Higher claims crashes Allianz SE’s Q3 profit by 17%

Allianz Nigeria

The world’s largest property and casualty insurer, Allianz SE said its third-quarter revenue rose by 2.1% to EUR28.3 billion.

However, Allianz missed profit estimate as its third-quarter operating profit fell by 17.3% to EUR2.5 billion. The German insurance giant said its profit was negatively impacted by a series of hurricanes, storms and other natural catastrophes ‘drove claims higher’.

The company reported said its gross premiums written amounted to 11.5 billion euros in the third quarter of 2017. Adjusted for foreign exchange and consolidation effects, internal growth totalled 2.2 percent, with price and volume effects contributing 0.9 percent and 1.3 percent respectively.

Within the period, Allianz Partners, AGCS, Latin America and UK were the main growth drivers.

“Third quarter results were robust, given the massive natural catastrophe events that impacted our Property & Casualty segment. It was also very good to see how our experts were able to actively support our customers in these difficult circumstances,” said Oliver Bäte, Chief Executive Officer of Allianz SE. “The group absorbed claims stemming from hurricanes, storms and earthquakes in the quarter and still increased operating earnings in the nine-month period. Our capitalization also strengthened further, as the rising solvency ratio shows. For the year as a whole, Allianz expects to deliver strong financial results with operating profit in the upper half of the target range of 10.8 billion euros, plus or minus 500 million euros.”

Allianz is the majority stake owner in Nigeria’s Ensure Insurance.

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