Allianz Posts $1.17 Billion Net Profit for 1st Nine Months, Increases WTC Loss Estimates

Germany’s Allianz Group announced a profitable first nine-months, despite increased estimates of claims from the terrorist attacks on the World Trade Center, and costs relative to the acquisition of Dresdner Bank.

Worldwide premium income increased 8 percent to € 54.9 billion ($49.15 billion). Property/casualty premiums rose 8.7 percent to € 32.1 billion ($28.73 billion). Together with gains on investments, and the contribution of Dresdner Bank as of July 23 this year, Allianz net income for the period was € 1.3 billion ($1.17 billion), despite recording a third quarter loss of € 46.3 million ($41.44 million) primarily due to Sept.11 related losses.

Allianz acknowledged that its estimates of losses from those events had increased. In September it forecast claims of around one billion euros ($900 million), but its earning announcement stated that “The Allianz Group currently anticipates claims and expenses for its own account at around 1.5 billion euros [$1.35 billion]. late notifications of claims, in particular relating to business interruption claims, have resulted in a correction to the overall claims estimate.”

The group’s projected net income figure for the entire year remained unchanged at € 1.7 billion ($1.52 billion). The figure shows the extent to which the weakening of the global economy, compounded by the WTC attacks has affected the insurance industry. Allianz earned overall net profits of €3.46 billion ($3.1 billion) for the full year 2000. It’s combined ratio was reasonably expected to be 102.3 percent, excluding the impact of Sept.11; when those losses are added it increases to 108.2 percent.