareholders’ capital • Solvency II ratio In 3Q 2024, shareholders’ equity increases by EUR 2.3bn. Increase by 3%-p from 206% to 209%. Major drivers: Main drivers: + 7%-p organic capital generation (+
Slide 9: Group: organic capital generation strong at 7%-p
GROUP FINANCIAL RESULTS 3Q 2024 Group: organic capital generation strong at 7%-p Own funds +3.8 +1.1 94.1 (EUR bn) 91.6 +0.0 89.6 -1.2 -1.1 +2.1 95.6 95.5 94.4 91.6 91.1+1.5 +0.7 -0.5 P/C AM L/H CO/Conso. 31.12.23 30.06.24 31.12.2021 Regulatory/ Regulatory Operating SII SII Market Market impact Capi
Slide 10: Group: organic capital generation strong at 7%-p - comments
GROUP FINANCIAL RESULTS 3Q 2024 Group: organic capital generation strong at 7%-p Comments • +7%-p SII capital generation pre-tax/dividend • Capital management/management actions +5%-p capital generation after tax; +2%-p after tax and Overall, -2%-p impact, driven by dividend accrual for 3Q 2024 and
Slide 11: P/C: continued strong internal growth
GROUP FINANCIAL RESULTS 3Q 2024 P/C: continued strong internal growth (EUR mn) Total business volume Rate change on renewals 3Q 24 Total growth Internal growth 9M 24 12M 23 ∆ p.y. ∆ p.y. Total P/C segment 18,583 +8.0% +9.5% +7.1% +7.1% Selected OEs Germany 2,737 +8.2% +8.2% +7.6% +6.6% United Kingdo
Slide 12: P/C: continued strong internal growth - comments
GROUP FINANCIAL RESULTS 3Q 2024 P/C: continued strong internal growth Comments • Internal growth at 9.5% • Italy – price and volume positive Price (+6.2%), volume (+3.0%), and service fees (+0.3%) Good growth supported by higher new business in motor. contribute to excellent internal growth. Consoli
Slide 13: P/C: operating profit very good at EUR 2bn
GROUP FINANCIAL RESULTS 3Q 2024 P/C: operating profit very good at EUR 2bn -2.7%-p Operating profit drivers Combined ratio (EUR mn) (in %) 96.2 93.5 +36.2% Retail1 98.4 94.9 +574 +2 1,969 Commercial1 91.9 90.5 1,446 -54 3Q 23 3Q 24 Loss ratio2 71.0% 69.8% t/o NatCat impact 7.3% 3.4% t/o run-off rati
Slide 14: P/C: operating profit very good at EUR 2bn - comments
GROUP FINANCIAL RESULTS 3Q 2024 P/C: operating profit very good at EUR 2bn Comments • Operating profit up 36% • Undiscounted attritional LR – at 71.2% adjusted for AGCS deal Higher OP driven by better insurance service result. CR at Undiscounted attritional LR up +0.8%-p to 71.7%, of which +0.4%-p F
Slide 15: P/C: excellent performance across the board
GROUP FINANCIAL RESULTS 3Q 2024 P/C: excellent performance across the board (EUR mn) Operating profit Combined ratio NatCat impact 3Q 24 ∆ p.y. 3Q 24 ∆ p.y. 3Q 24 ∆ p.y. Total P/C segment 1,969 +36.2% 93.5% -2.7%-p 3.4%-p -3.9%-p Selected OEs Germany 382 n.m.2 91.8% -12.6%-p 6.7%-p -12.5%-p United K
Slide 16: P/C: excellent performance across the board - comments
GROUP FINANCIAL RESULTS 3Q 2024 P/C: excellent performance across the board Comments • Germany – very good profitability • Spain – stable CR CR strong at 91.8%, despite elevated NatCat losses. Better attritional LR, largely offset by run-off result. Prior year included several major hail and storm e
Slide 17: P/C: investment result on good level
GROUP FINANCIAL RESULTS 3Q 2024 P/C: investment result on good level Operating investment result Current yield Economic reinvestment yield (EUR mn) (debt securities, in %) (debt securities, in %) -6.7% 0.85 0.92 4.7 3.9 802 748 3Q 23 3Q 24 3Q 23 3Q 24 3Q 23 3Q 24 Total average asset base3 Duration4
Slide 18: P/C: investment result on good level - comments
GROUP FINANCIAL RESULTS 3Q 2024 P/C: investment result on good level Comments • Interest & similar income • Economic reinvestment yield (debt securities) Income from debt and cash as main drivers, due to Economic reinvestment yield at 3.9%, below prior-year level due to favorable interest rate envir
