Q2 profits leap at Allianz as P/C benefits from lower nat cat losses
Allianz’s profits soared in the second quarter of 2017 driven by a strong performance in its property/casualty segment, which benefited from lower losses from natural catastrophes and lower attritional losses.
The company’s operating profit increased by 22.9 percent to reach €2.9 billion. The company said this increase was supported by all business segments, in particular by its property/casualty business where operating profit increased by 28 percent to €1.4 billion due to a higher underwriting result driven by lower losses from natural catastrophes.
The company’s net profit increased by 83.4 percent to €2 billion, driven by both the higher operating profit and improved non-operating result, which had been burdened the prior year by a negative impact from its South Korean life business.
The insurer also enjoyed some growth. Its revenues grew by 2 percent to €30 billion in the second quarter. It said all business segments contributed to this increase with the majority coming from its life and health business segment.
In its property/casualty unit, gross premiums written increased to €11.7 billion. Adjusted for foreign exchange and consolidation effects, it said internal growth totalled 0.5 percent, with price and volume effects contributing 1 percent and -0.4 percent respectively. Allianz Worldwide Partners, Spain and Germany were the main growth drivers, it said.
"We’re half way through our three-year Renewal Agenda plan, and at this stage it is clear that those efforts are bearing fruit for all our stakeholders,” said Oliver Bäte, chief executive of Allianz.
“We had a very good half-year with double-digit growth in operating profit and net income. Our diversified portfolio across business segments and regions can clearly deliver outstanding results. The strong capitalization reinforces the resilience and flexibility of Allianz. We can now say that we expect operating result for 2017 near the upper end of the target range of €10.8 billion, plus or minus €500 million.”
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