Latest news with #SolvencyII
Bangkok Post
2 days ago
- Business
- Bangkok Post
Global banking rules need review
In an era of shrinking resources for development finance, global policymakers must shift their focus to making better use of existing funds. Identifying and removing regulatory barriers that hinder the efficient deployment of capital to emerging markets and developing economies (EMDEs) is a good place to start. The Basel III framework, developed in response to the 2008 global financial crisis, has played a crucial role in preventing another systemic collapse. But it has also inadvertently discouraged banks from financing infrastructure projects in EMDEs. At the same time, advanced economies, with debt-to-GDP ratios at historic highs, face mounting fiscal pressures. Servicing these debts consumes a growing share of public budgets just as governments must ramp up defence spending and boost economic competitiveness, resulting in cuts to foreign aid. Together, these pressures underscore the urgent need to mobilise more private capital for investment in EMDEs. Building resilient and sustainable economies will require transformational investments across the developing world in infrastructure, technology, health, and education. According to the United Nations Conference on Trade and Development (UNCTAD), EMDEs must raise more than $3 trillion annually beyond what they can raise through public revenues to meet critical development and climate targets. Amid these challenges, prudential regulation impedes the ability of EMDEs to raise private capital. This issue can be traced back to the global financial crisis, which wiped out $15 trillion in global GDP between 2008 and 2011. Since the crisis stemmed from weak capital and liquidity controls, as well as the unchecked growth of innovative and opaque financial products, Basel III was designed to close regulatory loopholes and bolster oversight, particularly in response to the rise of the non-bank financial sector. While the revised framework addresses the vulnerabilities that triggered the 2008 crisis, its focus on advanced economies and systemically important financial institutions inadvertently imposes several requirements that restrict capital flows to EMDEs. For example, Basel III requires banks to hold disproportionately high levels of capital to cover the perceived risks of financing infrastructure projects in EMDEs. But these risks are often overestimated. In fact, the data suggest that by year five, the marginal default rates for development loans are lower than those for corporate loans extended to investment-grade borrowers. But despite the lower risk profile, banks are required to hold more capital against development-finance loans than they do against loans to unrated companies over the life of the project. Insurers encounter similar regulatory barriers. Under the European Union's Solvency II framework, an insurer investing in an EMDE infrastructure project faces a capital charge of 49% -- nearly double the 25% required for a comparable project in an OECD country. Historical data show that infrastructure loans in EMDEs perform just as well as those in advanced economies. The significantly higher capital costs that banks incur when making infrastructure loans to EMDEs deter them from supporting transformative, high-impact projects, steering capital toward safer, low-impact investments. Multilateral Development Banks (MDBs) -- international financial institutions, backed by guarantees from developed-economy shareholders and AAA credit ratings, can help reduce capital costs by co-financing EMDE projects and providing lenders with additional assurances. But even when MDBs share the risk, the resulting exposures often remain subject to a 100% capital charge, undermining the very benefits that multilateral engagement is meant to provide. To be sure, Basel III's foundational principles are sound. Capital buffers and liquidity ratios that reflect institutional risk profiles are essential for maintaining financial stability. But several rules within the otherwise well-designed Basel III framework limit EMDEs' ability to pursue sustainable development while doing little to mitigate systemic risk. To improve the regulatory framework for EMDEs, the G20 must take four key actions, using this week's meeting of G20 finance ministers and central-bank governors in Durban, South Africa as a platform for cooperative leadership. First, recalibrate capital requirements for infrastructure project finance to reflect real-world default performance, particularly in the post-construction phase. Second, expand the list of MDBs eligible for 0% risk-weighting under Basel III to include high-performing regional institutions, such as the Africa Finance Corporation, that have investment-grade ratings. Third, clarify the definition of "unconditional guarantees" so that more MDB-backed risk-sharing instruments can qualify for favourable regulatory treatment. And lastly, introduce capital-charge discounts for blended finance structures co-financed by A-rated institutions, with the level of discount varying by rating. These reforms do not require new taxpayer commitments; they simply align regulation with actual risk. Implementing them would crowd in more private investment, reduce borrowing costs for developing countries, and accelerate progress toward transformative development that creates much-needed jobs. The G20 must address these regulatory roadblocks so that capital can flow to where it delivers the greatest value. Reaching consensus on how to lower capital costs for emerging-market economies is one of the top priorities at the meeting of G20 finance chiefs. Reforming the Basel III framework would be a relatively low-cost, high-impact way to mobilise investment, drive job creation, and support sustainable growth in emerging markets. ©2025 Project Syndicate. Vera Songwe, is a non-resident senior fellow at the Brookings Institution. Jendayi Frazer, is a visiting fellow at the Hoover Institution. Peter Blair Henry is the Class of 1984 Senior Fellow at the Hoover Institution.
Yahoo
15-05-2025
- Business
- Yahoo
Allianz Reports Record Operating Profit and Is Fully on Track to Achieve Full-Year Outlook
MUNICH, May 15, 2025--(BUSINESS WIRE)--May 15, 2025 1Q 2025 Total business volume advances 11.71 percent to 54.0 billion euros reflecting sustained momentum across all segments Operating profit increases 6.3 percent to 4.2 billion euros, reaching 26 percent of our full-year outlook midpoint Shareholders' core net income is stable at a very good level of 2.6 billion euros. Adjusted for a one-off tax provision related to the forthcoming sale of our stake in our Indian Joint Ventures, shareholders' core net income is up 5 percent Core earnings per share grow 2.9 percent and reach 6.61 euros. Adjusted for the above-mentioned one-off tax provision, core earnings per share are up 7 percent Annualized core RoE is robust at 16.6 percent, or 17.2 percent adjusted for the effect of the one-off tax provision Solvency II capitalization ratio remains strong at 208 percent2 Outlook Allianz is fully on track to achieve full-year operating profit outlook of 16.0 billion euros, plus or minus 1 billion euros3 A strong balance sheet, limited Solvency II sensitivities, and attractive customer propositions give Allianz a competitive advantage in successfully managing current capital market volatility and geopolitical uncertainty Other Share buy-back program of up to 2 billion euros announced on February 27 underway; 0.1 billion euros completed in 1Q 2025 ____________________ 1 Internal growth; total growth 11.6 percent. 2 Based on quarterly dividend accrual; additional accrual to reflect FY dividend would impact Solvency II capitalization ratio by -10%-p as of March 31, 2025. This applies to all information regarding the Solvency II capitalization ratio in this document. 