Allianz Group in the 1st quarter 2008: Robust earnings despite difficult market environment
Operating profit of 1.86 billion euros achieved – Markdowns of 845 million euros in ABS trading book – Realized gains deliberately kept low; net harvesting 1.8 billion euros below first quarter 2007 – Perlet: "We remain optimistic about the medium term, as the fundamentals of our business are in very good shape."
Munich, May 9, 2008
Allianz Group weathered difficult market conditions in the first quarter of 2008, which were due to the continuing credit crisis and weak equity markets worldwide. Total revenues decreased by 5.7 percent to 27.7 billion euros, compared to 29.3 billion euros in the same period of 2007. Operating profit in the first quarter of 2008 amounted to 1.86 billion euros, or 1.0 billion euros less than in the first quarter of 2007. Thereof, 845 million euros are attributable to ABS markdowns in first quarter 2008. Quarterly net income amounted to 1.15 billion euros. This represents a 64.6 percent decrease, which is mainly a result of Allianz's decision to not realize gains from capital investments due to unfavorable stock markets. This is in strong contrast to the first quarter of 2007, when Allianz recorded net realized gains of 2.0 billion euros from investments. Net-harvesting was 1.8 billion euros lower than in first quarter 2007.
Allianz Group did register some spill-over effects from the financial markets turmoil into its operations, such as lower investment income in Life and Health, decreased fee and commission income in Banking, and lower revenues from third-party equities business in Asset Management. However, Allianz Group’s fundamental business operations were robust with continued efficiency gains. Moreover, the Property and Casualty business recorded a very strong increase of operating profit and a combined ratio of 94.8 percent. The asset quality in insurance was strong. Also, the new business margin in Life and Health was at target level.
Allianz Group's capital base remains strong with shareholders’ equity amounting to 45.0 billion euros, compared to 47.8 billion euros at December 31, 2007.
The Property and Casualty business posted strong performance in the first quarter of 2008 with an operating profit improvement of 16.7 percent to 1.48 billion euros, compared to 1.27 billion euros in the first quarter of 2007. Gross premiums written, at 13.7 billion euros, nearly reached the same level of the previous year's first quarter. At 94.8 percent, the combined ratio was in the target range and significantly lower than 96.8 percent in the first quarter of 2007. The expense ratio was 26.1 percent, 2.5 percentage points lower than in the previous year's first quarter.
"We have again achieved superior results in soft P&C markets, through selective underwriting, pricing discipline and improved efficiency. Therefore, we are in a position for strong growth when the cycle turns in our mature markets," said Helmut Perlet, CFO of Allianz SE.
In the Life and Health business, total premium income remained stable at 12.3 billion euros, compared with the first quarter of 2007. Strong top-line growth in most major markets was in contrast to a specific development in Italy, where the entire bancassurance market was down by more than 30 percent in the first months of 2008. Switzerland, France and Germany recorded strong internal growth in Life through the acquisition of large group contracts. In Asia Pacific, Allianz maintained the growth momentum despite weaker bancassurance sales.
Operating profit decreased by 21.5 percent from 750 million euros in the first quarter of 2007 to 589 million euros, which was predominantly driven by a lower investment income.
"The underlying fundamentals in our Life and Health business are on track, demonstrated by a new business margin of 3 percent and positive net inflows," said Helmut Perlet.
Dresdner Bank saw a significant decline in operating revenues by 64.5 percent to 719 million euros, compared to over 2.0 billion euros in the first quarter of 2007. This was predominantly driven by 845 million euros in markdowns on the ABS trading book. The interest income amounted to 669 million euros, compared to 900 million euros in the first quarter of 2007. Net fee and commission income decreased from 789 million euros to 604 million euros, which reflects the current market environment leading to a lower income from transaction-driven securities business.
The operating profit decreased to -453 million euros, from 677 million euros in the first quarter of 2007. However, expenses were further reduced across all expense categories and divisions. Overall, operating expenses decreased to 1.16 billion euros from 1.35 billion euros in the previous year's first quarter.
In Asset Management, third-party assets under management decreased to 736 billion euros from 765 billion euros at December 31, 2007. Third-party net inflows at 25.9 billion euros in the first quarter of 2008 were strong and supported by Allianz Global Investors' resilient fixed-income business in the difficult market conditions. Internal growth of third-party assets under management was 2.4 percent. Given the weak equity markets, operating profit decreased from 312 million euros in the previous year's quarter to 241 million euros. The cost-income ratio amounted to 66.9 percent.
