Germany’s Allianz Group announced strong results for the third quarter and confirmed its operating profit outlook for 2010. Revenues in the third quarter grew by 11.4 percent to €24.5 billion [$33.84 billion], compared to €22 billion [$30.39 billion] in Q3 2009.
Internal revenues grew by 6.5 percent. Quarterly operating profit grew by 2.3 percent to €2.1 billion [$2.9 billion], from €2.0 billion {$2.76 billion] in the third quarter of 2009. Allianz noted that its third quarter net income of €1.3 billion [$1.795 billion] “was impacted by a higher tax expense. Compared to €1.4 billion [$1.933 billion] in third quarter 2009, net income decreased by 8.8 percent.”
Michael Diekmann, CEO of Allianz SE, commented: “We increased our nine-month operating profit by 19.8 percent to €6.1 billion [$8.426 billion].With this strong performance, I expect our full-year operating profit to trend towards the upper end of our target range of around €7.2 billion [$9.945 billion] plus or minus €500 million [$690 million]. Also, for the first time since 2005 we are likely to end the year with total revenues above €100 billion [$138 billion].”
The Allianz Group’s capital position “remains solid with a solvency ratio of 168 percent as of September 30, 2010, following 170 percent at the end of second quarter 2010,” said the earnings bulletin. “Shareholders’ equity increased by 2.5 percent to €44.9 billion [$62 billion] as of September 30, 2010, from €43.8 billion [$60.5 billion] at the end of June 2010.”
Allianz’ P/C/ operations posted an increase in gross premiums written of 3.6 percent to €10.6 billion [$14.63 billion], compared to €10.2 billion [$14 billion] in third quarter 2009. “Adjusted for currency effects, premiums decreased by 1.1 percent. Operating profit grew by 8.8 percent to €1.1 billion [$1.518 billion], compared to €1.0 billion [$1.38 billion] in third quarter 2009,” said the announcement. “As in the second quarter of 2010, an improved underwriting result and higher operating investment income contributed to the operating profit growth.
The combined ratio amounted to 97.1 percent, compared to 96.9 percent in the same period of last year. Allianz said “claims from natural catastrophes in the third quarter amounted to €307 million [$424 million], accounting for 3.0 percentage points of the combined ratio. A run-off ratio of 3.4 percent offset the high NatCat impact.”
CFO Oliver Bäte noted: “For natural catastrophes during the first nine months, about €1.1 billion were used worldwide to pay the claims of our policyholders and to build provisions for these occurrences. Higher-than-expected NatCat impact aside, the segment substantially improved its operating profit in the third quarter. This was evidenced by improvements in the accident year loss ratio excluding natural catastrophes. At 69.1 percent, it is below 70 percent for the first time in eight quarters. In addition, prices in several core markets continued to rise, and are expected to keep rising in 2011.”
Allianz also reported that its Life/Health revenues in Q3 grew by 16.4 percent to €12.6 billion [$17.4 billion], compared to €10.8 billion [$14.9 billion] in Q3 2009. “The Life/Health segment continued its good performance during the third quarter,” Bäte stated. “Our nine month operating profit of €2.3 billion [$3.17 billion] is already within our full-year target range.”
The Asset Management business achieved an operating profit of €521 million [$719 million] in the third quarter, a 41.6 percent increase, compared to €368 million [$508 million] in Q3 2009.
Allianz said “net fee and commission income increased by 42.6 percent to €1.24 billion [$1.71 billion] from €866 million [$1.195 billion]. On an internal basis, growth amounted to 31.9 percent. The cost-income ratio improved further to 58.5 percent, compared to 59.1 percent in third quarter 2009.
“Total assets under management grew by 25.5 percent to €1.443 trillion [just under $2 trillion] as of September 30, 2010, compared to €1.150 trillion [$1.586 trillion] at the end of the third quarter 2009. This growth was supported by exceptionally strong third-party net inflows of €40 billion [$55.2 billion] during the third quarter of 2010.”
The full report and additional information is available on Allianz SE’s web site.
Source: Allianz SE
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