Allianz Stock Down On Weak Q1 Profit; Confirms FY22 View

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Shares of Allianz SE were losing around 3 percent in German trading after the insurance and asset management company reported Thursday weak profit in its first quarter, despite increased revenues. Further, the company confirmed its full-year 2022 outlook of operating profit.

For the year, the company continues to expect operating profit of 13.4 billion euros, plus or minus 1 billion euros.

In fiscal 2021, operating profit was 13.4 billion euros.

Giulio Terzariol, Chief Financial Officer, said, "Even in a quarter marked by severe economic and geopolitical challenges, we maintained our first-quarter operating profit close to the strong level of the prior year. We have achieved nearly a fourth of our full-year target, which shows our operating performance remains on track."

Allianz added that its share buy-back program of 1 billion euros is on track.

For the first quarter, net income attributable to shareholders was 561 million euros, down 78.1 percent from the previous year's 2.57 billion euros. Earnings per share were 1.36 euros, down 78 percent from the prior year's 6.20 euros.

The latest results were hurt by an additional pre-tax provision of 1.9 billion euros related to Structured Alpha funds in the U.S., which reduced the net income by 1.6 billion euros.

Excluding the provision, net income was 2.2 billion euros, down 16 percent mainly due to a lower non-operating result.

Operating profit was 3.24 billion euros, down 2.9 percent mainly as claims from natural catastrophes nearly quadrupled resulting in weak underwriting result in the Property-Casualty business segment.

Total revenues for the first quarter rose 6.2 percent to 44.0 billion euros from last year's 41.4 billion euros.

Internal revenue growth, which adjusts for foreign currency translation and consolidation effects, increased 3.8 percent, driven by all business segments.

Property-Casualty revenues grew 9.1 percent from last year to 21.5 billion euros, driven by higher prices and volumes.

Life/Health business segment revenues went up 3 percent to 20.7 billion euros with increased sales in the United States and Germany.

Asset Management business' operating revenues increased 12.5 percent to 2.1 billion euros as a result of higher assets under management-driven revenues.

Third-party assets under management were 1.878 trillion euros as of March 31, 2022, a decrease of 89 billion euros from the end of the fourth quarter of 2021.

Total assets under management were 2.478 trillion euros at the end of the first quarter of 2022, reflecting the trend in the third-party assets under management.

In Germany, Allianz shares were trading at 198.24 euros, down 3.37 percent.

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