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Investing.com -- Allianz SE VNA O.N. (ETR:ALVG) shares surged 5.2% after the German insurer reported a record second-quarter operating profit that exceeded analyst expectations, driven by strong performance in its Property-Casualty segment and improved margins.
The insurance giant posted an operating profit of €4.4 billion in the second quarter, up 12.2% from the previous year and 3.3% above consensus estimates. Total (EPA:TTEF) business volume rose 8.0% to €44.5 billion, with growth across all segments.
The company’s shareholders’ core net income jumped 17.3% to €3.0 billion, including a €0.3 billion disposal gain from the UniCredit Joint Venture. Excluding this one-time gain, core net income still increased by 7.1%.
"Allianz has delivered record results in the first half of the year, underpinned by sustained growth and a disciplined focus on productivity," said Oliver Bäte, Chief Executive Officer of Allianz SE. "The value and relevance of our products help us to retain and expand our customer base."
Life/Health operating profit increased 1.8% to €1.4 billion. Present value of new business premiums rose 3.8% to €19.5 billion, while the new business margin held at 5.7%. Value of new business increased 2.9% to €1.12 billion.
The Asset Management unit posted €779 million in operating profit, up 4.9%. Operating revenue rose 6.6% to €2 billion.
The cost-income ratio improved to 61.3% from 62.4%. Third-party net inflows reached €14 billion.
Third-party assets under management stood at €1.84 trillion, down from €1.91 trillion at the end of Q1, primarily due to foreign exchange effects.
In the first half, Allianz recorded €8.64 billion in operating profit, up 9.3% from the prior year.
Total business volume rose 10.1% to €98.5 billion. Shareholders’ core net income increased 9.5% to €5.53 billion.
Adjusted for one-off items, including a tax provision related to its Indian joint venture exit, core net income rose 6.2%.
Core earnings per share rose 11.3% to €13.99. Excluding one-off effects, EPS rose 7.9%. Annualized core return on equity reached 18.5%, or 17.9% adjusted.
The Property-Casualty business reported €4.47 billion in first-half operating profit, up 12.1%. Business volume grew 7.9% to €47.1 billion. The combined ratio improved to 91.5% from 92.7%.
In Life/Health, new business premiums increased 10.9% to €45.6 billion, and value of new business rose 8.6% to €2.56 billion. Operating profit rose 4.6% to €2.83 billion.
Asset Management posted €1.59 billion in operating profit, up 4.8%. Net inflows reached €42 billion in the first half.
Third-party assets under management declined from €1.92 trillion at year-end 2024 due to currency effects.
Allianz maintained its full-year operating profit target of €16 billion, ±€1 billion. The company completed €1 billion of its €2 billion share buyback program by midyear.