Allianz profit plummets 53% in H1 on investment funds fallout & volatility

Germany-based global re/insurer  Allianz Group’s profits plummeted almost 53% in the first half of 2022, primarily due to the  provision booked in relation to the Allianz GI US Structured Alpha proceedings, but also dampened by heightened market volatility and inflation.

Allianz reported a net profit attributable to shareholders of €2.3 billion in H1 2022, a decrease of 52.7% from a year earlier. For the second quarter, the net profit amounted to €1.7 billion, down 23.3% compared to the same period of 2021.

The company’s total revenues, however, surged 7.2% to €81.2 billion euros in H1 and 8.2% to €37.1 billion in Q2, driven by the property and casualty business segment with “broad volume growth” and positive price effects. The growth was further supported by the asset management and life/health segments.

Commenting on the results, Oliver Bäte, chief executive officer of Allianz SE, said: “Allianz delivered another quarter of robust financial performance, driven by strong growth in our Property-Casualty business. Our operating profit and group solvency ratio proved resilient against heightened volatility and a fundamentally weaker economic environment.

“We are well-positioned to manage the impact of high inflation and the economic pressures that are particularly evident in Europe. Allianz will continue to deploy our advantages of stability and scale for the benefit of our customers and shareholders.”

Giulio Terzariol, chief financial officer of Allianz SE, added: “In a quarter marked by heightened inflation and market volatility, we achieved a very strong operating profit in the second quarter, which emphasises our ability to successfully navigate rapidly-evolving situations.

“Having reached the halfway mark of our full-year outlook, we remain confident about our long-term growth trajectory. We confirm our full-year outlook of operating profit of €13.4 billion, plus or minus €1 billion.”