As the challenging socio-economic conditions persist, Allianz Group demonstrated its resilience in the third quarter of 2020 and recorded a solid performance in all business segments nine months into the year.
Internal revenue growth, which is adjusted for currency and consolidation effects, declined by six per cent in the third quarter of 2020, mostly driven by the Life/Health business segment. Total revenues decreased by 6.1 per cent to €31.4 billion in the third quarter of 2020, whereas operating profit decreased merely 2.6 per cent to €2.9 billion. The Life/Health business segment operating profit increased, supported by an improved investment margin.
Operating profit from the Asset Management business increased
In the Property-Casualty business segment, operating profit fell only slightly despite further Covid-19-related losses and a lower contribution from run-off. The Asset Management business segment’s operating profit decreased following declining operating revenues. Net income attributable to shareholders increased by 5.9 per cent to €2.1 billion in the third quarter of 2020 due to a higher non-operating investment result, partly offset by higher restructuring and integration expenses, as well as the lower operating profit.
In the first nine months of 2020, total revenues declined by 1.9 per cent. Operating profit dropped by 14.6 per cent to €7.8 billion, mostly due to the adverse impacts from Covid-19 amounting to €1.3 billion. The Property-Casualty operating profit fell as a result of both a lower underwriting result and operating investment result. After a favourable one-off profit in 2019 and pressure on the investment margin, the operating profit in the Life/Health business decreased. On the other hand, operating profit from the Asset Management business increased due to higher AuM-driven revenues. The overall decrease in operating profit led to a drop in the net income attributable to shareholders.
Continuation of the Share Buyback Programme
In light of the ongoing economic uncertainties related to the Covid-19 pandemic, the Board of Management of Allianz SE has decided to discontinue the previously suspended Share Buyback Programme 2020 and to no longer execute the outstanding part of the programme amounting to €750 million.
"We have delivered solid results in an environment that will remain challenging. Not just our financial performance has been resilient, but we have also enjoyed strong support from our fantastic staff around the world. And Allianz has once again been recognised by Interbrand as number one insurance brand globally," said Oliver Bäte, CEO of Allianz SE. "Therefore, we remain confident to not just weather the Covid-19 crisis well, but to build an even stronger Allianz for the benefit of all stakeholders."
Recently, Allianz Partners received four gold trophies and three silver trophies, highlighting the company's innovative travel technology and services at the 2020 Magellan Awards.