P&C growth fuels Allianz’s €4bn operating profit milestone in Q1’24

Cynthia Ezekwe

A growth in its property and casualty business segment has helped to lift the operating profit of Allianz SE, the Munich-based insurance and asset management services provider, to €4 billion in the first quarter of 2024.

The growth in operating profit for the first quarter represents 6.8 percent year-over-year when compared to the similar financial period of 2023.

In addition to the substantial growth in operating profit, Allianz SE also witnessed a 5.3 percent increase in total business volume, which amounted to €48.4 billion. The company’s shareholders’ core net income rose 15.7 percent, totaling €2.5 billion. 

Allianz SE also maintained a robust solvency II capitalization ratio of 203 percent, indicating strong financial footing and risk management capabilities.

The company’s financials showcased significant growth across all business segments, resulting in a 5.3 percent increase in total business volume to €48.4 billion. The growth was primarily driven by the property-casualty segment, which experienced good price-driven growth, and the life/health segment, which saw favourable sales momentum in the United States and Italy. The asset management business segment also contributed to this growth, benefiting from higher Assets under Management (AuM) and increased performance fees. Notably, Allianz recorded an internal growth of 7.5 percent, with contributions from all business segments.

The first quarter financial statement also revealed a significant increase in shareholders’ core net income, reaching €2.5 billion, up from €2.2 billion in the previous year. The growth was attributed to higher operating profit and a positive non-operating result. Additionally, net income attributable to shareholders rose to €2.5 billion, marking a notable increase from the €2.0 billion recorded in the previous year.

Maintaining a strong solvency position, Allianz SE reported a Solvency II capitalisation ratio of 203 percent at the end of Q1 2024, a slight decrease from the 206 percent recorded at the end of 2023.

According to the report, Allianz SE witnessed a substantial growth in third-party assets under management, reaching €1.784 trillion as of March 31, 2024. This marks an increase of €71 billion from the end of 2023, driven by strong net inflows of €34.2 billion, positive currency translation, and favourable market effects.

In line with the growth in third-party assets, Allianz SE’s total assets under management also rose to €2.297 trillion at the end of the first quarter, up €73 billion from the previous year.

Commenting on the company’s impressive first-quarter results, Oliver Bäte, chief executive officer, Allianz SE, expressed satisfaction with the performance, attributing it to the organisation’s commitment to strategic consistency and the diverse range of talents within the company.

Bäte stated, “Allianz’s strong results demonstrate the quality of our fundamentals, the value of consistency in the execution of our strategy, and the advantage of the broad talents and skill sets that are represented across our organisation.”

Claire-Marie Coste-Lepoutre, the chief financial officer of Allianz SE, emphasised the organisation’s dedication to creating value for stakeholders, as demonstrated by its strong performance in the first quarter of 2024.

Coste-Lepoutre noted that the property-casualty operations segment significantly contributed to the increase in operating profit, driven by strong price-driven internal growth and strict underwriting discipline.

She added, “The widespread new business growth across our life/health segment underlined the quality of our global franchise in a competitive environment. Together with an attractive new business margin, this puts us in a very good position for continued value creation.”