Global insurer Allianz has reported a 44.8% rise in operating profit to €3.3 billion over this year’s first quarter, with all segments contributing.
Total revenues declined 2.6% to €41.4 billion and were flat compared to the prior-year level, adjusted for currency and consolidation effects.
Net income attributable to shareholders increased 83.4% to €2.6 billion driven predominantly by operating profit growth and, to a lesser extent, better non-operating results following lower impairments.
Higher income taxes had a slightly offsetting effect.
“Allianz started the year with excellent results across all business segments. This is an encouraging kick-off for 2021 and makes us confident to reach our 2021 targets,” said Oliver Bäte, Chief Executive Officer of Allianz SE.
“We saw a strong set of results in all business segments. As our well-diversified business has managed the challenges of the pandemic very well, I clearly see a return to our normal earnings power,” said Giulio Terzariol, Chief Financial Officer of Allianz SE. “With improving operating conditions and a healthy capital position, Allianz is well equipped to grow profitably.”
Total revenues within property/casualty fell to €19.7 billion, from the €20.3 billion reported this time last year.
Internal growth of the segment fell 1.6%, mainly driven by a negative volume effect of 4.8% and a positive price effect of 3.5%.
Operating profit rose by 46.6% to €1.5 billion, while a significantly higher underwriting result benefited from a decrease in losses from natural catastrophes and from negligible COVID-19 effects. The expense ratio also improved slightly.
Combined ratio for the segment improved 4.7 percentage points to 93.0% in the quarter.
“Our Property-Casualty franchise is in good shape as shown by our healthy combined ratio. I see clear progress towards our full-year ambition of 93 percent supported by strong underwriting performance,” said Giulio Terzariol. “We stay disciplined in our underwriting and continue to focus on productivity gains.”
Operating profit within life/health increased to €1.2 billion, driven predominantly by a recovery of the investment margin.
In the US, positive market developments led mainly to a higher investment income stemming from Allianz’ fixed index annuity business.
In addition, in Germany and in France we saw lower impairments – compared to the high level recorded in the first quarter of 2020. Further contributing factors were the higher unit-linked management fees in Italy.