NU Online News Service, Feb. 25, 1:26 p.m. EST

Allianz Group reported it moved out of the loss column in 2009 with net income of EUR4.35 billion ($5.87 billion) for the year and EUR1.09 billion ($1.47 billion) for the quarter.

In 2008 the firm had a loss of EUR2.2 billion ($2.97 billion), or negative EUR5.47 ($7.39) a share.

The Munich, Germany-based insurer reported 2009 fourth quarter net income equaled EUR2.38 ($3.21) a share, compared to net loss of EUR3.08 billion ($4.16 billion), or negative EUR6.96 ($9.40) a share, for 2008.

Revenues for the quarter rose 11 percent, or EUR2.5 billion ($3.38 billion), to EUR25.5 billion ($34.44 billion).Revenues for the year increased more than 5 percent, or EUR4.8 billion ($6.5 billion), to EUR97.4 billion ($131.5 billion).

In the company's property and casualty business, the combined ratio for the quarter improved 0.9 points to 95.3. For the year, the combined ratio rose 2 points to 97.4.

During a press conference broadcast over the internet, Allianz's Chief Executive Officer Michael Diekmann said that after a difficult first half of the year, the company was able to reduce its combined ratio for the second half of the year to produce the year's results. He said the company's aim would be to work at reducing the combined in the future.

For 2010, he said the company "will confront tough price competition in property and casualty insurance with two main approaches: enhanced operating efficiency and customer service through our new business model, as well as continued focus on local and global business in dedicated units."

Life and health management will continue to be key drivers for the company, Mr. Diekmann added, where the company sees significant opportunities in "more mature markets."

The future holds further consolidation in the insurance markets in the wake of the financial crisis, and management "sees a responsibility to review the opportunities resulting from this situation."

He added that until Europe's issues with its regulations under Solvency II are cleared up, any major transactions were unlikely.

The company said it plans to raise its dividend by 17 percent.

Special Reports /

Allianz Reports A Return To Profitability

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