3 As always, natural catastrophes and adverse developments in the capital markets, as well as factors stated in our cautionary note regarding forward-looking statements may severely affect the operating profit and/or net income of our operations and the results of the Allianz Group. "Allianz's first quarter performance and our confirmed outlook underscore our financial strength and resilient business model, which benefits from the attractiveness of our customer value propositions amid geopolitical and economic uncertainty. In fact, we view this uncertainty and change as a catalyst for innovation and growth, allowing us to pursue new opportunities and expand our offerings. As the world's leading insurance brand, we are well-positioned to benefit from the global flight to trust, with the ability to meet growing customer demand for protection and retirement solutions." - Oliver Bäte, Chief Executive Officer of Allianz SE FINANCIAL HIGHLIGHTS Allianz Group: Sustained strong momentum and record operating profit Key performance indicator 1Q 2025 Change vsprior year Total business volume (€ bn) 54.0 11.7%4 Operating profit (€ mn) 4,238 6.3% Shareholders' core net income (€ mn) 2,550 1.5% Core return on equity (annualized) (%) 16.6 (0.2)%-p5 Solvency II ratio (%) 208 (1)%-p5 "Allianz had a very good start to the year. We sustained our growth momentum while safeguarding attractive margins across our businesses, evidenced by our record operating profit. The proven resilience of our business model positions us very well to successfully manage volatile markets and a more uncertain environment. We confidently affirm our full-year operating profit outlook. We are firmly focused on executing the strategic priorities outlined at our Capital Markets Day to deliver on our ambitions." - Claire-Marie Coste-Lepoutre, Chief Financial Officer of Allianz SE In 1Q 2025, Allianz has delivered a very good performance underpinned by sustained momentum across our businesses. The operating profit has reached a record level of 4.2 billion euros (1Q 2024: 4.0 billion euros), an increase of 6.3 percent, supported by growth across all segments. Our total business volume expanded by 11.71 percent, growing to 54.0 (48.4) billion euros. The Life/Health segment was the main driver, but all business segments contributed. Shareholders' core net income was stable at 2.6 billion euros as higher operating profit was compensated by a lower non-operating result and higher taxes. The latter were impacted by a one-off tax provision related to the forthcoming sale of our stake in our Indian Joint Ventures. Adjusted for this provision, shareholders' core net income was up 5 percent. Core earnings per share (EPS)6 for 1Q 2025 amounted to 6.61 (6.42) euros, an increase of 2.9 percent. Adjusted for the one-off tax provision, core earnings per share were up 7 percent. Allianz has generated a robust annualized core return on equity (RoE)6 of 16.6 percent in 1Q 2025 (full-year 2024: 16.9 percent), or 17.2 percent adjusted for the above-mentioned one-off tax provision. This performance was achieved while we maintained our financial strength with a stable Solvency II ratio of 208 percent (full-year 2024: 209 percent). ____________________ 4 Change refers to internal growth. 5 Change versus December 31, 2024. 6 Core EPS and core RoE calculation based on shareholders' core net income. Outlook Allianz is fully on track to achieve its full-year outlook of an operating profit of 16.0 billion euros, plus or minus 1 billion euros. A strong balance sheet, limited Solvency II sensitivities, and attractive product propositions position Allianz very well to manage volatile markets and geopolitical uncertainty. Other The share buy-back program of up to 2 billion euros, announced on February 27, 2025, is underway and 0.1 billion euros were completed during 1Q 2025. Property-Casualty insurance: Sustained growth momentum and excellent profitability Key performance indicator 1Q 2025 Change vsprior year Total business volume (€ bn) 27.0 7.1%7 Operating profit (€ mn) 2,170 5.0% Combined ratio (%) 91.8 (0.1)%-p Loss ratio (%) 67.7 0.4%-p Expense ratio (%) 24.1 (0.5)%-p Core messages Property-Casualty insurance 1Q 2025 Strong segment performance with very good internal growth and record operating profit Broad-based internal growth, in particular in retail8 Operating profit reaches 27 percent of our full-year outlook midpoint Combined ratio excellent, reflecting successful underwriting actions and productivity gains In 1Q 2025, total business volume reached 27.0 (1Q 2024: 25.5) billion euros. The very good internal growth of 7.1 percent continued to be underpinned by healthy rate increases, in particular in retail8. Commercial9 momentum remained resilient but slowed down. Allianz maintained a successful balance of growing its business while maintaining underwriting discipline. The operating profit of 2.2 (2.1) billion euros, the highest quarterly operating profit ever, marks a successful start to the year, reaching 27 percent of our full-year outlook midpoint. Operating profit advanced 5 percent compared to last year, driven by a higher insurance service result. The combined ratio improved slightly to an excellent level of to 91.8 percent (91.9 percent) exceeding our full-year outlook of ~93 percent. The loss ratio was 67.7 percent (67.3 percent). Natural catastrophe claims increased compared to a benign first quarter last year, but these were partly offset by a better run-off result. The expense ratio developed favorably by 0.5 percentage points to 24.1 percent. The retail8 business showed an excellent performance. It delivered strong internal growth of 9 percent while further improving its combined ratio to 91.8 percent (93.0 percent). In the commercial9 business, internal growth of 5 percent was good, reflecting the sustained momentum of the business, while navigating a slowing pricing environment. The segment achieved a strong combined ratio of 91.7 percent (89.9 percent). ____________________ 7 Change refers to internal growth. 8 Retail including SME and Fleet. 9 Commercial including large Corporate, MidCorp, credit insurance, internal and 3rd party R/I. Life/Health insurance: Excellent new business growth Key performance indicator 1Q 2025 Change vsprior year PVNBP (€ mn) 26,095 16.8% New business margin (%) 5.5 (0.2)%-p VNB (€ mn) 1,440 13.6% Operating profit (€ mn) 1,427 7.5% Contractual Service Margin (€ bn, eop)10 57.0 1.9%11 Core messages Life/Health insurance 1Q 2025 Excellent broad-based new business momentum at attractive margin Strong growth in value of new business, spread across all major operating entities 91 percent of new business premiums generated in preferred lines of business Operating profit strong at 1.4 billion euros, reaching 26 percent of our full-year outlook midpoint In 1Q 2025, PVNBP, the present value of new business premiums, grew by 16.8 percent to 26.1 (1Q 2024: 22.3) billion euros. This excellent growth was broad-based, reflecting the strength of our global franchise and attractiveness of our customer value proposition. 91 percent of our new business premiums were generated in our preferred lines of business. The new business margin (NBM) was at an attractive level of 5.5 percent (5.7 percent) and the value of new business (VNB) increased strongly by 13.6 percent to 1.4 (1.3) billion euros. Operating profit rose to 1.4 (1.3) billion euros, an increase of 7.5 percent. This strong performance was supported by growth in most regions. Contractual Service Margin (CSM) advanced from 55.6 billion euros at the end of 2024 to 57.0 billion euros.10 Normalized CSM growth in the first quarter was excellent at 1.9 percent, ahead of our full-year guidance of ~5 percent normalized annual growth. ____________________ 10 Includes gross CSM of 0.8 billion euros (as of December 31, 2024, and as of March 31, 2025), for UniCredit Allianz Vita S.p.A., which was classified as held for sale in the third quarter of 2024. In the first quarter of 2025, the German APR and the Austrian health businesses were transferred from the Property-Casualty segment to the Life/Health segment resulting in a 1.2 billion euro shift in the gross CSM opening balance. 11 Normalized CSM growth as of March 31, 2025. Asset Management: Strong operating profit and third-party net inflows Key performance indicator 1Q 2025 Change vsprior year Operating revenues (€ bn) 2.1 2.7%12 Operating profit (€ mn) 811 4.8% Cost-income ratio (%) 61.3 0.1%-p Third-party net flows (€ bn) 28.7 (16.2)% Third-party assets under management (€ bn) 1,914 (0.3)%13 Core messages Asset Management 1Q 2025 Operating profit advances 5 percent to 811 million euros, on track for full-year outlook Strong third-party net inflows of 28.7 billion euros. PIMCO and Allianz Global Investors contribute Assets under management (AUM)-driven revenues grow 10 percent In 1Q 2025, operating revenues increased to 2.1 billion euros, an internal growth of 2.7 percent. This was fueled by higher AuM-driven revenues, which increased by 10 percent. Operating profit rose to a strong level of 811 (1Q 2024: 773) million euros, up 4.8 percent. Adjusted for foreign currency translation effects, operating profit increased by 2.5 percent. The cost-income ratio (CIR) was broadly stable at 61.3 percent (61.1 percent), reflecting ongoing productivity management. Third-party assets under management were largely unchanged compared to year-end 2024 and amounted to 1.914 trillion euros as of March 31, 2025. Strong net inflows of 28.7 billion euros and positive market effects were offset by foreign currency translation effects. ____________________ 12 Internal growth. 