“A strong quarter for all business segments” is how Allianz Group summarised its Q2 2021 financial results.
The global insurance giant has posted total revenue growth of 10.9% year on year – up from €30.9 billion in Q2 2020 to €34.3 billion in Q2 2021. Its operating profit has increased 29.4% to €3.3 billion for the quarter. This adds to the group’s H1 2021 operating profit of €6.7 billion, reaching 55% of full-year outlook midpoint. Allianz reported that its 2021 operating profit outlook is now expected to be in the upper half of the target range of €12 billion (plus or minus €1 billion).
The group highlighted that all three business segments showed healthy growth during the quarter with its property-casualty insurance division recording a strong operating profit. Total revenues for the P&C division increased 3.4% to €13.9 billion in Q2 2021, while its operating profit rose 18.8% compared to the prior year, to €1.4 billion. This was despite higher claims from natural catastrophes, which were largely offset by a better run-off result. The underwriting result increased significantly, also due to the absence of COVID-19 related losses compared to the prior-year period.
Meanwhile, high demand for its life/health insurance products resulted in dynamic revenue growth, for the division which saw its operating profit increase to €1.3 billion in Q2 2021, up from €1 billion in Q2 2020. This was largely accredited to the group’s business in the United States which led to an improved investment margin.
Its asset management business also continued to grow and reached a new historic high in assets under management. The operating profit of the division increased by 29%, to €825 million in Q2 2021, compared to the prior-year period.
Commenting on the results, CEO of Allianz SE Oliver Bäte stated that Allianz had a very good half-year, achieving double-digit operating profit growth and that its products and solutions had seen healthy demand. He also highlighted that during the past few weeks, which have been marked by heavy natural catastrophes in Europe, he had been proud to witness the “solidarity and outstanding engagement” of so many Allianz representatives.
Giulio Terzariol, CFO of Allianz SE added: “The second quarter once again underscores Allianz’s strong underlying performance, which was reflected in all key financial figures. I’m pleased that all our businesses are delivering very good results and that we’re growing profitably. On this basis, we are confident about the second half of 2021 and expect now an operating profit in the upper half of our target range.”
Meanwhile, Allianz Holdings, the company which owns Allianz Insurance and LV= General Insurance (LV= GI), also announced its interim results for the six months ending June 30, 2021. The firm reported a solid combined operating ratio of 91.7%, down from 92.7% for H1 2020, which it said results from the success of its joint venture with LV=.
The business’s gross written premiums, however, were down 6% from last year to £1.86 billion, which has been attributed primarily to the continued impact of COVID-19, some extremely competitive conditions in certain markets, as well as the run-off of certain portfolios. The operating profit of the business also fell by 6% to £169 million from £179 million in H1 2020.
Providing an update on the payments of its business interruption claims, Allianz Insurance noted it had made payments on 87% of accepted BI claims related to COVID-19, double the market average. It also highlighted that whole motor claims frequency is returning to pre-lockdown levels, and premiums are at a five-year low.
Commenting on the results, Jon Dye, CEO, Allianz Holdings, said he was very proud of the what the business had delivered for the first six months of the year and that these results underline the solidity of Allianz Holdings and its balanced portfolio of commercial and personal lines business.
“Four years after the announcement of the joint venture with LV=, these figures demonstrate that the integration has resulted in our business being in an incredibly strong position and this success has enabled us to take the next step in our journey with the creation of Allianz Commercial and Allianz Personal,” he said. “This simplified structure will align our business to the distinct needs of our customer groups. Our people have worked tirelessly this year and I’m incredibly proud of their hard work and commitment.”
