Allianz gains advantage from increased costs.
One reason behind the Munich-based insurance group, Allianz, earning more in the first quarter of this year than last, is thanks to higher premiums for policies, especially in the property and casualty sector. This boom in premiums has resulted in the company's operating result rising by 7% to almost €4 billion. Analysts were slightly less optimistic, predicting an average growth rate. The property insurance sector was a major contributor to this positive performance, exceeding expectations.
Allianz's earnings also increased by 16% when adjusted for its stake in other companies, reaching €2.5 billion. Their overall business volume also grew by 5% to €48.4 billion. CEO Oliver Bäte was pleased with the 'strong start to the year.' However, one area of concern was the company's solvency ratio, which was slightly below expert expectations, at 203% (compared to 206% at the end of December).
The property and casualty insurance sector once again accounted for more than half of the company's overall operating result. Bäte remarked on the balance between business growth and underwriting discipline achieved by the company. Allianz managed to maintain its combined ratio at 91.9%. Growth in private and corporate customers outpaced commercial business. In life and health insurance, sales were stimulated by growth in the US and Italy. The margin for new business also rose to 5.7%.
The higher interest rates and rising share prices have had a positive impact on Allianz's asset management division. Pimco and Allianz Global Investors received a record €34 billion between January and March, which was more than their total for the previous year. A highlight for the company was the 'very high' performance fees from their funds. These two fund companies now manage a total of €1.78 trillion for external clients, including Allianz funds, increasing to €2.3 trillion when including the company's own funds.
For the current year, Allianz is projecting an operating result of €14.8 billion, but allows for deviations of up to €1 billion, either way. Their operating result in the previous year was a good €14.7 billion.
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The advantage Allianz gained in the first quarter was also noticeable in the performance of Dax companies within the insurance industry, showing a similar trend of increased quarterly figures. Furthermore, this growth in the insurance sector has led to stronger earnings for Dax companies that are major players, such as Dax-listed Dax companies in the field of insurance, like Dax company Dax's insurance subsidiary.
Source: www.ntv.de
