Al­lianz bounces back with bumper profit

The Myanmar Times - - International Business -

GER­MAN in­sur­ance heavy­weight Al­lianz an­nounced a bumper thirdquar­ter profit, turn­ing around a slump prompted by higher pay­outs for nat­u­ral dis­as­ters.

The group said it in­creased net profit to 1.95 bil­lion euros (US$2.1 bil­lion) be­tween July and Septem­ber, an in­crease of 35 per­cent.

The re­sult out­did the ex­pec­ta­tions of a net profit of 1.6 bil­lion.

Al­lianz is now on course to meet its full-year tar­get of 10.5 bil­lion euros in un­der­ly­ing, or op­er­at­ing profit over the full year af­ter earn­ing just over 8 bil­lion in the first nine months, chief fi­nan­cial of­fi­cer Di­eter Wem­mer said in a state­ment.

“Ef­forts to de­velop our busi­ness in a very dif­fi­cult en­vi­ron­ment are pay­ing off,” Mr Wem­mer said.

In its state­ment, Al­lianz pointed to a “bet­ter per­for­mance across its busi­ness seg­ments” to ex­plain the rise in prof­its.

The group high­lighted its prop­erty and ca­su­alty in­sur­ance divi­sion, which in­creased op­er­at­ing profit more than 4pc com­pared with the third quar­ter in 2015.

A wave of heavy floods and storms in Europe had knocked more than 15pc off the unit’s op­er­at­ing profit over the first half of 2016.

Mean­while, the third quar­ter also saw Al­lianz in­crease over­all rev­enues 0.5pc to 27.7 bil­lion euros.

De­clin­ing rev­enues in the group’s as­set man­age­ment divi­sion were off­set by growth in the life and health in­sur­ance unit.

Like other in­sur­ance and fi­nan­cial sec­tor firms, Al­lianz has strug­gled with his­toric low in­ter­est rates, which make it more dif­fi­cult to earn high re­turns. –

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