Allianz 2Q 2023 report: Operating profit rises by 7% amid strong segment performance

In the latest financial update, Allianz, the German multinational financial services powerhouse, reported a 7.1% surge in its operating profit, amounting to 3.8 billion euros for the second quarter of 2023. A deeper dive into the data reveals substantial growth across various business segments.

Key 2Q 2023 Financial Highlights:

• A notable 5.9% rise in total business volume, reaching 39.6 billion euros.
• Life/Health and Property-Casualty segments showcased particularly strong performance.
• Shareholders’ core net income soared by 22.9%, touching 2.5 billion euros.
• A maintained Solvency II capitalization ratio of 208%, showing a growth from 201% at the end of 4Q 2022.

CEO Oliver Bäte Comments on Allianz’s Progress:

“Allianz’s excellent results in the first half of 2023 demonstrate the strength of our fundamentals…Our solid growth is a clear reflection of our customers’ continued trust in us…”

Segmental Performance:

Property-Casualty Business: This segment saw a significant rise of 5.9% in the total business volume, credited to higher prices and volumes. Chief Financial Officer of Allianz SE, Giulio Terzariol, praised the strong rate increases and the company’s action to offset inflation.

Life/Health Business: There was a marked increase in operating profit, primarily attributed to higher results from US operations and growth in PVNBP.

Asset Management: Despite a challenging business environment, there were positive net inflows in 2Q. However, there was a slight dip in operating revenues, primarily due to lower AuM-driven revenues.

Looking Forward:

Allianz remains confident, confirming its 2023 operating profit target at 14.2 billion euros, with a variation range of plus or minus 1 billion euros. The company’s share buy-back program remains on course, with 2.9 million shares already acquired for 0.6 billion euros by the end of July 2023.