FRANKFURT AM MAIN, Aug 2 — German insurer Allianz today reported rising profits in the second quarter thank to a windfall in its life insurance arm, allowing it to confirm its outlook for the full year.
In April-June, net profit at the group grew 13.1 per cent year-on-year, to €2.1 billion (RM9.7 billion), Allianz said in a statement.
Analysts surveyed by Factset had forecast a lower result just under two billion.
A negative effect linked to selling off a life insurance portfolio in Taiwan burdened Allianz’s results, but was outweighed by a positive accounting change on the same business in the United States.
Allianz’s revenues grew 6.1 per cent, to €33.2 billion, for an operating, or underlying profit up 5.4 per cent at 3.2 billion.
The flagship property and casualty insurance unit saw sales grow 7.3 per cent, but operating profits fell back as its investment earnings came in lower.
Thanks to lower payouts linked to natural disasters, the so-called “combined ratio” — which compares premiums paid in to reimbursements paid out — was steady at over 94 per cent over the first half of the year.
Meanwhile Allianz’s asset management division saw the funds it manages on others’ behalf grow to a record of almost €1.6 trillion.
Looking ahead to the full year, the Munich-based insurer aims to reach an operating profit of €11.5 billion, plus or minus 500 million depending on events like natural disasters.
The financial firm is handing money to shareholders in a share buyback programme.
So far the scheme has shaved its cash buffer — the so-called Solvency II capitalisation ratio — from 229 per cent at the end of 2018 to 213 per cent at the end of June, remaining well above the 180 per cent minimum. — AFP
