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Allianz SE (0M6S.L)

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  • EQS Group

    Allianz SE: Allianz achieves 2.6 billion euros operating profit in 2Q 2020

    DGAP-News: Allianz SE / Key word(s): Half Year Results/Quarter Results 05.08.2020 / 06:59 The issuer is solely responsible for the content of this announcement. \- 2Q 2020 operating profit of 2.6 billion euros\- 2Q 2020 net income attributable to shareholders down 28.6 percent to 1.5 billion euros\- 6M 2020 total revenues stable at 73.5 billion; in 2Q 2020 total revenues decreased by 6.8 percent to 30.9 billion euros\- 6M 2020 operating profit of 4.9 billion euros\- 6M 2020 net income attributable to shareholders decreased 28.8 percent to 2.9 billion euros\- Good Solvency II capitalization ratio of 187 percent Management Summary: resilient performance in difficult environment confirms the solidity of our strategy The COVID-19 crisis caused one of the most severe economic and financial market turmoils. While financial markets have rallied in the second quarter of 2020, the economic recovery remains fragile. However, Allianz with its well-diversified business portfolio and robust balance sheet has continued to successfully navigate through the current crisis and has achieved solid results in the second quarter of 2020. Due to the continuing uncertainties we currently do not give an updated operating profit outlook for 2020.Internal revenue growth, which adjusts for currency and consolidation effects, amounted to -7.7 percent in the second quarter of 2020, mostly driven by the Life/Health business segment. Total revenues decreased 6.8 percent to 30.9 (2Q 2019: 33.2) billion euros in the second quarter of 2020. Operating profit decreased 18.8 percent to 2.6 (3.2) billion euros in the second quarter of 2020. In our Property-Casualty business segment, operating profit dropped due to COVID-19-related losses, as well as a lower operating investment result. Operating profit from our Life/Health business segment was resilient and decreased mostly due to a favorable one-off profit in 2019. Our Asset Management business segment recorded a solid albeit lower operating profit mainly driven by lower performance fees. Net income attributable to shareholders decreased 28.6 percent to 1.5 (2.1) billion euros in the second quarter of 2020 largely mirroring the development of operating profit.Basic Earnings per Share (EPS) decreased 27.6 percent to 7.07 (9.76) euros in the first half-year of 2020. Annualized Return on Equity (RoE) amounted to 10.0 percent (full year 2019: 13.6 percent). The Solvency II capitalization ratio was at 187 percent at the end of the second quarter of 2020[1], compared to 190 percent at the end of the first quarter 2020.In the first half-year of 2020, total revenues were stable. Operating profit fell by 20.5 percent to 4.9 (6.1) billion euros, with COVID-19 having a significant negative impact on our insurance businesses' operating profit. Property-Casualty recorded a lower underwriting and operating investment result. Our Life/Health business operating profit decreased due to a favorable one-off profit in 2019 and a lower investment margin. Higher AuM-driven revenues led to an increase in operating profit from our Asset Management business. The decrease in net income attributable to shareholders was largely driven by the drop in operating profit."The pandemic continues to be a challenge for all industries. Nevertheless, Allianz has achieved robust results and shown a remarkable resilience in the first six months of 2020. It makes us confident that we will see a solid financial performance also in the second half of 2020," said Oliver Bäte, Chief Executive Officer of Allianz SE.Property-Casualty insurance: operating profit pressured by COVID-19 pandemic\- Total revenues remained largely stable at 13.5 (13.4) billion euros in the second quarter of 2020. Adjusted for foreign currency translation and consolidation effects, internal growth totaled -1.6 percent, mainly driven by a COVID-19 driven negative volume effect of 5.3 percent and a positive price effect of 4.5 percent. Allianz Partners, United Kingdom, and Italy were the main contributors to this negative development. Positive internal growth particularly at AGCS, Germany, and Asia-Pacific partly offset this result.