Allianz SE · XETR:ALV
Allianz — Q2 2022 Earnings Presentation
52 slides from Allianz's earnings presentation, Aug 5, 2022
Slide 1: Group financial results 2Q 2022
Group financial results 2022 Allianz Investor Relations App Apple App Store Google Play Store © Allianz 2022 Munich August 5, 2022
Slide 2: Content/topics
Content/topics Group financial results 1 2Q 2022 Additional information 2 Glossary Disclaimer
Slide 3: Group: 6M with good underlying result
GROUP FINANCIAL RESULTS 2Q 2022 Group: 6M with good underlying result Group Property-Casualty Life/Health Asset Management Total revenues 6M 22 in EUR bn (internal growth vs. prior year in %) 81.2 (+3.7%) 37.7 (+8.5%) 39.8 (+0.4%) 4.1 (-1.7%) Operating profit 6M 22 in EUR mn (vs. prior year in %) 6,
Slide 4: Group: 6M with good underlying result - comments
GROUP FINANCIAL RESULTS 2Q 2022 Group: 6M with good underlying result Comments • Internal growth good at 3.7% • P/C – good performance Strong internal growth in P/C (+8.5%). Consolidation Operating profit up 5% driven by higher investment result. (+1.1%) and F/X (+2.3%) lead to total revenue growth
Slide 5: Group: 2Q operating profit strong at EUR 3.5bn
GROUP FINANCIAL RESULTS 2Q 2022 Group: 2Q operating profit strong at EUR 3.5bn Group Property-Casualty Life/Health Asset Management Total revenues 2Q 22 in EUR bn (internal growth vs. prior year in %) 37.1 (+3.6%) 16.2 (+11.1%) 19.1 (-0.3%) 2.0 (-8.7%) Operating profit 2Q 22 in EUR mn (vs. prior yea
Slide 6: Group: 2Q operating profit strong at EUR 3.5bn - comments
GROUP FINANCIAL RESULTS 2Q 2022 Group: 2Q operating profit strong at EUR 3.5bn Comments • Internal growth good at 3.6% • P/C – strong performance Strong internal growth in P/C (+11.1%). Consolidation Operating profit up 21% supported by organic growth and (+1.2%) and F/X (+3.4%) lead to total revenu
Slide 7: Group: good capitalization
GROUP FINANCIAL RESULTS 2Q 2022 Group: good capitalization Shareholders’ equity (EUR bn) Key sensitivities (EUR bn) -19.2% Equity markets -30% -4.8 Unrealized 80.0 69.8 gains/losses1 17.7 16.8 5.0 20.0 56.4 22.6 +50bps -4.8 Interest rate Retained earnings, -50bps +4.6 F/X and undated 27.4 34.3 25.7
Slide 8: Group: good capitalization - comments
GROUP FINANCIAL RESULTS 2Q 2022 Group: good capitalization Comments • Shareholders’ equity • SII ratio In 2Q 2022, shareholders’ equity decreases by Increase of 1%-p to 200%. Main drivers: EUR 13.4bn. Main drivers are + 7%-p organic capital generation (+5%-p after tax, +2%-p − EUR 12.8bn lower net u
Slide 9: Group: solvency ratio at 200%
GROUP FINANCIAL RESULTS 2Q 2022 Group: solvency ratio at 200% 86.0 +3.3 Own funds 83.6 +0.0 82.4 (EUR bn) -0.1 -4.1 -0.4 +1.6 +1.3 +0.7 83.5 83.2 -0.3 82.7 82.3 82.4 P/C AM L/H CO/Conso. 31.12.21 31.03.22 3/31/2022 Regulatory/ Regulatory Operating SII SII Market Market impact Capital Capital mgmt./
Slide 10: Group: solvency ratio at 200% - comments
GROUP FINANCIAL RESULTS 2Q 2022 Group: solvency ratio at 200% Comments • 7%-p SII capital generation pre-tax/dividend • Capital management/management actions Net of tax +5%-p, after tax and normalized dividend Issuance of subordinated capital (EUR +1.25bn) and +2%-p. dividend accrual (EUR -1.4bn). M
Slide 11: P/C: double-digit internal growth
