Allianz Turns To Q4 Profit, But Revenues, AuM Weak; Stock Down

German financial services provider Allianz SE reported Friday a profit in its fourth quarter, compared to prior year’s loss, reflecting strong operating profit mainly in the Life/Health business segment. Meanwhile, revenues and assets under management declined from last year. Further, the company lifted dividend, and said it looks forward with confidence to a strong 2023.

Allianz shares were losing around 3 percent in the morning trading in Germany.

Looking ahead for fiscal 2023, the company targets an operating profit of 14.2 billion euros, plus or minus 1 billion euros.

In fiscal 2022, operating profit was 14.2 billion euros, net income attributable was 6.7 billion euros, and total revenues were 152.7 billion euros, all higher than last year.

Further, Allianz said its board will propose a dividend of 11.40 euros per share for 2022, an increase of 5.6 percent from 2021.

In the fourth quarter, net income attributable to shareholders was 2.01 billion euros, compared to a loss of 292 million euros in the prior period. Basic earnings per share were 4.99 euros, compared to loss of 0.72 euro a year ago.

Operating profit for the quarter climbed 12.7 percent year-over-year to 3.96 billion euros, driven by strong performance in the Life/Health business segment.

This was partially offset by lower operating profit in the Property-Casualty business segment and Asset Management business segment.

Total revenues for the fourth quarter were 36.7 billion euros, down 4.5 percent from the prior year’s 38.4 billion euros. Internal revenue dropped 6.3 percent.

Property-Casualty business revenues surged 11.7 percent from last year to 16.2 billion euros, with positive price effect and volume growth.

Meanwhile, Life/Health insurance’s PVNBP, the present value of new business premiums, was 16.0 billion euros, lower than last year, mainly due to softer sales in the single-premium business in Germany and in the unit-linked products business in Italy.

Asset Management operating revenues were 2.1 billion euros, down 15.3 percent, reflecting the impact of lower assets under management or AuM-driven revenues and performance fees.

Third-party assets under management were 1.635 trillion euros as of December 31, 2022, down by 331 billion euros from the end of 2021.

Total assets under management were 2.141 trillion euros at the end of the fourth quarter of 2022, reflecting the trend in the third-party assets under management.

In Germany, Allianz shares were trading at 214.40 euros, down 3.01 percent.

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