Allianz SE / Quarter Results
07.11.2008
Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Dresdner Bank treated as discontinued business (1); Transaction on track
Q3 net income from continued operations of 545 million euros
Q3 net loss considering discontinued operations of 2.0 billion euros
Solvency ratio at 157 percent
Allianz Group maintained its financial strength and earning power in the
third quarter of 2008, although turmoil in the equity markets and a
difficult economic environment severely affected the business of the
financial services industry as a whole. Total revenues decreased slightly
by 3.8 percent to 21.1 billion euros, compared to 21.9 billion euros in the
third quarter of 2007. Operating profit decreased to 1.6 billion euros,
compared to 2.6 billion euros in the same period of 2007. Quarterly net
income from continued operations amounted to 545 million euros, compared to
2.0 billion euros in third quarter 2007.
During the first nine months of 2008, Allianz Group achieved an operating
profit of 6.5 billion euros, compared to 7.7 billion euros in the same
period of 2007. Net income from continued operations amounted to 4.2
billion euros, compared to 6.1 billion euros in the same period of last
year.
Difficult capital market conditions during the third quarter had a negative
effect on revenues and on the operating profit from the life insurance and
asset management businesses. However, Allianz Group's largest segment, the
Property & Casualty business, proved to be resilient.
The sale of Dresdner Bank will be reported under 'discontinued operations'
as of September 1, 2008. Discontinued operations accounted for a net loss
of 2.6 billion euros in the third quarter, comprised of a net loss from the
banks operations of 1.2 billion euros as well as transaction-based
impairments according to IFRS 5 of 1.4 billion euros. Allianz's net loss
for the third quarter stood at 2.0 billion euros, compared to a net income
of 1.9 billion euros in the third quarter of 2007.
With a shareholders equity of 37.5 billion euros, Allianz Groups capital
base remains on a high level. This also applies to the solvency ratio of
157 percent (2), net of a dividend accrual of 1.6 billion euros.
The Property and Casualty business delivered a solid performance in the
third quarter. Gross premiums written increased to 10.8 billion euros,
compared with 10.7 billion euros in the third quarter of 2007. Adjusted for
exchange rates and consolidation effects, revenue grew by 7.8 percent.
The operating profit in the third quarter decreased to 1.2 billion euros
from 1.5 billion euros in the third quarter of 2007. The decline is largely
due to two factors. The credit insurance business recorded payment delays
as suppliers faced liquidity bottlenecks. In addition, the US crop business
had to absorb losses following the slump in commodity prices at the end of
September.
The expense ratio decreased from 27.6 percent in the third quarter of 2007
to 26.2 percent, while the combined ratio reached 96.2 percent, compared to
94.1 percent for the same period in 2007.
In the Life & Health business total premium income decreased to 9.4 billion
euros in the third quarter, compared to 10.2 billion euros in third quarter
2007. Financial market conditions negatively impacted the sale of
unit-linked products, which was down by 1.3 billion euros, while
traditional life insurance business increased by 10 percent or 400 million
euros. Especially Germany, Switzerland, and France experienced growth in
their traditional business.
The financial market downturn impacted operating investment result through
impairments level of 1.6 billion euros and around 500 million euros lower
realized gains compared to the third quarter of 2007. Operating profit in
the third quarter 2008 declined to 218 million euros from 873 million euros
in the same quarter of last year.
Allianz Banking, which now consists of Oldenburgische Landesbank (OLB) and
one million banking customers acquired by Allianz tied agents in Germany,
as well as Allianz Banking in Italy, France, and New Europe, achieved
operating revenues of 123 million euros in the third quarter of 2008. The
operating loss in the third quarter amounted to 17 million euros, compared
to an operating loss of 14 million euros in the same period of 2007.
Dresdner Bank, now accounted for as discontinued business, had operating
revenues of 747 million euros, down from 1.2 billion euros a year ago.
Dresdner Bank continued to suffer from weak and volatile markets in the
third quarter. The operating loss in the third quarter of 2008 amounted to
835 million euros, compared to an operating profit of 87 million euros in
the same period of 2007.
