Allianz upbeat on outlook as profit rises
German insurance giant Allianz said full-year operating profit was on track for the upper end of its target range, after reporting strong results for the first nine months, driven by the life/health division.
Operating profit for the nine months of the year rose to €9.1 billion, up 4.2 percent on the same period a year earlier. The company said it expects operating profit for 2019 to be in the upper half of target range of €11.5 billion, plus or minus €500 million.
“Allianz has once again delivered very solid results in challenging times. We are proud that so many customers trust in our products and in our brand,” said Oliver Bäte, chief executive at Allianz. “We are ready to reach the upper half of our operating profit outlook despite a significant increase in external challenges.”
Net income attributable to shareholders rose 0.6 percent to €1.9 billion in the third quarter.
Life/health saw revenue rise to €16.8 billion in the third quarter. Within property-casualty, total revenues rose to €13.2 billion in the third quarter of 2019, up 6.3 percent on the same period a year earlier. Operating profit fell 10.4 percent to €1.3 billion. The underwriting result was pressured by a lower contribution from run-off. The combined ratio rose 1.2 percentage points to 94.3 percent in the third quarter of 2019.
“I am pleased with the ongoing progress in the productivity efforts within our Property-Casualty segment,” said Giulio Terzariol, chief financial officer. “Our business is in good shape as shown by the strong revenue development. Our underwriting remains disciplined, while we benefit from a healthy price momentum which supports our profitability going forward.”
Allianz shares were 2 percent lower in early trading in Frankfurt.
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