Slide 19: L/H: excellent new business momentum
GROUP FINANCIAL RESULTS 3Q 2024 L/H: excellent new business momentum New business Value of new (EUR mn) PVNBP PVNBP by LoB margin business 3Q 24 ∆ p.y. 3Q 24 ∆ p.y. 3Q 24 ∆ p.y. 6% 14% Total L/H segment 19,480 +35.4% 6.1% -0.1%-p 1,179 +32.9% EUR mn Germany Life 4,287 +41.6% 4.6% -0.9%-p 196 +17.3%
Slide 20: L/H: excellent new business momentum - comments
GROUP FINANCIAL RESULTS 3Q 2024 L/H: excellent new business momentum Comments • Value of new business up 32.9% to EUR 1.2bn • Germany Life – strong sales performance VNB growth driven by sales performance (+35.4%) with Sales supported by strong demand for products with a short duration attractive NB
Slide 21: L/H: normalized CSM growth very good at 1.5%
GROUP FINANCIAL RESULTS 3Q 2024 L/H: normalized CSM growth very good at 1.5% Contractual service margin1 CSM – sensitivities (EUR mn) 796 339 55,417 1,275 +30% +6% 53,630 54,150 Equity markets -623 -1,267 -30% -7% VNB (3Q 24) 1,179 +50bps -1% Interest rate 32,829 + Non-attr. expenses 144 33,478 -50b
Slide 22: L/H: normalized CSM growth very good at 1.5% - comments
GROUP FINANCIAL RESULTS 3Q 2024 L/H: normalized CSM growth very good at 1.5% Comments • Gross CSM up 1.0% resp. EUR 0.5bn • Modest economic variances Normalized CSM growth (EUR 0.8bn) and impact from Positive impact from lower interest rates partially offset by adverse economic variances (EUR 0.3bn)
Slide 23: L/H: operating profit excellent at EUR 1.4bn
GROUP FINANCIAL RESULTS 3Q 2024 L/H: operating profit excellent at EUR 1.4bn Operating profit by profit sources Operating profit by operating entities (EUR mn) (EUR mn) 3Q 23 3Q 24 ∆ p.y. CSM release 1,252 1,267 +14 Other OEs Germany Life 146 (+15.2%) 284 (+5.6%) Release of risk adjustment 132 121 -
Slide 24: L/H: operating profit excellent at EUR 1.4bn - comments
GROUP FINANCIAL RESULTS 3Q 2024 L/H: operating profit excellent at EUR 1.4bn Comments • Operating profit at 26% of FY outlook midpoint • Germany Life – good result CSM release of EUR 1.3bn in line with expectations with Profit growth supported by business growth and higher 9M CSM release at healthy
Slide 25: AM: EUR 2.4tn total / EUR 1.8tn 3rd party AuM
GROUP FINANCIAL RESULTS 3Q 2024 AM: EUR 2.4tn total / EUR 1.8tn 3rd party AuM 3rd party assets under management development 3rd party net flow split (EUR bn) (EUR bn) +2.1% PIMCO: +2.6% Fixed income +19.4 AllianzGI: -0.0% Asset classes Equities +0.1 1,803 +24.8 +54.6 1,840 -37.3 Multi-assets +0.5 38
Slide 26: AM: EUR 2.4tn total / EUR 1.8tn 3rd party AuM - comments
GROUP FINANCIAL RESULTS 3Q 2024 AM: EUR 2.4tn total / EUR 1.8tn 3rd party AuM Comments • Business highlights • 3rd party net flows AM segment: EUR +20bn Investment performance: 79% of 3rd party AuM outperform 3Q 2024: 3rd party net inflows driven by fixed income business, benchmarks on a trailing 3-
Slide 27: AM: AuM driven revenues up 7%
GROUP FINANCIAL RESULTS 3Q 2024 AM: AuM driven revenues up 7% Revenues PIMCO AllianzGI (EUR mn) (EUR mn) (EUR mn) +0.3% -2.0% +8.2% Internal growth +1.1% -1.1% +8.5% 1,998 2,005 1,501 1,470 159 62 Performance fees 137 31 AuM driven & 531 490 other revenues1 31 22 1,839 1,943 1,364 1,439 468 500 3rd
Slide 28: AM: AuM driven revenues up 7% - comments
GROUP FINANCIAL RESULTS 3Q 2024 AM: AuM driven revenues up 7% Comments • Segment revenues – EUR 2bn • Segment margin – 38.4bps AuM driven revenues increase by 7% due to higher Margin slightly up vs. 2Q 2024 (38.2bps). Decrease by 0.4bps from average 3rd party AuM; lower level of performance fees 38.
