P/C unit drives strong performance at Allianz
The insurer made a net profit of €1.9 billion in the third quarter, an increase of 23.6 percent compared with the same period the year before.
In the first nine months, its net income increased to €5.8 billion. It said a negative impact from the sale of its traditional life insurance portfolio in Taiwan was more than offset by the increase in operating profit and lower income taxes.
Its operating profit grew by 20.6 percent to reach €3 billion, mostly driven by its property/casualty business, which experienced lower claims from natural catastrophes, a better underlying claims development and a decreased expense ratio, as well as strong premium growth.
In the first nine months of 2018, its operating profit has grown by 4.8 percent to €8.7 billion, due to a higher underwriting result from its property/casualty business, as well as increased operating revenues from its asset management business, it said.
The insurer’s overall revenues increased by 7.9 percent to reach €30.5 billion in the third quarter.
Gross premiums written in its P/C unit reached amounted to €12 billion in the third quarter of 2018, adjusted for foreign exchange and consolidation effects, this equalled internal growth of 6.1 percent with the impact of volume and price contributing the rest.
Its combined ratio improved to 93.1 percent compared with 96.9 percent in the same period a year earlier. It said this was due to losses from natural catastrophes reducing to a “normal level”, a better underlying claims development, and a decreased expense ratio.
The unit’s operating profit increased to €1.5 billion compared with €1 billion a year earlier.
“Our Property and Casualty business had a successful third quarter of 2018 supported by strong results in our core markets,” said Giulio Terzariol, chief financial officer of Allianz. “After the first nine months of the year the combined ratio is in line with our Renewal Agenda target of 94 percent, and we are pleased with the overall development of the segment.”
Allianz completed its latest share buy-back program in September 2018 with a volume of €1.0 billion. All repurchased shares have been cancelled.
“During the first nine months of 2018 Allianz showed a strong performance across the board, now also supported by substantial productivity gains,” said Oliver Bäte, chief executive officer of Allianz. “Especially in challenging times, customers are looking for a financially solid partner for their insurance and investment needs. Allianz has been that reliable partner year after year. And we are very confident to reach our targets also for this year.”
Get all the latest re/insurance industry news with our daily newsletter - sign up here.
More of today's news
Standard Club partners with China's Ping An to underwrite P&I risks
Lloyd's appoints outgoing Beazley CUO to its board
2017 cat claims and financial headwinds hit Africa Re’s results
AXIS estimates losses from Hurricane Michael could reach $120m
New insurtech startup targets commercial property underwriting
