Allianz Books $2.93B Annual Profit, Up 16.4%

Allianz Books $2.93B Annual Profit, Up 16.4%

NU Online News Service, March 18, 3:02 p.m. EST?Allianz Group, Germany's biggest insurance combine, reported 2004 profit improved to $2.93 billion, despite last year's costly natural catastrophes and lingering problems at its banking unit.[@@]

The Munich, Germany-based insurer said its full-year profit rose 16.4 percent from $2.53 billion profit reported in 2003, helped by strong insurance businesses, the company said.

The insurer's operating profit for the year rose 69 percent to $9.3 billion, while total revenue rose to $130 billion compared to 2003.

"Allianz has regained its status as a company with a solid capital base and sound earnings," stated Allianz chief executive Michael Diekmann, who also pointed out that the company posted healthy results in all its divisions: property-casualty insurance, life-and-health insurance and banking.

Allianz's combined ratio for its core p-c business improved dropping 4.1 points to 92.9 percent, thanks to "a tightly disciplined price and underwriting policy and strict cost control," the company said. P-C premium income rose by 0.8 percent to $58.35 billion, while p-c operating profit was up 63.3 percent to $5.328 billion.

One continuing problem for Allianz is its banking unit, Dresdner Bank, which posted a $290 million fourth-quarter loss. But for full-year 2004, it too posted a profit, of $189 million, following some cost cutting and restructuring, the company stated.

Standard & Poor's Ratings Services noted that improved 2004 results by Allianz, which is rated "double-A-minus" with a "Negative" outlook, were in line with its expectations. "The results help to reinforce Allianz' developing track record of improvement across all its major profit centre activities," said S&P.

A.M. Best Co. said it's maintaining all of its Allianz ratings. The ratings firm said the reported level of profit is "in line with the year-end results factored within the existing ratings."

"Allianz has made significant progress in improving its operating performance, most notably in p-c business where the combined ratio reduced to an excellent 92.9 percent in the fourth quarter of 2004," the ratings firm said, "and at Dresdner Bank, which achieved an overall small profit compared to a loss in the previous year."