MUNICH, Aug 5 — German insurer Allianz today reported a slump in profit for the second quarter, hammered by higher claims over natural disasters and the coronavirus pandemic.

Net income fell to €1.53 billion (RM7.6 billion) during April to June — a drop of 28.6 per cent compared with the same period last year.

Operating profit, at €2.57 billion, was down 18.8 per cent year-on-year because of "Covid-19-related losses, as well as a lower operating investment result”.

The group said it was unable to give an operating profit outlook for 2020 due to "the continuing uncertainties”.

Higher claims from natural catastrophes also made a big dent in the underwriting result for the first half of 2020, the group said.

Total revenues decreased by 6.8 per cent to €30.9 billion in April to June, mainly due to a sharp decline in premium income in the life and health insurance sector.

Nevertheless, Allianz said its "well-diversified business portfolio and robust balance sheet” had helped it navigate through the current crisis.

Oliver Baete, chief executive of Allianz, said the resilience demonstrated by the results so far "makes us confident that we will see a solid financial performance also in the second half of 2020.” — AFP