Earnings Review: Allianz SE Sticks to 2023 Target Despite Profit Dip

Key Highlights

• Revenue Growth: Allianz SE (ALV) reported a 4.5% increase in total business volume, reaching €36.5 billion in Q3 2023.
• Operating Profit and Net Income: The company’s operating profit decreased by 14.6% to €3.5 billion, primarily affected by the Property-Casualty business segment. Shareholders’ core net income was down by 29.3%, at €2.1 billion.
• Solvency and Outlook: The Solvency II capitalization ratio improved to 212%, up from 201% at the end of 4Q 2022. The 2023 operating profit target is confirmed at €14.2 billion, plus or minus €1 billion.

Allianz SE’s Resilient Revenue Amid Market Challenges

Allianz displayed robust revenue resilience in its third-quarter earnings release for 2023, overcoming global economic headwinds. The German financial services giant reported a 4.5% year-over-year increase in total business volume, reaching €36.5 billion. This growth, particularly significant in current market volatility, underscores Allianz’s diversified business model and ability to adapt to challenging economic conditions.

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Operating Profit Dips, Property-Casualty Segment Impacted

Despite the revenue uptick, Allianz SE witnessed a notable softening in its operating profit, which declined by 14.6% to €3.5 billion. This decrease was largely attributed to the Property-Casualty business segment, which suffered from a 7.3 percentage point impact due to natural catastrophes — the highest in a decade. Additionally, shareholders’ core net income saw a 29.3% decrease, settling at €2.1 billion. These figures reflect the volatility and unpredictability in global insurance markets, heavily influenced by natural and man-made disasters.

Strengthened Solvency and Confident Outlook

On a positive note, Allianz SE reported an improvement in its Solvency II capitalization ratio, a key measure of financial stability for insurance companies. The ratio climbed to 212%, up from 201% at the end of the fourth quarter of 2022. This improvement indicates a stronger balance sheet and enhanced financial resilience. Looking forward, Allianz remains confident, reiterating its 2023 operating profit target of €14.2 billion, with a potential deviation of plus or minus €1 billion.