German insurer Allianz posted an attributable net profit of 6.39 billion euros in the first three quarters, up 20.2 percent from the same period in 2022, due to operational improvements in all segments except asset management.
Allianz reported Friday that overall group revenue rose 4.7 percent to 122.1 billion euros between January and September, and operating profit rose 3.6 percent to 10.981 billion euros.
The capitalisation ratio according to Solvency II supervisory rules stood at 212% at the end of the third quarter of 2023, up from 201% a year earlier.
Allianz chief executive Oliver Bäte said that in the first nine months of this year they have seen “robust growth” in business volume, operating profit as well as core net income.
Bäte noted that Allianz has strengthened its solvency position to 212% and that a focus on efficiency has enabled profitable growth with healthy margins, putting it on “an excellent trajectory to achieve” its targets.
Even with gains, Allianz profit fell in first quarter due to natural disasters
Allianz’s chief executive confirmed forecasts of an operating profit of between 13.2 billion euros and 15.2 billion euros in 2023 despite a fall in the third quarter.
Allianz’s shares were up 2.2 per cent to 227.25 euros in midday trading on the Frankfurt Stock Exchange as the fall in third-quarter profit was less than expected, and they accumulate a year-to-date gain of 13 per cent.
Operating profit fell in the third quarter to 3.5 billion euros (-14.6 %) because of a decline in the property and casualty insurance business (-25 %) which was hit by a higher number of losses from natural catastrophes, the highest in a decade, much higher than in the floods in Germany in 2021.
Natural catastrophes, such as the floods in Slovenia, Austria, Croatia and Italy in the summer, cost Allianz almost €1.3 billion in the third quarter, four times more than a year ago.
Life and health insurance improved operating profit in the first three quarters to 3.83 billion euros (+21.1%), while asset management reduced it to 2.214 billion euros (-7.4%).
Allianz CFO Giulio Terzariol said the third quarter results, characterised by high inflation and geopolitical tensions, again demonstrate the strength of its diversified business model.