ALLIANZ reported highest net income in the last decade

20 February 2019 —
German insurer ALLIANZ announced its FY2018 total revenues grew by 3.5% y-o-y, to EUR 130.6 billion, while the operating profit was up by 3.7% to EUR 11.5 billion "in the upper end of the Group's announced target range of EUR 10.6 billion to EUR 11.6 billion and the highest in our history".

The company mentioned the operating profit growth was mostly attributable to Property-Casualty business segment, which reported a strong rise in operating profit of 13.3% y-o-y. "This was due to an improved expense ratio, lower claims from natural catastrophes, and premium growth".

Commenting on the firm's performance in 2018, ALLIANZ SE Chief Executive Officer (CEO), Oliver BATE, said: "I am very proud of the global ALLIANZ family for delivering such a great set of results. We reached the highest net income of the past ten years despite strong market volatility, especially in the fourth quarter".

"ALLIANZ achieved excellent results in 2018 with operating profit of EUR 11.5 billion, reaching the upper end of the Group's announced target range of EYR 10.6 to EUR 11.6 billion," said Giulio TERZARIOL, Chief Financial Officer of ALLIANZ SE. "Our healthy and well-diversified business makes us confident that we will continue to deliver a strong financial performance again this year. The Group looks to generate an operating profit of EUR 11.5 billion in 2019, plus or minus EUR 500 million, barring unforeseen events".

Per business segments, Property-Casualty Lob generated GWP of EUR 53.6 billion (vs. EUR 52.3 billion a year before). PC FY 2018 operating profit increased by 13.3% to EUR 5.7 billion, mainly due to a strong underwriting result, driven by a lower expense ratio, the absence of high severity losses from natural catastrophes, and to a lesser extent premium growth,as the insurer mentioned in a press release. At the same time PC combined ratio improved by 1.2% to 94.0%. Life and Health insurance generated operating profit of EUR 4.2 billion (vs. EUR 4.4 billion), while Asset Management Operating profit, despite difficult markets, increases 4% to EUR 2.5 billion.

2638 views