Allianz Sees Continued Growth in Central and Eastern Europe

Allianz notes on its Web site – www.allianz.com – that Central and Eastern Europe continues to be an important growth area for the German insurer. “In the first half of 2005, premium income stood at 1.355 billion euros [$1.65 billion] – an increase of 17 percent on the previous year.”

Allianz said it “has consolidated its position as the region’s leading foreign insurer.” Werner Zedelius, the member of the Board of Management of Allianz responsible for Growth Markets, stated: “We’re very pleased that we’ve been able to further improve our already strong position. What’s more important, however, is that we managed to further increase the profitability of our activities.” The region accounted for 135 million euros ($164.5 million) of Allianz’s mid-year after-tax profits of almost 2.6 billion euros ($3.167 billion), a return on equity of 36 percent.

Property insurance continues to be Allianz’ biggest market segment with premiums of around 1.2 billion euros ($1.46 billion) and growth of around 16 percent.

“Allianz Hungary continues to be Allianz’s biggest property and casualty insurer in the region, with premium volume of 320 million euros [$390 million], the bulletin continued. “The 14 percent increase compared with the previous year is largely down to the fact that, during the motor renewal season, Allianz Hungaria managed to increase the number of contracts by around 30,000, by the end of March 2005 alone. In so doing, the company further improved its market leadership in Hungary. Its market share of overall insurance business (P&C and Life) now stands at a good 27 percent.”

Allianz has also experienced strong growth in the life sector with premiums increasing by around 22 percent. The segment contributed approximately 80 million euros ($219 million) to premium income.

“Allianz has been operating in the Central and Eastern European markets since 1989 and has also been represented in the biggest market, Russia, since as early as 1990,” the bulletin said. “Overall, Allianz is established in the eight most important insurance markets of the new Europe. Allianz is the market leader in four countries and among the top three insurers in seven of the eight markets. With a market share of 13 percent, Allianz is the biggest international insurer in the region.”