Allianz says likely to reach upper half of 2018 profit target
(Reuters) — Allianz SE is “highly likely” to reach the upper half of its 2018 profit target range, Chief Financial Officer Giulio Terzariol said as the German insurer cited lower costs and claims in its third-quarter results on Friday.
The group aims for full-year operating profit of €11.1 billion ($12.59 billion), give or take €500 million.
Allianz and the insurance sector are bouncing back from losses incurred by hurricanes, fires and earthquakes in North America in 2017 — the industry’s costliest year ever.
In the third quarter to the end of September, net profit attributable to shareholders surged 24% to €1.94 billion, rising from €1.57 billion a year ago and beating consensus for €1.88 billion in a Reuters poll.
Chief Executive Oliver Baete said the company had performed strongly across the board so far this year and that productivity gains were substantial.
“We are very confident to reach our targets also for this year,” Mr. Baete said.
Analysts at Baader Helvea Equity Research called the quarterly earnings “overall solid.” Allianz shares traded 1.1% higher early in Frankfurt, outperforming a decline in the broader DAX index of blue chip stocks.
The company is conducting a strategy review of its property and casualty business. Executives have said the review would not result in a major shake-up and results are expected this month.
Allianz’s combined ratio in its property and casualty division, a key measure of profitability, was 93.1% in the third quarter, down from 96.9% a year ago. Readings below 100 indicate profitability.
Lower losses from natural catastrophes and reduced expenses were behind the decline, the company said.
Allianz said that its asset management unit, which includes PIMCO, contributed to profitability.
Third-party assets under management rose by €23 billion to €1.487 trillion.
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Allianz says 2018 on track despite second-quarter profit slip
(Reuters) — Allianz S.E. is on track to hit its 2018 profit targets, the German insurer said on Friday, after beating second-quarter net income forecasts despite taking a hit on the sale of its Taiwanese life insurance portfolio.
