Allianz Confirms $1.78 Billion Q1 2012 Net Profit

May 16, 2012

As previously announced, Germany’s Allianz SE has had a successful start in 2012 with increases in overall revenues, operating profit and net income for the first quarter well above first-quarter 2011 levels. Allianz Group also further improved its already strong capital base.

The Allianz Group earned €30.1 billion [$38.3 billion] in total revenues, the second-highest level in its history, compared to €29.9 billion [$38 billion] in Q1 2011. Operating profits were €2.3 billion [$2.93 billion], 40.4 percent higher than the previous year’s value of €1.7 billion [2.16 billion].

“Property and Casualty insurance showed a substantial improvement in operating profit due to a lower impact from natural catastrophes; Life and Health insurance as well as Asset Management also produced significant increases,” said the bulletin.

Net income for the first quarter of 2012 rose 57.9 percent to €1.4 billion [$1.78 billion] from around €900 million [$1.145 billion] in the first quarter of 2011, which, Allianz noted, “was impacted especially by high claims from natural catastrophes.”

“Allianz has put in a very good performance this quarter, following 2011 that was tough for the entire insurance industry,” stated Oliver Bäte, Chief Financial Officer of Allianz SE. “Despite the ongoing sovereign debt crisis, volatile markets and low interest rates, we continue to expect an operating profit for 2012 of €8.2 billion [$10.45 billion], plus or minus €0.5 billion [$636 million].”

Gross premiums written in Property and Casualty insurance reached €14.8 billion [$18.826 billion], an increase of 3.8 percent compared to €14.3 billion [$18.19 billion] in the first quarter of 2011. The segment benefited from both positive price and volume effects.

Nearly all regions and global business units contributed to this growth. Australia and the Asia-Pacific region as well as the credit insurance and industrial lines increased premiums significantly.

Bäte also pointed out that “revenues in Property and Casualty insurance are at record levels, and operating profit is on track. Even though there was a lower incidence of natural catastrophes this quarter, we are seeing a trend toward higher natural catastrophe impacts. For this reason, we have increased our 2012 budget for these impacts to €1.2 billion [$1.526 billion].”

The complete report and information on accessing the earnings conference call may be obtained on the company’s website.

Source: Allianz SE

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