Poor half-year results as P&C business hit by weather
Allianz claimed a better quarter as it posted half-year results showing a fall in premium income and a collapse in profits. Its property and casualty business was the worst hit with a 41.3% fall in its operating result.
Half year highlights (2008 in brackets)
- Revenues €3,205bn (€4885bn)
- P&C operating result €1,864m (€3,177m)
- Pre-tax profit €2,779m (€4833m)
- P&C net income €1,180m (€2,879m)
- Net income €1898m (€2690m)
- Combined ratio 98.8% (94.5%)
Michael Diekmann, chief executive said: "Overall, we achieved very good quarterly results. Allianz is prepared for what we perceive as 'the new normal', an ongoing challenging market environment with structurally lower returns.
“We remain strongly capitalised and our low risk profile allows us to withstand potential market shocks. In addition, we are well diversified from both a regional and business unit point of view, and are thus able to benefit from market upturn."
Property and Casualty insurance Q2
- GWP €9.5bn (€9.8bn)
- Operating profit €0.9bn (€1.7bn)
- Combined ratio 98.9% (93.5%)
The second quarter of 2009 was impacted by recession, a high number of small weather related claims, an number of large claims in France, and singular events such as the Abruzzo earthquake in Italy, Allianz said.
"We anticipate an improvement of our combined ratio in the second half of the year. We are still seeing new business and renewal rates rising since last quarter. Also, we expect to benefit from further underwriting actions initiated in selected markets," said Helmut Perlet, chief financial officer.