Allianz SE is sticking with its full-year profittarget as improving returns offset a jump in losses from natural catastrophes.
|The insurer reiterated an operating profit target of 10.3billion euros to 11.3 billion euros for this year in astatement on Wednesday. Operating profit rose 9.4 percent to2.9 billion euros. Net income dropped 15.3 percent to 1.8 billioneuros ($2 billion) from 2.1 billion euros a year earlier, asgains from the sale of financial stakes weren’t repeated.
|"Our first quarter results were a good start into 2017 and ourbalance sheet remained strong,” Chief Executive Officer Oliver Baete said inthe statement. “Despite market volatility and low interest rates,we confirm our outlook.”
|Higher disaster claims
At Allianz’s property and casualty insurance unit, spending onclaims and other costs as a percentage of premiums, known as thecombined ratio, worsened to 95.6 percent from 93.3 percent a yearearlier due to higher disaster claims. A ratio below 100 percentmeans an insurer is making a profit from underwriting.
The insurer’s asset-management unit, which comprises PacificInvestment Management Co. and Allianz Global Investors, increasedits third-party assets under management to 1.4 trillion euros from1.36 trillion euros at the end of last year.
|Allianz earlier this year announced its first-ever share buyback, a plan to spend asmuch as 3 billion euros by next February, with other purchasespossibly to follow. It also aims to at least maintain the dividendper share paid last year. The insurer is holding its annualshareholder meeting in Munich on Wednesday.
|Terzariol appointed CFO in March
Giulio Terzariol was appointed as chief financial officer in Marchto succeed Dieter Wemmer at the beginning of next year. The insureralso plans to propose former CEO Michael Diekmann as chairman ofthe supervisory board.
The company will publish detailed first-quarter results on May12.
|Copyright 2018 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.
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