Allianz SE · XETR:ALV
Allianz — Q1 2021 Earnings Presentation
49 slides from Allianz's earnings presentation, May 12, 2021
Slide 1: 1Q 2021 Analyst conference call
1Q 2021 Giulio Terzariol Chief Financial Officer Analyst conference call May 12, 2021
Slide 2: Content
CONTENT GROUP FINANCIAL RESULTS 1 1Q 2021 2 ADDITIONAL INFORMATION GLOSSARY DISCLAIMER © Allianz SE 2021
Slide 3: Group: good start into the year
Group financial results 1Q 2021 Group: good start into the year Group Property-Casualty Life/Health Asset Management Total revenues 1Q 21 in EUR bn (internal growth vs. prior year in %) 41.4 (-0.4%) 19.7 (-1.6%) 20.0 (+0.1%) 1.8 (+8.8%) Operating profit 1Q 21 in EUR mn (vs. prior year in %) 3,336 (+
Slide 4: Group: good start into the year - comments
Group financial results 1Q 2021 Group: good start into the year Comments • Revenues continue to be affected by COVID-19 • P/C – strong profitability -0.4% internal growth. Negative internal growth in P/C OP significantly improves due to a higher underwriting (-1.6%) driven by Allianz Partners due to
Slide 5: Group: Solvency II ratio at 210%
Group financial results 1Q 2021 Group: Solvency II ratio at 210% Shareholders’ equity (EUR bn) Key sensitivities (EUR bn) -3.1% Equity markets -30% -4.6 Unrealized 80.8 78.3 gains/losses1 17.722.6 20.0 16.422.6 +50bps -5.6 Retained earnings, Interest rate F/X and undated 27.429.2 25.7 33.029.2 -50bp
Slide 6: Group: Solvency II ratio at 210% - comments
Group financial results 1Q 2021 Group: Solvency II ratio at 210% Comments • Shareholders’ equity • SII ratio – at a favorable level In 1Q 2021, shareholders’ equity decreases by Main positive drivers are organic capital generation EUR 2.5bn. Drivers of the development are s/h net (~+9%-p, ~+4%-p aft
Slide 7: Group: strong operating SII capital generation
Group financial results 1Q 2021 Group: strong operating SII capital generation Own funds +3.4 +0.6 84.9 +0.1 85.0 (EUR bn) -2.7 -1.4 +1.6 +1.4 +0.8 -0.4 P/C AM L/H CO/Conso. 31.12.20 Regulatory/ Operating SII Market Capital mgmt./ Tax/ 31.03.21 model changes earnings impact management other actions
Slide 8: Group: strong operating SII capital generation - comments
Group financial results 1Q 2021 Group: strong operating SII capital generation Comments • 9%-p SII capital generation pre-tax/dividend • Capital management/management actions SII capital generation – net of tax and dividend – amounts Driven by the dividend accrual (EUR -1.3bn) and the to ~+4%-p in 1
Slide 9: P/C: growth impacted by COVID-19
Group financial results 1Q 2021 P/C: growth impacted by COVID-19 EUR mn Revenues YTD change on renewals 1Q 21 Total growth Internal growth 1Q 21 Momentum ∆ p.y. ∆ p.y. Total P/C segment 19,681 -3.1% -1.6% +4.3% n.a. Selected OEs Germany 4,670 -1.9% -2.1% +2.1% stable France 1,473 -3.6% -3.6% +0.5% s
Slide 10: P/C: growth impacted by COVID-19 - comments
Group financial results 1Q 2021 P/C: growth impacted by COVID-19 Comments • Internal growth – continued impact from COVID-19 • Spain – entirely driven by lower volume Lower volume (-4.8%) and service income (-0.2%) due Portfolio cleaning in commercial motor and MidCorp. to lockdowns and economic slo
Slide 11: P/C: combined ratio at target level
Group financial results 1Q 2021 P/C: combined ratio at target level Operating profit drivers (EUR mn) Combined ratio (in %) +46.6% -4.7%-p 97.8 93.0 +608 +19 1,513 -146 Loss ratio 70.4 66.1 1,032 NatCat impact2 3.6 1.5 (in %-p) Expense ratio 27.3 27.0 1Q 20 1Q 21 Operating Underwriting1 Investment O