Slide 29: AM: OP excl. performance fees up 11%
GROUP FINANCIAL RESULTS 3Q 2024 AM: OP excl. performance fees up 11% Operating profit drivers PIMCO (EUR mn) (EUR mn) -0.8% -3.8% -0.0% Internal growth 7881 +21 7821 16 624 601 96 -21 -6 Performance fee impact2 OP excl. performance 58.4 59.2 CIR (in %) fee impact2 692 +10.7% 766 fee impact2 3Q 23 3Q
Slide 30: AM: OP excl. performance fees up 11% - comments
GROUP FINANCIAL RESULTS 3Q 2024 AM: OP excl. performance fees up 11% Comments • Segment – OP at 25% of FY outlook midpoint • AllianzGI – EUR 190mn OP OP stable excluding F/X: higher levels of AuM driven OP increases 14%. 9% higher average 3rd party AuM drive revenues following higher average 3rd par
Slide 31: CO: in line with expectations
GROUP FINANCIAL RESULTS 3Q 2024 CO: in line with expectations Operating result development and components (EUR mn) -71 -100 -1 -10 -1 -185 +158.3% Operating Holding & Banking Alternative Consoli- Operating result Treasury Investments dation result 3Q 23 3Q 24 3Q 24 -216 46 1 -14 3Q 23 -116 47 11 -13
Slide 32: CO: in line with expectations - comments
GROUP FINANCIAL RESULTS 3Q 2024 CO: in line with expectations Comments • Operating loss at 23% of FY outlook midpoint (better) Prior-year result from Holding & Treasury supported from favorable non-recurrent item. In addition less favorable F/X impact and lower contribution from Allianz Technology –
Slide 33: Group: s/h core net income strong at EUR 2.5bn
GROUP FINANCIAL RESULTS 3Q 2024 Group: s/h core net income strong at EUR 2.5bn (EUR mn) 3Q 23 3Q 24 p.y. Operating profit 3,468 3,938 +470 Non-operating items -665 -417 +248 Realized gains/losses (net) -233 -0 +233 Expected credit loss and impairments (net) 120 -33 -154 Result from assets and liab
Slide 34: Group: s/h core net income strong at EUR 2.5bn - comments
GROUP FINANCIAL RESULTS 3Q 2024 Group: s/h core net income strong at EUR 2.5bn Comments • S/h core net income up 23.0% to EUR 2.5bn • Result from assets and liabilities measured at FV Profit growth driven by operating profit (∆ EUR +0.5bn) and Line item includes amortization of tax incentivized alte
Slide 35: Summary – OP expected in upper half of target range
GROUP FINANCIAL RESULTS 3Q 2024 Summary – OP expected in upper half of target range1 133.9bn 11.8bn 14.8bn +9.6% +7.9% +/- 1bn Facts OP expected in upper Total business volume Operating profit and figures half of target range1 9M 2024 (EUR) 7.6bn 209% 2 1bn + 0.5bn +12.3% Target: ≥ 180% Shareholders
Slide 36: Content/topics
Content/topics 1 Group financial results 3Q 2024 2 Additional information Glossary Disclaimer
Slide 37: 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 38: Content/topics
Content/topics 1 Group financial results 3Q 2024 2 Additional information Glossary Disclaimer
Slide 39: 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 40: 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 41: 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 42: 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 43: 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 44: 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 45: 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 46: 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 47: Content/topics
Content/topics 1 Group financial results 3Q 2024 2 Additional information Glossary Disclaimer
Slide 48: 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