Allianz, one of the largest insurance company in the world and the largest in Germany said its revenue for the first quarter of the year rose to EUR36.2 billion.
Gross premiums written for the quarter was EUR 17.7 billion compared to (17.2) billion euros in the first quarter of 2017. Adjusted for foreign exchange and consolidation effects, internal growth totaled 1.7 percent, with price and volume effects contributing 1.2 percent and 0.5 percent respectively.
However, Operating profit declined by 12.7% to 1.3 billion euros compared to the prior-year quarter. Allianz disclosed that the decrease was due to a lower underwriting result was driven by higher large losses, an increase in claims stemming from natural catastrophes and a negative impact from the Ogden discount rate change.
Commenting on the result, Dieter Wemmer, Chief Financial Officer of Allianz SE, said “Allianz saw a good start into 2017 with results putting the group on track to meet its operating profit target for the full year of 10.8 billion euros, plus or minus 500 million euros, barring unforeseen events, crises or natural catastrophes”.
He added that “The group observed higher claims from large losses as well as natural catastrophes and still posted a strong rise in operating profit due to improvements in Life and Health and Asset Management business segments. The Group’s net income was also solid in the quarter considering the exceptionally strong year-ago period, which benefited from the sale of financial stakes”.