Global insurer Allianz has announced a 46% rise in net income for the second quarter of 2021 to €2.2 billion, driven by an increase in operating profit across all of its business segments when compared with the prior year period.

Solid growth across the business in Q2 2021 has resulted in Allianz posting a quarterly operating profit of €3.3 billion, which is a year-on-year increase of almost 30 percent

For the half year period, operating profit jumped from €4.9 billion in 2020 to €6.7 billion this year, with growth again witnessed in all business segments.

Oliver Bäte, Chief Executive Officer (CEO) of Allianz SE, commented: “Allianz had a very good half-year and achieved double-digit growth in operating profit. Our products and solutions have seen healthy demand.

“During these past weeks, which have been marked by heavy natural catastrophes in Europe, I have been proud to witness the solidarity and outstanding engagement of so many Allianz representatives.”

Within the carrier’s property and casualty (P&C) unit, operating profit improved significantly year-on-year, reaching €1.4 billion in Q2 2021. Despite this part of the business experiencing a higher loss load from natural catastrophe events, an improved run-off result boosted the result.

This, coupled with the absence of losses related to the COVID-19 pandemic, saw the P&C insurance segment’s underwriting performance improve dramatically. Overall, Allianz’s P&C operation has reported a Q2 combined ratio of 93.9 percent, which is down on the 95.5 percent in the prior year period.

P&C total revenues jumped by 3.4 percent in Q2 2021 from the prior year period, reaching €13.9 billion.

For H1 2021, P&C revenue hit €33.6 billion, while the operating profit increased by 32 percent to €2.9 billion during the period, despite higher natural catastrophe losses. The P&C combined also improved for the half year, ending the period at 93.4 percent, compared with 96.7 percent a year earlier.

Giulio Terzariol, Chief Financial Officer (CFO) of Allianz SE, said: “I am pleased by the continuous focus on underwriting discipline and productivity in our Property-Casualty business segment. Our balance sheet is strong and we are a reliable partner for our customers.

“While we witnessed in the second quarter a high level of natural catastrophes which continues in the third quarter, I am confident in a healthy operating profit contribution of the Property-Casualty business segment to the Group results.”

Turning to life and health (L&H), and Allianz has reported that during Q2 2021, the present value of new business premiums (PVNBP) rose from €11.5 billion to €19.7 billion. At the same time, the new business margin (NBM) increased slightly to 3.2 percent, as the value of new business (VNB) increased substantially year-on-year, to €633 million.

Within L&H insurance, operating profit moved from €1 billion in Q2 2020 to €1.3 billion in Q2 2021, driven mostly by the firm’s business in the U.S. which led to an improved investment margin.

For the half year period, PVNBP rose to €39.2 billion, operating profit increased to €2.5 billion, while the NBM and VNB increased to 3 percent and €1.2 billion, respectively.

“Our Life/Health insurance business is performing very well. Sales have been dynamic and I see a strong recovery across all our major markets. The value of new business is outstanding and we continue to manage actively our in-force business which is the basis for the sustainable operating profitability of the Life/Health insurance segment,” said Terzariol.

On the asset side of the balance sheet, Allianz has reported that third-party assets under management (AuM) increased by €56 billion in Q2 2021, when compared with the end of Q1 2021. Total AuM has risen by €2,488 billion in Q2 2021, driven by growth in all regions and across all asset classes.

“I am pleased that our Asset Management business segment continues to deliver very strong results with one of the best operating profit quarters in its history. Our focus continues to be on investment outperformance, net inflows and productivity,” said Terzariol.