Skip to content
1 July 2016
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.
29 June 2016
Through client growth, we have an exciting opportunity for a Liability Adjuster to join our Sydney team.
27 June 2016
In this newly created role you will be responsible for being a primary market-facing referral point and mentor to Allianz underwriters, supporting them to find solutions for these lines, and bind more profitable business in the Casualty portfolio.
16 June 2016
If you have demonstrated insurance sales experience with an excellent track record in the industry and you want to take the next step in your career we want to hear from you!
8 June 2016
Exceptional opportunity for a self-motivated, experienced ambitious corporate broker, fast growing well respected brokerage with scope to gain equity!
8 June 2016
2 brilliant roles available with a fast growing brokerage, scope to progress internally, great team environment!