First sign of recovery claimed as income nudges up
Allianz claimed its Q1 2.8% increase in revenues to €27.7bn showed the first signs of recovery despite its profits being slashed with pre-tax down from €2bn to €445m and net down from €1.5bn to €29m.
Financial highlights (2008 Q1 in brackets)
- Total revenues €27.7bn (€27bn)
- Pre-tax income €445m (€2bn)
- Total net income €29m (€1.15bn)
- P&C GWP €13.9bn (€13.7bn)
- P&C operating profit €970m (€1.5bn)
- P&C net income €431m (€1bn)
- Combined ratio 98.5% (94.8%)
- Life income €13.0bn €12.3bn)
- Life operating profit €402m €589m
- Life net income €321m (€452m)
- Financial Services income €860m (€916m)
- Financial services operating profit €198m (€255m)
- Financial services net income €72m (€66m)
"Allianz continues to cope successfully with the impact of the ongoing financial markets crisis on our business. We are strongly capitalised, our investment portfolio is of high quality and liquid, and our operating profitability proves resilient," said Helmut Perlet, chief financial officer.
In P&C the company said the decline was largely attributable to a lower underwriting result.
"Our accident year loss ratio has been rising, but the trend continues to stay below claims inflation. Underwriting discipline remains important, as well as our efficiency programs which continue to focus on consistent claims management. We also see renewal prices starting to rise after almost three years of soft markets," said Perlet.