Allianz Q4 profit surges 19pc to €1.697b
FRANKFURT: German insurer Allianz yesterday reported a net profit rise of 19 per cent in the fourth quarter from a year earlier, in line with expectations, and said it was aiming for a larger operating profit target this year.
Net profit attributable to shareholders is €1.697 billion (RM7.82 billion), compared with €1.715 billion profit forecast by analysts in a Reuters poll. It was up from €1.427 billion a year earlier.
For last year, Allianz earned €11.5 billion in operating profit, at the upper end of its targeted range of €11.1 billion, plus or minus €500 million. The insurer had already flagged that it was highly likely to come in above the mid-point of the range.
For this year, Allianz said it was aiming for operating profit of €11.5 billion, plus or minus €500 million.
“Our healthy and well-diversified business makes us confident that we will continue to deliver a strong financial performance again this year,” said chief financial officer Giulio Terzariol in a statement.
Allianz and the insurance sector are bouncing back from losses incurred by hurricanes, fires and earthquakes in North America in 2017 — the industry’s costliest year ever.
Allianz’s combined ratio in its property and casualty division, a key measure of profitability, was 94.1 per cent in the fourth quarter, down 0.4 percentage point from a year earlier. Readings below 100 indicate profitability.
It proposed a dividend of €9 per share, above expectations of €8.84 per share and above €8 per share last year.
On Thursday, Allianz announced plans to buy back up to €1.5 billion in shares.