Allianz operating profit up 7.1% as business volume surges
Insurance giant Allianz is on a path of sustained growth after its volume of business jumped 5.9% year-on-year (YoY) in Q2 2023 to €39.6bn (US$43.4bn).
Business volume growth has spurred operating profit increases of 7.1% up to €3.8bn (US$4.2bn) compared to the corresponding period last year.
In particular, this growth was spearheaded by exceptional results in Allianz’s Property & Casualty (P&C) lines, Life & Health insurance and its Asset Management segment.
Oliver Bäte, CEO of Allianz SE says: “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.”
Allianz’s positive results aren’t a one-off outlier for Q2 either, results for H1 2023 reflect a business volume rise of 4.8% and operating profits of 14.9%. For the year so far, Allianz shareholders have seen their returns rise 90.2% compared to H1 2022.
In fact, these improved results have even raised Allianz’s solvency rating, receiving an Excellent Solvency II capitalisation ratio of 208% compared to 201% at the end of Q4 2022.
Allianz: succeeding against the grain of inflation
Allianz’s current strong performance isn’t anything new, after all, it’s one of the world’s biggest insurers. So why the big to-do?
Well, amid a period of rising inflation and increases polarisation around the globe, many key markets Allianz operates in are grappling with the aftermath of COVID-19 and the economic implications of Russia’s war in Ukraine.
The insurer’s success amid these challenging times represents a stand-out example of success, and Bäte says it's all thanks to Allianz’s customers.
“Our solid growth is a clear reflection of our customer's continued trust in us to support them through this agonising period of inflation and polarisation," notes Bäte.
“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.”
Alianz’s success so far this year has led to a revised operating profit target of €14.2bn (US$15.5bn), which could even be exceeded should its success continue.
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