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19 January 2017
Global insurer Allianz missed market expectations for full-year net income as exposure to Greek debt and natural catastrophes wreaked havoc on its bottom line.
Full-year net income for the German insurer fell 49.6% to €2.55 billion ($3.17 billion), exceeded only by a larger decline in fourth-quarter net income, down 56.7% to €492 million ($612.26 million).
Analysts were predicting full-year income would surpass €3 billion ($3.7 billion), but last year Allianz suffered €1.9 billion ($2.36 billion) worth of impairments and €1.8 billion ($2.24 billion) in natural disaster claims – the latter the highest in the company’s history.
Of €1.9 billion in impairments worn by the group, two-thirds were tied to stock market investments and writedowns in the value of Greek sovereign debt.
Allianz SE shares on the Frankfurt Stock Exchange were largely unmoved at €89.23 ($111.05) at the close of trading Thursday.
Despite the cost of weather-related claims, the casualty and insurance wing of Allianz remained profitable with a combined ratio of 97.8%, despite rising six percentage points since 2010.
“This year we made significantly higher payments to our customers for natural catastrophes than in 2010, which was already a difficult year,” Allianz CFO Oliver Bäte said.
Gross written premium rose to an all-time high of €44.8 billion ($55.76 billion), up 2% on the previous year. Allianz said revenues were particularly strong in the UK, South America and Australia.
However, the cost and frequency of claims – including exposure to events in Japan, New Zealand, Australia and Thailand – meant net income fell 1.7% to €790 million ($983.3 million) for the final quarter and 9.4% to €3.1 billion ($3.85 billion) for the year.
Despite the drop in full-year profitability, Allianz has maintained its €4.50 ($5.60) per share dividend.
CEO Michael Diekmann says the company will raise its 2012 full-year profit outlook to €8.2 billion ($10.2 billion) with a 6% margin of error.
“We are expecting similar global economic conditions in 2012 with a moderate improvement in the second half of the year,” Mr Diekmann said.
The most recent data from the Australian Prudential Regulation Authority (APRA) shows Allianz’s local operations were in a good state of health at June 30 last year.
For the 12 months to June last year, Allianz Australia made $10.66 million in net profit on $71.2 million in gross earned premium.
18 January 2017
To oversee the policy, framework and execution of insurance risk across the Group.
16 January 2017
The Underwriting Risk Manager is primarily responsible for driving the strategic global underwriting initiatives developed at the Group Underwriting Committee and achieving the challenging targets in a timely manner.
16 January 2017
Support the AsiaPac Treasury team in rolling out treasury disciplines across the region including cash management and FX optimisation, and reporting of same.