- Internal revenue growth of 3.7 percent in 1Q 2020
- 1Q 2020 operating profit of 2.3 billion euros
- 1Q 2020 net income attributable to shareholders down 28.9 percent to 1.4 billion euros
- Solvency II capitalization ratio of 190 percent
- 2020 operating profit outlook 12 billion euros, plus or minus 500 million euros, has been withdrawn due to COVID-19 uncertainties
Management Summary: Resilient performance in adverse conditions
The COVID-19 induced turmoil in the financial markets and a slowing economy have clearly aggravated business conditions for the financial services industry. However, Allianz with its well-diversified business port-folio and a robust balance sheet is well prepared to manage the Corona crisis and has achieved good results in the first quarter of 2020.
Internal revenue growth, which adjusts for currency and consolidation effects, amounted to 3.7 percent, driven in particular by our Life/Health business segment but also supported by our other business segments. Total revenues increased 5.7 percent to 42.6 (1Q 2019: 40.3) billion euros. Operating profit declined 22.2 per-cent to 2.3 (3.0) billion euros. Our Asset Management business segment reported a strong increase in oper-ating profit due to a rise in assets under management driven revenues. Our Property-Casualty business seg-ment saw a decrease of the operating profit due to higher claims from natural catastrophes, as well as COVID-19-related losses. Operating profit from our Life/Health business segment also declined mainly driven by the market downturn, which impacted the investment margin and deferred acquisition costs. Net income attributable to shareholders decreased 28.9 percent to 1.4 (2.0) billion euros mostly driven by the lower op-erating profit. The non-operating result also worsened as realized gains from the sale of Allianz Popular were more than offset by COVID-19-related market impacts. A lower tax rate had a partly offsetting effect.
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