European Floods Didn't Dampen Allianz Second Quarter Net as It Rises 27%
August 5, 2013 by Meg Green
MUNICH – Allianz Group posted a 26.8% increase in second-quarter net income, despite paying 730 million euros ($968.6 million) to more than 50,000 policyholders impacted by Central European floods.
Allianz said its net income rose to 1.6 billion euros and total revenue increased 6.3% to 26.8 billion euros. Property and casualty insurance revenue rose to 10.8 billion euros, up 0.3% from the previous year.
The combined ratio for the second quarter of 2013 improved to 96.0 from 97.2.
After reinsurance, the net impact of June floods in Central Europe was about 330 million euros.
In July, a unit of Allianz underwrote the required accident insurance policy for the train that derailed in Spain on July 24, the company said in a statement. The Renfe-Operadora train derailed near the city of Santiago de Compostela, killing at least 80 and injuring 178, according to press reports. Allianz Seguros issued a statement saying it has sent a team of experts to begin investigating the crash claims (Best’s News Service, July 25, 2013).
“We can look back on a very successful first half year overall,” Michael Diekmann, chief executive officer of Allianz SE, said in a statement. “Although we faced record floods in Central Europe, persistent low interest rates and erratic capital markets, our business continued to grow profitably. In view of our good half-year results, we are maintaining our operating profit outlook for 2013 of 9.2 billion euros, plus or minus 500 million euros, although based on our current projections we see the figure more toward the upper end of this range.”
Allianz SE currently has a Best’s Financial Strength Rating of A+ (Superior).
(By Meg Green, senior associate editor, BestWeek: Meg.Green@ambest.com)