GROUP FINANCIAL RESULTS 2Q 2022 P/C: double-digit internal growth EUR mn Revenues Rate change on renewals 2Q 22 Total growth Internal growth 6M 22 12M 21 ∆ p.y. ∆ p.y. Total P/C segment 16,184 +16.2% +11.1% +4.2% +3.6% Selected OEs Germany 2,243 +7.4% +7.4% +3.1% +2.0% Australia 1,270 +29.2% +13.0%
Slide 12: P/C: double-digit internal growth - comments
GROUP FINANCIAL RESULTS 2Q 2022 P/C: double-digit internal growth Comments • Excellent internal growth of 11.1% • France – positive price effect partially offset by volume Price (+5.8%), volume (+3.9%) and service income Lower top-line from portfolio actions in MidCorp (+1.4%) contribute. Consolidat
Slide 13: P/C: operating profit up 21%
GROUP FINANCIAL RESULTS 2Q 2022 P/C: operating profit up 21% Operating profit drivers (EUR mn) Combined ratio (in %) -0.3%-p +21.1% +93 +12 1,645 93.9 93.6 +182 1,358 Loss ratio 67.5 66.8 4.7 3.1 NatCat impact2 (in %-p) -4.0 -4.3 Run-off ratio3 (in %-p) Expense ratio 26.4 26.8 2Q 21 2Q 22 Combined r
Slide 14: P/C: operating profit up 21% - comments
GROUP FINANCIAL RESULTS 2Q 2022 P/C: operating profit up 21% Comments • Operating profit strong at EUR 1.6bn • Expense ratio – on good level OP supported by better underwriting and investment result. Higher ER driven by Allianz Partners (mainly from change in CR improves -0.3%-p as lower NatCat and
Slide 15: P/C: operating profit at EUR 1.6bn
GROUP FINANCIAL RESULTS 2Q 2022 P/C: operating profit at EUR 1.6bn EUR mn Operating profit Combined ratio NatCat impact on CR 2Q 22 ∆ p.y. 2Q 22 ∆ p.y. 2Q 22 ∆ p.y. Total P/C segment 1,645 +21.1% 93.6% -0.3%-p 3.1%-p -1.6%-p Selected OEs Germany 346 +109.9% 91.3% -7.0%-p 5.0%-p -6.4%-p Australia 117
Slide 16: P/C: operating profit at EUR 1.6bn - comments
GROUP FINANCIAL RESULTS 2Q 2022 P/C: operating profit at EUR 1.6bn Comments • Germany – strong performance • LatAm – driven by Brazil CR improvement driven by lower NatCat impact and LR deterioration of Brazilian motor business following better ER. market trend. • Australia – CR on very good level •
Slide 17: P/C: market environment lifts investment result
GROUP FINANCIAL RESULTS 2Q 2022 P/C: market environment lifts investment result Operating investment result1 Current yield Economic reinvestment yield (EUR mn) (debt securities; in %) (debt securities; in %) +14.1% 0.66 3.3 753 0.52 660 1.2 2Q 21 2Q 22 2Q 21 2Q 22 2Q 21 2Q 22 Total average asset bas
Slide 18: P/C: market environment lifts investment result - comments
GROUP FINANCIAL RESULTS 2Q 2022 P/C: market environment lifts investment result Comments • Interest & similar income • Reinvestment yield Mainly driven by higher income from debt due to inflation- Economic reinvestment yield jumps to 3.3% in line with market linked bonds and increase in yields. deve
Slide 19: L/H: NBM excellent at 4.1%
GROUP FINANCIAL RESULTS 2Q 2022 L/H: NBM excellent at 4.1% PVNBP share by line EUR mn 2Q 21 2Q 22 ∆ p.y. PVNBP 19,700 16,482 -16.3% Total L/H segment 3.2 4.1 APE 1,874 1,848 -1.4% Single premium 11,712 11,158 -4.7% Protection & health 6.6 14% 15% 7.0 Recurring premium 703 732 +4.2% 2.7 24% 24% 2.5 P
Slide 20: L/H: NBM excellent at 4.1% - comments
GROUP FINANCIAL RESULTS 2Q 2022 L/H: NBM excellent at 4.1% Comments PVNBP by line PVNBP by OE • New business volume 8% above pre-Covid level • Germany Life – share of preferred lines at 86% High prior-year level due to back-book management in Italy Decline of PVNBP mainly due to higher discount rate
