Allianz expands business volume 6.4% to €91bn in strong H1’24 performance

Cynthia Ezekwe

Allianz SE, the insurance and asset management services provider headquartered in Munich, Germany, has reported a business volume of  €91  billion, marking a 6.4 per cent increase in the first half  of 2024.

The various business segments of Allianz SE have collectively driven the company’s growth in business volume, with the company’s operating profit increasing by 5.3 percent to impressive 7.9 billion euros, and shareholders’ core net income rising 7.7 percent to 5.0 billion euros, according to Allianz’s first-half 2024 financial report.

Further breakdown of the company’s financials showed that Allianz’s Life/Health segment experienced widespread growth across various regions, contributing to the company’s overall success. Furthermore, higher revenue derived from Asset Management’s AuM (assets under management) helped propel the company’s upward trajectory, while the Property-Casualty business reaped the rewards of robust growth and solid performance. Shareholders’ core net income also advanced 7.7 percent, reaching 5.0 billion euros in the first half of 2024.

Allianz SE’s property-casualty insurance segment reported robust operating profit during the first half of 2024, with a 7.3 percent increase in total business volume, amounting to 44.8 billion euros. The Retail, SME & Fleet sector contributed to this growth with a nine percent uptick, while commercial lines followed closely behind with a five percent increase. The segment also achieved a 3.3 percent growth in operating profit, reaching  4.0 billion euros in the first half of 2024.

The company’s asset management segment also showed good operating profit and strong net inflows as its operating revenues increased to 4.0 billion euros, up 5.1 percent adjusted for foreign currency translation effects. The increase was largely driven by higher AuM-driven revenues.

Allianz SE also reported a 6.3 percent increase in operating profit, amounting to 1.5 billion euros in the first half of 2024. This growth was primarily driven by a favourable exchange rate environment, as the 6.5 percent increase in operating profit, adjusted for foreign currency translation effects, indicates. The company also made strides in expense management, with the cost-income ratio (CIR) improving to 61.8 percent.

Commenting on the financials, Oliver Bäte, chief executive officer of Allianz SE, said, “Allianz delivered strong results in the first six months of the year and we are confident in our ability to achieve our full-year ambitions. Our performance demonstrates the core strengths and resilience of our company, particularly as our results were achieved amid significant natural catastrophe activity in the second quarter – and notably in our home market. The way that Allianz responded to our customers affected by the floods in Germany reflected the best possible blend of compassion, speed, and expertise.’’

As noted by Bäte, the insurance giant’s digital-first claims processing approach aided teams in swiftly addressing customer concerns following a natural disaster. He explained that within two weeks, the company’s dedicated teams had visited nearly all affected properties, providing a timely and reassuring service that minimised the extent of damages.

He added that this efficient response in the property and casualty segment was coupled with remarkable growth in Allianz’s life/health and asset management segments, signifying the effectiveness of the company’s customer-centric business strategy.

Claire-Marie Coste-Lepoutre, chief financial officer of Allianz SE, said, “We have reached an excellent operating profit in our Life/Health operations. Our strong new business generation and a healthy new business margin speak for the attractiveness of our products.In Asset Management, continued net inflows of 14.1 billion euros in the second quarter bring our net inflows for the first half to 48.4 billion euros. Our third-party assets under management exceeded 1.8 trillion euros for the first time since 1Q 2022.’’

Coste-Lepoutre affirmed that the strong financial results in the first half of 2024 bode well for future profit growth, and she expressed confidence in the company’s performance in the second half of the year. According to her, Allianz SE remains on track to achieve an operating profit of approximately 14.8 billion euros, give or take one billion euros, for the full year 2024.