AGCS’s profits up 20.6% to help Allianz Commercial hit €2.6bn

Allianz Global Corporate & Specialty (AGCS) saw its operating profit jump 20.6% last year to €953m and business volume rise 8.1% to €12.25bn under the combined Allianz Commercial banner, to help parent company Allianz deliver record profits. AGCS, which still operates as a legal entity after combining with Allianz’s midcorp units in March through the global brand name Allianz Commercial, delivered internal revenue growth of 7.1% for 2023. Insurance revenue rose 6% to €11.09bn from €10.46bn. Its combined ratio improved a touch to 94.5% from 95.6%. Allianz Commercial, which doesn’t report as a separate business, delivered operating profit of €2.6bn last year. This compares to a combined profit of €2.3bn between AGCS and Allianz’s midcorp businesses in 2022. The strong performance at AGCS and Allianz Commercial helped their parent group increase business volume by 5.5% to €161.7bn in 2023, driven by a 8.4% increase in P&C to €76.53bn. This was partially offset by a fall of 1.8% in asset management. Allianz said internal P&C growth was 11.2% adjusted for currency translation and consolidation effects, supported by price effects of 6.9% and volume effects of 4%. It said P&C growth was spread among many entities, with AGCS, Allianz Partners and Germany the main contributors. Allianz’s fourth quarter business volume rose 7.8% to €39.6bn, with P&C up 7.3% to €17.6bn. Fourth quarter P&C growth was mainly price driven, said Allianz, with AGCS, Germany, central and eastern Europe, and Italy the biggest drivers. Group operating profit increased 6.7% to a record €14.75bn in 2023. This was mainly due to 23.1% rise in life and health to €5.19bn, while P&C profit rose 1.2% to €6.91bn amid higher nat cat claims. Group operating profit jumped by 17% in Q4 to €3.76bn, with life and heath profit up 29% to €1.36bn and asset management up 13.2% to €912m. P&C profit rose by 1.6% to €1.61bn in the last quarter. Core shareholders net income rose 30.3% for the year to another record €9.1bn and by 46.6% in Q4 to €2.35bn. The annual P&C combined ratio increased by 0.6 percentage points to 93.8%. The loss ratio went up 0.9 percentage points to 69.3%, mainly due to higher claims from natural catastrophes and less run-off. The Q4 combined ratio increased to 94.9% from 94.3%. Allianz announced an operating profit target of €14.8bn for this year, plus or minus €1bn. It also announced a renewed share buy-back program of up to €1bn. “Allianz extended our track record of delivering a record operating profit and core net income, consolidating our leading position as one of the world’s most resilient global insurers and active asset managers,” said CEO Oliver Bäte. “Our property-casualty business saw strong growth while we supported our customers affected by elevated levels of natural catastrophes. Our life/health segment delivered profitable growth as we developed attractive solutions to protect our customers from the effects of inflation on their savings, and in our asset management business we achieved robust net inflows in a volatile capital market environment,” he added.

AGCS’s profits up 20.6% to help Allianz Commercial hit €2.6bn

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