Total revenues up 7.1% in first half of 2015 for Allianz Group, from 63.4 billion euros to 67.9 billion euros

Allianz Group has reported a 7.1% increase in total revenues for the first half of the year, from 63.4 billion euros in 1H 2014 to 67.9 billion euros for the six months ending June 30.

Operating profit climbed 3.7% to 5.70 billion euros from 5.49 billion euros in 1H 2014, while net income attributable to shareholders advanced 13.1% to 3.84 billion euros in 1H 2015 from 3.40 billion euros, Allianz said in a press release on Friday.

For the second quarter of 2015, total quarterly revenues were up 2.4% to 30.2 billion euros from 29.5 billion euros for the same quarter last year. Operating profit climbed 2.6% to 2.84 billion euros from 2.77 billion euros. Net income attributable to shareholders amounted to 2.02 billion euros, an increase of 23 million euros or 15% from Q2 2014. “This increase was mainly driven by non-operating realized gains/losses (net) that were 181 million euros higher compared to the second quarter of 2014,” the release noted.

“Despite negative one-offs, we have achieved an excellent performance in the first six months,” said Oliver Bäte, chairman of the board of management of Allianz SE, in the release. “We confirm our operating profit outlook for 2015 at the upper end of the target range at 10.8 billion euros.” [click image below to enlarge]

In the second quarter, the Property and Casualty segment saw a strong increase in operating profit, supported by a lower impact from natural catastrophes and the net gain from the sale of the personal insurance business of Fireman’s Fund Insurance Company (FFIC), Allianz reported. Gross premiums written in P&C insurance climbed 9.2% to 11.84 billion euros in the second quarter (from 10.85 billion euros). In total, costs from nat cats amounted to 122 million euros (from 172 million euros) and were mainly caused by storms and hail in Australia.

P&C operating profit climbed 29.7% to 1.75 billion euros for the quarter, from 1.35 billion euros in Q2 2014. The combined ratio also improved by 1.1 percentage points to 93.5% from 94.6% in the second quarter of 2014. For the first half, P&C operating profit rose 6.9% in 2015 to 3.03 billion euros from 2.84 billion in 1H 2014, with a six-month combined ratio of 94.1% from 93.6% in the first half of 2014.

Solvency II capitalization also rose 22 percentage points to 212% as of June 30, from 191% at the end of 2014.

For Allianz Global Corporate & Specialty (AGCS), the combined ratio for the first six months of this year was 105%, from 97% in 1H 2014 for AGCS pre-FFIC. Allianz said in the release that the increase was “primarily related to claims arising from specific sectors which are no longer in focus.” Operating profit from 272 million euros for 1H 2015, compared to 215 million for AGCS pre-FFIC.