Q1 revenues at Allianz dip but net profits climb

Allianz Group has reported total revenues for the first quarter of 2016 of €35.4 billion, down 6.4 percent on the €37.8 billion it made in the same quarter of 2015.

The company reported an operating profit of €2.8 billion, down slightly on the €2.9 billion it made in the first three months of 2015.

However, net income attributable to shareholders for the period was €2.2 billion, up on the €1.8 billion it made in the first quarter of 2015, driven in part by non-operating realised gains.

In property and casualty insurance, its combined ratio improved from 94.6 percent to 93.3 percent, largely due to fewer claims stemming from natural catastrophes. In life and health insurance, the new business margin rose from 1.5 percent to 2.5 percent for the first quarter of 2016, reflecting what Allianz said was efforts to improve the product mix.

In asset management, third-party assets under management decreased to €1,242 billion at the end of the first quarter, compared to €1,276 billion at the end of 2015.

Allianz also said that Solvency II capitalisation eased to 186 percent at the end of the first quarter compared to 200 percent at the end of 2015 due to capital market developments, partly offset by risk management actions.

The company claimed that the decrease was also due in part to a changed regulatory treatment affecting the German life insurance industry that took effect on January 1, 2016.

“We had a strong start to 2016, reinforcing our confidence that we will be able to reach our outlook for 2016 despite the fact that this is a challenging year for the financial services industry,” said Oliver Bäte, chief executive officer of Allianz. “Despite the market volatility and low interest rates, we continue to expect an operating profit for the full year of €10.5 billion, plus or minus €500 million.”