Hurricane losses hit Q3 profits at Allianz
Heavy losses from the series of hurricanes in North America and other natural catastrophes hit profits at Allianz Group in the third quarter of 2017 but the insurer also posted steady growth drive largely by its life and health business.
The insurer’s net income decreased by 17.3 percent to €1.6 billion; its operating profit declined to €2.5 billion compared with €3 billion a year earlier. The declines were largely due to €529 million losses from natural catastrophes.
The company’s total revenues rose by 2.1 percent compared to the third quarter of 2016 to €28.3 billion, mostly due to another strong performance in the life and health business segment.
The company said the first nine months of 2017 developed positively with all business segments, contributing to a 2.2 percent increase in total revenues. Operating profit increased by 3.5 percent to €8.3 billion, driven by its life and health and Asset Management segments.
Its property and casualty business saw a decline in operating profit due to claims from natural catastrophes during the third quarter. Net income attributable to shareholders in the nine-month period grew by 4.9 percent to €5.4 billion.
“Third quarter results were robust, given the massive natural catastrophe events that impacted our Property & Casualty segment. It was also very good to see how our experts were able to actively support our customers in these difficult circumstances,” said Oliver Bäte, chief executive officer of Allianz.
“The group absorbed claims stemming from hurricanes, storms and earthquakes in the quarter and still increased operating earnings in the nine-month period. Our capitalization also strengthened further, as the rising solvency ratio shows. For the year as a whole, Allianz expects to deliver strong financial results with operating profit in the upper half of the target range of €10.8 billion, plus or minus €500 million.”
Dieter Wemmer, chief financial officer of Allianz, added: “The Property and Casualty segment held up very well after a series of hurricanes, storms and other events. Natural catastrophes caused €529 million in losses. This relatively low amount is testimony to the Group’s underwriting skills and risk discipline. Setting aside claims from catastrophes, the segment is on track to meet its 2018 target of a combined ratio of 94 percent.”
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