Allianz Net Profit Expected to Rise — Earnings Preview

NET PROFIT FORECAST: Europe’s largest insurer is forecast to make a net profit of 2.27 billion euros ($2.49 billion) for the second quarter, according to consensus estimates compiled by the company. Allianz reported a net profit of EUR1.71 billion for the second quarter last year, but that was before an accounting change following the adoption of new standards for insurance contracts and financial instruments at the beginning of 2023.
PROPERTY-CASUALTY COMBINED RATIO FORECAST: The German company is expected to report a combined ratio–a key measure of profitability in the insurance industry–at its property-casualty segment of 92.6% for the quarter, according to the consensus. Allianz reported a property-casualty combined ratio of 93.6% for the second quarter last year.
WHAT TO WATCH:
–ASSET MANAGEMENT: Analysts expect Allianz’s asset-management segment–which houses Pimco and Allianz Global Investors–to report a quarterly operating profit of EUR724 million and net inflows of EUR5 billion, according to the company-compiled consensus. For the second quarter of 2022, Allianz reported an operating profit of EUR771 million from asset management, which was hit by net outflows of EUR33.8 billion. The operating profit outlook for Allianz’s asset-management business remains muted for now, with annual growth estimated to be 2% over the 2022-2025 period, analysts at Citi said in a recent research note.
–GUIDANCE: Allianz is targeting an operating profit of EUR14.2 billion in 2023, plus or minus EUR1 billion. Berenberg analysts said in a research note that they expect solid second-quarter results from Allianz, which would make a guidance upgrade likely in the third quarter. Analysts polled by FactSet expect the company’s full-year operating profit to come in at EUR14.53 billion.
Write to Adria Calatayud at [email protected]