MUNICH, Germany—Allianz S.E. reported significantly higher profits for the first nine months of 2009 as financial markets improved, though net premiums edged down at the Munich, Germany-based insurer.
Allianz reported profits of e3.22 billion ($4.78 billion) for the first nine months of 2009 compared with e667 million ($990.3 million) during the same period last year, due in large part to improved investments and last year's sale of the its unprofitable banking Dresdener Bank. Allianz reported a net loss from discontinued operations of e395 million ($586.5 million) for the first nine months compared with a net loss of e3.5 billion ($5.2 billion) for the same period last year.
Total nine-month revenues increased 3.5% e71.92 billion ($106.78 billion), though net premiums earned fell slightly to e44 billion ($65.33 billion), as the recession continued to depress demand for coverage.
Total gross premiums written for property/casualty were e33.64 billion ($49.95 billion) in the first nine months, down 2.1% from the same period last year. The combined ratio for the sector worsened to 98.2% compared with 95.2% last year.
For the third quarter, gross premiums written fell 5.4% to e10.23 billion ($15.19 billion). Allianz said that core markets, including Germany, France, Italy and its credit insurance business, were hit by the recession and an “unusually high” number of weather-related claims.
Allianz Global Corporate and Specialty, the group's specialist underwriter of large corporate risks, reported gross premiums written of e862 million ($1.28 billion) for the third quarter, up 10.1% from the same period last year. The unit's combined ratio also improved to 93.6% from 98.4% in the third quarter last year.
“We achieved a reasonable result in the property and casualty business, given the still-challenging market environment, but the operating result is not yet satisfactory,” said Chief Financial Officer Oliver Bäte. “While pricing shows an upward trend, volumes remain challenged due to weaker demand and portfolio cleaning measures,” he added.
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