Allianz forecasts stability amid challenges

Allianz Group posted solid growth in its 2013 results and has forecast a stable operating profit in 2014 despite what it described as a politically and economically challenging environment.

The insurer’s operating profit reached €10.1 billion, compared with €9.3 billion the year before – an increase of 7.8 percent. Its net income increased by 14.6 percent in 2013 to €6 billion from €5.2 billion the year before.

Based on preliminary figures, its revenues rose 4.1 percent to a new high of €110.8 billion from €106.4 billion the year before.

Excluding foreign currency exchange and consolidation effects, revenue growth amounted to 4.7 percent. The total number of customers insured by Allianz increased over the same period by five million to over 83 million.

In property and casualty insurance, the company’s operating profit increased compared with the previous year, despite higher compensations for customers after natural catastrophes. In its life and health insurance business, statutory premiums grew while volatile capital markets pressured operating profit. With a higher operating profit, asset management continued its successful course, despite uncertainty about the policy of the US Federal Reserve that led to swings in interest rates, the company noted.

“In a politically and economically challenging environment Allianz produced very good results for 2013, and we want to maintain that level this year as well. Therefore, our operating profit outlook for 2014 is €10 billion, plus/minus €500 million,” said Michael Diekmann, CEO of Allianz. “The environment will remain challenging in 2014, but our performance shows that we are well positioned with our three-segment strategy.”