Allianz's market cap, dividends, sales and earnings in 2020

  •   DEHOUI Lionel

Considered as one of the most important insurance companies in the world, the Allianz group has had a difficult year in 2020. Indeed, the company was not spared by the coronavirus health crisis that impacted the entire insurance sector during this year. As a result, the German insurer's business has seen a sharp decline compared to the previous year.

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Allianz's market cap, dividends, sales and earnings in 2020
Image copyright: Guilhem Vellut - Flickr

Better than expected results in the fourth quarter of 2020

In the last quarter of 2020, German insurance giant Allianz's turnover amounted to €35.6 billion, up slightly by 0.3%. Over this period, the group's share of net profit reached 1.817 billion euros. It fell by 2.2% compared to Q4 of the previous year.

However, it was 3.7% higher than the market forecast. Operating profit rose by 8.2% in Q4-2020 to €2.975 billion. Furthermore, the growth in business observed in this quarter was supported by the good dynamics of the Life/Health segment.

In the fourth quarter of 2020, this division recorded an operating profit of 1.429 billion euros, up by 10.1%. It outperformed the market by 3.8%. This performance reflects improved investment margins in the life sector in the US and Germany.

As a result, this segment saw its turnover increase by 2% year-on-year to EUR 20.9 billion in Q4-2020.

 

Group key indicator performance in 2020

For the 2020 financial year, German insurer Allianz generated annual revenues of €140 billion, compared with €142.4 billion in 2019. It therefore fell by 1.3% over the one-year period. This decline was mainly due to the impact of the Covid-19 health crisis on the group's business during this year.

For the full twelve months of 2020, the insurance company recorded a net profit of €6.8 billion, compared to €7.9 billion at the end of the previous year. 7.9 billion at the end of the previous financial year. On a yearly basis, it reported a 14% decline. The Covid-19 pandemic impacted the performance of this indicator by 1.3 billion euros.

This huge loss caused by the coronavirus epidemic is related to reimbursements made by the group for various situations. They are linked to event cancellations or business suspensions, and to lower premium income when contracts are renewed.

For large natural catastrophes, the company's reimbursements in this context are estimated at a total of 880 million euros. In addition, the operating profit (indicating the economic performance of the group) reached €10.8 billion in 2020, compared to €11.9 billion the year before.

Compared to 2019, it fell by 9%. Moreover, the solvency ratio was also affected by this unprecedented context marked by the coronavirus epidemic. In fact, this indicator measures a company's ability to repay its debts.

At the German insurance giant, it has continued to fall. From a value of 229% in 2018, it had fallen to 212% in 2019. It then fell back to 207% in 2020. In addition, for the whole of the year under review, assets under management reached a historic level. They are valued at EUR 2 389 billion.

 

Operating profit falls for the first time in almost ten years

This is the first time in almost ten years that the Allianz Group has recorded a decline in its annual operating profit. The impact of the health crisis was particularly felt on this indicator. In order to highlight the significant effect of the pandemic, we have to go back to 2011 to see the decline in the company's operating profit over one year.

At that time, it fell by 9.3% to €10.75 billion. The decline was partly due to compensation for damage resulting from the tsunami in Japan. Moreover, according to the German insurer, this loss recorded in 2020 can be explained by the fall in demand for its travel and motor insurance products.

Indeed, these two forms of insurance have really suffered from the new situation imposed by the pandemic. Due to the restrictive measures limiting travel, individuals had used their vehicles very little. As a result, they did not show much interest in producing their cars.

Also, travel insurance was affected by the health crisis. Due to the partial or total closure of the borders and the reduction in the number of flights, the tourist activity has slowed down remarkably. As a result, travel agencies and airlines made less use of this type of insurance.

 

Allianz dividend and market capitalisation in 2020

Despite the contrasting results in 2020, the Allianz Group has not decided to reduce the dividends paid to the company's shareholders. Thus, for this year's financial year, the dividend paid is 4 billion euros, or 9.6 euros per share. This is the same amount paid the previous year.

As one of the largest insurance companies in Europe, Allianz Group shares are very popular with investors and traders. At the beginning of 2020, the company's market capitalisation was €89.589 billion.

 

About the Allianz Group

Founded in 1890, Allianz is a German company that operates in the field of insurance. The group is recognised as a major global player and the number one in Europe in this sector. It offers a complete range of insurance, assistance and financial services.

It is aimed at individuals, companies, professionals and local authorities. In addition, the company is the fourth largest asset manager in the world. The insurer has about 150,000 employees worldwide. It has a strong presence in over 70 countries.

The group is also committed to serving more than 100 million customers on a daily basis.

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