"We believe our Asset Management business did very well, given the extremely difficult market environment. Taking into consideration strong net inflows and stable margins, the segment is poised for future growth as markets go back to normal," said Helmut Perlet.
Outlook
"Although we are seeing somewhat lesser tension in US residential mortgage prices as well as cautiously rebounding equity markets, it is hard to predict when the stormy weather will end. While 2008 will remain a challenging year, the longer this environment persists the harder it will also be to achieve our medium term outlook. Yet we remain optimistic, as the fundamentals of our business are in very good shape and we are very well positioned for the return to normal market conditions," said Helmut Perlet.
Investor-Relations-News
First Quarter 2008: Allianz expects operating profit of a solid 1.8 billion euros despite difficult market environment
Allianz Group expects mark-downs of almost 0.9 billion euros for the first quarter 2008, which will have to be accrued in the area of structured financial products of Dresdner Bank due to the ongoing financial market crisis. Allianz estimates an operating profit of a solid 1.8 billion euros for the first three months of 2008, after 2.9 billion euros in the first quarter of 2007.
Munich, Apr 29, 2008
Based on disadvantageous stock prices, realized gains from investments were consciously kept low, while in previous year’s quarter during favorable market conditions realized gains amounted to 2.0 billion euros. Therefore, net income for the first quarter 2008 is expected to reach about 1.1 billion euros, which is clearly below previous year’s result of 3.2 billion euros. "In this difficult market environment, an operating profit of almost 2 billion euros underlines our sustainable underlying profitability. Hence, we consider our medium term targets for 2009 to be still feasible, even though this will become harder, the longer the financial crisis will last", said Helmut Perlet, Board Member of Allianz SE.
As already announced, Allianz will publish full details for the first quarter 2008 on May 9, 2008.
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First Quarter 2008: Allianz expects operating profit of a solid 1.8 billion euros despite difficult market environment (pdf, 25 KB)
As with all content published on this site, these statements are subject to our Forward Looking Statement disclaimer, provided on the right.
Allianz Group expects mark-downs of almost 0.9 billion euros for the first quarter 2008, which will have to be accrued in the area of structured financial products of Dresdner Bank due to the ongoing financial market crisis. Allianz estimates an operating profit of a solid 1.8 billion euros for the first three months of 2008, after 2.9 billion euros in the first quarter of 2007.
Munich, Apr 29, 2008
Based on disadvantageous stock prices, realized gains from investments were consciously kept low, while in previous year’s quarter during favorable market conditions realized gains amounted to 2.0 billion euros. Therefore, net income for the first quarter 2008 is expected to reach about 1.1 billion euros, which is clearly below previous year’s result of 3.2 billion euros. "In this difficult market environment, an operating profit of almost 2 billion euros underlines our sustainable underlying profitability. Hence, we consider our medium term targets for 2009 to be still feasible, even though this will become harder, the longer the financial crisis will last", said Helmut Perlet, Board Member of Allianz SE.
As already announced, Allianz will publish full details for the first quarter 2008 on May 9, 2008.
>
First Quarter 2008: Allianz expects operating profit of a solid 1.8 billion euros despite difficult market environment (pdf, 25 KB)
As with all content published on this site, these statements are subject to our Forward Looking Statement disclaimer, provided on the right.
Dividend
The Annual General Meeting on May 21, 2008 decided to distribute a dividend of 5.50 Euro per share for the business year 2007. (2006: € 3.80).
As in the previous year, the increase in the dividend is significantly higher than the rise in net income. Thus, the dividend yield at year end 2007 was 3.7 %, the payout ratio 31 %. As of September 2007, the Allianz share is oart of the DivDAX, an index comprising the 15 DAX companies with the highest dividend yields.
