Allianz Preliminary Earnings Report-Net Income up 60% to $9.2 Billion

February 22, 2007

Germany’s Allianz released strong growth figures in its preliminary earnings report with net income for the year up by 60 percent from just under €4.4 billion ($5.77 billion) in 2005 to more than €7 billion ($9.2 billion) in 2006. Operating profit increased by 29.8 percent from €8.0 billion ($10.5 billion) to €10.4 billion ($13.65 billion). Shareholders’ equity registered a 27.8 percent increase from €39.5 billion ($51.86 billion) to €50.5 billion ($66.31 billion).

“In fiscal 2006 the Allianz Group stuck rigorously to its course, closing on the basis of preliminary figures its first year as a European Company with a great success,” said the announcement. “All business segments again posted an increase in operating profit and contributed to the excellent overall development. While the insurance side registered a slight decline in revenues, the Group’s banking and asset management segments reached double-digit growth rates.”

Total revenues of the Allianz Group rose to €101.1 billion ($132.75 billion), up from €100.9 billion ($132.5 billion) the previous year.

“Our focus on profit growth is paying off. Last year, with the merger of RAS into Allianz, the conversion to a European Company and the reorganization of Allianz in Germany and America, we made a lot of progress. 2006 was a year of systematic change,” explained CEO Michael Diekmann. “The acquisition of all shares of AGF and Allianz Leben by Allianz is the next logical move. In that way we have reinforced the prerequisites for sustained and profitable growth in our core markets.”

In its P/C business Allianz combined ratio improved by 1.4 percentage points from 94.3 percent the previous year to 92.9 percent in 2006. “Once again in 2006 our focus was on a rigorous underwriting policy as well as on seizing market opportunities. In this way we managed to compensate for local cycles,” explained CFO Helmut Perlet.

Total P/C premium income was more or less flat at €43.7 billion ($57.38 billion), but operating profits showed a year-on-year increase of 21.9 percent from €5.1 billion ($6.7 billion) to €6.3 billion ($8.27 billion). “High growth rates were achieved in both Asia-Pacific and in Central and Eastern Europe,” the bulletin noted.

In its banking activities Allianz realized good returns from its formerly troubled Dresdner Bank subsidiary with a cost-income ratio of 79.6 percent. The bank’s operating profit more than doubled, from €630 million ($827 million) in 2005 to approximately €1.4 billion ($1.84 billion) in 2006.

For the full report got to the Group’s web site at: www.allianz.com.

Topics Profit Loss Europe Allianz

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