Admin l Saturday, February 19, 2022
JOHANNESBURG, South Africa – The Allianz Group on Friday released its financial result for the year ended 2021 with very strong returns on investment.
Total revenues increased by 5.7 percent to 148.5 billion Euros despite the challenges of 2021. Operating profit jumped by 24.6 percent to 13.4 billion Euros.
Net income attributable to shareholders declined 2.9 percent 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 the light of current discussions with U.S. governmental authorities, lowering the group’s 2021 net income by 2.8 billion Euros . Solvency II capitalization ratio rose 1 percentage point to 209 percent.
But in the 4th quarter alone, operating profit rose by 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 by 38.2 percent to 2.5 billion Euros.
Looking forward, the Allianz projects operating profit target of 13.4 billion Euros, plus or minus 1 billion euros2 in the year 2022. Other projections include new share buyback program of up to 1 billion Euros, while management plans to propose a 12.5 percent increase in dividend to 10.80 Euros per share, based on strong operating profit and solid net income
Speaking on the outing of the group, – Oliver Bäte, Chief Executive Officer of Allianz SE, noted “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.
“Our underlying performance was very strong in 2021, as evidenced by the operating profit of 13.4 billion euros.
Giving insights into the various segments, Giulio Terzariol, Chief Financial Officer of Allianz SE explained that inProperty-Casualty business, the rebound in the commercial and global lines clearly shows that Allianz is 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”, he said.
In Life/Health, he noted that the solid level of new business with strong margins underscores the healthy demand for its 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”.
On asset management, he the 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”, he said.
The Allianz Group is one of the world’s leading insurers and asset managers with 126 million private and corporate customers in more than 70 countries.
