Natural disasters spoil the summer for Allianz
With further inflows and a better investment result at the asset manager, Europe's largest insurer can offset the increased costs caused by severe storms. Allianz was also able to push through higher prices in some cases. As a result, the profit at the end of the summer exceeds expectations.
Costly natural disasters spoil the summer for Allianz. The operating result fell by almost 15 percent to 3.5 billion euros in the past quarter. The combined ratio was affected by natural catastrophes to the tune of 7.3 points, the highest value for a decade, the company announced. Particularly in Bavaria, storms and hail caused severe damage in August, and flooding occurred in many countries in the Alpine region. Europe's largest insurer confirmed its forecast for the year as a whole.
However, the decline in profits was not as severe as analysts had expected: Adjusted net profit for the period attributable to shareholders fell by almost 30 percent to 2.1 billion euros, while analysts had forecast just under two billion euros. A higher investment result partially offset the additional costs due to higher claims, Allianz explained.
The business volume rose by 4.5 percent to 36.5 billion euros. Higher prices and volumes played a role in property and casualty insurance, while high single premiums in the USA contributed to this in the life and health insurance business.
Allianz confirms target "with confidence"
Allianz reported revenues of 122.1 billion euros for the first nine months, 4.7 percent more than a year ago. Operating profit improved by 3.6 percent to eleven billion euros in the same period. Allianz is sticking to its profit target of 14.2 billion euros plus/minus one billion euros for the current year. Allianz confirms the target "with confidence", said Group CEO Oliver Bäte according to the press release.
The result in Asset Management was stable. The segment, which consists of Allianz Global Investors and Pimco, achieved net inflows of 10.5 billion euros for the third quarter in a row. In the previous year, customers had withdrawn funds. Third-party assets under management rose only slightly by 8 billion euros compared to the previous quarter to 1.67 trillion euros, which was due to negative market effects.
Allianz continues to be very adequately capitalized. "Our ability to grow and generate attractive returns for our stakeholders is supported by an excellent capital position with a Solvency II capitalization ratio of 212 percent," said CFO Giulio Terzariol. To this end, own funds and regulatory capitalization requirements are compared. The manager, who has been with the DAX-listed company since 1998, recently announced his move to Italian competitor Generali. His successor at Allianz will be Claire-Marie Coste-Lepoutre, currently Chief Actuary and Controller.
Despite the significant impact of natural disasters on the insurance industry, Allianz, a Dax company, managed to exceed expectations in profit for the quarter due to higher prices and improved investment results. In contrast, the operating result fell by 15% due to the increased costs from natural catastrophes, which reached a decade-high combined ratio.
The insurance industry, specifically Allianz, has navigated the challenging quarterly figures, partly offsetting the costs from natural disasters through price increases and better investment results. The company's quarterly profits, however, were significantly impacted by the severe weather events and catastrophes, leading to a higher combined ratio.
Source: www.ntv.de
