Allianz, Europe’s largest insurer, is set to announce its second-quarter results on Thursday. Here are the key details:
Net Profit Forecast
According to consensus estimates compiled by the company, Allianz is projected to achieve a net profit of 2.27 billion euros ($2.49 billion) in the second quarter. It’s worth noting that the net profit reported for the same period last year was 1.71 billion euros. However, this figure doesn’t take into account an accounting change made following the adoption of new standards for insurance contracts and financial instruments in early 2023.
Property-Casualty Combined Ratio Forecast
Industry analysts predict that Allianz will report a property-casualty combined ratio of 92.6% for the quarter. This ratio serves as a crucial measure of profitability within the insurance industry. In the second quarter of the previous year, Allianz recorded a property-casualty combined ratio of 93.6%.
What to Watch
The performance of Allianz’s asset-management segment, which is home to Pimco and Allianz Global Investors, will be closely watched. Analysts anticipate a quarterly operating profit of 724 million euros, along with net inflows of 5 billion euros, as per consensus data provided by the company. In the second quarter of 2022, asset management generated an operating profit of 771 million euros, but experienced net outflows of 33.8 billion euros. Citi analysts recently stated that they expect the operating profit for Allianz’s asset management business to grow at an annual rate of 2% from 2022 to 2025.
Allianz aims to achieve an operating profit of 14.2 billion euros in 2023, with a margin of plus or minus 1 billion euros. Berenberg analysts believe that solid second-quarter results will likely lead to an upgrade in guidance during the third quarter. Based on a FactSet poll, analysts expect Allianz to achieve a full-year operating profit of 14.53 billion euros.