Allianz Increases Operating Profit
According to Allianz, its life/health and property-casualty businesses both performed well in the first quarter of 2023, which is why its operating profit increased by 24.2% to 3.7 billion. The first quarter of 2023 had a 3.9% increase in total business volume, reaching $46 billion. Allianz claims that the segment of property-casualty insurance drove this growth, benefiting from increasing premiums and volumes.
Additionally, the business reported core net income attributable to shareholders of $2.2 billion in the first quarter of 2023, up significantly from $400 million in the corresponding period of 2022. According to Allianz, this year-over-year improvement is the result of superior non-operating results and higher operating income.
In the first quarter of 2023, the company’s Solvency II capitalization ratio was 206% as opposed to 201% at the end of the fourth quarter of 2022. Allianz’s first quarter results demonstrated good performance and demonstrated resilience across all areas, according to Giulio Terzariol, the chief financial officer of Allianz SE.
With the first-time implementation of IFRS 9 and 17, we have improved the clarity and transparency of our results while showcasing our capacity to add value. Following up, Terzariol said, “Our property-casualty insurance business posted excellent internal growth, driven by healthy pricing that has helped to offset the impact of inflation.” Our stringent underwriting discipline and emphasis on productivity improvements are to blame for the large increase in operating income.
Our life and health insurance company has strong value creation. The strength of our current business and the tenacity of new business value provide solid backing for our profitability. Our third-party assets under management surpassed 1.7 trillion, and our active asset management saw net inflows of 14.9 billion. This is encouraging for sustained profitability growth. We reaffirm our forecast for an operational profit of 14.2 billion euros, plus or minus 1 billion euros, for the entire year.
We can be proud of our operating profit and bottom line, a reflection of our strength, our capabilities, and the consistent execution of our strategy,” said Oliver Bte, CEO of Allianz SE. Our diverse business mix has once more benefited us. We excelled in P&C thanks to steady pricing, strict underwriting standards, and a commitment on achieving even greater productivity gains. Our dedication to remaining our clients’ reliable partner in securing their futures as they move through a moment of hesitancy and uncertainty is underscored by our robust profitability and capitalization.
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