Slide 21: L/H: solid result in volatile markets
GROUP FINANCIAL RESULTS 2Q 2022 L/H: solid result in volatile markets Operating profit by source (EUR mn) Operating profit by line (EUR mn) -12.5% -12.5% +112 1,283 1,283 +41 1,124 1,124 245 -117 -174 -22 161 297 127 356 308 521 392 Operating Loadings Investment Technical Expenses Impact of Operatin
Slide 22: L/H: solid result in volatile markets - comments
GROUP FINANCIAL RESULTS 2Q 2022 L/H: solid result in volatile markets Comments • Operating profit at EUR 1.1bn Operating profit by line OP increase across several countries more than offset • Protection & health by lower contribution from Germany Life and USA. Driven by consolidation of Aviva Poland
Slide 23: L/H: value of new business up 6%
GROUP FINANCIAL RESULTS 2Q 2022 L/H: value of new business up 6% EUR mn Value of new business New business margin Operating profit 2Q 22 ∆ p.y. 2Q 22 ∆ p.y. 2Q 22 ∆ p.y. Total L/H segment 672 +6.2% 4.1% +0.9%-p 1,124 -12.5% Germany Life 198 +26.4% 4.5% +1.3%-p 206 -31.5% USA 171 +31.6% 4.2% +0.3%-p
Slide 24: L/H: value of new business up 6% - comments
GROUP FINANCIAL RESULTS 2Q 2022 L/H: value of new business up 6% Comments New business Operating profit • NBM excellent at 4.1% • Germany Life – lower investment margin Improvement stems from better business mix and Decline of investment margin driven by lower hedging result higher interest rates. f
Slide 25: L/H: investment margin good at 19bps
GROUP FINANCIAL RESULTS 2Q 2022 L/H: investment margin good at 19bps Investment margin Economic reinvestment yield 2Q 21 2Q 22 (debt securities; in %) 3.3 Based on Ø book value of assets1,2 (EUR bn) 638 566 Current yield3 0.75% 0.90% 1.7 Based on Ø aggregate policy reserves4 (EUR bn) 508 502 2Q 21 2
Slide 26: L/H: investment margin good at 19bps - comments
GROUP FINANCIAL RESULTS 2Q 2022 L/H: investment margin good at 19bps Comments • Investment margin declines by EUR -117mn • Net harvesting and other Decline due to U.S. back-book transaction (EUR -151mn). Better harvesting result more than offset by a decline in the Total operating profit impact of U
Slide 27: AM: total AuM at EUR 2.3tn
GROUP FINANCIAL RESULTS 2Q 2022 AM: total AuM at EUR 2.3tn Total assets under management (EUR bn) 3rd party AuM split (EUR bn) Asset classes Regions -6.4% Multi-assets Europe EUR 183bn (-9.5%) EUR 565bn (-5.3%) 2,609 Equities Asia Pacific 2,478 EUR 158bn (-15.5%) EUR 219bn (-5.3%) 2,319 Allianz Grou
Slide 28: AM: total AuM at EUR 2.3tn - comments
GROUP FINANCIAL RESULTS 2Q 2022 AM: total AuM at EUR 2.3tn Comments • Markets drive total AuM • Business highlights Total AuM 6% below the level end of 1Q 2022 driven by Investment performance: 79% of 3rd party AuM outperform strong market effect and net outflows. benchmarks on a trailing 3-year bas
Slide 29: AM: 3rd party AuM down 6%
GROUP FINANCIAL RESULTS 2Q 2022 AM: 3rd party AuM down 6% 3rd party assets under management development (EUR bn) 3rd party net flow split (EUR bn) -5.8% Asset Fixed income -32.0 classes Equities -5.0 1,878 +84.2 1,769 -5.1 Multi-assets +0.3 -28.7 -159.2 Alternatives +2.8 Regions America -18.6 -33.8
Slide 30: AM: 3rd party AuM down 6% - comments
GROUP FINANCIAL RESULTS 2Q 2022 AM: 3rd party AuM down 6% Comments • 3rd party AuM down 6% to EUR 1.8tn • 3rd party net flows PIMCO: EUR -29bn 3rd party AuM decrease by EUR 109bn. Market effect 3rd party net outflows mainly from fixed income, in line with (EUR -159bn) and 3rd party net outflows (EUR