\- Operating profit decreased by 17.4 percent to 1.1 billion euros in the second quarter of 2020 compared to the second quarter of 2019. The underwriting result was strained by impacts of the COVID-19 pandemic, a rise in large losses as well as a lower contribution from run-off. These effects were partly offset by an improvement in our expense ratio. In addition, the operating investment income declined considerably.\- The combined ratio rose by 1.2 percentage points to 95.5 percent in the second quarter of 2020."The impact of COVID-19 on Property-Casualty business segment revenues has been more pronounced in the second quarter of 2020 but our franchise has proven resilient in terms of revenue growth," said Giulio Terzariol, Chief Financial Officer of Allianz SE. "Adjusting for the impacts of COVID-19, the underlying performance remains strong with a normalized combined ratio of less than 94 percent as our focus on technical excellence and productivity gains pays off."In the first half-year of 2020, total revenues rose to 33.8 (32.9) billion euros. Adjusted for foreign currency translation and consolidation effects, internal growth totaled 0.3 percent, mostly driven by AGCS, Asia-Pacific, and Germany. As particularly the underwriting result decreased sharply due to higher claims from natural catastrophes and a severe impact of COVID-19 amounting to -0.8 billion euros, the operating profit deteriorated by 23.4 percent to 2.2 billion euros compared to the same period of the prior year. This negative development was partly offset by a strong improvement in our expense ratio. Overall, the combined ratio for the first half-year worsened by 2.7 percentage points to 96.7 percent.Life/Health insurance: operating profit of 1.0 billion euros\- PVNBP[2], the present value of new business premiums, decreased to 11.5 (15.2) billion euros in the second quarter of 2020, impacted by COVID-19 in almost all countries. The largest volume decreases were seen in Germany with lower sales of capital-efficient products and in the United States with a decline in sales of fixed index annuity products.\- The new business margin (NBM) declined to 3.1 (3.6) percent due to the impact of lower interest rates in the second quarter of 2020, largely offset by improved products and a better business mix including the continued shift to preferred lines of business. The value of new business (VNB) decreased to 357 (544) million euros in the second quarter of 2020 driven by a combination of lower volumes and decreased margins.\- Operating profit decreased to 1.0 (1.2) billion euros in the second quarter of 2020. This was mainly due to a favorable one-off profit in the United States in the second quarter of 2019. Further contributing factors were higher hedging expenses in the U.S. variable annuity business, and the disposal of Allianz Popular in Spain."I'm pleased by the quality of our sales in our life and health business segment in the second quarter of 2020 as shown by our robust new business margin," said Giulio Terzariol. "Our operating profitability remains strong and is well supported by our active risk management measures."In the first half-year of 2020, the PVNBP decreased to 29.6 (32.9) billion euros largely because of the lower sales in the German and U.S. life insurance business. Operating profit went down to 1.8 (2.3) billion euros driven mainly due to a favorable one-off profit in the United States in the second quarter of 2019. A lower investment margin due to