Allianz Posts $2.28 Billion Q1 Net Income; All Sectors Show Gains

Germany’s Allianz Group added its numbers to the growing list of companies recording strong first quarter results. The German giant posted €1.779 billion ($2.28 billion) net income for the period, a 34 percent rise, on total group revenues of €29.642 billion ($38 billion) with all sectors contributing.

CFO Helmut Perlet in an interview on the Group’s Website (www.allianz.com) noted: “The strong results were driven by growth across all four operating segments, positive capital market developments and the absence of major claims from natural catastrophes. It is clear to me that the improvements came entirely from the operating business and not from capital gains. We have already managed to accomplish a disproportionately large share of our capital gains plan but the first-quarter volume is similar to that of the previous year’s.”

The Group’s operating profits from its four main activities – P/C insurance, life & health, banking (mainly Dresdner Bank) and asset management – rose 41.9 percent to €2.677 billion ($3.433 billion). The solid results from Dresdner – given its past problems – were especially encouraging.

Concerning the banking sector, the Q1 report noted:” We more than doubled our operating profit to €547 million [$701 million], of which Dresdner Bank contributed €529 million [$678.5 million].”

Perlet stressed that “Western Europe remains Allianz’s key market. Our Life insurance and Property and Casualty insurance businesses recorded double-digit increases in operating profit during the first quarter. We also recognize the clear potential of other regions. Allianz is enjoying particular growth in the regions of Central and Eastern Europe. Private old-age provision is still in its infancy there but is set to show above-average growth over the next few years.”

In the P/C sector Allianz maintained its gross written premiums at €14.1 billion ($18.086 billion) for the period, while posting a combined ratio of 94.7 percent. Operating profits rose to €1.4 billion ($1.8 billion), while “net income grew by 10.4 percent to €1.1 billion [$1.41 billion], founded on our robust operating profitability,” said the bulletin.

In conclusion Perlet stated: “All four operating segments had a positive start to the year and we are well on track to achieve our goals for 2006, and reach an annual net income of 4.9 billion euros [$6.3 billion].”

The complete report and further comments from Allianz management may be obtained on the Group’s Website.

Topics Profit Loss Property Casualty Allianz