Slide 31: AM: revenues up 1%
GROUP FINANCIAL RESULTS 2Q 2022 AM: revenues up 1% Revenues development (EUR mn) PIMCO (EUR mn) AllianzGI (EUR mn) +0.8% +2.3% -3.3% Internal growth -8.7% -9.3% -7.3% 2,015 1,469 Performance fees 1,436 1,999 19 AuM driven & 51 51 other revenues1 93 566 547 42 31 1,907 1,965 1,385 1,450 524 516 3rd p
Slide 32: AM: revenues up 1% - comments
GROUP FINANCIAL RESULTS 2Q 2022 AM: revenues up 1% Comments • Segment revenues – up 1% • PIMCO margin – nearly stable (∆ -0.2bps) Excluding F/X, revenues decrease due to lower average • AllianzGI margin – down by 1.6bps 3rd party AuM and lower performance fees. Decrease driven by changes in product
Slide 33: AM: operating profit at EUR 0.8bn
GROUP FINANCIAL RESULTS 2Q 2022 AM: operating profit at EUR 0.8bn Operating profit drivers (EUR mn) PIMCO -6.6% -9.2% -14.8% Internal growth 8251 7711 639 581 +68 43 +43 21 Performance fee impact2 OP excl. performance -165 fee impact2 CIR (in %) 55.5 60.5 782 -4.2% fee impact2 750 58.7 61.8 CIR (in
Slide 34: AM: operating profit at EUR 0.8bn - comments
GROUP FINANCIAL RESULTS 2Q 2022 AM: operating profit at EUR 0.8bn Comments • Segment – OP down 7% • AllianzGI – OP up 3% OP of EUR 771mn at 23% of FY outlook midpoint, OP at EUR 198mn. Lower F/X adjusted revenues and supported by F/X. expenses. Excluding F/X, lower AuM driven revenues and • 6M 2022
Slide 35: CO: strong improvement
GROUP FINANCIAL RESULTS 2Q 2022 CO: strong improvement Operating result development and components +89 +2 +3 +0 -49 -143 -65.7% Operating Holding & Banking Alternative Consoli- Operating result Treasury Investments dation result 2Q 21 2Q 22 ∆ 2Q 22/21 2Q 22 -69 16 4 0 2Q 21 -158 14 0 0 35
Slide 36: CO: strong improvement - comments
GROUP FINANCIAL RESULTS 2Q 2022 CO: strong improvement Comments • Higher investment income Lower operating loss due to higher investment income, driven by inflation-linked bonds and dividends, all reflected in result from Holding & Treasury. 36
Slide 37: Group: shareholders' net income at EUR 1.7bn
GROUP FINANCIAL RESULTS 2Q 2022 Group: shareholders’ net income at EUR 1.7bn EUR mn 2Q 21 2Q 22 p.y. Operating profit 3,319 3,495 +176 Non-operating items -195 -1,178 -984 Realized gains/losses (net) 120 -98 -218 Impairments (net) -55 -282 -227 Income from financial assets and liabilities carried
Slide 38: Group: shareholders' net income at EUR 1.7bn - comments
GROUP FINANCIAL RESULTS 2Q 2022 Group: shareholders’ net income at EUR 1.7bn Comments • Shareholders’ net income at EUR 1.7bn • Change in reserves for insurance and investment Increase of operating profit (∆ EUR +0.2bn) is more than contracts offset by lower non-operating profit (∆ EUR -1.0bn). Swin
Slide 39: Summary – good underlying result
GROUP FINANCIAL RESULTS 2Q 2022 Summary – good underlying result 81.2bn 6.7bn 13.4bn +/- 1bn Facts OP target 2022 Revenues Operating profit confirmed and figures 6M 2022 (EUR) 2.3bn 200% 1.0bn Shareholders’ Share buy-back Solvency II ratio net income completed1 1) As of 15.07.22 39
Slide 40: Content/topics
Content/topics Group financial results 1 2Q 2022 Additional information 2 Glossary Disclaimer
Slide 41: Allianz track record