13 Compared to December 31, 2024. 1Q 2025 RESULTS TABLE Allianz Group - key figures 1Q 2025 1Q 2025 1Q 2024 Delta Total business volume € bn 54.0 48.4 11.6% - Property-Casualty € bn 27.0 25.5 6.0% - Life/Health € bn 25.0 21.1 18.6% - Asset Management € bn 2.1 2.0 5.1% - Consolidation € bn (0.1) (0.2) (36.5)% Operating profit / loss € mn 4,238 3,986 6.3% - Property-Casualty € mn 2,170 2,066 5.0% - Life/Health € mn 1,427 1,327 7.5% - Asset Management € mn 811 773 4.8% - Corporate and Other € mn (165) (179) (7.6)% - Consolidation € mn (4) (2) 85.4% Net income € mn 2,581 2,631 (1.9)% - attributable to non-controlling interests € mn 158 156 1.4% - attributable to shareholders € mn 2,423 2,475 (2.1)% Shareholders' core net income1 € mn 2,550 2,513 1.5% Core earnings per share2 € 6.61 6.42 2.9% Additional KPIs - Group Core return on equity3 % 16.6% 16.9% (0.2)% -p - Property-Casualty Combined ratio % 91.8% 91.9% (0.1)% -p - Life/Health New business margin % 5.5% 5.7% (0.2)% -p - Asset Management Cost-income ratio % 61.3% 61.1% 0.1% -p 03/31/2025 12/31/2024 Delta Shareholders' equity4 € bn 62.4 60.3 3.5% Contractual service margin (net)5 € bn 34.8 34.5 0.6% Solvency II capitalization ratio6 % 208% 209% (1)% -p Third-party assets under management € bn 1,914 1,920 (0.3)% Please note: The figures are presented in millions of Euros, unless otherwise stated. Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 1_ Presents the portion of shareholders' net income before non-operating market movements and before amortization of intangible assets from business combinations (including any related income tax effects). 2_ Calculated by dividing the respective period's shareholders' core net income, adjusted for net financial charges related to undated subordinated bonds classified as shareholders' equity, by the weighted average number of shares outstanding (basic core EPS). 3_ Represents the annualized ratio of shareholders' core net income to the average shareholders' equity at the beginning and at the end of the period. Shareholders' core net income is adjusted for net financial charges related to undated subordinated bonds classified as shareholders' equity. From the average shareholders' equity, undated subordinated bonds classified as shareholders' equity, unrealized gains and losses from insurance contracts and other unrealized gains and losses are excluded. Annualized figures are not a forecast for full year numbers. For 1Q 2024, the core return on equity for the respective full year is shown. 4_ Excluding non-controlling interests. 5_ Includes net CSM of EUR 0.2bn (31.12.24: EUR 0.3bn) as of 31 March 2025, for UniCredit Allianz Vita S.p.A., which was classified as held for sale in the 3Q 2024. 6_ Risk capital figures are group diversified at 99.5% confidence level. Solvency II capitalization ratio is based on quarterly dividend accrual; additional accrual to reflect FY dividend would impact solvency II capitalization ratio by -10%-p as of 31 March 2025. RATING Ratings S&P Moody's A.M. Best1 Insurer financial strength rating AA | stable outlook Aa2 | stable outlook A+ | stable outlook Counterparty credit rating AA | stable outlook not rated Aa | stable Senior unsecured debt rating AA Aa2 | stable outlook Aa | stable Subordinated debt rating2 A+/A A1/A3 | stable outlook aa- / a+ | stable Commercial paper (short term) rating A-1+ Prime-1 Not rated ____________________ 1 A.M. Best's Rating Reports reproduced on appear under licence from A.M. Best Company and do not constitute, either expressly or implicitly, an endorsement of Allianz's products or services. A.M. Best's Rating Reports are the copyright of A.M. Best Company and may not be reproduced or distributed without the express written consent of A.M. Best Company. Visitors to are authorised to print a single copy of the rating report displayed there for their own use. Any other printing, copying or distribution is strictly prohibited. A.M. Best's ratings are under continual review and subject to change or affirmation. To confirm the current rating visit 2 Final ratings vary on the basis of the terms. Related links Media Conference May 15, 2025, 11 AM CEST: YouTube (English language) Analyst Conference May 15, 2025, 2:00 PM CEST: YouTube (English language) Results The results and related documents can be found in the download center. Upcoming events Financial Results 2Q 2025 August 7, 2025 More information can be found in the financial calendar. About Allianz The Allianz Group is one of the world's leading insurers and asset managers with around 128 million* private and corporate customers in nearly 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world's largest investors, managing around 768 billion euros** on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage about 1.9 trillion euros** of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are among the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2024, over 156,000 employees achieved total business volume of 179.8 billion euros and an operating profit of 16.0 billion euros for the group. * As of December 31, 2024. Including non-consolidated entities with Allianz customers. ** As of March 31, 2025. These assessments are, as always, subject to the disclaimer provided below. Cautionary note regarding forward-looking statements This document includes forward-looking statements, such as prospects or expectations, that are based on management's current views and assumptions and subject to known and unknown risks and uncertainties. Actual results, performance figures, or events may differ significantly from those expressed or implied in such forward-looking statements. Deviations may arise due to changes in factors including, but not limited to, the following: (i) the general economic and competitive situation in the Allianz's core business and core markets, (ii) the performance of financial markets (in particular market volatility, liquidity, and credit events), (iii) adverse publicity, regulatory actions or litigation with respect to the Allianz Group, other well-known companies and the financial services industry generally, (iv) the frequency and severity of insured loss events, including those resulting from natural catastrophes, and the development of loss expenses, (v) mortality and morbidity levels and trends, (vi) persistency levels, (vii) the extent of credit defaults, (viii) interest rate levels, (ix) currency exchange rates, most notably the EUR/USD exchange rate, (x) changes in laws and regulations, including tax regulations, (xi) the impact of acquisitions including and related integration issues and reorganization measures, and (xii) the general competitive conditions that, in each individual case, apply at a local, regional, national, and/or global level. Many of these changes can be exacerbated by terrorist activities. No duty to update Allianz assumes no obligation to update any information or forward-looking statement contained herein, save for any information we are required to disclose by law. Other The figures regarding the net assets, financial position and results of operations have been prepared in conformity with International Financial Reporting Standards. This Quarterly Earnings Release is not an Interim Financial Report within the meaning of International Accounting Standard (IAS) 34. This is a translation of the German Quarterly Earnings Release of the Allianz Group. In case of any divergences, the German original is binding. Privacy Note Allianz SE is committed to protecting your personal data. Find out more in our privacy statement. View source version on Contacts Media contactsFrank Stoffel Tel. +49 89 3800 18124 e-mail: Ann-Kristin Manno Tel. +49 89 3800 18805 e-mail: Johanna Oltmann Tel. +49 89 3800 13346 e-mail: Fabrizio Tolotti Tel. +49 89 3800 14819 e-mail: Investor Relations contactsAndrew Ritchie Tel. +49 89 3800 3963 e-mail: Reinhard Lahusen Tel. +49 89 3800 17224 e-mail: Christian Lamprecht Tel. +49 89 3800 3892 e-mail: Tobias Rupp Tel. +49 89 3800 7151 e-mail: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Allianz Reports Record Operating Profit and Is Fully on Track to Achieve Full-Year Outlook
