Allianz has reported a 14% increase in operating profit for the third quarter of 2024, driven by growth across its primary insurance segments.
The insurer’s total business volume rose by 17.3% to €42.8 billion in the third quarter, supported by sustained demand in its life/health and property-casualty segments. When adjusted for currency and consolidation effects, internal growth reached 19.1%. For the first nine months of 2024, business volume increased 9.6% to €133.9 billion, with all segments contributing.
Operating profit for the third quarter reached €3.9 billion, a 13.6% increase year-over-year, primarily due to growth in the property-casualty sector and additional contributions from life/health. Net income attributable to shareholders rose to €2.5 billion, up 23% from the same period in 2023. Shareholders’ core net income also advanced to €2.5 billion, a 23% increase.
The property-casualty segment saw total business volume rise by 8% to €18.6 billion, with internal growth adjusted for currency effects reaching 9.5%. Growth was seen across retail, SME, fleet, and commercial lines, with operating profit up by 36.2% to €2.0 billion due to a favourable operating insurance service result.
While natural catastrophe-related losses remained high, they were lower than in the prior-year quarter. The combined ratio improved to 93.5%, with a loss ratio of 69.8% and an expense ratio of 23.7%.
In life/health insurance, the present value of new business premiums (PVNBP) surged 35.4% to €19.5 billion, with double-digit growth across most regions. Approximately 94% of new business originated from Allianz’s preferred lines.
Operating profit increased to €1.4 billion, supported by wide-ranging growth across business lines, and the value of new business (VNB) rose by 32.9% to €1.2 billion. For the first nine months, PVNBP grew to €60.6 billion, with particularly strong contributions from markets in the United States and Germany.
Allianz’s asset management division reported third-quarter operating revenues of €2.0 billion, a slight increase when adjusted for currency effects, supported by higher assets-under-management-driven revenues.
Third-party assets under management increased by €37 billion to €1.840 trillion, bolstered by favourable market movements and net inflows of €19.8 billion, although offset by currency translation impacts. For the nine-month period, operating profit in Asset Management was €2.3 billion, a 3.8% increase year-over-year.
At the end of the third quarter, Allianz’s Solvency II capitalization ratio stood at 209%, up from 206% at the end of the second quarter.
Chief executive officer Oliver Bäte (pictured above) noted the resilience of Allianz’s financial and operational structure amid challenges from natural catastrophes, which he said have underscored the firm’s role in providing security to customers while meeting growth objectives.
“Moreover, in a world where brand strength is increasingly important, Allianz has again been recognized as the world’s leading insurance brand and has entered the Top 30 Global Brands in the latest Interbrand Ranking. Our fast-growing brand value underscores our ability to translate customer-centricity into profitable growth for our shareholders,” he said.
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