Germany’s Allianz SE posted its preliminary results for the third quarter of 2006, prior to the official release Nov. 10. Net income for the period doubled to €1.6 billion ($2.032 billion), while total revenues were €22.6 billion ($2807 billion), slightly down compared to Q3, 2005. Overall operating profit increased by 42.7 percent to €2.7billion ($3.43 billion), while operating profit from P/C business increased by 74.1 percent to €1.7 billion ($2.16 billion), and the combined ratio improved to 90.2 percent.
“Shareholders’ equity of Allianz Group continued to increase by 13.8 percent from €39.5 billion [$50.16 billion] as at December 31, 2005 to €44.9 billion [$57 billion],” said the bulletin. “The increase in net income for the quarter was mostly a result of the improved operating profit. The quarterly net income also contains a profit of approximately €300 million [$381 million] from the sale of Four Seasons Healthcare.”
Operating profits for the first 9 months of 2006 rose 33.4 percent to €8.131 billion ($10.326 billion], compared to €6.097 billion ($7.743 billion) for the first nine months of 2005. Net Income before income taxes and minority interests, which includes capital transactions, rose 44.1 percent to €8.696 billion ($11.044 billion).
“We have highlighted our strong profitability level with this excellent quarterly result,” commented Helmut Perlet, Member of the Board of Management of Allianz SE. “However, there is no reason for complacency after this result.” He noted that continued intensive efforts were still required in the insurance business in order to continue strengthening the market position that had been achieved. This applies to the underwriting result in the P/C business in an increasingly difficult market, as well as to the Life and Health business in Italy and the USA.
Perlet also stated: “The very successful business performance again leads us to anticipate slight improvements on the forecast made at the half-year stage for the fiscal year 2006: We are now assuming an operating profit in excess of €9.5 billion [$12.065 billion]. Although restructuring expenses for Dresdner Bank are still outstanding in the fourth quarter and realization of further capital gains is not planned, we are anticipating net income for the year above €6 billion [$7.62 billion]. In a cautionary note Perlet indicated that the estimates are subject to the reservation that no natural catastrophes or adverse developments in the capital markets compromise profitability.
The full preliminary report and analysts’ presentation way be viewed and downloaded on the Group’s Website at: www.allianz.com.
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