MUNICH, May 15, 2025--(BUSINESS WIRE)--May 15, 2025 1Q 2025 Total business volume advances 11.71 percent to 54.0 billion euros reflecting sustained momentum across all segments Operating profit increases 6.3 percent to 4.2 billion euros, reaching 26 percent of our full-year outlook midpoint Shareholders' core net income is stable at a very good level of 2.6 billion euros. Adjusted for a one-off tax provision related to the forthcoming sale of our stake in our Indian Joint Ventures, shareholders' core net income is up 5 percent Core earnings per share grow 2.9 percent and reach 6.61 euros. Adjusted for the above-mentioned one-off tax provision, core earnings per share are up 7 percent Annualized core RoE is robust at 16.6 percent, or 17.2 percent adjusted for the effect of the one-off tax provision Solvency II capitalization ratio remains strong at 208 percent2 Outlook Allianz is fully on track to achieve full-year operating profit outlook of 16.0 billion euros, plus or minus 1 billion euros3 A strong balance sheet, limited Solvency II sensitivities, and attractive customer propositions give Allianz a competitive advantage in successfully managing current capital market volatility and geopolitical uncertainty Other Share buy-back program of up to 2 billion euros announced on February 27 underway; 0.1 billion euros completed in 1Q 2025 ____________________ 1 Internal growth; total growth 11.6 percent. 2 Based on quarterly dividend accrual; additional accrual to reflect FY dividend would impact Solvency II capitalization ratio by -10%-p as of March 31, 2025. This applies to all information regarding the Solvency II capitalization ratio in this document. 3 As always, natural catastrophes and adverse developments in the capital markets, as well as factors stated in our cautionary note regarding forward-looking statements may severely affect the operating profit and/or net income of our operations and the results of the Allianz Group. "Allianz's first quarter performance and our confirmed outlook underscore our financial strength and resilient business model, which benefits from the attractiveness of our customer value propositions amid geopolitical and economic uncertainty. In fact, we view this uncertainty and change as a catalyst for innovation and growth, allowing us to pursue new opportunities and expand our offerings. As the world's leading insurance brand, we are well-positioned to benefit from the global flight to trust, with the ability to meet growing customer demand for protection and retirement solutions." - Oliver Bäte, Chief Executive Officer of Allianz SE FINANCIAL HIGHLIGHTS Allianz Group: Sustained strong momentum and record operating profit Key performance indicator 1Q 2025 Change vsprior year Total business volume (€ bn) 54.0 11.7%4 Operating profit (€ mn) 4,238 6.3% Shareholders' core net income (€ mn) 2,550 1.5% Core return on equity (annualized) (%) 16.6 (0.2)%-p5 Solvency II ratio (%) 208 (1)%-p5 "Allianz had a very good start to the year. We sustained our growth momentum while safeguarding attractive margins across our businesses, evidenced by our record operating profit. The proven resilience of our business model positions us very well to successfully manage volatile markets and a more uncertain environment. We confidently affirm our full-year operating profit outlook. We are firmly focused on executing the strategic priorities outlined at our Capital Markets Day to deliver on our ambitions." - Claire-Marie Coste-Lepoutre, Chief Financial Officer of Allianz SE In 1Q 2025, Allianz has delivered a very good performance underpinned by sustained momentum across our businesses. The operating profit has reached a record level of 4.2 billion euros (1Q 2024: 4.0 billion euros), an increase of 6.3 percent, supported by growth across all segments. Our total business volume expanded by 11.71 percent, growing to 54.0 (48.4) billion euros. The Life/Health segment was the main driver, but all business segments contributed. Shareholders' core net income was stable at 2.6 billion euros as higher operating profit was compensated by a lower non-operating result and higher taxes. The latter were impacted by a one-off tax provision related to the forthcoming sale of our stake in our Indian Joint Ventures. Adjusted for this provision, shareholders' core net income was up 5 percent. Core earnings per share (EPS)6 for 1Q 2025 amounted to 6.61 (6.42) euros, an increase of 2.9 percent. Adjusted for the one-off tax provision, core earnings per share were up 7 percent. Allianz has generated a robust annualized core return on equity (RoE)6 of 16.6 percent in 1Q 2025 (full-year 2024: 16.9 percent), or 17.2 percent adjusted for the above-mentioned one-off tax provision. This performance was achieved while we maintained our financial strength with a stable Solvency II ratio of 208 percent (full-year 2024: 209 percent). ____________________ 4 Change refers to internal growth. 5 Change versus December 31, 2024. 6 Core EPS and core RoE calculation based on shareholders' core net income. Outlook Allianz is fully on track to achieve its full-year outlook of an operating profit of 16.0 billion euros, plus or minus 1 billion euros. A strong balance sheet, limited Solvency II sensitivities, and attractive product propositions position Allianz very well to manage volatile markets and geopolitical uncertainty. Other The share buy-back program of up to 2 billion euros, announced on February 27, 2025, is underway and 0.1 billion euros were completed during 1Q 2025. Property-Casualty insurance: Sustained growth momentum and excellent profitability Key performance indicator 1Q 2025 Change vsprior year Total business volume (€ bn) 27.0 7.1%7 Operating profit (€ mn) 2,170 5.0% Combined ratio (%) 91.8 (0.1)%-p Loss ratio (%) 67.7 0.4%-p Expense ratio (%) 24.1 (0.5)%-p Core messages Property-Casualty insurance 1Q 2025 Strong segment performance with very good internal growth and record operating profit Broad-based internal growth, in particular in retail8 Operating profit reaches 27 percent of our full-year outlook midpoint Combined ratio excellent, reflecting successful underwriting actions and productivity gains In 1Q 2025, total business volume reached 27.0 (1Q 2024: 25.5) billion euros. The very good internal growth of 7.1 percent continued to be underpinned by healthy rate increases, in particular in retail8. Commercial9 momentum remained resilient but slowed down. Allianz maintained a successful balance of growing its business while maintaining underwriting discipline. The operating profit of 2.2 (2.1) billion euros, the highest quarterly operating profit ever, marks a successful start to the year, reaching 27 percent of our full-year outlook midpoint. Operating profit advanced 5 percent compared to last year, driven by a higher insurance service result. The combined ratio improved slightly to an excellent level of to 91.8 percent (91.9 percent) exceeding our full-year outlook of ~93 percent. The loss ratio was 67.7 percent (67.3 percent). Natural catastrophe claims increased compared to a benign first quarter last year, but these were partly offset by a better run-off result. The expense ratio developed favorably by 0.5 percentage points to 24.1 percent. The retail8 business showed an excellent performance. It delivered strong internal growth of 9 percent while further improving its combined ratio to 91.8 percent (93.0 percent). In the commercial9 business, internal growth of 5 percent was good, reflecting the sustained momentum of the business, while navigating a slowing pricing environment. The segment achieved a strong combined ratio of 91.7 percent (89.9 percent). ____________________ 7 Change refers to internal growth. 8 Retail including SME and Fleet. 9 Commercial including large Corporate, MidCorp, credit insurance, internal and 3rd party R/I. Life/Health insurance: Excellent new business growth Key performance indicator 1Q 2025 Change vsprior year PVNBP (€ mn) 26,095 16.8% New business margin (%) 5.5 (0.2)%-p VNB (€ mn) 1,440 13.6% Operating profit (€ mn) 1,427 7.5% Contractual Service Margin (€ bn, eop)10 57.0 1.9%11 Core messages Life/Health insurance 1Q 2025 Excellent broad-based new business momentum at attractive margin Strong growth in value of new business, spread across all major operating entities 91 percent of new business premiums generated in preferred lines of business Operating profit strong at 1.4 billion euros, reaching 26 percent of our full-year outlook midpoint In 1Q 2025, PVNBP, the present value of new business premiums, grew by 16.8 percent to 26.1 (1Q 2024: 22.3) billion euros. This excellent growth was broad-based, reflecting the strength of our global franchise and attractiveness of our customer value proposition. 91 percent of our new business premiums were generated in our preferred lines of business. The new business margin (NBM) was at an attractive level of 5.5 percent (5.7 percent) and the value of new business (VNB) increased strongly by 13.6 percent to 1.4 (1.3) billion euros. Operating profit rose to 1.4 (1.3) billion euros, an increase of 7.5 percent. This strong performance was supported by growth in most regions. Contractual Service Margin (CSM) advanced from 55.6 billion euros at the end of 2024 to 57.0 billion euros.10 Normalized CSM growth in the first quarter was excellent at 1.9 percent, ahead of our full-year guidance of ~5 percent normalized annual growth. ____________________ 10 Includes gross CSM of 0.8 billion euros (as of December 31, 2024, and as of March 31, 2025), for UniCredit Allianz Vita S.p.A., which was classified as held for sale in the third quarter of 2024. In the first quarter of 2025, the German APR and the Austrian health businesses were transferred from the Property-Casualty segment to the Life/Health segment resulting in a 1.2 billion euro shift in the gross CSM opening balance. 11 Normalized CSM growth as of March 31, 2025. Asset Management: Strong operating profit and third-party net inflows Key performance indicator 1Q 2025 Change vsprior year Operating revenues (€ bn) 2.1 2.7%12 Operating profit (€ mn) 811 4.8% Cost-income ratio (%) 61.3 0.1%-p Third-party net flows (€ bn) 28.7 (16.2)% Third-party assets under management (€ bn) 1,914 (0.3)%13 Core messages Asset Management 1Q 2025 Operating profit advances 5 percent to 811 million euros, on track for full-year outlook Strong third-party net inflows of 28.7 billion euros. PIMCO and Allianz Global Investors contribute Assets under management (AUM)-driven revenues grow 10 percent In 1Q 2025, operating revenues increased to 2.1 billion euros, an internal growth of 2.7 percent. This was fueled by higher AuM-driven revenues, which increased by 10 percent. Operating profit rose to a strong level of 811 (1Q 2024: 773) million euros, up 4.8 percent. Adjusted for foreign currency translation effects, operating profit increased by 2.5 percent. The cost-income ratio (CIR) was broadly stable at 61.3 percent (61.1 percent), reflecting ongoing productivity management. Third-party assets under management were largely unchanged compared to year-end 2024 and amounted to 1.914 trillion euros as of March 31, 2025. Strong net inflows of 28.7 billion euros and positive market effects were offset by foreign currency translation effects. ____________________ 12 Internal growth. 13 Compared to December 31, 2024. 1Q 2025 RESULTS TABLE Allianz Group - key figures 1Q 2025 1Q 2025 1Q 2024 Delta Total business volume € bn 54.0 48.4 11.6% - Property-Casualty € bn 27.0 25.5 6.0% - Life/Health € bn 25.0 21.1 18.6% - Asset Management € bn 2.1 2.0 5.1% - Consolidation € bn (0.1) (0.2) (36.5)% Operating profit / loss € mn 4,238 3,986 6.3% - Property-Casualty € mn 2,170 2,066 5.0% - Life/Health € mn 1,427 1,327 7.5% - Asset Management € mn 811 773 4.8% - Corporate and Other € mn (165) (179) (7.6)% - Consolidation € mn (4) (2) 85.4% Net income € mn 2,581 2,631 (1.9)% - attributable to non-controlling interests € mn 158 156 1.4% - attributable to shareholders € mn 2,423 2,475 (2.1)% Shareholders' core net income1 € mn 2,550 2,513 1.5% Core earnings per share2 € 6.61 6.42 2.9% Additional KPIs - Group Core return on equity3 % 16.6% 16.9% (0.2)% -p - Property-Casualty Combined ratio % 91.8% 91.9% (0.1)% -p - Life/Health New business margin % 5.5% 5.7% (0.2)% -p - Asset Management Cost-income ratio % 61.3% 61.1% 0.1% -p 03/31/2025 12/31/2024 Delta Shareholders' equity4 € bn 62.4 60.3 3.5% Contractual service margin (net)5 € bn 34.8 34.5 0.6% Solvency II capitalization ratio6 % 208% 209% (1)% -p Third-party assets under management € bn 1,914 1,920 (0.3)% Please note: The figures are presented in millions of Euros, unless otherwise stated. Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 1_ Presents the portion of shareholders' net income before non-operating market movements and before amortization of intangible assets from business combinations (including any related income tax effects). 2_ Calculated by dividing the respective period's shareholders' core net income, adjusted for net financial charges related to undated subordinated bonds classified as shareholders' equity, by the weighted average number of shares outstanding (basic core EPS). 3_ Represents the annualized ratio of shareholders' core net income to the average shareholders' equity at the beginning and at the end of the period. Shareholders' core net income is adjusted for net financial charges related to undated subordinated bonds classified as shareholders' equity. From the average shareholders' equity, undated subordinated bonds classified as shareholders' equity, unrealized gains and losses from insurance contracts and other unrealized gains and losses are excluded. Annualized figures are not a forecast for full year numbers. For 1Q 2024, the core return on equity for the respective full year is shown. 4_ Excluding non-controlling interests. 5_ Includes net CSM of EUR 0.2bn (31.12.24: EUR 0.3bn) as of 31 March 2025, for UniCredit Allianz Vita S.p.A., which was classified as held for sale in the 3Q 2024. 6_ Risk capital figures are group diversified at 99.5% confidence level. Solvency II capitalization ratio is based on quarterly dividend accrual; additional accrual to reflect FY dividend would impact solvency II capitalization ratio by -10%-p as of 31 March 2025. RATING Ratings S&P Moody's A.M. Best1 Insurer financial strength rating AA | stable outlook Aa2 | stable outlook A+ | stable outlook Counterparty credit rating AA | stable outlook not rated Aa | stable Senior unsecured debt rating AA Aa2 | stable outlook Aa | stable Subordinated debt rating2 A+/A A1/A3 | stable outlook aa- / a+ | stable Commercial paper (short term) rating A-1+ Prime-1 Not rated ____________________ 1 A.M. Best's Rating Reports reproduced on appear under licence from A.M. Best Company and do not constitute, either expressly or implicitly, an endorsement of Allianz's products or services. A.M. Best's Rating Reports are the copyright of A.M. Best Company and may not be reproduced or distributed without the express written consent of A.M. Best Company. Visitors to are authorised to print a single copy of the rating report displayed there for their own use. Any other printing, copying or distribution is strictly prohibited. A.M. Best's ratings are under continual review and subject to change or affirmation. To confirm the current rating visit 2 Final ratings vary on the basis of the terms. Related links Media Conference May 15, 2025, 11 AM CEST: YouTube (English language) Analyst Conference May 15, 2025, 2:00 PM CEST: YouTube (English language) Results The results and related documents can be found in the download center. Upcoming events Financial Results 2Q 2025 August 7, 2025 More information can be found in the financial calendar. About Allianz The Allianz Group is one of the world's leading insurers and asset managers with around 128 million* private and corporate customers in nearly 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world's largest investors, managing around 768 billion euros** on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage about 1.9 trillion euros** of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are among the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2024, over 156,000 employees achieved total business volume of 179.8 billion euros and an operating profit of 16.0 billion euros for the group. * As of December 31, 2024. Including non-consolidated entities with Allianz customers. ** As of March 31, 2025. These assessments are, as always, subject to the disclaimer provided below. Cautionary note regarding forward-looking statements This document includes forward-looking statements, such as prospects or expectations, that are based on management's current views and assumptions and subject to known and unknown risks and uncertainties. Actual results, performance figures, or events may differ significantly from those expressed or implied in such forward-looking statements. Deviations may arise due to changes in factors including, but not limited to, the following: (i) the general economic and competitive situation in the Allianz's core business and core markets, (ii) the performance of financial markets (in particular