Slide 12: P/C: combined ratio at target level - comments
Group financial results 1Q 2021 P/C: combined ratio at target level Comments • Operating profit at 27% of FY outlook midpoint • Loss ratio – good performance Strong OP of EUR 1.5bn well above previous year LR improves -4.4%-p. AY LR drops -5.9%-p to 67.2% after (∆ EUR +0.5bn). Higher underwriting re
Slide 13: P/C: strong performance across many OEs
Group financial results 1Q 2021 P/C: strong performance across many OEs EUR mn Operating profit Combined ratio NatCat impact on CR 1Q 21 ∆ p.y. 1Q 21 ∆ p.y. 1Q 21 ∆ p.y. Total P/C segment 1,513 +46.6% 93.0% -4.7%-p 1.5%-p -2.2%-p Selected OEs Germany 329 +13.1% 91.3% -5.4%-p 0.0%-p -4.7%-p France 97
Slide 14: P/C: strong performance across many OEs - comments
Group financial results 1Q 2021 P/C: strong performance across many OEs Comments • Germany – strong CR • Australia – underlying improvement Benign NatCat and low claims frequency in motor. Reduced NatCat and better underlying LR partially offset • France – OP stable by lower run-off and higher ER. S
Slide 15: P/C: investment result up 3%
Group financial results 1Q 2021 P/C: investment result up 3% Operating investment result1 Current yield Economic reinvestment yield (EUR mn) (debt securities; in %) (debt securities; in %) +3.0% 0.59 1.4 0.50 1.2 645 664 1Q 20 1Q 21 1Q 20 1Q 21 1Q 20 1Q 21 Total average asset base4 Duration5 (EUR bn
Slide 16: P/C: investment result up 3% - comments
Group financial results 1Q 2021 P/C: investment result up 3% Comments • Interest & similar income • Reinvestment yield Lower income from debt due to low yields and Reinvestment yield lower vs. 1Q 2020 but slightly currency translation effects is partially compensated above 4Q 2020 due to positive ma
Slide 17: L/H: new business growth at healthy margin
Group financial results 1Q 2021 L/H: new business growth at healthy margin PVNBP share by line EUR mn 1Q 20 1Q 21 ∆ p.y. PVNBP 18,044 19,544 +8.3% Total L/H segment 2.7 2.9 APE 3,612 3,657 +1.3% Single premium 10,301 10,618 +3.1% Protection & health 3.3 4.9 Recurring premium 2,582 2,595 +0.5% 23% 25
Slide 18: L/H: new business growth at healthy margin - comments
Group financial results 1Q 2021 L/H: new business growth at healthy margin Comments PVNBP by line PVNBP by OE • New business volume growth of 8.3% • Germany Life – better business mix Improved business mix supported by active steering. Higher volume from P&H business compensates for lower UL w/o gua
Slide 19: L/H: operating profit good at EUR 1.2bn
Group financial results 1Q 2021 L/H: operating profit good at EUR 1.2bn (EUR mn) Operating profit by source Operating profit by line +48.0% +48.0% 1,212 +321 +72 1,212 +42 251 -75 +33 819 159 819 190 332 120 98 470 410 Operating Loadings Investment Technical Expenses Impact of Operating 1Q 20 1Q 21
Slide 20: L/H: operating profit good at EUR 1.2bn - comments
Group financial results 1Q 2021 L/H: operating profit good at EUR 1.2bn Comments • Operating profit at 28% of FY outlook midpoint Preferred LoBs account for 61% of operating profit Operating profit mainly driven by recovery of • Protection & health investment margin and higher UL management fees. Be
Slide 21: L/H: double-digit growth in VNB
Group financial results 1Q 2021 L/H: double-digit growth in VNB EUR mn Value of new business New business margin Operating profit 1Q 21 ∆ p.y. 1Q 21 ∆ p.y. 1Q 21 ∆ p.y. Total L/H segment 558 +13.0% 2.9% +0.1%-p 1,212 +48.0% Germany Life 166 -23.3% 2.5% -0.8%-p 301 +20.3% USA 103 +63.9% 3.8% +1.5%-p
