At the same time, in local currencies, the operating profit increased by 11 percent. After currency effects, operating profit still grew by 1%, to EUR 159 million, compared to EUR 158 million in the same period.
"Although GDP in the region is about to decrease this year by 4%, we increased premiums - on a local currency basis - by 5 percent and we grew by 7% in the pensions fund and asset management business. Growth on markets like the New Europe region will become even more important for the world economy", Werner ZEDELIUS, Member of the Board of ALLIANZ SE, stated.
Gross written premiums in property and casualty insurance in New Europe remained at a level of EUR 1.6 billion, a 13% decrease - adjusted for currency effects. Uncertainty in the region, caused by the financial crisis, led to a decrease in car sales, which in turn affected insurance sales through car dealers in the region.
Nevertheless, the life and health business in the region continued to grow by 24%, on basis of internal growth. After exchange rate effects, statutory premiums grew by more than 7%, to EUR 514 million, compared to EUR 479 million in the same period of 2008. The main contributors to this positive development were the ALLIANZ companies from Poland, from the Czech Republic and from Russia.
This year, ALLIANZ celebrates its 20th anniversary of entering the New Europe region, that started by acquiring a 49% stake of the Hungarian state owned insurer HUNGARIA BiztosA?tA?, in 1989. Today, the company is active in 11 countries and ranks among the top 3 players on the 6 largest of these markets.
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