market volatility, liquidity, and credit events), (iii) adverse publicity, regulatory actions or litigation with respect to the Allianz Group, other well-known companies and the financial services industry generally, (iv) the frequency and severity of insured loss events, including those resulting from natural catastrophes, and the development of loss expenses, (v) mortality and morbidity levels and trends, (vi) persistency levels, (vii) the extent of credit defaults, (viii) interest rate levels, (ix) currency exchange rates, most notably the EUR/USD exchange rate, (x) changes in laws and regulations, including tax regulations, (xi) the impact of acquisitions including and related integration issues and reorganization measures, and (xii) the general competitive conditions that, in each individual case, apply at a local, regional, national, and/or global level. Many of these changes can be exacerbated by terrorist activities. No duty to update Allianz assumes no obligation to update any information or forward-looking statement contained herein, save for any information we are required to disclose by law. Other The figures regarding the net assets, financial position and results of operations have been prepared in conformity with International Financial Reporting Standards. This Quarterly Earnings Release is not an Interim Financial Report within the meaning of International Accounting Standard (IAS) 34. This is a translation of the German Quarterly Earnings Release of the Allianz Group. In case of any divergences, the German original is binding. Privacy Note Allianz SE is committed to protecting your personal data. Find out more in our privacy statement. View source version on Contacts Media contactsFrank Stoffel Tel. +49 89 3800 18124 e-mail: Ann-Kristin Manno Tel. +49 89 3800 18805 e-mail: Johanna Oltmann Tel. +49 89 3800 13346 e-mail: Fabrizio Tolotti Tel. +49 89 3800 14819 e-mail: Investor Relations contactsAndrew Ritchie Tel. +49 89 3800 3963 e-mail: Reinhard Lahusen Tel. +49 89 3800 17224 e-mail: Christian Lamprecht Tel. +49 89 3800 3892 e-mail: Tobias Rupp Tel. +49 89 3800 7151 e-mail:
Business Wire
15-05-2025
- Business
- Business Wire
Allianz Reports Record Operating Profit and Is Fully on Track to Achieve Full-Year Outlook
MUNICH--(BUSINESS WIRE)-- 1Q 2025 Total business volume advances 11.7 1 percent to 54.0 billion euros reflecting sustained momentum across all segments Operating profit increases 6.3 percent to 4.2 billion euros, reaching 26 percent of our full-year outlook midpoint Shareholders' core net income is stable at a very good level of 2.6 billion euros. Adjusted for a one-off tax provision related to the forthcoming sale of our stake in our Indian Joint Ventures, shareholders' core net income is up 5 percent Core earnings per share grow 2.9 percent and reach 6.61 euros. Adjusted for the above-mentioned one-off tax provision, core earnings per share are up 7 percent Annualized core RoE is robust at 16.6 percent, or 17.2 percent adjusted for the effect of the one-off tax provision Solvency II capitalization ratio remains strong at 208 percent 2 Outlook Allianz is fully on track to achieve full-year operating profit outlook of 16.0 billion euros, plus or minus 1 billion euros 3 A strong balance sheet, limited Solvency II sensitivities, and attractive customer propositions give Allianz a competitive advantage in successfully managing current capital market volatility and geopolitical uncertainty Other Share buy-back program of up to 2 billion euros announced on February 27 underway; 0.1 billion euros completed in 1Q 2025 ____________________ 1 Internal growth; total growth 11.6 percent. 2 Based on quarterly dividend accrual; additional accrual to reflect FY dividend would impact Solvency II capitalization ratio by -10%-p as of March 31, 2025. This applies to all information regarding the Solvency II capitalization ratio in this document. 3 As always, natural catastrophes and adverse developments in the capital markets, as well as factors stated in our cautionary note regarding forward-looking statements may severely affect the operating profit and/or net income of our operations and the results of the Allianz Group. Expand 'Allianz's first quarter performance and our confirmed outlook underscore our financial strength and resilient business model, which benefits from the attractiveness of our customer value propositions amid geopolitical and economic uncertainty. In fact, we view this uncertainty and change as a catalyst for innovation and growth, allowing us to pursue new opportunities and expand our offerings. As the world's leading insurance brand, we are well-positioned to benefit from the global flight to trust, with the ability to meet growing customer demand for protection and retirement solutions.' - Oliver Bäte, Chief Executive Officer of Allianz SE FINANCIAL HIGHLIGHTS Allianz Group: Sustained strong momentum and record operating profit 'Allianz had a very good start to the year. We sustained our growth momentum while safeguarding attractive margins across our businesses, evidenced by our record operating profit. The proven resilience of our business model positions us very well to successfully manage volatile markets and a more uncertain environment. We confidently affirm our full-year operating profit outlook. We are firmly focused on executing the strategic priorities outlined at our Capital Markets Day to deliver on our ambitions.' - Claire-Marie Coste-Lepoutre, Chief Financial Officer of Allianz SE In 1Q 2025, Allianz has delivered a very good performance underpinned by sustained momentum across our businesses. The operating profit has reached a record level of 4.2 billion euros (1Q 2024: 4.0 billion euros), an increase of 6.3 percent, supported by growth across all segments. Our total business volume expanded by 11.7 1 percent, growing to 54.0 (48.4) billion euros. The Life/Health segment was the main driver, but all business segments contributed. Shareholders' core net income was stable at 2.6 billion euros as higher operating profit was compensated by a lower non-operating result and higher taxes. The latter were impacted by a one-off tax provision related to the forthcoming sale of our stake in our Indian Joint Ventures. Adjusted for this provision, shareholders' core net income was up 5 percent. Core earnings per share (EPS) 6 for 1Q 2025 amounted to 6.61 (6.42) euros, an increase of 2.9 percent. Adjusted for the one-off tax provision, core earnings per share were up 7 percent. Allianz has generated a robust annualized core return on equity (RoE) 6 of 16.6 percent in 1Q 2025 (full-year 2024: 16.9 percent), or 17.2 percent adjusted for the above-mentioned one-off tax provision. This performance was achieved while we maintained our financial strength with a stable Solvency II ratio of 208 percent (full-year 2024: 209 percent). Outlook Allianz is fully on track to achieve its full-year outlook of an operating profit of 16.0 billion euros, plus or minus 1 billion euros. A strong balance sheet, limited Solvency II sensitivities, and attractive product propositions position Allianz very well to manage volatile markets and geopolitical uncertainty. Other The share buy-back program of up to 2 billion euros, announced on February 27, 2025, is underway and 0.1 billion euros were completed during 1Q 2025. Property-Casualty insurance: Sustained growth momentum and excellent profitability Key performance indicator 1Q 2025 Change vs prior year Total business volume (€ bn) 27.0 7.1% 7 Operating profit (€ mn) 2,170 5.0% Combined ratio (%) 91.8 (0.1)%-p Loss ratio (%) 67.7 0.4%-p Expense ratio (%) 24.1 (0.5)%-p Expand Core messages Property-Casualty insurance 1Q 2025 Strong segment performance with very good internal growth and record operating profit Broad-based internal growth, in particular in retail 8 Operating profit reaches 27 percent of our full-year outlook midpoint Combined ratio excellent, reflecting successful underwriting actions and productivity gains Expand In 1Q 2025, total business volume reached 27.0 (1Q 2024: 25.5) billion euros. The very good internal growth of 7.1 percent continued to be underpinned by healthy rate increases, in particular in retail 8. Commercial 9 momentum remained resilient but slowed down. Allianz maintained a successful balance of growing its business while maintaining underwriting discipline. The operating profit of 2.2 (2.1) billion euros, the highest quarterly operating profit ever, marks a successful start to the year, reaching 27 percent of our full-year outlook midpoint. Operating profit advanced 