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.