Earnings at Germany’s Allianz climb to $1.6 billion in 4th quarter, a bit less than expected
Insurer Allianz SE said that its fourth-quarter earnings climbed 11 per cent, slightly less than expected, on a small increase in revenue and a more profitable core business.
Allianz reported net earnings of C1.14 billion ($1.6 billion) for the October-December period – up from C1.02 billion a year earlier, but a bit below analysts’ forecast of C1.2 billion. Revenues climbed 2 per cent to C26 billion from C25.5 billion.
Full-year net earnings were up to C5.05 billion from C4.21 billion in 2009. Revenues grew to C106.5 billion from C97.4 billion.
CEO Michael Diekmann noted that operating profit, which was up 17 per cent at C8.24 billion, exceeded the company’s expectations.
“Allianz has managed its risks well and emerged highly profitable and financially stronger from the financial crisis years 2008 and 2009,” he said.
The company said its property and casualty division was helped last year by “a positive price trend in several core markets and disciplined underwriting.”
The unit’s full-year operating profit was up 5.9 per cent to C4.3 billion even though losses from natural disasters nearly tripled to C1.3 billion. For the whole of 2010, its combined ratio improved to 97.2 per cent from 97.4 per cent.
Allianz said it also saw growth in its life and health insurance division, where strong demand drove up statutory premiums by 12.5 per cent to C57.1 billion.
The company, based in Munich, said its asset management business saw an increase of 26.2 per cent in assets under management.
