AGCS’s revenues rise as rate increases moderate

AGCS saw its total business volume increase by 8.2% in the second quarter to €3.11bn and by 5.3% to €6.66m in the first half, despite rate increases moderating.

AGCS, which still operates as a legal entity after combining with Allianz’s midcorp units through the global brand name Allianz Commercial, said rates were up an average 4.1% at renewal in H1, compared with 6.4% for the whole of last year.

Operating profit fell 4% at AGCS to €266m in Q2 but rose 4.8% to €502m in H1 after a strong first quarter. The combined ratio was pretty flat at 92.9% in the last quarter, compared with 92% in the prior-year period, and 93.4% at the half-year stage from 93.7%.

The performance at AGCS helped Allianz’s P&C business increase its operating profit by 3.3% for the first half to €3.98bn, despite a drop of 3.4% to €1.92bn in the second quarter. Total P&C business volume rose 7.3% in H1 to €44.8bn and by 9.4% to €19.3bn in Q2.

The P&C combined ratio hit 92.7% for the first six months from 92% and was up slightly in Q2 to 93.5% from 92.2%.

All this saw Allianz Group deliver €7.91bn of profit in the first half, up 5.3% and following profit growth of 3.8% in the second quarter to €3.93bn. Net income was up 13.9% to €5.29bn for the six-month period and by 7% to €2.66bn for the last quarter.

Group business volume rose 6.4% for H1 to €91bn and by 7.6% during Q2 to €42.6bn.

Allianz confirmed its profit target at €14.8bn, plus or minus €1bn, for the full year.

“Allianz delivered strong results in the first six months of the year, and we are confident in our ability to achieve our full-year ambitions,” said CEO Oliver Bäte.

“Our performance demonstrates the core strengths and resilience of our company, particularly as our results were achieved amid significant natural catastrophe activity in the second quarter – and notably in our home market,” he added.