By Ulrike Dauer
FRANKFURT--Germany's Allianz SE (ALV.XE) Wednesday reported a
24% rise in final net profit in the first quarter, boosted by
revenue gains, low claim costs in the insurance business, and as
asset management operations enjoyed strong inflows and continued
slim cost-income ratios.
Final net profit in the first three months rose to EUR1.71
billion from EUR1.37 billion, in line with preliminary net profit
of around EUR1.7 billion released a week ago.
Operating profit was up 20% to EUR2.80 billion, also matching
the preliminary data released as part of a small set of figures
ahead of the company's annual shareholders meeting.
The main earnings driver was the 12% operating profit increase
in property-casualty insurance to EUR1.32 billion, helped by the
virtual absence of major claims in the quarter, mirroring similar
results that other insurance peers and global reinsurers reported
recently. It beat analyst forecasts of EUR1.25 billion. Rate rises
in many markets and products lines contributed to the improvements,
Allianz said.
Asset management also made a 47% higher contribution to
operating profit at EUR900 million, underpinned by strong net
inflows and a further improvement in the cost-income ratio. The
life and health insurance business, with operating profit up 4% to
EUR855 million, managed to defy forecasts of an 11% profit decline.
The segment benefited from lower costs, which offset the lower
investment income.
Total revenue was up 6.6% to EUR32.0 billion from EUR30.05
billion, above the forecast EUR30.9 billion. Allianz said this was
the highest quarterly revenue result so far in its history.
Allianz already reassured markets last week that it is on track
for the full-year target of an operating profit between 8.7 billion
euros ($11.4 billion) and EUR9.7 billion. It said, however, that it
sees no need to lift that guidance despite the higher first-quarter
result, due to the "existing market risk."
The U.S. Atlantic hurricane season, which starts June 1 and runs
through November, also adds quite a bit of uncertainty to insurers'
and reinsurers' results, as last year's costly damage caused by
Hurricane Sandy at the end of October illustrated.
Allianz is Europe's biggest primary insurer by market value and
premium income.
Write to Ulrike Dauer at ulrike.dauer@dowjones.com
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