Allianz Group closed another successful quarter with a strong business performance. Dynamic revenue development and robust profitability in all business segments are evidence of our strategy execution and support our full-year outlook. Internal revenue growth, which adjusts for currency and consolidation effects, was 6.4 percent with positive contributions from all business segments, in particular from our Life/Health business segment. Total revenues increased 8.1 percent to 33.4 (third quarter of 2018: 30.9) billion euros. Operating profit was strong at 3.0 (3.0) billion euros. In our Asset Management business segment assets under management (AuM) driven revenues increased, partly offset by higher administrative expenses, leading to an increase in operating profit. Our Life/Health business segment’s operating profit went up as volume growth and an improved technical margin offset a lower investment margin. On the other hand, the operating profit in our Property-Casualty business segment decreased mostly due to a reduced contribution from run-off.
Net income attributable to shareholders slightly increased by 0.6 percent to 1.9 (1.9) billion euros compared to the third quarter of 2018; a higher non-operating investment result and a lower tax rate were offset by a normalization of the result attributable to non-controlling interests.
Basic Earnings per Share (EPS) increased 2.7 percent to 4.68 (4.55) euros in the third quarter of 2019. Annualized Return on Equity (RoE) was 14.1 percent (full-year 2018: 13.2 percent). The Solvency II capitalization ratio decreased to 202 percent at the end of the third quarter of 2019 compared to 213 percent recorded at the end of the second quarter of 2019.
In the first nine months of 2019, operating profit grew 4.2 percent to 9.1 (8.7) billion euros, mostly due to a one-off profit from our Life/Health business in the United States. Higher AuM-driven revenues from our Asset Management business also contributed to the increase, partly offset by higher administrative expenses. Operating profit from our Property-Casualty business decreased as a higher underwriting result could not compensate for the lower investment result and a decrease in the net fee and commission result. Net income attributable to shareholders grew to 6.1 (5.8) billion euros. This was primarily due to the increase in operating profit, which compensated for the normalization of the result attributable to non-controlling interests.
On July 30, 2019, Allianz completed its fourth share buy-back program, with a volume of 1.5 billion euros and 7.3 million shares. All repurchased shares will be cancelled by the end of the year.
“Allianz has once again delivered very solid results in challenging times. We are proud that so many customers trust in our products and in our brand,” said Oliver Bäte, Chief Executive Officer of Allianz SE. “We are ready to reach the upper half of our operating profit outlook despite a significant increase in external challenges.”