ALLIANZ: Strong overall business in 1H2012, but descending trend on the CEE markets

13 August 2012 — Daniela GHETU
michael_diekmann2Total revenues of ALLIANZ Group increased to EUR 55.2 billion in 1H2012 from EUR 54.5 billion in the first half of 2011, while the operating profit reached EUR 4.7 billion and the Net Income went up by 39%, to EUR 2.8 billion. Capital position remained strong and balance sheet strength further improved, leading to the management decision to maintain the operating profit target for 2012 to EUR 8.2 billion. "Our consistently good results show that we weather the difficult market conditions very well. Our operative business is stable and remains on course," said Michael Diekmann, CEO of Allianz SE.

Central and Eastern Europe played a modest role in the Group's portfolio, with somehow improved results in the second quarter, but an overall declining business profile in 1H2012. By the end of June 2012, the share of the CEE markets in the total premium portfolio of the German Group decreased for the P&C business, as compared to a year before, from 5.72% to 4.98% while on the life/health segment remained stable, at about 2.5%.

In the P&C business segment, the CEE gross premiums declined to EUR 562 million in 2Q2012, including unfavorable foreign currency translation effects of € EUR million. This decrease of 6.1 % mainly stemmed from volume losses in the health business in Russia, due to selective underwriting, and the motor business in Russia, Poland and Hungary. The price effect was positive at around 1.0 %.

On the Life/Health side, CEE premiums decreased by 2.5 % in 2Q2012, to EUR 306 million, excluding EUR 13 million adverse foreign currency translation effects. This was mainly driven by lower sales in Poland, due to the focus on higher margin products, as well as the base effect from a strong second quarter in 2011 driven by sales campaigns in Hungary. The launch of new investment-oriented products in the Czech Republic nearly offset this decrease.

Download the full 2Q and half year 2012 interim report here!

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