FRANKFURT--Germany's Allianz SE (ALV.XE), Europe's biggest
insurer by market capitalization, Friday said net profit rose
almost sevenfold in the third quarter, in the absence of hits on
financial-sector investments and Greek sovereign debt, and amid a
dearth of natural disasters, which undermined last year's
results.
An excellent contribution from the asset management business and
the insurance operations, and a lower tax rate also contributed to
the higher earnings.
Allianz already early last week released a small set of
third-quarter figures, as it raised its operating profit guidance
for the full year due to a strong third quarter.
Allianz, which has insurance, asset management and a small
banking operation, now expects a 2012 operating profit above 9
billion euros ($11.5 billion), compared with its previous target
range of EUR7.7 billion to EUR8.7 billion. In 2011, the company
booked operating profit of around EUR7.9 billion. After the first
nine months, operating profit was EUR7.23 billion.
Allianz cautioned Friday that the raised guidance is based on
its own preliminary estimates for Hurricane Sandy's impact as of
Nov. 8, but that those estimates could still be subject to
substantial upward revision. It also said that it currently can't
give a reliable estimate for its own loss. The overall market loss
that insurers will need to shoulder is currently estimated in a $7
billion to $20 billion range by risk-modeling agencies.
Quarterly net profit attributable to shareholders rose to
EUR1.34 billion from EUR196 million in the same quarter a year
ago.
Operating profit was EUR2.53 billion, up 33% from EUR1.91
billion in the same period a year ago.
Last week, Allianz cautioned that full-year net income growth
"will be comparatively lower because of further balance sheet
strengthening including investment de-risking and restructuring
activities, as already seen in the first nine months of 2012."
Write to Ulrike Dauer at ulrike.dauer@wsj.com
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