Slide 22: L/H: double-digit growth in VNB - comments
Group financial results 1Q 2021 L/H: double-digit growth in VNB Comments New business Operating profit • 13% VNB growth driven by P&H business • Germany Life – good level VNB of P&H is up 78% and its share in total VNB Recovery of investment margin and volume growth. increases by 16%-p to 43%. • Asi
Slide 23: L/H: investment margin strong at EUR 1.0bn
Group financial results 1Q 2021 L/H: investment margin strong at EUR 1.0bn Investment margin Economic reinvestment yield (debt securities; in %) 1Q 20 1Q 21 1.6 1.5 Based on Ø book value of assets1 (EUR bn) 605 638 Current yield 0.77% 0.72% Based on Ø aggregate policy reserves (EUR bn) 488 500 Curre
Slide 24: L/H: investment margin strong at EUR 1.0bn - comments
Group financial results 1Q 2021 L/H: investment margin strong at EUR 1.0bn Comments • Investment margin up EUR 0.3bn to EUR 1.0bn • Investment margin strong at 21bps Strong investment margin (∆ +6bps to 21bps) and Recovery of gross investment margin and PHP of growth of reserve base (+2.5%). 81.8% l
Slide 25: AM: total AuM exceed EUR 2.4tn for the first time
Group financial results 1Q 2021 AM: total AuM exceed EUR 2.4tn for the first time (EUR bn) Total assets under management 3rd party AuM split Asset classes Regions +1.8% Multi-assets Europe 2,432 EUR 173bn (+7.0%) EUR 578bn (+3.1%) 2,389 Equities Asia Pacific EUR 176bn (+8.0%) EUR 222bn (+4.2%) -3.0%
Slide 26: AM: total AuM exceed EUR 2.4tn - comments
Group financial results 1Q 2021 AM: total AuM exceed EUR 2.4tn for the first time Comments • Total AuM up 2% • Business highlights Increase driven by EUR 38bn 3rd party net inflows and AM segment: 89% of 3rd party AuM outperform F/X; negative market effects mainly due to rising interest benchmarks o
Slide 27: AM: strong 3rd party net inflows
Group financial results 1Q 2021 AM: strong 3rd party net inflows (EUR bn) 3rd party assets under management development 3rd party net flow split +3.7% Asset Fixed income +23.0 classes +25.5 +45.8 1,775 1,712 +12.3 Equities +7.2 -20.7 Multi-assets +5.7 Alternatives +1.9 Regions America +22.7 Europe +
Slide 28: AM: strong 3rd party net inflows - comments
Group financial results 1Q 2021 AM: strong 3rd party net inflows Comments • 3rd party AuM up 4% to EUR 1.8tn 3rd party AuM increase by EUR 63bn to an all-time high. Positive F/X effect and strong 3rd party net inflows at PIMCO and AllianzGI. Excluding F/X, 3rd party AuM up by 1%. 1Q 2021 average 3rd
Slide 29: AM: 9% internal growth
Group financial results 1Q 2021 AM: 9% internal growth (EUR mn) Revenues development PIMCO AllianzGI +3.5% +1.0% +10.4% Internal growth +8.8% +6.4% +15.1% Performance fees 1,836 1,318 1,773 1,331 AuM driven & 508 other revenues1 30 88 11 73 460 15 19 1,744 1,748 1,307 1,258 442 493 © Allianz SE 2021
Slide 30: AM: 9% internal growth - comments
Group financial results 1Q 2021 AM: 9% internal growth Comments • Segment revenues • Segment margin Significantly negative F/X impact (EUR -132mn) 3rd party AuM margin decreases by 2.2bps to 36.9bps; mitigates overall revenue increase (∆ +4%/EUR 63mn). major part of the decrease is driven by the lau
Slide 31: AM: operating profit increases by 10%
Group financial results 1Q 2021 AM: operating profit increases by 10% (EUR mn) Operating profit drivers PIMCO +10.0% -0.2% +16.5% Internal growth +194 747 559 558 6791 -73 51 Performance fee impact2 8 -53 OP excl. performance fee impact2 57.6 58.1 CIR (in %) 671 +3.7% 696 1Q 20 1Q 21 61.7 59.3 CIR (
