Allianz Group has reported a 23% increase in operating profit for the second quarter of 2017 ending June 30 from 2.4 billion euros in Q2 2016 to 2.9 billion euros in the most recent quarter.
Total revenues rose 2% to 29.994 billion euros in Q2 2017 from 29.402 billion euros in the prior year quarter, while net income attributable to shareholders rose 83.4% in the second quarter to 2 billion euros from 1.1 billion euros in Q2 2016.
Allianz said in a press release earlier this week that performance in all business segments improved in the second quarter of 2017. In the Property and Casualty insurance segment, operating profit rose 28% percent to 1.4 billion euros from 1.1 billion euros in the second quarter of 2016. Total revenues in the quarter edged up 0.6% to 11.685 billion euros from 11.611 billion euros in the second quarter of last year. The combined ratio also improved to 93.7% from 96.4% in Q2 2016, the release said, adding that claims from natural catastrophes amounted to approximately 1% after 4.4% in the second quarter last year.
In the Life and Health insurance segment, operating profit rose 12% to 1.1 billion euros in Q2 2017 from 1 billion euros. Present value of new business premiums rose 2.8% to 13.606 billion euros from 13.240 billion euros. The new business margin strengthened to 3.4% in the second quarter of 2017 from 2.6% in Q2 2016.
In Asset Management, operating profit rose 16.8% to 584 million euros from 500 million euros in Q2 201. Third-party assets under management increased by 7.6% to 1.41 billion euros at the end of the second quarter of 2017 compared to the second quarter of 2016. Net third party asset inflows reached 55 billion euros in the second quarter of 2017.
“For the full year, Allianz now expects to arrive near the upper end of its operating profit target range of 10.8 billion euros, plus or minus 500 million euros, barring unforeseen events, crises or natural catastrophes,” the release said.
Prior-year figures have been restated due to an updated operating profit definition and an accounting policy change, Allianz pointed out. The company will publish further details on business developments in the second quarter and the first half year of 2017 on Aug. 4.
As an insurer and asset manager, Allianz Group has more than 86 million retail and corporate customers with services ranging from property, life and health, assistance services, credit insurance and global business insurance. It manages more than 650 billion euros on behalf of its insurance customers, while asset managers Allianz Global Investors and PIMCO manage an additional 1.3 trillion euros of third-party assets. In 2016, over 140,000 employees in more than 70 countries contributed to a total revenue of 122 billion euros and an operating profit of 11 billion euros.