Dividend for fiscal 2007 - timetable
Dividend proposal (announced at the Financial Press Conference) 02/21/2008
Decision on dividend at the Annual General Meeting 05/21/2008
Record date 05/21/2008
Dividend announcement 05/22/2008
Dividend pay-out (valuta) 05/22/2008
Ex dividend quotation 05/22/2008
Overview of Allianz SE's dividend payments since 1980
Year Pay out date
Dividend without tax credit Tax credit Dividend incl. tax credit
2007 05/22/08 Euro 5.50 --- Euro 5.50
2006 05/03/07 Euro 3.80 --- Euro 3.80
2005 05/04/06 Euro 2.00
--- Euro 2.00
2004 05/05/05 Euro 1.75 --- Euro 1.75
2003 05/06/04 Euro 1.50 --- Euro 1.50
2002 04/30/03 Euro 1.50 --- Euro 1.50
2001 06/13/02 Euro 1.50 --- Euro 1.505
2000 07/12/01 Euro 1.50 Euro 0.64 Euro 2.14
1999 07/13/00 Euro 1.25 Euro 0.54 Euro 1.794
1998 07/08/99 DM 2.20 DM 0.94 DM 3.14
1997 07/09/98 DM 1.90 DM 0.81 DM 2.71
1996 07/11/97 DM 1.70 DM 0.73 DM 2.433
1995 10/08/96 DM 16.00 DM 6.86 DM 22.86
1994 10/06/95 DM 15.00 DM 6.43 DM 21.43
1993 10/07/94 DM 50.00 DM 21.43 DM 71.432
1992 10/07/93 DM 13.50 DM 7.59 DM 21.09
1991 10/05/92 DM 13.50 DM 7.59 DM 21.09
1990 10/04/91 DM 13.50 DM 7.59 DM 21.09
1989 10/05/90 DM 16.00 DM 9.00 DM 25.001
1988 10/05/89 DM 12.00 DM 6.75 DM 18.75
1987 10/06/88 DM 12.00 DM 6.75 DM 18.75
1986 10/02/87 DM 12.00 DM 6.75 DM 18.75
1985 10/02/86 DM 12.00 DM 6.75 DM 18.75
1984 06/28/85 DM 11.00 DM 6.19 DM 17.19
1983 07/12/84 DM 10.00 DM 5.63 DM 15.63
1982 07/14/83 DM 10.00 DM 5.63 DM 15.63
1981 07/09/82 DM 10.00 DM 5.63 DM 15.63
1980 07/09/81 DM 10.00 DM 5.63 DM 15.63
1 Including anniversary bonus DM 4.00 (100 years Allianz).
2 Including special distribution DM 35.00.
3 Stock split / par value reduction from DM 50.00 to DM 5.00 (per 04/28/97).
4 Conversion to euros (per 01/01/1999).
5 Conversion of taxation to "half-income" taxation method.
As in the previous year, the increase in the dividend is significantly higher than the rise in net income. Thus, the dividend yield at year end 2007 was 3.7 %, the payout ratio 31 %. As of September 2007, the Allianz share is oart of the DivDAX, an index comprising the 15 DAX companies with the highest dividend yields.
