Allianz Group has reported a 5.2% fall in second-quarter 2018 net income to €1.9bn due to the earlier announced negative impact from the sale of a life portfolio in Taiwan.
Image: Allianz chief financial officer Giulio Terzariol. Photo: courtesy of Allianz.
The German insurance major posted revenue of €30.9bn for Q2 2018, an increase of 2.9%, compared to the €30bn earned in the same quarter last year.
Operating profit moved up by 2.3% from €2.928bn in Q2 2017 to €2.997 in the latest reported quarter.
Allianz said that in spite of burdens caused by geopolitical instabilities and currency fluctuations, the results in Q2 2018 remained close to or crossed the second-quarter 2017 levels.
The life/health business brought the highest revenue for the German insurer in the second quarter at €17.1bn, an increase of 2.6% compared to €16.7bn reported in Q2 2017.
Property/casualty business came second, earning €12.1bn, which is 3.4% more than the €11.7bn made in the same period last year.
Allianz chief financial officer Giulio Terzariol said: “The good results in property and casualty show the underlying strength of our business.
“We have made progress with our productivity initiative as shown by the expense ratio. We remain on track to meet our target of 94 percent in the combined ratio.”
On the other hand, the Asset Management business fetched €1.7bn in Q2 2018 for Allianz, an improvement by 9.0% compared to the €1.6bn earned in Q2 2017.
Asset Management’s operating profit surged 11.6% from €584m reported in Q2 2017 to €652m in the second quarter 2018.
Allianz also reported that its operating revenues in the first half-year of 2018 moved up by 4.6% to €3.3bn, primarily due to increased average third-party AuM at PIMCO and a surge in third-party AuM-driven margins at PIMCO and AllianzGI.
However, the company’s operating profit in the first half-year of 2018 came down 1.8% to €5.8bn mainly due to the life/health business caused by a normalization of the investment margin along with unfavorable foreign exchange.
The insurer said that the operating profit in the Asset Management business increased courtesy of higher AuM-driven revenues while the operating profit of Property-Casualty grew slightly compared to the previous year results.
Allianz CEO Oliver Bäte said: “We remain on track to meet our 2018 operating profit target. I am thankful for everyone on the Allianz team for making this happen across countries and companies. This makes me confident that we will achieve our three-year Renewal Agenda targets.”