Allianz hit by P&C slump

However, losses in the P&C insurance segment offset by strong performance in life business as insurer remains on-track

Allianz hit by P&C slump

Insurance News

By Gabriel Olano

Allianz Group has released its results for the first quarter of 2017, recording total revenues of €36.2 billion, a 2.5% year-on-year increase from €35.4 billion in the first quarter of 2016. Operating profit grew by 9.4% to €2.9 billion, driven by a strong performance of the life and health and asset management business segments, but slightly offset by a decrease in the property and casualty sector.

Despite large losses due to storm claims, Allianz’s property and casualty (P&C) insurance business has remained on track to meet its full-year targets. Gross written premiums totalled €17.7 billion, an almost 3% improvement from last year. However, P&C operating profits declined by 12.7% to €1.3 billion, due to lower underwriting results triggered by higher natural catastrophe losses and an adjustment of the Ogden discount rate in the UK.

The insurer’s life insurance business fared better, as statutory premiums grew by 1.3% to €16.9 billion. Operating profit increased by 35.5% to €1.2 billion reflecting a higher investment margin in the United States due to more positive market effects. The value of new business also increased by 22.8% to €453 million, reflecting the continued shift to capital-efficient products.

“Allianz saw a good start in 2017 with results putting the group on track to meet its operating profit target for the full year of €10.8 billion, plus or minus €500 million, barring unforeseen events, crises or natural catastrophes,” said Dieter Wemmer, chief financial officer of Allianz SE.

“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. The group’s net income was also solid in the quarter considering the exceptionally strong year-ago period, which benefited from the sale of financial stakes.”

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