Allianz reveals effect of COVID-19 on operating profit in Q3 | Insurance Business Asia
The spotlight today turns to see how yet another insurance giant has fared in the face of COVID-19 with Allianz SE revealing it achieved a €2.9 billion (around SG$4.6 billion) operating profit in Q3 2020, a decrease of 2.6% from Q3 2019. The operating profit of the business for the first nine months of 2020 now stands at €7.8 billion (rising to €9.1 billion excluding COVID-19 impact). Allianz’s Q3 2020 net income attributable to shareholders has risen 5.9% to €2.1 billion while this figure for the first nine months of 2020 has decreased 17.6% to €5 billion.
Total revenues for the business were down 6.1% in the quarter to €31.4 billion with total revenues for the business to date this year down slightly at €104.9 billion. The company’s earnings release attributed the 6% decline in internal revenue growth in Q3 2020 to being driven mostly by its life/health business segment.
The life/health insurance business enjoyed a strong operating profit of €1.1 billion but the present value of new business premiums decreased to €12.9 billion from €16.1 billion in Q3 2020, impacted by COVID-19 and by a changed business mix.
In property and casualty, Allianz noted that its operating profit was impacted by the COVID-19 pandemic and a lower run-off result, with total revenues declining by 1.8% to €12.9 billion in Q3 2020. Commenting on this, Giulio Terzariol, CFO of Allianz SE said he is pleased by the resilience of the business’s underwriting profitability and that, excluding COVID-19 effects, it is seeing good underlying improvements in the combined ratio
“We have delivered solid results in an environment that will remain challenging,” said Oliver Bäte, CEO of Allianz SE. “Not just our financial performance has been resilient, but we have also enjoyed strong support from our fantastic staff around the world. And Allianz has once again been recognised by Interbrand as #1 insurance brand globally. Therefore, we remain confident to not just weather the COVID-19 crisis well, but to build an even stronger Allianz for the benefit of all stakeholders.”