Allianz reports huge rise in operating profits

Profits climb more than 15% for the global insurer

Allianz reports huge rise in operating profits

Insurance News

By Terry Gangcuangco

Consistent with Allianz’s second quarter results we reported last week, the insurer has posted growth during the first half of 2017 – with operating profit up 15.7% to €5.9 billion (approximately SGD$9.5 billion).

Calling the period a success, Allianz said all business segments saw increased total revenues in the first six months of the year. Net income attributable to shareholders rose 17.9% to €3.8 billion, with a huge portion coming from its life and health business.

Here’s how Allianz performed in the first half:

Net income attributable to shareholders
  • Life and health - €1.5 billion, up 78%
  • Asset management - €700 million, up 19.5%
  • Property & casualty (P&C) - €1.98 billion, up 7.7%

Operating profit for the P&C segment improved 5.2% to €2.7 billion compared to the first half of 2016 due to a higher underwriting result. For life and health, operating profit went up from €1.9 billion last year to €2.3 billion in the first six months of 2017.

As for asset management, a large increase in average third-party assets under management drove operating revenues to rise 10.1% percent to €3.1 billion. Operating expenses only went up 4.9%.

“We had a very good half-year with double-digit growth in operating profit and net income. Our diversified portfolio across business segments and regions can clearly deliver outstanding results,” commented Allianz SE chief executive Oliver Bäte.

He added: “We’re halfway through our three-year renewal agenda plan, and at this stage it is clear that those efforts are bearing fruit for all our stakeholders.”

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