Allianz sees Q3 profit soar to €3 billion

The global insurer posted an impressive set of results for its third quarter, with internal revenue growth of 9.8%.

Allianz Logo
Source: Bloomberg

Allianz (ETR:ALV) has recorded operating profit of €3 billion in its third quarter (Q3), representing a 20.6% increase compared with the same period a year ago.

The surge in profit was drive by its property and casualty (P&C) business which has seen lower claims from natural disasters and strong premium growth, the company said.

‘Our Property and Casualty business had a successful third quarter of 2018 supported by strong results in our core markets,” Allianz CFO Giulio Terzariol said.

‘After the first nine months of the year the combined ratio is in line with our Renewal Agenda target of 94 percent, and we are pleased with the overall development of the segment,’ he added.

Strong year for Allianz

Allianz has added to an already strong year with its most recent set of quarterly results, with earning per share (EPS) increasing 12% to €13.42 in the first nine months of 2018.

Meanwhile, the insurers annualised return on equity (RoE) amounted to 13.8%, up 11.8% from its full year 2017 results.

‘During the first nine months of 2018 Allianz showed a strong performance across the board, now also supported by substantial productivity gains,’ Allianz CEO Oliver Bäte said.

‘Especially in challenging times, customers are looking for a financially solid partner for their insurance and investment needs. Allianz has been that reliable partner year after year. And we are very confident to reach our targets also for this year,’ he added.

Earlier this year, the insurer acquired a 49% stake in London Victoria, with the aim of strengthening its presence in the UK market by creating the third largest personal insurance carrier.

The move saw Allianz deploy some of its massive war chest, which it will use to acquire an additional 20.9% stake in the UK-based insurer next year to take a controlling stake in the company.

Allianz strong outlook confirmed

After a strong set of Q3 results, Allianz confirmed its full year 2018 operating profit outlook at €11.1 billion euros, plus or minus €500 million.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer