Allianz Group today reported its results for the second quarter of 2010, which reflect a very good performance throughout the first half of the year. Total quarterly revenues grew by 14.5 percent to 25.4 billion euros, from 22.2 billion euros in the second quarter of 2009. Internal growth1 for quarterly revenues amounted to 10.8 percent. Operating profit jumped by 22.7 percent to 2.2 billion euros, compared to 1.8 billion euros in the same period of last year.
All three business segments contributed positively to quarterly net income of 1.1 billion euros, which reflects a low level of harvesting. Net income in the second quarter of last year amounted to 1.9 billion euros, supported by high realized gains.
Strong first half-year
Total revenues for the first six months of 2010 amounted to 56.0 billion euros, and were 12.2 percent higher than 49.9 billion euros in the same period of 2009. Half-year operating profit grew by 21.7 percent from 3.2 billion euros to 3.9 billion euros. Half-year net income jumped by 39.5 percent from 1.9 billion euros to 2.7 billion euros.
Allianz Group's capital position remains strong with a solvency ratio of 170 percent as of June 30, 2010, following 168 percent at the end of first quarter 2010. Shareholders' equity increased by 0.7 percent to 43.8 billion euros as of June 30, 2010, from 43.5 billion euros at the end of March.
Michael Diekmann, CEO of Allianz SE: "We had a very good half-year with double-digit growth in both revenues and operating profit. In a first half-year marked by exceptionally high natural catastrophe losses, our success shows that our diversified approach across business segments and regions is helping us to ensure stable results. In addition, our strong capitalization and conservative capital management underline the reliability for which Allianz is renowned."
Property-Casualty operating profit up 28.2 percent
In the Property and Casualty business gross premiums written increased to 10.0 billion euros in the second quarter. Compared to 9.5 billion euros in the second quarter of 2009, premiums increased by 4.5 percent. Adjusted for currency effects, premiums rose by 0.5 percent. An improved underwriting result and higher investment income contributed to a significant increase in quarterly operating profit of 28.2 percent to 1.1 billion euros, following 895 million euros in the second quarter of last year.
The combined ratio improved to 96.3 percent, compared to 98.9 percent in second quarter 2009 and 100.4 percent in first quarter 2010. Claims from natural catastrophes amounted to 255 million euros, and made up 2.6 percentage points of the combined ratio. This compares to 1.1 percentage points in second quarter 2009. A higher run-off ratio of 4.2 percent had a positive effect on the combined ratio.
Gross premiums written for the first six months of 2010 grew by 2.3 percent to 23.9 billion euros, compared to 23.4 billion euros in the first half of 2009. Half-year operating profit remained stable at 1.86 billion euros. The half-year combined ratio improved to 98.4 percent, following 98.8 percent in the first six months of 2009.
"While in the second quarter soft market conditions persisted in many insurance markets, positive price effects were observed in several of our core markets. In addition, our quarterly operating profit growth shows progress in terms of underwriting, claims management and productivity," said Oliver Bäte, Chief Financial Officer of Allianz SE.