Allianz’s second quarter net income grows more than 20%

Allianz recorded net income of 1.3 billion euros in 2012 Q2, representing a 23.2% increase over the same quarter in 2011, which had been affected by write-downs of Greek sovereign debt.

The conglomerate followed up its strong start into 2012 with solid numbers during 2012 Q2, the company notes, pointing out that revenues and operating profit grew as a result of the group’s diversified business portfolio.

Revenues were 25.2 billion euros in 2012 Q2, up 2.5% from 24.6 billion euros in 2011 Q2, notes a company statement. Operating profit in the second quarter of 2012 rose 2.8% to 2.4 billion euros compared to 2.3 billion euros in 2011 Q2.

The company reports the lower operating profit in property and casualty insurance was offset by growth in both life and health insurance and in asset management.

At 1.1 billion euros, operating profit for property and casualty in 2012 Q2 was 16.3% lower than the 1.3 billion euros in 2011 Q2. “The main driver for this change was a lower run-off, following reserve additions of approximately 120 million euros related to the Thailand flooding of 2011,” Allianz notes. “At 2.1%, run-off for the second quarter of 2012 was about half the level it was in the second quarter of 2011 of 4.0%.”

Property and casualty insurance did see a 5.2% increase in gross premiums written to 10.7 billion euros in 2012 Q2 compared to 10.2 billion euros in 2011 Q2, adds the company statement. Internal growth of 3.2% was attributable to price increases of 1.4% and volume growth of 1.8%.

“We are seeing a solid performance in our property and casualty business. Premiums are growing both in markets where Allianz is well-established and in important growth markets like Brazil,” says Oliver Bäte, chief financial officer of Allianz SE. “These are clear signs that our business is robust.”

With regard to Allianz’s asset management segment, there was continued growth in both revenues and profit. Operating profit in the second quarter of 2012 was 635 million euros, up 20.3% from 528 million euros over the same period in 2011.

“We are more than satisfied with our asset management business,” Bäte says. “Its performance has been outstanding throughout the last few years, despite the crisis. And we are now in a virtuous circle of ‘flight to quality’, strong margins and growing cash earnings.”

Allianz’s solvency ratio improved in 2012 Q2 to 186% compared with 183% as of Mar. 31, 2012. “Our operative business is stable and remains on course,” says Michael Diekmann, CEO of Allianz SE. “Despite the challenging environment, we confirm our outlook of an operating profit for 2012 of 8.2 billion euros, plus or minus 0.5 billion euros,” Diekmann adds.