ADDITIONAL INFORMATION Allianz track record Operating profit 2021: EUR 13.4bn Investment portfolio 2021: EUR 808.5bn By segments1 By regions1 Asset allocation Debt instruments by rating6 Debt instruments 83% AAA 18% P/C Insurance 40% Germany 24% • Government 36% AA 24% L/H Insurance 35% W&S Europe 2
Slide 42: Content/topics
Content/topics Group financial results 1 2Q 2022 Additional information 2 Glossary Disclaimer
Slide 43: Glossary (1)
GLOSSARY Glossary (1) AFS Available for sale: Available-for-sale investments are non-derivative financial assets which have been acquired neither for sale in the near term nor to be held to maturity. They are shown at fair value on the balance sheet. AGCS Allianz Global Corporate & Specialty Allianz
Slide 44: Glossary (2)
GLOSSARY Glossary (2) Bps Basis points: 1 Basis point = 0.01%. CEE Central and Eastern Europe CIR Cost-income ratio: Operating expenses divided by operating revenues CO (The Allianz business segment) Corporate and Other CR Combined ratio: Represents the total of acquisition and administrative expens
Slide 45: Glossary (3)
GLOSSARY Glossary (3) FV Fair value: The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FVO Fair-value option: Financial assets and liabilities designated at fair value through income are me
Slide 46: Glossary (4)
GLOSSARY Glossary (4) L/H (The Allianz business segment) Life and Health insurance L/H lines of business Guaranteed savings & annuities: Life insurance products linked to life expectancy, offering life and / or death benefits in the form of single or multiple payments to beneficiaries and possibly i
Slide 47: Glossary (5)
GLOSSARY Glossary (5) LoB Line of business LR Loss ratio: Represents claims and insurance benefits incurred (net), divided by premiums earned (net). The calendar year (CY) loss ratio includes the results of the prior year’s reserve development in addition to the accident year (AY) loss ratio. LTC Lo
Slide 48: Glossary (6)
GLOSSARY Glossary (6) Operating SII earnings Operating SII earnings represent the change in own funds, before tax and dividend accrual, that is attributable to the Allianz Group’s ongoing core operations. As such, operating SII earnings comprise: expected return from existing business, new business
Slide 49: Glossary (7)
GLOSSARY Glossary (7) Reinsurance Insurance companies transfer parts of the insurance risk they have assumed to reinsurance companies. Retained earnings In addition to the reserve legally required in the group parent company’s financial statements, this item mainly comprises the undistributed profit
Slide 50: Glossary (8)
GLOSSARY Glossary (8) Statutory premiums Gross premiums written from the sales of life and health insurance policies, as well as gross receipts from sales of unit-linked and other investment-related products, in accordance with the statutory accounting principles applicable in the insurer’s home jur
Slide 51: Content/topics
Content/topics Group financial results 1 2Q 2022 Additional information 2 Glossary Disclaimer
Slide 52: Cautionary note regarding forward-looking statements
DISCLAIMER Cautionary note regarding forward-looking statements This document includes forward-looking state- dustry generally, (iv) the frequency and severity No duty to update ments, such as prospects or expectations, that of insured loss events, including those resulting Allianz assumes no obliga