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Allianz(ALIZY) - 2019 Q1 - Earnings Call Transcript
2019-05-14 21:04
Financial Data and Key Metrics Changes - The company reported an internal growth of 7.5%, driven by life settlements, property-casualty, and asset management [5] - Operating profit increased to €3 billion in Q1, on track to meet the full-year target of €11.5 billion [6] - IFRS equity rose by €6 billion, primarily due to market developments in Q1 [7] - The Solvency II ratio decreased by 11 percentage points, influenced by model changes and buyback deductions [8][14] - Net income for the quarter was nearly €2 billion, reflecting strong operational performance [41] Business Line Data and Key Metrics Changes - Property and casualty (P&C) internal growth was 4.6%, with 40% driven by price and 60% by volume [15] - Operating profit for P&C increased by 14%, attributed to improved underwriting results and a better combined ratio [17] - Life segment production saw an 18% increase in present value of new business premium, mainly from Germany and the USA [24] - Asset management reported an 8% increase in assets under management, with positive inflows primarily from PIMCO [33] Market Data and Key Metrics Changes - The pricing environment in P&C is stable or positive, supporting performance for the remainder of 2019 [16] - In Italy, P&C growth was reported at 8.4%, influenced by an accounting change affecting premium recognition [68] - The combined ratio for Allianz Direct was reported at 103%, indicating challenges in loss ratios [87] Company Strategy and Development Direction - The company aims to maintain a strong capital position while pursuing profitable growth, with a focus on capital management and operational efficiency [76] - Allianz Technology is expected to improve performance in the corporate segment as it transitions from investment to revenue generation [48] - The company is looking to enhance capital efficiency in AGCS and aims for a combined ratio of 96% by 2021 [92] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the full-year operating profit targets despite some challenges in specific markets [6][39] - The company is monitoring competitive pressures in the German motor insurance market, adjusting growth strategies accordingly [60] - Management noted that the current interest rate environment may require proactive adjustments in capital management strategies [76] Other Important Information - The tax rate for the quarter was reported at 25%, at the lower end of the expected range [41] - The company anticipates that the European Direct Platform will initially be a drag on the combined ratio but expects it to contribute positively in the long term [100] Q&A Session Summary Question: Solvency development and capital generation - Management acknowledged the complexity of sensitivities affecting the solvency ratio and provided insights on organic capital generation adjustments [45][49] Question: Allianz Technology's impact on corporate segment - Management confirmed that Allianz Technology's performance is improving and will positively impact the corporate segment moving forward [48][52] Question: Asset management flows in Q2 - Positive net flows of approximately €10 billion were reported for the first six weeks of Q2, primarily driven by PIMCO [47] Question: German motor pricing and competition - Management noted increased competition in the German motor market but emphasized a focus on profitable growth rather than sheer volume [60] Question: Growth in Life and P&C segments - Management clarified that growth in the Life segment is not a new strategy but a result of large contracts and natural growth, while P&C growth in Italy was influenced by accounting changes [66][68] Question: AGI outflows and performance - Management explained that AGI outflows were driven by distribution partner adjustments and a slowdown in retail sales in Europe [70]
Allianz(ALIZY) - 2019 Q1 - Earnings Call Presentation
2019-05-14 18:04
Allianz Group Financial information as of 31 March 2019 Reporting by business segments and quarters (starting from 1Q 2018) Consolidated Balance Sheets Asset allocation Allianz Group overview Property-Casualty overview Property-Casualty by region Life/Health overview Life/Health details Life/Health by region Asset Management overview Corporate and Other overview Consolidation overview Note: Where past years' figures have been adjusted as a consequence of changes to accounting regulations or their applicatio ...