Slide 32: AM: operating profit increases by 10% - comments
Group financial results 1Q 2021 AM: operating profit increases by 10% Comments • Segment – OP at 27% of FY outlook midpoint • PIMCO – OP on a strong level OP up 10% despite an F/X impact of EUR -53mn. CEF launch costs and a F/X effect of EUR -49mn Excluding F/X, OP grows by 18%/EUR 121mn due to leav
Slide 33: CO: operating result slightly better than expected
Group financial results 1Q 2021 CO: operating result slightly better than expected (EUR mn) Operating result development and components +96 +5 -7 -1 -135 -228 -40.7% Operating Holding & Banking Alternative Consoli- Operating result Treasury Investments dation result 1Q 20 1Q 21 ∆ 1Q 21/20 © Allianz
Slide 34: CO: operating result slightly better than expected - comments
Group financial results 1Q 2021 CO: operating result slightly better than expected Comments • Operating loss at 17% of FY outlook midpoint Lower operating loss due to favorable F/X result and lower admin and investment expenses – all reflected in result from Holding & Treasury. © Allianz SE 2021 34
Slide 35: Group: shareholders' net income at EUR 2.6bn
Group financial results 1Q 2021 Group: shareholders’ net income at EUR 2.6bn EUR mn 1Q 20 1Q 21 p.y. Operating profit 2,304 3,336 +1,032 Non-operating items -412 154 +566 Realized gains/losses (net) 448 500 +52 Impairments (net) -509 -52 +457 Income from financial assets and liabilities carried at
Slide 36: Group: shareholders' net income at EUR 2.6bn - comments
Group financial results 1Q 2021 Group: shareholders’ net income at EUR 2.6bn Comments • Shareholders’ net income up by EUR 1.2bn • Restructuring expenses Increase driven by higher operating profit 39% of restructuring expenses refers to (∆ EUR +1.0bn) and better non-operating profit IT decommissioni
Slide 37: Summary: good start into the year
Group financial results 1Q 2021 Summary: good start into the year 41.4bn 3.3bn Facts Revenues Operating profit and figures 1Q 2021 (EUR) 2.6bn 210% Shareholders’ Solvency II ratio net income © Allianz SE 2021 37
Slide 38: Content
CONTENT GROUP FINANCIAL RESULTS 1 1Q 2021 2 ADDITIONAL INFORMATION GLOSSARY DISCLAIMER © Allianz SE 2021
Slide 39: Allianz track record
Group financial results 1Q 2021 – additional information Allianz track record Operating profit 2020: EUR 10.8bn Investment portfolio 2020: EUR 790bn By segments1 By regions: Asset allocation Debt instruments by rating6 P/C Insurance 38% Germany 28% Debt instruments 86% AAA 19% L/H Insurance 38% W &
Slide 40: Glossary & Disclaimer
GLOSSARY & DISCLAIMER © Allianz SE 2021
Slide 41: 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 42: 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 43: 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 44: 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 45: 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 46: 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 47: 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 48: 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 49: Disclaimer
Disclaimer Disclaimer This document includes forward-looking statements, such as prospects or (viii) currency exchange rates, most notably the EUR/USD exchange rate, (ix) expectations, that are based on management's current views and changes in laws and regulations, including tax regulations, (x) th