Global insurer Allianz has reported total revenue and net income growth for the second-quarter of 2019, as a higher operating result in Life and Health (L&H) more than offset a decline in Property and Casualty (P&C) on the back of a lower investment result.
Total revenues increased by 6.1% in the second-quarter of 2019 to €33.2 billion compared with €31.3 billion for the same period in 2018. Net income jumped by more than 13% for the insurer to €2.1 billion, while total operating profit reached €3.2 billion, compared with €3 billion in Q2 2019.
Allianz attributes the 5.4% growth in quarterly operating profit to the solid performance of its L&H segment, which grew from €1.1 billion to €1.2 billion. This was driven by volume growth to €15.2 billion and also the change in the DAC amortization period for the fixed index annuities in the U.S.
The L&H segment saw its new business margin increase to 3.6% in the quarter, which increased the value of new business by almost 11% to €544 million.
Slightly offsetting the improvement in its L&H operating profit, Allianz’s P&C insurance segment saw its operating profit decline by 5% in the second-quarter of 2019 to €1.4 billion, when compared with Q2 2018. Allianz states that this was driven by a lower investment result, while the segment’s underwriting return remained stable.
At 94.3%, the P&C segment’s combined ratio was broadly flat and the insurer says that this includes a lower run-off result that was partially offset by a strong improvement in its expense ratio.
Total revenue hit €13.4 billion, which is growth of 7.3% on the same period in 2018. For the first-half of the year, the P&C segment recorded total revenues of €32.9 billion, while the operating profit improved by 4% to €2.8 billion, due to an improved underwriting result driven by a reduction in claims from natural catastrophes and also a lower expense ratio. At 94%, the P&C combined ratio for H1 2019 strengthened by 0.4%.
Commenting on the firm’s P&C performance in the second-quarter, Allianz’s Chief Financial Officer (CFO), Giulio Terzariol, said: “We are seeing a solid performance in our Property-Casualty segment despite a lower investment result. Internal growth, supported by healthy rate changes, shows the strength of our business. Our underwriting remains disciplined while we keep on making progress with our productivity as shown by the improved expense ratio.”
Overall, Allianz’s operating profit grew by 6.4% to €6.1 billion in the first-half of 2019 when compared with the same period in 2018. The insurer states that operating profit growth was the main driver of a 7.3% increase in net income for the six-month period, to €4.1 billion.
Oliver Bäte, Chief Executive Officer (CEO) of Allianz, said: “I am proud that the Allianz team has once again delivered a healthy performance. Sustainable performance is the result of our rigorous strategy execution that provides desired solutions for our customers. Our half-year results testify that Allianz is on track to achieve its full-year targets.”