The Tier I ratio of Dresdner Bank stood at 8.1 percent as of end of
September.
In Asset Management, operating revenues decreased to 698 million euros in
the third quarter from 803 million euros in third quarter 2007. Asset
Managements operating profit was strongly influenced by foreign currency
and capital market effects and amounted to 186 million euros, down by 44
percent from the strong third quarter of last year, when the operating
profit amounted to 330 million euros.
Third-party assets under management increased to 754 billion euros by the
end of the quarter. At the end of the second quarter they stood at 740
billion euros. Despite increasingly challenging conditions, net inflows
amounted to 5.6 billion euros in the third quarter. A negative capital
market effect of 44 billion euros was more than offset by a positive
foreign exchange effect of 53 billion euros.
Outlook
'Our standard caveat with respect to the financial markets has never been
more important than during the third quarter. Without a major equity market
recovery, the operating profit outlook of 9 billion euros before banking
for this year and next year cannot be reached. In this environment,
reliable statements about future earnings are not possible', said Helmut
Perlet and added: '6.5 billion euros of operating profit from January to
September prove the fundamental strength of our business.'
(1) Following the announcement of the sale, Dresdner Bank qualifies as
held-for-sale and discontinued operations. Therefore, all revenue and
profit figures presented for our continuing business do not include the
parts of Dresdner Bank which we will sell to Commerzbank.
(2)Solvency computed according to the draft amendment of FkSolV published
by the BaFin, which revises the treatment of unrealized gains/losses on the
bond portfolio.
These assessments are, as always, subject to the disclaimer provided below.
End of message.
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Information and Explaination of the Issuer to this News:
Cautionary Note Regarding Forward-Looking Statements:
Certain of the statements contained herein may be statements of future
expectations and other forward-looking statements that are based on
management's current views and assumptions and involve known and unknown
risks and uncertainties that could cause actual results, performance or
events to differ materially from those expressed or implied in such
statements. In addition to statements which are forward-looking by reason
of context, the words may, will, should, expects, plans, intends,
anticipates, believes, estimates, predicts, potential, or continue and
similar expressions identify forward-looking statements. Actual results,
performance or events may differ materially from those in such statements
due to, without limitation, (i) general economic conditions, including in
particular economic conditions in the Allianz Group's core business and
core markets, (ii) performance of financial markets, including emerging
markets, (iii) the frequency and severity of insured loss events, (iv)
mortality and morbidity levels and trends, (v) persistency levels, (vi) the
extent of credit defaults (vii) interest rate levels, (viii) currency
exchange rates including the Euro-U.S. Dollar exchange rate, (ix) changing
levels of competition, (x) changes in laws and regulations, including
monetary convergence and the European Monetary Union, (xi) changes in the
policies of central banks and/or foreign governments, (xii) the impact of
acquisitions, including related integration issues, (xiii) reorganization
measures and (xiv) general competitive factors, in each case on a local,
regional, national and/or global basis. Many of these factors may be more
likely to occur, or more pronounced, as a result of terrorist activities
and their consequences. The matters discussed herein may also involve risks
and uncertainties described from time to time in Allianz SEs filings with
the U.S. Securities and Exchange Commission. The company assumes no
obligation to update any forward-looking information contained herein.
No duty to update
The company assumes no obligation to update any information contained
herein.
DGAP 07.11.2008
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Language: English
Issuer: Allianz SE
Königinstr. 28
80802 München
Deutschland
Phone: +49 (0)89 38 00 - 41 24
Fax: +49 (0)89 38 00 - 38 99
E-mail: investor.relations@allianz.com
Internet: www.allianz.com
ISIN: DE0008404005
WKN: 840400
Indices: DAX-30, EURO STOXX 50
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard),
Hannover, Düsseldorf, Stuttgart, München, Hamburg;
Terminbörse EUREX; Foreign Exchange(s) London, NYSE, SWX
End of News DGAP News-Service
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DGAP-Adhoc: Allianz SE: Operating profit of 1.6 bn euros in 3Q achieved, 6.5 bn euros year-to-date
| Source: EQS Group AG