higher impairments in the first quarter of 2020, higher hedging expenses in the United States, and the disposal of Allianz Popular in Spain also contributed to this development. The new business margin decreased to 2.9 (3.5) percent bringing the value of new business to 851 (1,153) million euros.Asset Management: third-party assets under management increased by 6.5 percent\- Third-party assets under management (AuM) increased by 101 billion euros to 1,658 billion euros in the second quarter of 2020, compared to the end of the first quarter of 2020. This development was driven by positive market effects of 102.3 billion euros and net inflows of 25.8 billion euros. Both drivers represent a strong recovery from the first quarter of 2020 which was heavily impacted by COVID-19. Unfavorable foreign currency translation effects of 28.5 billion euros had an offsetting impact.\- Total assets under management increased to 2,250 billion euros in the second quarter of 2020.\- Operating profit decreased by 5.7 percent to 640 (678) million euros in the second quarter of 2020 following lower performance fees. In addition, operating expenses increased. As a result, the cost-income ratio (CIR) went up 1.7 percentage points to 62.8 percent in the second quarter of 2020 compared to the second quarter of 2019. Adjusted for foreign currency translation effects, operating profit decreased by 7.2 percent. "Strong net inflows in a challenging environment clearly show that our Asset Management business segment is in good shape," said Giulio Terzariol. "Even in times of high uncertainty we are well positioned to continue to deliver a healthy operating performance and to contribute to mid- and long-term value creation of our Asset Management franchise."In the first half-year of 2020, operating revenues grew by 5.2 percent to 3.5 billion euros, driven by higher AuM-driven revenues. Our cost-income ratio remained almost unchanged at 62.2 (62.3) percent. Operating profit rose by 5.4 percent to 1,319 (1,251) million euros. On an internal basis, operating profit increased by 3.0 percent. Net outflows, unfavorable market effects, as well as negative foreign currency translation effects resulted in third-party assets under management of 1,658 billion euros - a decrease of 28 billion euros or 1.7 percent, compared to year-end 2019. [1] Including the application of transitional measures for technical provisions, the Solvency II capitalization ratio amounted to 217 percent. [2] PVNBP is shown after non-controlling interests, unless otherwise stated. Allianz Group - key figures for the 2nd quarter and first half year of 2020 2Q 2020 2Q 2019 Delta 6M 2020 6M 2019 Delta Total revenues EUR bn 30.9 33.2 -6.8% 73.5 73.5 0.0% \- Property-Casualty1 EUR bn 13.5 13.4 0.3% 33.8 32.9 2.6% \- Life/Health EUR bn 15.8 18.1 -12.6% 36.4 37.4 -2.8% \- Asset Management EUR bn 1.7 1.7 -1.4% 3.5 3.3 5.2% \- Corporate and Other EUR bn 0.1 0.1 -15.9% 0,1 0.1 -6.0% \- Consolidation EUR bn -0.1 -0.1 -12.7% -0.3 -0.3 -8.9% Operating profit / loss EUR mn 2,565 3,159 -18.8% 4,869 6,121 -20.5% \- Property-Casualty EUR mn 1,143 1,383 -17.4% 2,175 2,838 -23.4% \- Life/Health EUR mn 991 1,231 -19.5% 1,810 2,327 -22.2% \- Asset Management EUR mn 640 678 -5.7% 1,319 1,251 5.4% \- Corporate and Other EUR mn -204 -131 55.3% -432 -296 45.9% \- Consolidation EUR mn -5 -2 121.5% -3 1 n.m. Net income EUR mn 1,618 2,265 -28.6% 3,101 4,316 -28.1% \- attributable to non-controlling interests EUR mn 90 125 -28.1% 174 207 -16.0% \- attributable to shareholders EUR mn 1,528 2,140 -28.6% 2,927 4,109 -28.8% Basic earnings per share EUR 3.71 5.11 -27.4% 7.07 9.76 -27.6% Diluted earnings per share EUR 3.68 5.10 -27.8% 6.94 9.75 -28.8% Additional KPIs \- Group Return on equity2, 3 % 10.5% 13.6% -3.1% -p 10.0% 13.6% -3.5% -p \- Property-Casualty Combined ratio % 95.5% 94.3% 1.2% -p 96.7% 94.0% 2.7% -p \- Life/Health New business margin % 3.1% 3.6% -0.5% -p 2.9% 3.5% -0.6% -p \- Life/Health Value of new business EUR mn 357 544 -34.3% 851 1,153 -26.2% \- Asset Management Cost-income ratio % 62.8% 61.1% 1.7% -p 62.2% 62.3% -0.1% -p 06/30/2020 12/31/2019 Shareholders' equity3 EUR bn 72.1 74.0 -2.5% Solvency II capitalization ratio4 % 187% 212% -26% -p Third-party assets under management EUR bn 1,658 1,686 -1.7% Please note: The figures are presented in millions of Euros, unless otherwise stated. Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 1 Total revenues comprise gross premiums written and fee and commission income. 2 Represents the annualized ratio of net income attributable to shareholders to the average shareholders' equity excluding unrealized gains/losses on bonds, net of shadow accounting, at the beginning and at the end of the period. Annualized figures are not a forecast for full year numbers. For 2Q 2019 and 6M 2019, the return on equity for the respective full year is shown. 3 Excluding non-controlling interests. 4 Risk capital figures are group diversified at 99.5% confidence level. Including the application of transitional measures for technical provisions, the Solvency II capitalization ratio is 217% as of 30 June 2020. These assessments are, as always, subject to the disclaimer provided below. Cautionary note regarding forward-looking statements This document includes forward-looking statements, such as prospects or expectations, that are based on management's current views and assumptions and subject to known and unknown risks and uncertainties. Actual results, performance figures, or events may differ significantly from those expressed or implied in such forward-looking statements. Deviations may arise due to changes in factors including, but not limited to, the following: (i) the general economic and competitive situation in the Allianz Group's core business and core markets, (ii) the performance of financial markets (in particular market volatility, liquidity, and credit events), (iii) the frequency and severity of insured loss events, including those resulting from natural catastrophes, and the development of loss expenses, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) particularly in the banking business, the extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates, most notably the EUR/USD exchange rate, (ix) changes in laws and regulations, including tax regulations, (x) the impact of acquisitions including and related integration issues and reorganization measures, and (xi) the general competitive conditions that, in each individual case, apply at a local, regional, national, and/or global level. Many of these changes can be exacerbated by terrorist activities. No duty to update The Allianz Group assumes no obligation to update any information or forward-looking statement contained herein, save for any information we are required to disclose by law. Other The figures regarding the net assets, financial position and results of operations have been prepared in conformity with International Financial Reporting Standards. This Quarterly Earnings Release is not an Interim Financial Report within the meaning of International Accounting Standard (IAS) 34.This is a translation of the German Quarterly Earnings Release of the Allianz Group. In case of any divergences, the German original is binding.Privacy Note Allianz SE is committed to protecting your personal data. Find out more in our Privacy Statement. * * *05.08.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de * * * Language: English Company: Allianz SE Königinstr. 28 80802 München Germany Phone: +49 (0)89 38 00 - 7555 Fax: +49 (0)89 38 00 - 38 99 E-mail: investor.relations@allianz.com Internet: www.allianz.com ISIN: DE0008404005 WKN: 840400 Indices: DAX-30, EURO STOXX 50 Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart; Regulated Unofficial Market in Tradegate Exchange EQS News ID: 1109601 End of News DGAP News Service

