ALLIANZ' Q3 net profit increased by 23.6% to EUR 1.9 billion

German insurer ALLIANZ announced its total revenues increased by 7.9%, to EUR 30.5 billion in Q3 2018, while the operating profit grew by 20.6%, to EUR 3.0 billion. Overall, the net income attributable to shareholders was up by 23.6% to EUR 1.9 billion, "mainly driven by the increased operating profit".

The growth was mostly driven by the "Property-Casualty business, which experienced lower claims from natural catastrophes, a better underlying claims development and a decreased expense ratio, as well as strong premium growth", as the insurer announced in a press release. At the same time the Life/Health business segment operating profit "decreased slightly but remained at a good level".

In the first nine months of 2018, operating profit grew 4.8% to EUR 8.7 billion, while the net income attributable to shareholders increased to EUR 5.8 billion (vs. EUR 5.4 million).

"During the first nine months of 2018 Allianz showed a strong performance across the board, now also supported by substantial productivity gains," said Oliver BATE, Chief Executive Officer of Allianz SE. "(...) And we are very confident to reach our targets also for this year."

Per business lines, Property-Casualty GWP amounted to EUR 12.0 billion euros in the third quarter of 2018, about half billion more y-o-y. The combined ratio improved to 93.1% (vs.96.9%), mainly due to three factors, as the German insurer announced: losses from natural catastrophes went down to a normal level, a better underlying claims development, and a decreased expense ratio. At the same time, operating profit increased to EUR 1.50 billion (vs. EUR 1.04 billion). In the first nine months of 2018, GWP increased to EUR 41.9 billion while the operating profit grew by 13.0% to EUR 4.23 billion. The combined ratio improved by 1.4% to 94.0%.

"Our Property and Casualty business had a successful third quarter of 2018 supported by strong results in our core markets," said Giulio Terzariol, Chief Financial Officer of Allianz SE. "After the first nine months of the year the combined ratio is in line with our Renewal Agenda target of 94 percent, and we are pleased with the overall development of the segment."

In life & health insurance field, the value of Q3 PVNBP (the present value of new business premiums) increased to EUR 13.4 billion (from EUR 12 billion in Q3 2017 the value of new business (VNB) increased to EUR 476 million (from EUR 410 million). Operating profit decreased slightly to EUR 1.05 billion. In the first nine months of 2018 PVNBP increased to EUR 42.4 billion (vs. EUR 40.3 billion), the operating profit decreased slightly to EUR 3.1 billion euros, while the VNB increased to EUR 1.45 billion.

"Our Life and Health insurance segment is performing well and generates growing revenues and good margins," said Giulio Terzariol. "The value of new business grew by 16 percent in the third quarter of 2018, and the new business margin increased to 3.5 percent."





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