Allianz reported lower net profit in its first quarter, in the absence of year-ago one-off gains, but operating profit and revenues increased with higher premiums.
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Dieter Wemmer, CFO, said, "Allianz saw a good start into 2017 with results putting the group on track to meet its operating profit target for the full year of 10.8 billion euros, plus or minus 500 million euros, barring unforeseen events, crises or natural catastrophes.
"The group observed higher claims from large losses as well as natural catastrophes and still posted a strong rise in operating profit due to improvements in Life/Health and Asset Management business segments."
For the first quarter, net income attributable to shareholders was down 15.3 percent to 1.8 billion euros from last year's 2.1 billion euros. Basic earnings per share totaled 4 euros, compared to 4.71 euros last year.
The prior-year quarter results were benefited mainly from one-off gains from the sale of financial stakes.
Operating profit for the period, however, was up 9.4 percent to 2.9 billion euros, driven by a strong performance of the Life and Health and Asset Management business segments.
Operating profit in the Property and Casualty business segment decreased 12.7 percent due to a lower underwriting result.
Total revenues for the first quarter rose 2.5 percent to 36.2 billion euros from 35.4 billion euros last year.
Property and Casualty insurance segment's gross premiums written amounted to 17.7 billion euros, higher than 17.2 billion euros a year ago. Internal growth totaled 1.7 percent, with price and volume effects contributing 1.2 percent and 0.5 percent respectively. As a result of the higher loss ratio, the combined ratio rose to 95.6 percent from 93.3 percent last year.
Life and Health insurance's statutory premiums grew 1.3 percent to 16.9 billion euros due to strong single premium growth from the sale of capital-efficient products in Germany and higher unit-linked premiums in Taiwan, which compensated for the decline in premiums in the United States.
Compared to December 31, 2016, third-party assets under management grew by 42 billion euros to 1.40 trillion euros, largely driven by third-party net inflows of 21 billion euros at PIMCO as well as positive market developments.
Looking ahead to the full year 2017, Wemmer said that the Property and Casualty business segment is on track to meet its full-year target despite higher quarterly charges compared to prior year for large losses, storms in Europe and Australia, and the Ogden discount rate change. ■