Dividend for fiscal 2007 - timetable
Dividend proposal (announced at the Financial Press Conference) 02/21/2008
Decision on dividend at the Annual General Meeting 05/21/2008
Record date 05/21/2008
Dividend announcement 05/22/2008
Dividend pay-out (valuta) 05/22/2008
Ex dividend quotation 05/22/2008
Overview of Allianz SE's dividend payments since 1980
Year Pay out date
Dividend without tax credit Tax credit Dividend incl. tax credit
2007 05/22/08 Euro 5.50 --- Euro 5.50
2006 05/03/07 Euro 3.80 --- Euro 3.80
2005 05/04/06 Euro 2.00
--- Euro 2.00
2004 05/05/05 Euro 1.75 --- Euro 1.75
2003 05/06/04 Euro 1.50 --- Euro 1.50
2002 04/30/03 Euro 1.50 --- Euro 1.50
2001 06/13/02 Euro 1.50 --- Euro 1.505
2000 07/12/01 Euro 1.50 Euro 0.64 Euro 2.14
1999 07/13/00 Euro 1.25 Euro 0.54 Euro 1.794
1998 07/08/99 DM 2.20 DM 0.94 DM 3.14
1997 07/09/98 DM 1.90 DM 0.81 DM 2.71
1996 07/11/97 DM 1.70 DM 0.73 DM 2.433
1995 10/08/96 DM 16.00 DM 6.86 DM 22.86
1994 10/06/95 DM 15.00 DM 6.43 DM 21.43
1993 10/07/94 DM 50.00 DM 21.43 DM 71.432
1992 10/07/93 DM 13.50 DM 7.59 DM 21.09
1991 10/05/92 DM 13.50 DM 7.59 DM 21.09
1990 10/04/91 DM 13.50 DM 7.59 DM 21.09
1989 10/05/90 DM 16.00 DM 9.00 DM 25.001
1988 10/05/89 DM 12.00 DM 6.75 DM 18.75
1987 10/06/88 DM 12.00 DM 6.75 DM 18.75
1986 10/02/87 DM 12.00 DM 6.75 DM 18.75
1985 10/02/86 DM 12.00 DM 6.75 DM 18.75
1984 06/28/85 DM 11.00 DM 6.19 DM 17.19
1983 07/12/84 DM 10.00 DM 5.63 DM 15.63
1982 07/14/83 DM 10.00 DM 5.63 DM 15.63
1981 07/09/82 DM 10.00 DM 5.63 DM 15.63
1980 07/09/81 DM 10.00 DM 5.63 DM 15.63
1 Including anniversary bonus DM 4.00 (100 years Allianz).
2 Including special distribution DM 35.00.
3 Stock split / par value reduction from DM 50.00 to DM 5.00 (per 04/28/97).
4 Conversion to euros (per 01/01/1999).
5 Conversion of taxation to "half-income" taxation method.
Bonds and Participation Certificate
Bonds and Exchangeable Bonds
An overview of bonds, subordinated bonds and exchangeable bonds issued or guaranteed by Allianz SE can be found here.
Bonds are listed in chronological order according to their date of issue with the most recent issue being given first.
8.375% Undated Subordinated Bond issued by Allianz SE
3 M.6 M.12 M.
Volume US$ 2.0 billion
Year of issue 2008
Due date undated
Ticker NYSE AZM
ISIN US 018 805 200 7
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Prospectus (pdf, 506 KB)
5.0% Bond issued by Allianz Finance II B.V., Amsterdam
3 M.6 M.12 M.
Volume Euro 1.5 billion
Year of issue 2008
Due date 03/06/2013
WKN A0T R7K
ISIN DE 000 A0T R7K 7
>
Terms & Conditions (pdf, 175 KB)
4.0% Bond issued by Allianz Finance II B.V., Amsterdam
3 M.6 M.12 M.
Volume Euro 1.5 billion
Year of issue 2006
Due date 11/23/2016
WKN A0G 180
ISIN XS 027 588 026 7
>
IR Release 11/15/2006 Allianz Eurobond meets strong demand
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Terms & Conditions (pdf, 215 KB)
5.375% Undated Subordinated Bond issued by Allianz Finance II B.V., Amsterdam
3 M.6 M.12 M.
Volume Euro 800 million
Year of issue 2006
Due date undated
WKN A0G NPZ
ISIN DE 000 A0G NPZ 3
>
Prospectus (pdf, 3.3 MB)
>
Notification of the final terms pdf, 36 KB)
>
Roadshow presentation (pdf, 311 KB)
>
Press Release 02/28/2006 Allianz Bond successfully placed
4.375% Undated Subordinated Bond issued by Allianz Finance II B.V., Amsterdam
3 M.6 M.12 M.
Volume Euro 1.4 billion
Year of issue 2005
Due date undated
WKN A0D X0V
ISIN XS 021 163 783 9
>
Terms & Conditions (pdf, 0.4 MB)
>
Summary of Terms & Conditions
>
IR Release 01/28/2005 Capital market transactions completed successfully
5.5 % Perpetual Subordinated Bond issued by Allianz SE
3 M.6 M.12 M.
Volume Euro 1.5 billion
Year of issue 2004
Due date perpetual
WKN A0A HG3
ISIN XS 018 716 232 5
>
Terms & Conditions (pdf, 358 KB)
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IR Release 02/20/2004 Record demand for Allianz subordinated bond
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IR Release 02/13/2004 Allianz announces subordinated bond
5.625% Bond issued by Allianz Finance II B.V., Amsterdam
3 M.6 M.12 M.
Volume Euro 900 million
Year of issue 2002
Due date 11/29/2012
WKN 250 036
ISIN XS 015 879 238 1
>
Prospectus (pdf, 915 KB)
>
IR Release 11/22/2002 Allianz Jumbo Eurobond generates strong demand
7.25 % Guaranteed Perpetual Subordinated Bond issued by Allianz Finance II B.V., Amsterdam
3 M.6 M.12 M.
Volume US$ 500 million
Year of issue 2002
Due date perpetual
WKN 369 290
ISIN XS 015 915 072 0
>
Prospectus (pdf, 907 KB)
>
IR Release 12/05/2002 Allianz subordinated bonds successfully placed
6.5 % Guaranteed Subordinated Fixed to Floating Rate Bond issued by Allianz Finance II B.V., Amsterdam
3 M.6 M.12 M.
Volume Euro 1 billion
Year of issue 2002
Due date 01/13/2025
WKN 377 799
ISIN XS 015 952 750 5
>
Prospectus (pdf, 896 KB)
>
IR Release 12/05/2002 Allianz subordinated bonds successfully placed
6.125 % Guaranteed Subordinated Fixed to Floating Rate Bond issued by Allianz Finance II B.V., Amsterdam
3 M.6 M.12 M.
Volume Euro 2 billion
Year of issue 2002
Due date 05/31/2022
WKN 858 420
ISIN XS 014 888 756 4
An overview of bonds, subordinated bonds and exchangeable bonds issued or guaranteed by Allianz SE can be found here.
