Allianz improves P&C Q1 underwriting but investment results weigh
Allianz has benefited from better underwriting result in the first quarter of 2018 in property/casualty (P&C) but investment income mostly offset this improvement.
The underwriting profit in P&C improved by €80 million year on year in the first quarter of 2018 to €538 million, but investment income was €56 million lower over the period at €687 million. Overall, operating profit in P&C was still up 1.2 percent year on year at €1.27 billion in the first quarter of 2018.
The combined ratio improved by 0.8 percentage points year on year to 94.8 percent in the first quarter of 2018. This came despite higher claims from natural catastrophes, primarily due to European storm Friederike, which caused some €220 million euros in claims.
Gross premiums written in P&C increased by 1.1 percent to €17.9 billion in the first quarter of 2018. Adjusted for foreign exchange and consolidation effects, internal growth totalled 4.9 percent, with price and volume effects contributing 1.2 percent and 3.7 percent, respectively.
Overall, the group net income attributable to shareholders rose 6.8 percent year on year to €1.9 billion in the first quarter of 2018, driven by a higher non-operating investment result, a decrease in restructuring charges and a lower effective tax rate.
“Allianz enjoyed a good start into 2018,” said Allianz CEO Oliver Bäte. “We had increases in both the top and the bottom lines, even if market volatility was visible at an operating level in the first quarter. This good performance puts Allianz on track to meet its 2018 yearly targets,” Bäte added.
On April 27, 2018, Allianz Group completed the acquisition of trade-related credit insurer Euler Hermes minorities and delisted Euler Hermes’ shares from Euronext Paris. This operation is part of the group’s strategy to deploy capital in strategic businesses that deliver solid operating performance, and to strengthen positions in core markets and in P&C insurance in particular, the company said.
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