Allianz Group Grows Revenues by 5.7% To 148.5 billion Euros In 2021
*Announces New Share Buy-Back Of Up To 1bn Euros For 2022
Allianz Group has released full year 2021 financial result showing strong operating performance in all business segments and underpins confidence for 2022.
The Group has also announced new share buy-back amounting to one billion Euros for 2022 business year.
These were contained in a statement released by the group recently and made available for this medium.
The Group’s revenues increased by 5.7 per cent to 148.5 billion Euros, while operating profit jumped 24.6 per cent to 13.4 billion Euros, during the review period.
Net income, according to the statement, attributable to shareholders declined of 2.9 per cent to 6.6 billion Euros as a result of a one-time pre-tax provision of 3.7 billion Euros in anticipation of settlements with major investors in the AllianzGI U.S. Structured Alpha funds and in light of current discussions with U.S. governmental authorities, lowering the group’s 2021 net income by 2.8 billion Euros.
The Group’s Solvency II capitalization ratio, the statement stated, rose 1 percentage point to 209 per cent.
On the fourth quarter 2021 result, total revenues increased by 7.9 percent to 38.4 billion Euros even as the operating profit rose 18.0 percent to 3.5 billion euros
Net loss attributable to shareholders was 292 million euros due to a pre-tax provision of 3.7 billion euros in anticipation of settlements with major investors in the AllianzGI U.S. Structured Alpha funds and in light of current discussions with U.S. governmental authorities. Excluding this one-time item, net income rose 38.2 percent to 2.5 billion euros
For 2022, the Group target operating profit of 13.4 billion Euros, plus or minus 1 billion Euros. It also plan new share buyback programme of up to 1 billion Euros announced
The management, according to the statement, plans to propose a 12.5 per cent increase in dividend to 10.80 Euros per share, based on strong operating profit and solid net income
According to the Chief Executive Officer of Allianz SE, Oliver Bäte, “In spite of challenges in 2021, Allianz proved its resilience and adaptability with record-high operating profit, strong value growth in life, health and asset management businesses and strongly improved P/C margins and productivity, we are scaling the power of our global franchise.
He said in the full year of 2021, the Group’s Total revenues increased by 5.7 per cent to 148.5 billion Euros; adjusted for foreign exchange and consolidation effects, the increase was 6.1 percent.
He noted that strong sales in the United States and Italy contributed to revenue growth in the Life/Health business segment; the Property-Casualty business segment benefited from price and volume increases while the Asset Management business segment recorded higher assets under management-driven revenues and an increase in performance fees.
During the fourth quarter of 2021, total revenues increased 7.9 percent to 38.4 as against 35.6 billion euros recorded in the fourth quarter of 2020.
Internal revenue growth, which adjusts for currency and consolidation effects, was 5.9 percent, driven by all business segments.
On the Group’s Earnings for the full year 2021, operating profit jumped by 24.6 per cent to 13.4 higher than 10.8 billion Euros made in the same period of 2020. This was driven by higher profitability in all business segments.
In addition, this increase reflects the negative impact of COVID-19 on the prior-year operating profit. Higher average assets under management (AuM) and continued cost control led to a strong increase in operating profit from the Asset Management business segment.
The Property-Casualty business segment recorded a higher underwriting result, even in the face of high claims from natural catastrophes.
In the Life/Health business segment, operating profit grew due to higher reserve loadings, and improved investment and technical margins.
Net income attributable to shareholders was 6.6 (6.8) billion Euros as the provision for the AllianzGI U.S. Structured Alpha matter reduced the group’s 2021 net income by 2.8 billion Euros, offsetting the higher operating profit. Return on Equity (RoE) was 10.6 per cent lower than 11.4 per cent of 2020.
“In our Property-Casualty business, the rebound in the commercial and global lines clearly shows that we are well-positioned to benefit from further improvements in the underwriting environment. Even in the face of severe weather-related events, our combined ratio has improved due to our continuous focus on underwriting discipline and productivity improvements.
“In Life/Health, the solid level of new business with strong margins underscores the healthy demand for our products. We are very pleased with the success of our new business management initiatives and we have taken significant actions on in-force management. This proves our commitment to active capital management, which allows us to maximize the potential of our franchise.
“Our Asset Management business delivered a solid performance with a high level of inflows from clients in all regions and across all asset classes. Assets under management reached another record high at the end of 2021. The net income of the segment was impacted by a provision taken in anticipation of settlements with major investors in the AllianzGI U.S. Structured Alpha funds and in light of current discussions with U.S. governmental authorities, an important first step towards the resolution of the various related proceedings.
“Our strong business performance, driven by the strong underlying fundamentals of our franchise, strengthens our confidence in our outlook for 2022,” Chief Financial Officer of Allianz SE, Giulio Terzariol, has said.
