German insurance and asset management company Allianz SE (AZSEY.PK) reported Friday higher profit in its third quarter, with increased revenues supported by all business segments. Looking ahead, the company confirmed its full-year 2018 operating profit outlook at 11.1 billion euros, plus or minus 500 million euros. The company added that it is confident to reach targets also for this year.
Oliver Bäte, Chief Executive Officer of Allianz SE, said, “During the first nine months of 2018 Allianz showed a strong performance across the board, now also supported by substantial productivity gains. Especially in challenging times, customers are looking for a financially solid partner for their insurance and investment needs. Allianz has been that reliable partner year after year.”
For the third quarter, net income attributable to shareholders increased 23.6 percent to 1.94 billion euros from 1.57 billion euros last year. Earnings per share were 4.54 euros, higher than 3.52 euros a year ago.
Operating profit grew 20.6 percent to 2.99 billion euros from prior year’s 2.48 billion euros. The results were mostly driven by Property-Casualty business with 44.6 percent rise in operating profit amid lower claims from natural catastrophes, as well as strong premium growth.
An increase in assets under management driven revenues and higher performance fees led to an increase in the operating profit from Asset Management business segment. Life/Health business segment operating profit decreased slightly but remained at a good level.
Total revenues increased 7.9 percent to 30.5 billion euros from last year’s 28.3 billion euros. Internal revenue growth, which adjusts for currency and consolidation effects, was 9.8 percent, supported by all business segments.
Property-Casualty insurance gross premiums written amounted to 12.0 billion euros, higher than 11.5 billion euros last year. The combined ratio improved to 93.1 percent from 96.9 percent last year.
The company noted that Life and Health insurance segment is performing well and generates growing revenues and good margins. The value of new business grew by 16 percent in the third quarter of 2018, and the new business margin increased to 3.5 percent.
Total assets under management reached the 2 trillion mark for the first time.
In Germany, Allianz shares were trading at 187.58 euros, up 0.30 percent.
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