Business Description

Allianz SE offers investment advisory services as well as insurance. The company operates in the following segments. The Property/Casualty Segment offers insurance for personal injuries, general liability, and fire, as well as credit and legal expenses. The Life/Health Segment includes annuities and term and endowment policies, as well as unit-linked investment-oriented products. It also offers private and supplemental health insurance and long-term care insurance.

The Asset Management section offers both institutional and retail services and products for asset management. The Corporate & Other segment includes treasury as well banking and alternative investment activities. Wilhelm Finck founded the company with Carl Thieme in Munich, Germany, on February 5, 1890. Allianz SE is a holding firm of Allianz Group.

Key Financials (Allianz Group)

Revenue (US$ Mn):

• Allianz SE’s annual revenue for 2021 was US$ 1,25,046 Mn, a -12.55% decrease from the 2020
• The annual revenue generated by Allianz SE in 2020 was US$ 1,42,993 Mn
• At a 4.89% increase from , Allianz SE’s annual revenue of US$ 1,28,246 Mn was indexed in 2019
• Allianz SE generated total revenue of US$ 1,22,267 Mn in 2018

Operating Income (US$ Mn):

• US$ 10,754 Mn was the operating income generated by Allianz SE in 2021
• Allianz SE’s operating income for 2020 was US$ 11,491 Mn, a -5.79% decrease from 2019
• From 2018’s operating incomes, Allianz SE registered a 3.07% increase in 2019, amounting to US$ 12,197 Mn
• An operating income of US$ 11,834 Mn was generated in 2018 by Allianz SE

Net Income (US$ Mn):

• Allianz SE’s net income for 2021 was US$ 7,424 Mn, a -13.01% decrease from 2020
• The net income generated by Allianz SE in 2020 was US$ 8,535 Mn
• At a 4.28% increase from , Allianz SE’s net income of US$ 9,142 Mn was indexed in 2019
• Allianz SE generated a net income of US$ 8,766 Mn in 2018

Operating Margin %:

• 9% was the operating margin generated by Allianz SE in 2021
• Allianz SE’s operating margin for 2020 was 8%, a -15.79% decrease from 2019
• From 2018’s operating margins, Allianz SE registered a -2.06% decrease in 2019, amounting to 10%
• An operating margin of 10% was generated in 2018 by Allianz SE

Gross Margin %:

• Allianz SE’s gross margin for 2021 was 6%, a 0% decrease from 2020
• The gross margin generated by Allianz SE in 2020 was 6%
• At a 0% decrease from , Allianz SE’s gross margin of 7% was indexed in 2019
• Allianz SE generated a gross margin of 7% in 2018

SWOT Analysis

Strengths

Asset Management Business

The asset management business of the group performed well in FY2017. The total assets under management grew to EUR1,960billion in FY2017, compared with EUR1,871billion in FY2016. Third-party assets under management accounted for EUR150 billion of net inflows, the highest annual third-party net flow. The group’s asset-management operating revenue was EUR6.4 billion in FY2017, which is 6.4% more than FY2016. This was due to an increase in other net fees and commission income of 7.1% to EUR5.9billion in FY2017. It is mainly due to higher average third-party assets under administration, primarily at PIMCO. Positive foreign currency fluctuations had a positive impact on financial assets and liabilities that are fair value through profit or loss.

A strong position in the area of solvency provides opportunities for business growth and new debt issuance

Allianz reported a strong solvency situation during FY2017. This provides the potential for new debt issuance and business growth. Solvency capital and solvency ratios are indicators of an insurance company’s capital strength. The Solvency II ratio of the group grew from 218% in 2016 to 229% by 2017. The increase in insolvency ratio was caused by an increase of 1.5% in own funds from EUR75.3 billion (FY2016) to EUR76.4 billion (FY2017). Its own funds were also greater than the EUR33.3 billion required capital. Strong Solvency II earnings, higher credit spreads, and rising equities all contributed to growth.

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