Bonds are listed in chronological order according to their date of issue with the most recent issue being given first.
8.375% Undated Subordinated Bond issued by Allianz SE
3 M.6 M.12 M.
Volume US$ 2.0 billion
Year of issue 2008
Due date undated
Ticker NYSE AZM
ISIN US 018 805 200 7
>
Prospectus (pdf, 506 KB)
5.0% Bond issued by Allianz Finance II B.V., Amsterdam
3 M.6 M.12 M.
Volume Euro 1.5 billion
Year of issue 2008
Due date 03/06/2013
WKN A0T R7K
ISIN DE 000 A0T R7K 7
>
Terms & Conditions (pdf, 175 KB)
4.0% Bond issued by Allianz Finance II B.V., Amsterdam
3 M.6 M.12 M.
Volume Euro 1.5 billion
Year of issue 2006
Due date 11/23/2016
WKN A0G 180
ISIN XS 027 588 026 7
>
IR Release 11/15/2006 Allianz Eurobond meets strong demand
>
Terms & Conditions (pdf, 215 KB)
5.375% Undated Subordinated Bond issued by Allianz Finance II B.V., Amsterdam
3 M.6 M.12 M.
Volume Euro 800 million
Year of issue 2006
Due date undated
WKN A0G NPZ
ISIN DE 000 A0G NPZ 3
>
Prospectus (pdf, 3.3 MB)
>
Notification of the final terms pdf, 36 KB)
>
Roadshow presentation (pdf, 311 KB)
>
Press Release 02/28/2006 Allianz Bond successfully placed
4.375% Undated Subordinated Bond issued by Allianz Finance II B.V., Amsterdam
3 M.6 M.12 M.
Volume Euro 1.4 billion
Year of issue 2005
Due date undated
WKN A0D X0V
ISIN XS 021 163 783 9
>
Terms & Conditions (pdf, 0.4 MB)
>
Summary of Terms & Conditions
>
IR Release 01/28/2005 Capital market transactions completed successfully
5.5 % Perpetual Subordinated Bond issued by Allianz SE
3 M.6 M.12 M.
Volume Euro 1.5 billion
Year of issue 2004
Due date perpetual
WKN A0A HG3
ISIN XS 018 716 232 5
>
Terms & Conditions (pdf, 358 KB)
>
IR Release 02/20/2004 Record demand for Allianz subordinated bond
>
IR Release 02/13/2004 Allianz announces subordinated bond
5.625% Bond issued by Allianz Finance II B.V., Amsterdam
3 M.6 M.12 M.
Volume Euro 900 million
Year of issue 2002
Due date 11/29/2012
WKN 250 036
ISIN XS 015 879 238 1
>
Prospectus (pdf, 915 KB)
>
IR Release 11/22/2002 Allianz Jumbo Eurobond generates strong demand
7.25 % Guaranteed Perpetual Subordinated Bond issued by Allianz Finance II B.V., Amsterdam
3 M.6 M.12 M.
Volume US$ 500 million
Year of issue 2002
Due date perpetual
WKN 369 290
ISIN XS 015 915 072 0
>
Prospectus (pdf, 907 KB)
>
IR Release 12/05/2002 Allianz subordinated bonds successfully placed
6.5 % Guaranteed Subordinated Fixed to Floating Rate Bond issued by Allianz Finance II B.V., Amsterdam
3 M.6 M.12 M.
Volume Euro 1 billion
Year of issue 2002
Due date 01/13/2025
WKN 377 799
ISIN XS 015 952 750 5
>
Prospectus (pdf, 896 KB)
>
IR Release 12/05/2002 Allianz subordinated bonds successfully placed
6.125 % Guaranteed Subordinated Fixed to Floating Rate Bond issued by Allianz Finance II B.V., Amsterdam
3 M.6 M.12 M.
Volume Euro 2 billion
Year of issue 2002
Due date 05/31/2022
WKN 858 420
ISIN XS 014 888 756 4
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