Allianz SE reports robust growth despite high catastrophe claims in Q3 2023

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Allianz SE reports robust growth despite high catastrophe claims in Q3 2023
Credit: © Reuters.

Allianz (ETR: ALVG ) SE reported a 4.5% increase in total business volume to €36.5 billion ($41.6 billion) for Q3 2023, despite challenges posed by high natural catastrophe claims. The Property-Casualty business segment, led by CEO Oliver Bäte, was the primary driver of this growth, with a price effect of 5.3%, a volume effect of 4.9%, and a service effect of 0.6%. However, the segment's operating profit declined by 14.6% to €3.5 billion due to the high catastrophe claims.

The Life/Health business segment also contributed to the growth, particularly through strong single-premium volumes in the United States. Despite softer AuM-driven revenues in the Asset Management business segment, higher performance fees and favorable foreign currency translation effects offset the impact.

For the first nine months of 2023, Allianz saw total business volume rise by 4.7% to €122.1 billion and operating profit increase by 3.6% to €11.0 billion. The Life/Health business segment, led by CFO Giulio Terzariol, was a significant contributor to this growth.

Shareholders' core net income for the nine-month period increased by 25.5% to €6.8 billion, influenced by transactions such as the Voya deal and the AllianzGI US Structured Alpha provision. The Solvency II capitalization ratio improved to 212%, compared with 201% at the end of Q4 2022, indicating an enhanced solvency position.

CEO Oliver Bäte highlighted the company's focus on execution and operational efficiency in achieving its profitable growth amidst high inflation and geopolitical tensions. He confirmed Allianz's operating profit target for 2023 at €14.2 billion, plus or minus €1 billion. Furthermore, the company's share buy-back of up to €1.5 billion is nearing completion, reflecting its strong financial position. Despite a drop in operating revenues in Q3, the Asset Management segment managed third-party assets worth €1.670 trillion as of September 30, 2023.

CFO Giulio Terzariol emphasized the resilience of their diversified business model amidst high inflation and geopolitical tensions. The Property-Casualty business showed healthy internal growth, while the Life/Health segment demonstrated strong growth in PVNBP, indicating an attractive value proposition for clients in a competitive environment.

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