Allianz calm on nat cat: reinsurance & investment beat cover it

Allianz is feeling safe on the nat cat front in 2022 as above-expectation investment income looks set to overcome any potential gaps its reinsurance coverage leaves versus its cat budget.

Allianz P&C has aggregate reinsurance cover that kicks in when the nat cat loss ratio hits about 4.5%, one percentage point above the group's 3.5% budgeted nat cat loss, CFO Giulio Terzariol (pictured) told analysts on Thursday (May 12).

“There is a one percentage point, more or less, of possible negative deviation we might have compared to plan, then we have the aggregate that will give protection,” Terzariol said.

But a likely overshoot on investment income in the property and casualty division remains “one thing to keep in mind,” he said. Allianz had budgeted some €2.4 billion in gains and now expect “most likely €2.8 billion, maybe even higher.”

The aggregate facility starts at €1.2 billion and carries €500 million capacity and bears deductible for Allianz at €30 million per event, Terzariol indicated.

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