Internal revenue growth, which adjusts for currency and consolidation effects, amounted to 12.6 percent in the second quarter of 2021, mostly driven by our Life/Health business segment. Total revenues increased 10.9 percent to 34.3 (2Q 2020: 30.9) billion euros. Operating profit increased 29.4 percent to 3.3 (2.6) billion euros due to strong operating profit growth from all our business segments. The Property-Casualty business segment operating profit grew due to an increased underwriting result, which benefited from a higher contribution from run-off, partly offset by higher claims from natural catastrophes.
In addition, the prior year was negatively impacted by COVID-19. All regions contributed to the increase in operating profit in the Life/Health business segment with the United States being the main driver. In the Asset Management business segment, operating profit increased mostly due to higher assets under management driven revenues and an improved cost-income ratio. Net income attributable to shareholders increased 45.7 percent to 2.2 (1.5) billion euros in the second quarter of 2021 due to the increase in operating profit, an improved non-operating result, and a lower effective tax rate.
Basic Earnings per Share (EPS) increased 62.3 percent to 11.47 (7.07) euros in the first half-year of 2021. Annualized Return on Equity (RoE) amounted to 15.6 percent (full year 2020: 11.4 percent). The Solvency II capitalization ratio was at 206 percent at the end of the second quarter of 20213, compared to 210 percent at the end of the first quarter 2021.
In the first half-year of 2021, operating profit grew by 36.7 percent to 6.7 (4.9) billion euros, driven by all business segments. Property-Casualty recorded a higher underwriting result while an improved investment margin led to an increase in our Life/Health business operating profit. Operating profit from our Asset Management business grew due to higher operating revenues and was supported by cost discipline. The increase in net income attributable to shareholders was driven by the operating profit growth as well as a higher non-operating investment result.
“Allianz had a very good half-year and achieved double-digit growth in operating profit. Our products and solutions have seen healthy demand,” said Oliver Bäte, Chief Executive Officer of Allianz SE. “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.”
“The second quarter once again underscores Allianz’ strong underlying performance, which was reflected in all key financial figures. I’m pleased that all our businesses are delivering very good results and that we’re growing profitably,” said Giulio Terzariol, Chief Financial Officer of Allianz SE. “On this basis, we are confident about the second half of 2021 and expect now an operating profit in the upper half of our target range.”
