Allianz makes quarterly profit, surpassing expectations
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Although the shares of Allianz AG currently about three percent in the red is opposite the value of the previous day’s stock market, so to say yet: The insurer pulls himself back from the crisis. The sale of the ailing subsidiary Dresdner Bank’s past and finally, the Alliance will return at their best, what you can see from the figures for the second quarter of this year.
“Net income up 21 percent to 1.9 billion €
Operating profit increased from 1.8 billion euros achieved / quarter sales to 22.2 billion €
Particularly strong results in the life insurance business
Solvency ratio 159 percent at a high level
Michael Diekmann: “Allianz is prepared for what we call the” call “: a challenging market environment with structurally lower yields” new normal
Allianz Group in the second quarter of 2009 were further developed positively. Quarterly sales rose to 22.2 billion euros to 21.5 billion euros a year earlier. The operating profit was 1.8 billion euros, exceeding the results of the previous three quarters. Compared with the 1.4 billion euros for operating profit in the first quarter of 2009 the increase is 25.9 percent, after 2.7 billion euros in the second quarter of 2008, this represents a reduction of 33 percent.
Quarterly net income rose 21 percent to 1.9 billion euros, compared with 1.5 billion euros in the second quarter of 2008.
The capital of Allianz, is to with a solvency ratio of 159 percent of 30th June 2009 remain strong. The equity of the Allianz Group increased by 30 June at 4.5 percent to 34.5 billion euros. At 31 March 2009 was 33.0 billion euros, the capital.
“Overall, we achieved a very good quarterly results. The alliance is prepared for what we call the “new normal”: a challenging market environment with structurally lower returns. Our capital position remains high and our low risk profile will enable us to withstand potential market disruptions. We are also both regionally and across our operating units are well diversified and can therefore benefit from a recovery in markets, “said Michael Diekmann, CEO of Allianz SE.
Helmut Perlet: “For our life and health insurance business, it was a great quarter. The operating profit of 990 million € is our best ever quarter results ”
Property and casualty insurance
In property and casualty insurance, gross premiums written in the second quarter of 2009 was 9.5 billion euros, compared with 9.8 billion euros a year earlier. Investment income and a lower underwriting result had an impact on operating income. It fell by 47 percent to 0.9 billion euros, compared with 1.7 billion euros in the second quarter of 2008.
The combined ratio was 98.9 percent less stable, compared to 98.7 percent in the first quarter of 2009. A year earlier it was 93.5 percent. The second quarter of 2009 was marked by recession, an accumulation of smaller storm damage, a number of large losses in France and single events such as the earthquake in the Abruzzi.
“We improved our combined ratio expected in the second half. Since the last quarter we have seen an increasing level of contributions in business and in the renewed contracts. In addition, we expect a positive effect by adjusting our underwriting policy in selected markets, “said Helmut Perlet, CFO of Allianz SE.
Life and Health Insurance
In life and Health business the strong recovery of the first quarter has continued in the second quarter. The premium income grew in the second quarter of 2009 by 10 percent to 11.8 billion euros from 10.7 billion euros year earlier. The continued high demand for products with guarantees and / or investment component provides again for increasing sales. Operating profit rose by 41 percent to 990 million euros, compared with 703 million euros a year earlier. This increase was mainly due to a very good investment.
“For our life and health insurance business, it was a great quarter. Italy, Switzerland and Germany recorded double-digit revenue growth compared to the prior year quarter. The operating profit of 990 million € is our best ever quarterly result. We have the fundamental strength of our Life Insurances profits, and also by the stabilizing markets in the quarter, “said Helmut Perlet.
Financial Services
Segment Financial Services remained the income to 0.9 billion euros, the level of the second quarter of 2008. Operating profit declined by 49 percent to 146 million euros, compared to 285 million euros year earlier. Reason for the decline was mainly start-up costs for the Alliance Bank in Germany of 84 million €.
In Asset Management, net inflow of funds and operating income of the pension business in the second quarter of 2009 remained at a high level. When compared to the equities business that investors currently favor more conservative investments. The achieved overall third-party assets under management as at 30 June 2009 a new high of 813 billion euros compared with 766 billion euros at the end of the first quarter of 2009.
Helmut Perlet: “Our Pension business evolved considerably: the average growth rate (CAGR) for the operating profit was more than three years at 13.8 percent. The consistent results of our fixed income business are strong net cash inflows, operating discipline and a tendency to increase investment returns supported. ”
These statements are, as always, subject to our forward-looking statements, which will be made available to the upper right. “
