Germany’s Allianz Group increased its profitability in the first quarter of 2007, posting an operating profit of €2.87 billion ($3.897 billion) a 7.2 percent gain over the €2.677 billion ($3.635 billion) earned in Q1 2006. Total revenues for the period declined slightly – 1.1 percent – from €29.6 billion ($40.2 billion) to €29.3 billion ($39.8 billion).
Net income for the quarter, which includes capital gains/losses, rose 82.1 percent to €3.24 billion ($4.4 billion) compared to €1.779 billion ($2.416 billion) in Q1 2006, mainly due to profitable sales of assets of around €2 billion ($2.716 billion). Allianz said it would use the funds mainly to finance its purchase of the minority interests of French subsidiary AGF.
Allianz did note that “as a result of the claims costs from storm Kyrill totaling €340 million [$$462 million], the operating profit in the Property and Casualty business declined by €119 million [$162 million] compared to the previous year’s quarter. Operating profit of all other segments improved.”
Allianz also announced that “Dresdner Bank lifted its operating revenues by 7.4 percent to over €2.0 billion [$2.716 billion] compared with the strong first quarter of 2006. Here the key driver was net interest income, which increased by 55.7 percent to €900 million [$1.222 billion]. This includes a one-off equity pick-up of €171 million [$232 million] from the sale of subsidiaries at an associated company. The operating profit rose by 28.0 percent from €529 million [$718 million] to €677 million [$919 million]. Ongoing efficiency improvements and a higher portfolio quality have paid off. In the traditionally strong first quarter the cost-income ratio improved from 73.7 to 66.9 percent.”
Helmut Perlet, CFO of Allianz SE, noted: “In view of the non-operating factors influencing the first quarter it would be a mistake to project the result for the first three months to the year as a whole. However, with this excellent start we have a firm footing to achieve our targets for 2007.”
The full report, additional information and replays of the investors’ conference call may be obtained on the Allianz web site at: http://www.allianz.com.
Topics Profit Loss Allianz
Was this article valuable?
Here are more articles you may enjoy.
Insurance Customers Skeptical About AI Processes and Benefits 
How ‘Super Roofs’ Reward Insurers, Cat Bond Investors and Homeowners 
Barge Looted in the Bahamas Returns to Florida but Insurance Claims Mounting 
Lawsuit Alleges Farm Bureau Financial Concealed Fraudulent Activities 
