Allianz Q3 Net Profit Hit by ‘Market Turmoil; Figures Show Decreases

November 14, 2011

Allianz reported Net income of €258 million [$353.46 million] for the third quarter of 2011, compared to €1.268 billion [$1.737 billion] in Q3 2010, a 79.7 percent drop.

For the first nine months of the year Allianz’ net income was €2.244 billion [$3.0743 billion], a 44.3 percent decrease from the €4.028 billion [$5.5183 billion] in 2010.

Other key figures – in US dollars from euros @ $1.37 = €1.00 – were given as follows:
Q3 2011 Q3 2010
Total revenues ————- $32.976 bn $33.595 bn
9 months – 2011 2010
$107.61 bn $110.254 bn
Operating Profits ————– $2.611 bn $2.815 bn
9 months 2011 2010
$8.036 bn $8.342 bn
P/C Sector: gross premiums written – $14.834 bn $14.522 bn
9 months – 2011 2010
$48.33 bn $47.327 bn
P/C operating Profits ————– $1.522 bn $1.537 bn
9 months 2011 2010
$4.251 bn $4.084 bn
Q3 P/C combined ratio 97.6 percent (97.1 percent in Q3 2010);
Nine months 97.9 percent (2010 97.9 percent)

Allianz operating figures were largely in line with those posted in 2010, showing only slight declines in profits, and an actual increase in P/C gross premiums written. However, the group was substantially impacted by the ongoing financial crisis, particularly in the banking sector.

Allianz report said: “The escalating sovereign debt crisis and related deterioration in equity markets had a profound effect on our non-operating result, which declined by €1.139 billion [$1.56 billion] to a loss of €1.262 billion [$1.729 billion].

“The most pronounced effects are reflected in our non-operating investment result, which decreased by €1.253 billion [$1.7166 billion]. This decrease is mainly due to losses from investments in financial sector assets, predominantly held in the Corporate and Other segment. Realized gains and losses (net) decreased from €382 million to €314 million, mainly due to €106 million lower realizations from debt securities.

“Realized gains and losses (net) from equities of €246 million were slightly higher than in the previous year. These included gains of €167 million (Q3 2010: €113 million) from the sale of shares in the Industrial and Commercial Bank of China (ICBC) and a revaluation gain of €99 million from EUROPENSIONES S.A., our joint venture with Banco Popular in Spain.”

Allianz also indicated that its operations had been impacted by the natural catastrophes, which have occurred in 2011. Concerning the specific situation in Greece, Allianz said: “Greek sovereign bonds were impaired and consequently written down to the current market value in accordance with IFRS impairment rules for available-for-sale debt securities, reflecting 39 percent of nominal value.”

The complete figures may be obtained at: https://www.allianz.com/static-resources/en/investor_relations/conferences/analysts_conferences/documents/2011_q3/v_1320990381000/q311_interimreport.pdf. A full written report, as well as additional and supplemental information and instructions for accessing the earnings conference call may be obtained on the company’s website at: www.allianz.com .

Source: Allianz SE

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