5 percent compared to last year, driven by a higher insurance service result. The combined ratio improved slightly to an excellent level of to 91.8 percent (91.9 percent) exceeding our full-year outlook of ~93 percent. The loss ratio was 67.7 percent (67.3 percent). Natural catastrophe claims increased compared to a benign first quarter last year, but these were partly offset by a better run-off result. The expense ratio developed favorably by 0.5 percentage points to 24.1 percent. The retail 8 business showed an excellent performance. It delivered strong internal growth of 9 percent while further improving its combined ratio to 91.8 percent (93.0 percent). In the commercial 9 business, internal growth of 5 percent was good, reflecting the sustained momentum of the business, while navigating a slowing pricing environment. The segment achieved a strong combined ratio of 91.7 percent (89.9 percent). Life/Health insurance: Excellent new business growth Key performance indicator 1Q 2025 Change vs prior year PVNBP (€ mn) 26,095 16.8% New business margin (%) 5.5 (0.2)%-p VNB (€ mn) 1,440 13.6% Operating profit (€ mn) 1,427 7.5% Contractual Service Margin (€ bn, eop) 10 57.0 1.9% 11 Expand Core messages Life/Health insurance 1Q 2025 Excellent broad-based new business momentum at attractive margin Strong growth in value of new business, spread across all major operating entities 91 percent of new business premiums generated in preferred lines of business Operating profit strong at 1.4 billion euros, reaching 26 percent of our full-year outlook midpoint Expand In 1Q 2025, PVNBP, the present value of new business premiums, grew by 16.8 percent to 26.1 (1Q 2024: 22.3) billion euros. This excellent growth was broad-based, reflecting the strength of our global franchise and attractiveness of our customer value proposition. 91 percent of our new business premiums were generated in our preferred lines of business. The new business margin (NBM) was at an attractive level of 5.5 percent (5.7 percent) and the value of new business (VNB) increased strongly by 13.6 percent to 1.4 (1.3) billion euros. Operating profit rose to 1.4 (1.3) billion euros, an increase of 7.5 percent. This strong performance was supported by growth in most regions. Contractual Service Margin (CSM) advanced from 55.6 billion euros at the end of 2024 to 57.0 billion euros. 10 Normalized CSM growth in the first quarter was excellent at 1.9 percent, ahead of our full-year guidance of ~5 percent normalized annual growth. ____________________ 10 Includes gross CSM of 0.8 billion euros (as of December 31, 2024, and as of March 31, 2025), for UniCredit Allianz Vita S.p.A., which was classified as held for sale in the third quarter of 2024. In the first quarter of 2025, the German APR and the Austrian health businesses were transferred from the Property-Casualty segment to the Life/Health segment resulting in a 1.2 billion euro shift in the gross CSM opening balance. 11 Normalized CSM growth as of March 31, 2025. Expand Asset Management: Strong operating profit and third-party net inflows Key performance indicator 1Q 2025 Change vs prior year Operating revenues (€ bn) 2.1 2.7% 12 Operating profit (€ mn) 811 4.8% Cost-income ratio (%) 61.3 0.1%-p Third-party net flows (€ bn) 28.7 (16.2)% Third-party assets under management (€ bn) 1,914 (0.3)% 13 Expand Core messages Asset Management 1Q 2025 Operating profit advances 5 percent to 811 million euros, on track for full-year outlook Strong third-party net inflows of 28.7 billion euros. PIMCO and Allianz Global Investors contribute Assets under management (AUM)-driven revenues grow 10 percent Expand In 1Q 2025, operating revenues increased to 2.1 billion euros, an internal growth of 2.7 percent. This was fueled by higher AuM-driven revenues, which increased by 10 percent. Operating profit rose to a strong level of 811 (1Q 2024: 773) million euros, up 4.8 percent. Adjusted for foreign currency translation effects, operating profit increased by 2.5 percent. The cost-income ratio (CIR) was broadly stable at 61.3 percent (61.1 percent), reflecting ongoing productivity management. Third-party assets under management were largely unchanged compared to year-end 2024 and amounted to 1.914 trillion euros as of March 31, 2025. Strong net inflows of 28.7 billion euros and positive market effects were offset by foreign currency translation effects. 1Q 2025 RESULTS TABLE Allianz Group - key figures 1Q 2025 1Q 2025 1Q 2024 Delta Total business volume € bn 54.0 48.4 11.6% - Property-Casualty € bn 27.0 25.5 6.0% - Life/Health € bn 25.0 21.1 18.6% - Asset Management € bn 2.1 2.0 5.1% - Consolidation € bn (0.1) (0.2) (36.5)% Operating profit / loss € mn 4,238 3,986 6.3% - Property-Casualty € mn 2,170 2,066 5.0% - Life/Health € mn 1,427 1,327 7.5% - Asset Management € mn 811 773 4.8% - Corporate and Other € mn (165) (179) (7.6)% - Consolidation € mn (4) (2) 85.4% Net income € mn 2,581 2,631 (1.9)% - attributable to non-controlling interests € mn 158 156 1.4% - attributable to shareholders € mn 2,423 2,475 (2.1)% Shareholders' core net income 1 € mn 2,550 2,513 1.5% Core earnings per share 2 € 6.61 6.42 2.9% Additional KPIs - Group Core return on equity 3 % 16.6% 16.9% (0.2)% -p - Property-Casualty Combined ratio % 91.8% 91.9% (0.1)% -p - Life/Health New business margin % 5.5% 5.7% (0.2)% -p - Asset Management Cost-income ratio % 61.3% 61.1% 0.1% -p 03/31/2025 12/31/2024 Delta Shareholders' equity 4 € bn 62.4 60.3 3.5% Contractual service margin (net) 5 € bn 34.8 34.5 0.6% Solvency II capitalization ratio 6 % 208% 209% (1)% -p Third-party assets under management € bn 1,914 1,920 (0.3)% Please note: The figures are presented in millions of Euros, unless otherwise stated. Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 1_ Presents the portion of shareholders' net income before non-operating market movements and before amortization of intangible assets from business combinations (including any related income tax effects). 2_ Calculated by dividing the respective period's shareholders' core net income, adjusted for net financial charges related to undated subordinated bonds classified as shareholders' equity, by the weighted average number of shares outstanding (basic core EPS). 3_ Represents the annualized ratio of shareholders' core net income to the average shareholders' equity at the beginning and at the end of the period. Shareholders' core net income is adjusted for net financial charges related to undated subordinated bonds classified as shareholders' equity. From the average shareholders' equity, undated subordinated bonds classified as shareholders' equity, unrealized gains and losses from insurance contracts and other unrealized gains and losses are excluded. Annualized figures are not a forecast for full year numbers. For 1Q 2024, the core return on equity for the respective full year is shown. 4_ Excluding non-controlling interests. 5_ Includes net CSM of EUR 0.2bn (31.12.24: EUR 0.3bn) as of 31 March 2025, for UniCredit Allianz Vita S.p.A., which was classified as held for sale in the 3Q 2024. 6_ Risk capital figures are group diversified at 99.5% confidence level. Solvency II capitalization ratio is based on quarterly dividend accrual; additional accrual to reflect FY dividend would impact solvency II capitalization ratio by -10%-p as of 31 March 2025. Expand RATING ____________________ 1 A.M. Best's Rating Reports reproduced on appear under licence from A.M. Best Company and do not constitute, either expressly or implicitly, an endorsement of Allianz's products or services. A.M. Best's Rating Reports are the copyright of A.M. Best Company and may not be reproduced or distributed without the express written consent of A.M. Best Company. Visitors to are authorised to print a single copy of the rating report displayed there for their own use. Any other printing, copying or distribution is strictly prohibited. A.M. Best's ratings are under continual review and subject to change or affirmation. To confirm the current rating visit 2 Final ratings vary on the basis of the terms. Expand Related links Media Conference May 15, 2025, 11 AM CEST: Analyst Conference May 15, 2025, 2:00 PM CEST: YouTube (English language) Results The results and related documents can be found in the download center. Upcoming events Financial Results 2Q 2025 August 7, 2025 More information can be found in the financial calendar. About Allianz The Allianz Group is one of the world's leading insurers and asset managers with around 128 million* private and corporate customers in nearly 