NU Online News Service, May 13, 2:50 p.m. EDT–German insurance giant Allianz AG reported a 33 percent boost for its quarterly profit, bolstered by improvements in its property-casualty insurance business and its banking unit.
Allianz, based in Munich, Germany, reported 1.2 billion euros ($1.5 billion) profit for its 2005 first quarter.
The company's combined ratio for its property-casualty business fell by 3.7 percentage points to 92.1, while p-c net income went up from 554 million euros ($709 million) to 753 million euros ($964 million).
Allianz said the p-c insurance segment's operating profit rose 102 percent to 1.004 billion euros ($1.3 billion), up from 497 million euros ($636 million) one year ago, mainly reflecting an improved underwriting result.
The insurer said its p-c insurance business remains dominated by the "focus on profitable growth and the approach of only writing business where premiums adequately reflect the underlying risk."
The company observed that its disciplined underwriting approach drove the loss ratio down by almost four points to 66.5 percent, despite a tough winter and an increase in major claims. Allianz said its p-c combined ratio target for overall 2005 is under-95.
Allianz also benefited from improved results of its Dresdner Bank unit, whose profit rose 24 percent to 216 million euros ($276 million), thanks to lower administrative expenses and disposing of billions of euros in bad loans, the company said.
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