Allianz achieves largest operating profit in its history
Allianz has reported significant gains for 2019, including a boost to net income and revenues. However, the P&C segment performed below expectations, due to reserve strengthening at Allianz Global Corporate and Specialty (AGCS).
Allianz's net income rose 6.1 percent to €7.9 billion euros and total revenues increased by 7.6 percent to €142.4 billion, as compared to €132.3 in 2018. Operating profit grew 3 percent to €11.9 billion, the highest in the company’s history.
In the P&C segment, total revenues rose to €59.2 billion, up from €55.4 billion in 2018. Operating profit in this part of the business decreased by 11.9 percent to €5 billion in 2019. This development was primarily driven by the underwriting result, due to a strengthening of reserves at AGCS, partly offset by an improved expense ratio. Operating investment income also declined.
As a consequence, the P&C combined ratio deteriorated by 1.5 percentage points to 95.5 percent.
“Our Property-Casualty business segment performed below expectations in 2019, following a disappointing reserve strengthening at AGCS that overcompensated for a solid accident year, underwriting and productivity gains,” said chief financial officer Giulio Terzariol. “Most of our operations have been performing very well. We remain committed to our goal of improving the combined ratio to 93 percent by the end of 2021.”
Commenting on the annual results as a whole, Allianz chief executive officer Oliver Bäte said: “2019 was another successful year with record results for the Allianz Group. This reflects the trust of customers and shareholders and the engagement of our excellent people. Allianz continued to make important strategic strides in 2019 like our acquisitions in the UK and Brazil and being awarded the first fully foreign owned insurance holding in China. We also contribute to society: as one of the initiators of the newly launched UN-convened Asset Owner Alliance we committed to transition our own investment portfolios to net-zero by 2050.”
