View this article online: https://www.insurancejournal.com/news/international/2002/02/08/16038.htm
German insurance giant Allianz AG confirmed the adverse affects of last September’s attacks on the World Trade Center with the announcement that preliminary figures indicated a net operating profit for 2001 of around € 1.7 billion ($1.48 billion), down sharply from the €3.5 billion ($3 billion) it earned in the year 2000.
The company attributed the decrease directly to the anticipated net claims expenditure of € 1.5 billion ($1.3 billion) taken in the 3rd quarter. Allianz lowered its original earnings forecast of around €2.7 billion ($2.35 billion) due to the losses, but, as analysts had already predicted it, the lowered figures had little effect on Allianz’ share price.
Even the stunning impact of a $1.3 billion loss failed to override the good news. The company announced that,”Gross premium income in insurance business at the Allianz Group rose by 8.1 percent over fiscal 2000 from 68.7 to 74.2 billion euros [$60 billion to $$64.7 billion]. This considerably exceeded the 5 percent growth originally planned. The surge in growth was mainly generated from property and casualty insurance.”
“Premium income for Property and Casualty Insurance increased by 8.7 percent from 37.7 to 40.9 billion euros[$32.87 billion to $35.66 billion]. Increases in premiums in Germany, France, Great Britain and Spain were among the key factors impacting on this result,” said the announcement on www.allianz.com.
Helmut Perlet, responsible for Controlling, Accounting and Taxes on the Board of Management of Allianz AG, indicated that, “We have achieved our aim of improving profitability in property and casualty insurance. Above all, we have succeeded in achieving prices commensurate with risks in some key markets.”
The news boosted flagging insurance stocks in Europe. Shares in AXA, Munich Re and a number of other insurers all made up some recent losses, led by Allianz which rose 6.8 percent in Frankfurt.
Allianz also announced increases in its life and pension sales, and noted that assets under management for the entire group had now reached €1.2 trillion, just about an even one trillion dollars. It’s also planning on consolidating its share holdings in Dresdner bank and other subsidiaries by acquiring the interests of minority shareholders (see companion article).
The company forecast continued expansion. Subject to the usual cautions, it stated that, “Allianz anticipates that the steady growth experienced in previous years will continue during fiscal 2002. It expects a rise of above 4 percent in gross premium income to 77.5 billion euros [$67.58 billion] – based on exchange rates for 2001. The Board of Management is forecasting an increase in net income exceeding 3 billion euros [$2.62 billion].”|”allianz, net, falls, on, wtc, attacks,, forecasts, gains, in, 2002