Allianz's H1 2024 solid, Income to reap double-digit ROI

Its net income surged double-digit YoY.

In the first half of 2024 (H1 2024), Allianz’s net income climbed 13.9% year-on-year (YoY) to $5.77b (€5.29b), bolstered by operating profit growth and a higher non-operating result.

Speaking at its analyst call, Chief Executive Officer Oliver Baete projects Allianz’s acquisition of Income Insurance to catapult the company’s return on investment.

“This acquisition is aimed to really give us double-digit ROI over time, but more importantly, [it] creates a very strong home base for us,” Baete added.

Core earnings per share (EPS) in H1 2024 rose to $13.70 (€12.57), up from $12.43 (€11.40). The annualised core return on equity (RoE) improved to 17.5%, compared to 16.1% for the full year of 2023.

During the period, operating profit of $8.61b (€7.9b), up 5.3% YoY from $8.18b (€7.5b) in the same period last year.

Likewise, shareholders' core net income for the first half of 2024 advanced by 7.7% to $5.45b (€5.0b). Similarly, the company posted a robust operating profit of $8.61b (€7.9b), reflecting a 5.3% YoY increase from $8.18b (€7.5b) in the first half of 2023.

All business segments contributed to this positive outcome, with the Property & Casualty (P&C) segment showing a strong underlying performance that largely offset the impact of elevated natural catastrophes.

Additionally, the company's share buy-back program, initially announced in February 2024 with a total volume of up to $1.09b (€1b), was fully executed by the end of July.

The board of management has decided to expand the total volume of share buy-backs for the financial year 2024 to $1.63b (€1.5b), resolving to repurchase additional shares worth up to $545m (€500m).

($1.00 = €0.92)