Allianz, Europe’s largest insurer, announced its earnings results for the second quarter on Thursday, showcasing impressive growth in profits. Here are the key highlights from the report.
Net Profit Surges
Allianz recorded a net profit of 2.34 billion euros ($2.57 billion) in the April-June period, surpassing its performance in the same period last year when it earned EUR1.98 billion. This exceeded analysts’ expectations of EUR2.27 billion based on consensus estimates provided by the company.
Property-Casualty Business Performs Well
The insurer’s property-and-casualty business achieved a combined ratio of 92.2%, slightly surpassing analysts’ forecasts for this important profitability metric.
Asset Management Performance
Allianz’s asset-management business had a slightly subdued performance, with revenue declining by 2% to EUR1.9 billion, despite higher performance fees. Total assets under management also experienced a slight decrease of EUR11 billion from the first quarter. Allianz attributed this decline to currency effects offsetting net inflows. Third-party assets under management stood at EUR1.66 trillion.
Guidance for the Year
Allianz reaffirmed its outlook for the year, expecting a net operating profit of EUR14.2 billion, with a margin of plus or minus EUR1 billion. While this projection falls slightly below analysts’ expectations, according to a FactSet poll, it is worth noting that the group achieved the same operating profit amount last year.
