Allianz (PINK: AZSEY) is an integrated financial services provider with over 75 million customers and a presence in more than 70 countries. It is the largest insurer in Germany with a market share of 18% of the property and casualty insurance in that country and is a leader in Europe. It is also one of the top insurers worldwide. Its clientele includes nearly half of the Fortune 500 companies. Allianz is also the largest foreign insurance company in the emerging markets of Central and Eastern Europe. In the life and health insurance businesses, it is the market leader in many Western European countries.
Allianz also acts as a global provider of institutional and retail asset management products and services to third-party investors. On January 12, 2009, the Company sold Dresdner Bank AG to Commerzbank. In May 2010, the Company acquired six solar parks, each with up to one megawatt peak capacity, from BP Solar Italy, a unit of BP Alternative Energy.
In fiscal 2009 the Allianz Group achieved total revenues of over 97.4 billion euros. Allianz is also one of the world's largest asset managers, with third-party assets of 926 billion euros under management at year end 2009.
First Quarter 2010 Results
During the first quarter of 2010 Allianz increased operating profit 20.4 percent to 1.7 billion euros. Quarterly revenue increased 10.3 percent to 30.6 billion euros. Net income increased to 1.6 billion euros. Operating profit growth in both Life/Health and Asset Management overcompensated for a decline in the Property-Casualty result. This segment was especially impacted by claims from natural catastrophes.
Allianz is one of the leading insurance groups in the world and ranks number one in the German property-casualty and life insurance markets based on gross premiums written and statutory premiums, respectively. The company's product portfolio includes a wide array of property-casualty and life/health insurance products for both private and corporate customers.
Allianz conducts business in almost every European country, with Germany, Italy and France being its most important markets. The company also runs operations in the United States, Central and Eastern Europe and the Asia-Pacific region.
Property-Casualty During the first quarter of 2010, a combination of tariff increases, portfolio cleaning and selective underwriting in the Property and Casualty business resulted in gross premiums written of 14.0 billion euros. Compared to 13.9 billion euros in the first quarter of 2009, premiums increased by 0.8 percent. Operating profit decreased by 26.5 percent to 712 million euros, following 969 million euros in the same period of last year. This decline was largely attributable to major losses from natural catastrophes amounting to 555 million euros during the first quarter of 2010.
Life/Health The Life/Health segment delivered its highest quarterly revenue ever in the first quarter of 2010, with 15.4 billion euros. Statutory premiums grew from both traditional and investment-oriented products. Compared to 13.0 billion euros in the previous year's first quarter, revenues in first quarter 2010 grew by 18 percent.
Operating profit more than doubled to 812 million euros, from 402 million euros in first quarter 2009. This was mainly due to a higher investment result based on lower impairments and higher realized gains in favorable equity markets.
Allianz is one of the five largest asset managers in the world. Business activities in this segment consist of asset management products and services both for third-party investors and for the Allianz Group's insurance operations. Allianz serves a comprehensive range of retail and institutional asset management clients. Its institutional customers include corporate and public pension funds, insurance and other financial services companies, governments and charities, and financial advisors. The United States, Germany, France, Italy and the Asia-Pacific region represent Allianz's primary asset management markets.
The Allianz Group managed 926 billion euros of third-party assets as of December 31, 2009.
The Asset Management segment recorded strong quarterly revenue growth in the first quarter of 2010. Net fee and commission income in the first quarter rose by 54.7 percent to 1.1 billion euros, from 709 million euros in first quarter 2009. Operating profit grew by 120.9 percent to 466 million euros, compared to 211 million euros in the previous year's first quarter. Third-party assets under management amounted to a historic high of 1.023 trillion euros as of March 31, 2010, following 926 billion euros at the end of 2009.
Allianz's main competitors are Aegon (AMS:AGN), AXA (AXA), Generali, ING Groep N.V. (ING), Munich Re and Zurich Financial Services. Besides these international competitors, there are other local and regional companies competing for business in the various countries and markets.