Allianz Group today announced strong results for the third quarter and confirmed its operating profit outlook for 2010. Revenues in the third quarter grew by 11.4 percent to 24.5 billion euros. In the same period of 2009, this figure was 22.0 billion euros. Internal growth1 of revenues amounted to 6.5 percent. Quarterly operating profit grew by 2.3 percent to 2.1 billion euros, from 2.0 billion euros in the third quarter of last year. Quarterly net income of 1.3 billion euros was impacted by a higher tax expense. Compared to 1.4 billion euros in third quarter 2009, net income decreased by 8.8 percent.
Michael Diekmann, CEO of Allianz SE: "We increased our nine-month operating profit by 19.8 percent to 6.1 billion euros. With this strong performance, I expect our full-year operating profit to trend towards the upper end of our target range of around 7.2 billion euros plus or minus 500 million euros. Also, for the first time since 2005 we are likely to end the year with total revenues above 100 billion euros."
Allianz Group's capital position remains solid with a solvency ratio of 168 percent as of September 30, 2010, following 170 percent at the end of second quarter 2010. Shareholders' equity increased by 2.5 percent to 44.9 billion euros as of September 30, 2010, from 43.8 billion euros at the end of June 2010.
Property-Casualty operating profit up 8.8 percent
In the Property and Casualty business, gross premiums written increased by 3.6 percent to 10.6 billion euros, compared to 10.2 billion euros in third quarter 2009. Adjusted for currency effects, premiums decreased by 1.1 percent. Operating profit grew by 8.8 percent to 1.1 billion euros, compared to 1.0 billion euros in third quarter 2009. As in the second quarter of 2010, an improved underwriting result and higher operating investment income contributed to the operating profit growth.
1 Adjusted for foreign currency and consolidation effects
The combined ratio amounted to 97.1 percent, compared to 96.9 percent in the same period of last year. Claims from natural catastrophes in the third quarter amounted to 307 million euros, accounting for 3.0 percentage points of the combined ratio. A run-off ratio of 3.4 percent offset the high NatCat impact.
"For natural catastrophes during the first nine months, about 1.1 billion euros were used worldwide to pay the claims of our policyholders and to build provisions for these occurrences. Higher-than-expected NatCat impact aside, the segment substantially improved its operating profit in the third quarter. This was evidenced by improvements in the accident year loss ratio excluding natural catastrophes. At 69.1 percent, it is below 70 percent for the first time in eight quarters. In addition, prices in several core markets continued to rise, and are expected to keep rising in 2011," said Oliver Bäte, Chief Financial Officer of Allianz SE.