Allianz "on track" for full year after "strong" interim results

Allianz SE shares rose on Thursday as the firm reported increased profit and insurance revenue for its second quarter, and hailed a "strong" first-half performance.

The stock traded 5.6% higher at EUR372.00 per share on Thursday afternoon in Frankfurt.

The Munich, Germany-based insurer and asset manager said net income increased 13% to EUR3.02 billion in the three months ended June 30, from EUR2.66 billion the year before. Core earnings per share jumped 20% to EUR7.39 from EUR6.15.

Insurance revenue rose 5.4% to EUR25.14 billion from EUR25.03 billion. Total business volume increased 8.0% to EUR44.5 billion, "supported by good growth across all segments".

Operating profit climbed 12% to EUR4.41 billion, which Allianz described as "a record level...with [a particularly] strong contribution from the Property-Casualty segment". P&C operating profit was 20% higher at EUR2.30 billion, while Life/Health's operating profit rose 1.8% to EUR1.40 billion.

For the half-year ended June 30, net income increased 5.8% to EUR5.60 billion from EUR5.29 billion. Core earnings per share rose 11% to EUR13.99 from EUR12.57. Total business volume increased 8.2% to EUR98.5 billion.

Operating profit rose 9.3% to EUR8.64 billion. Allianz said this was "our highest half-yearly operating profit ever, reaching 54 percent of our full-year outlook midpoint". For P&C, OP rose 12% to EUR4.47 billion while for Life/Health it rose 4.6% to EUR2.83 billion.

Going forward, Allianz said it is "fully on track" to reach its full-year target of EUR16.0 billion, plus or minus EUR1 billion, in operating profit.

"Allianz has delivered record results in the first half of the year, underpinned by sustained growth and a disciplined focus on productivity," commented Chief Executive Oliver Bate. "The value and relevance of our products help us to retain and expand our customer base.

"Our diversified mix of businesses, global reach, and consistent execution bring opportunity and momentum, placing us on track to deliver on the ambitions set out at our Capital Markets Day in December."