  • Five Alternative Data Points to Watch in the Covid-19 Economy
    Bloomberg

    Five Alternative Data Points to Watch in the Covid-19 Economy

    (Bloomberg Opinion) -- During normal times, traditional economic data work fine, offering reliable insight into growth, employment, prices and all sorts of other aspects of the U.S. economy. The drawback is that delays of as long as a month or even a quarter make some of the data of limited use during times like these, when a pandemic has thrown the entire economy off kilter. So there's a case to be made for the merits of alternative data — everything from new infection rates to apartment rental rates near college campuses — which can offer daily reads of the state of the economy, provided they are used with the appropriate caveats. We recently asked several Bloomberg Opinion writers to cite some of the non-conventional metrics they're paying attention to during the coronavirus recession.Mohamed A. El-Erian writes about economics, markets and central banks for Bloomberg Opinion.  He is the chief economic adviser at Allianz SE, the parent company of Pimco, where he served as CEO and co-CIO:As many traditional data reports are deemed mostly out of date even before they are released, economists have had no choice but to expand the data they monitor and how they are analyzed.This means paying a lot more attention to higher-frequency data, such as daily mobility indicators, retail traffic and restaurant dining.Second, epidemiological metrics -- the coronavirus R-naught infectious rate, hospitalizations and fatalities -- are critical to follow for their insights into key influences on household and business behavior, as well as the thinking and actions of policy makers.Measures of financial resilience and solvency become even more important given uncertainties about how long we will be living with Covid-19. In addition to the usual balance-sheet data, debt rollovers and access to new financing, this expands to include highly micro anecdotal indicators such as the number of people turning to food banks.None of these measures are perfect. Moreover, they don’t make up for the inaccuracies that accompany virtually any forecast these days. But they do help to shed more light on our unprecedented economic situation, as well as help shape the questions we should be asking.Jim Bianco writes about markets and economics for Bloomberg Opinion. He is the president and founder of Bianco Research, a provider of data-driven insights into the global economy and financial markets: As summer turns to fall, attention will turn to the presidential election. How should investors measure the horse race? More importantly, how can one judge if an event is changing the outlook for the election? Enter the betting markets, such as the political betting site predictit.org. First, how should betting markets be viewed? Simply that they reflect the aggregation of all known information into one probability. So, they act like real-time polls, reacting quickly to new events.The chart below shows the betting spread for who will win the presidency, Donald Trump or Joe Biden. Biden is essentially a 60-40 favorite to win. The trend in these numbers can tell us a lot: Trump had a bad June but the worst, for now, may be over.What is the probability that either one of them wins the election? One can pay expensive Washington consultants, or create complicated computer models. Or, they can check the betting market and in 10 seconds get the same information.Tim Duy writes about the economy and Federal Reserve for Bloomberg Opinion.  He is a professor of practice and senior director of the Oregon Economic Forum at the University of Oregon: A key feature of this crisis is the decline in population mobility as we strive to contain the spread of the virus. That reduction is a direct reflection of economic activity and it provides insights into the direction of the economy.The Dallas Federal Reserve Mobility and Engagement Index relies on cell phone data. The index is scaled so that zero is the average from January-February of this year and -100 is the lowest weekly for the U.S.For the nation, the index hit a low on April 11 and then began recovering. This is consistent with our understanding that many sectors of the economy bottomed out in mid-April. After that, a gradual reopening began. Subsequently released data such as retail sales confirmed this trend. But the index stopped rising in the week ended July 4. This likely reflects a surge in cases in some stages such as Texas, slowing the economic recovery. This may be an early indication that the pace of gains in traditional metrics such as the employment report will soon ebb. This would be consistent with predictions that full recovery will only come after the virus is contained to the point where we can freely move and interact as we did before the pandemic.Conor Sen is a Bloomberg Opinion columnist focusing on labor and financial markets and the economy: Perhaps no measure of the economic recovery is more important than the rebound in employment. The official data we get on a weekly basis is jobless claims, which tell us something about the number of workers being laid off but nothing about employers posting jobs or hiring people.It's for that reason that weekly online job postings data from Indeed, written up by its chief economist, Jed Kolko, are so valuable. What we're seeing so far is a gradual improvement, much as we've seen from some other indicators. What's critical is that through the week of July 3, there hasn't been much difference in the pace of recovery between virus hotspots and non-hotspots. This may change in the weeks ahead, but it does suggest a durable recovery is taking hold.Scott Kominers is a Bloomberg Opinion columnist, writing about economics and markets.  He is the MBA Class of 1960 Associate Professor of Business Administration at Harvard Business School, and a faculty affiliate of the Harvard Department of Economics:Throughout the Covid-19 lockdowns, delivery services have seen huge spikes in demand. Watching whether that changes during the next few months will give us a sense of how consumers are responding to staged reopening measures: are they going out or staying hunkered down at home? As the table below shows, grocery delivery has soared as people have avoided trips to supermarkets; the same is true in other categories.  In the meantime, looking at who is providing delivery services can help us understand which businesses have managed to adjust their operations creatively during the pandemic. (Some more expensive sit-down restaurants, for example, have started offering delivery or take-out options for the first time.)As more businesses start opening up, looking at how many hours they're in operation each day will give further insight into consumer sentiment and business owners' demand expectations, especially in urban areas. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.James Greiff is an editor for Bloomberg Opinion. He was Wall Street news team leader at Bloomberg News and senior editor for Bloomberg Markets magazine. He previously reported on banking for the St. Petersburg Times and the Charlotte Observer.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Brokers upbeat on Allianz Se despite economic uncertainty
    Stockopedia

    Brokers upbeat on Allianz Se despite economic uncertainty

    The Allianz Se (ETR:ALV) share price has risen by 18.8% over the past month and it’s currently trading at 182.02. For investors considering whether to buy, hol...

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