Allianz Group today reported solid results for fiscal year 2009, despite a challenging global economy. Based on preliminary figures, total revenues grew 5.2 percent to 97.4 billion euros for the year. Operating profit totaled 7.2 billion euros, or 147 million euros below the previous year’s level. The company’s business segments coped with one of the most volatile economic environments in history during the first two quarters, and achieved positive growth and earnings momentum in the second half of the year.
The continued profitability of the operating segments, along with lower impairments following the recovery of the capital markets, contributed to net income from continuing operations of 4.7 billion euros. This translates into an increase of 13.2 percent from 4.2 billion euros in 2008.
Allianz Group again reported an improved solvency ratio, with 164 percent at the end of fiscal year 2009, including dividend accrual. This represents an increase of 7 percentage points on a comparable basis over the previous year and falls well within the target range of 150 to 170 percent. Allianz Group’s diversified business model showed remarkable resilience through turbulent times, as proven by its very sound solvency ratio over the past two years.
At the end of 2009, shareholders’ equity had grown by 19 percent to 40.2 billion euros. The Board of Management will suggest a dividend proposal of 4.10 euros per share to the Supervisory Board of Allianz SE, up 17 percent from 3.50 euros last year.
Michael Diekmann, CEO of Allianz SE, said: “2009 was an important and successful year for the Allianz Group. While the financial crisis undoubtedly impacted our results, we have nevertheless delivered a very robust and sound performance quarter on quarter. This reliability is highly-valued by our customers and all our other stakeholders alike.”
New Segment Reporting Structure to reflect lines of business
In order to better reflect its core business activities, Allianz Group implemented a new segment reporting structure in the fourth quarter of 2009. Asset Management is now shown on a stand-alone basis. Banking and Alternative Investments are shown together with the Holding and Treasury function in a new segment called “Corporate and Other”.
In 2009, this segment had an operating loss of 1.0 billion euros, primarily coming from the Holding and Treasury side because of lower net interest income and a weaker US dollar.