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world's largest investors, managing around 768 billion euros** on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage about 1.9 trillion euros** of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are among the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2024, over 156,000 employees achieved total business volume of 179.8 billion euros and an operating profit of 16.0 billion euros for the group. * As of December 31, 2024. Including non-consolidated entities with Allianz customers. ** As of March 31, 2025. These assessments are, as always, subject to the disclaimer provided below. Cautionary note regarding forward-looking statements This document includes forward-looking statements, such as prospects or expectations, that are based on management's current views and assumptions and subject to known and unknown risks and uncertainties. Actual results, performance figures, or events may differ significantly from those expressed or implied in such forward-looking statements. Deviations may arise due to changes in factors including, but not limited to, the following: (i) the general economic and competitive situation in the Allianz's core business and core markets, (ii) the performance of financial markets (in particular market volatility, liquidity, and credit events), (iii) adverse publicity, regulatory actions or litigation with respect to the Allianz Group, other well-known companies and the financial services industry generally, (iv) the frequency and severity of insured loss events, including those resulting from natural catastrophes, and the development of loss expenses, (v) mortality and morbidity levels and trends, (vi) persistency levels, (vii) the extent of credit defaults, (viii) interest rate levels, (ix) currency exchange rates, most notably the EUR/USD exchange rate, (x) changes in laws and regulations, including tax regulations, (xi) the impact of acquisitions including and related integration issues and reorganization measures, and (xii) the general competitive conditions that, in each individual case, apply at a local, regional, national, and/or global level. Many of these changes can be exacerbated by terrorist activities. No duty to update Allianz assumes no obligation to update any information or forward-looking statement contained herein, save for any information we are required to disclose by law. Other The figures regarding the net assets, financial position and results of operations have been prepared in conformity with International Financial Reporting Standards. This Quarterly Earnings Release is not an Interim Financial Report within the meaning of International Accounting Standard (IAS) 34. This is a translation of the German Quarterly Earnings Release of the Allianz Group. In case of any divergences, the German original is binding. Privacy Note Allianz SE is committed to protecting your personal data. Find out more in our privacy statement.
Newsweek
08-05-2025
- Business
- Newsweek
Europe Needs an Economic NATO
Advocates for ideas and draws conclusions based on the interpretation of facts and data. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Europe is losing ground fast. Since 2000, productivity growth has lagged 30 percent behind the U.S. The same trend holds for venture capital (VC). Over the past decade, the European Union (EU) has averaged just 0.3 percent of GDP in VC funding, less than one-third of American levels. Beneath these numbers lies a structural failure I've witnessed up close: Europe's inability to transform promising startups into category-defining leaders. As the U.K. strikes a trade deal with the U.S. this week and the May 19 U.K.-EU summit approaches, Brussels continues to signal hesitation: even a modest British request for mutual recognition of product certifications—a technical step that would ease trade and reduce friction—was recently rejected by key EU member states, including France. If we can't align on something as basic as product standards, we shouldn't harbor an illusion that a deeper economic partnership is within reach. The flag of the European Union flies next to Big Ben. The flag of the European Union flies next to Big Ben. Getty Images U.K. Prime Minister Keir Starmer played the royal card well, tiptoeing around President Donald Trump and securing a symbolic win. However, with Trump, one thing is certain: stability is borrowed time. Tariffs will be back. The U.K. brings deep capital markets and a world-class startup ecosystem. The EU brings a strong industrial manufacturing base and a massive market. Together, both could create an economic powerhouse if only Europe would finally address its chronic aversion to risk and investment. The problem runs deep, and it's not just about regulation, but about where Europe's money actually goes. According to the IMF, Europeans invest just $1 in equities, funds, and pension schemes for every $4.60 Americans put into equivalent asset classes. That figure alone reveals a structural failure in Europe's ability and willingness to support risk-taking capital. Under the EU's Solvency II directive, European pension funds and insurers were granted more flexibility, but at the cost of intense scrutiny under the prudent person principle. All investments, particularly in non-traditional assets like venture capital, must be fully documented, justified, and continuously monitored. In theory, this ensures responsibility. In practice, it breeds a culture of caution. As Jimmy Nielsen, founder of European-based Heartcore Capital, recently pointed out, a pension fund faces nearly the same regulatory burden whether it invests €20 million in a VC fund or €150 million in infrastructure. The result? Small, high-risk investments are too expensive and administratively burdensome to justify and thus are ignored, not because they're unworthy, but because the system makes them unattractive. Thus, a new approach is needed. An Economic NATO, with three principles highlighted below, should focus on pragmatic coordination, not political integration, and crucially, it must include the U.K. First: Regulation with growth in mind. National regulators must commit to a genuine reassessment of how Solvency II treats risk capital. This is not about loosening standards, but about introducing proportionality: small investments in growth funds should not carry the same regulatory burden as billion-euro investments in low-risk infrastructure. Second: A pan-European fund of funds. The European Investment Fund should launch a dedicated €100 billion fund-of-funds platform targeting venture capital funds, focused on innovation in frontier technologies. The U.K. government should match this effort through the British Business Bank, ensuring symmetrical access across the Channel. Third: More efficient capital markets. The EU should eliminate unnecessary bureaucracy and harmonize listing requirements and approval procedures across member states. Instead of dozens of national regulators and parallel exchanges, we need a single standard for IPOs and secondary trading. This would cut costs, boost liquidity, and make it easier for European growth companies to stay and scale at home. At the same time, the EU and U.K. should establish mutual recognition of IPO requirements, allowing European companies to access capital more efficiently. Capital allocation is no longer just a financial issue, but a matter of security. That's why the U.K.-EU summit on May 19 is the perfect opportunity to rethink the framework for economic coordination. The Franco-German engine that built the EU must be recalibrated. French President Emmanuel Macron should challenge the incoming German Chancellor Friedrich Merz to match France's substantial €109 billion investment pledge in AI. And the European Commission president must elevate capital markets reform from a technocratic side project to a political priority. Europe's economic sovereignty is at stake. Without a coordinated effort, it risks becoming a continent of good ideas but few breakthroughs. We have a choice: either we cling to fragmentation and watch startups head to Silicon Valley, or build an Economic NATO that unlocks capital, ambition, and growth. The tools exist. The time is now. And all we lack is the political courage to act. Lucas Ohrt is a 20-year-old student at Copenhagen Business School and an investment analyst at BlackWood, a pan-European venture capital fund. He is also the co-founder of Unge Iværksættere, Denmark's largest youth entrepreneurship organization. The views expressed in this article are the writer's own.
