MUNICH (Dow Jones) – Allianz in the insurance business in the second quarter, surprising clearly been strengthened and reaffirmed its forecast of EUR 7.2 billion in operating profits in the full year. (Photo : Allianz )
On balance , the Group , however, fell unexpectedly well short of the previous year , as their own investment turned out much weaker than a year ago.
CEO Michael Diekmann was found on Friday in Munich satisfied with the interim . " In a market characterized by exceptionally high natural catastrophe losses half of our successes show that our diversification across business lines and geographic regions helps to achieve stable results. "
Diekmann called an operating profit of EUR 3.9 billion in the first half a good basis to meet the forecast for the full year can . He warned , however, before to double operating profit in the first half for an assessment of the annual results easily.
In the second quarter increased the alliance its operating profit by more than a fifth to 2.2 (previous year : 1.8) billion EUR. Analysts surveyed by Dow Jones Newswires had forecast on average earnings with the previous year. 25.4 (22.2 ) billion EUR and exceeded the consensus estimate of total revenue ( 23.2 billion EUR clear). By contrast , net income broke by 45.6 % to 1.0 ( EUR 1.9 billion one ). Analysts surveyed here had expected 1.15 billion EUR.
Net lagged behind the alliance last year, because At high unrealized gains in investment dominated the picture , had not incurred 2010th The non- operating income fell to minus 597 million plus of EUR 548 million last year. Specifically, the realized profits sagged from the sale of shares , bonds and real estate to 181 (959 ) million EUR, while the allowance on such assets increased to 187 (144 ) million EUR.
But participation in the U.S. insurer Hartford Financial drove a period of amortization of 167 million EUR to EUR 97 million write-up in last year’s quarter. The sale of additional shares in the Industrial and Commercial Bank of China ( ICBC ) accrued to the alliance in the second quarter of EUR 115 million profit. A year ago the group had sold or ICBC shares for 666 million EUR.
In property and casualty insurance business of the Munich group grew particularly currency . A higher underwriting result and higher investment income could increase the operating profit of the business by 28.2 % to EUR 1.1 billion. It also changed the high level of EUR 255 million burden from natural disasters nothing. The injury cost ratio as a measure of profitability improved to 96.3% from 98.9 % last year.
In life and health insurance, the alliance grew by 20 % and continued to EUR 14.1 billion . Operating profit declined by 28 % to EUR 713 million . The growth resulted from the demand for investment-oriented products as well as traditional life insurance products. A year ago , operating income was due to higher income from financial assets valued at fair value in the U.S. and France have been exceptionally good, justified the alliance profits decline. Last quarter it had , however, given the time value of depreciation.
When Asset Management operating profit shot up 110 % to 516 ( 246) million EUR in the air. "With positive net inflows in six consecutive quarters, we are able to develop our asset management business to a high performance engine, " said Chief Executive Oliver Bäte . The business is increasingly important for the Alliance . In the second quarter was his contribution to the Group result in more than one -fifth.
want to grow the alliance in asset management, not through acquisitions , but on their own, turned CEO Diekmann clear on Friday. Overall, major acquisitions are not an issue for the alliance as long as the uncertainty continues to exist on the capital requirements of the European insurance directive Solvency II.
Even private equity on the investment will expand Diekmann at present. The share ratio was currently at 7 % and was thus appropriate in this capital market environment.
LBBW analyst Robert Mazzuoli praised the numbers. The operating business is much better than he had expected run . Background is the better than expected loss expense ratio , higher reserve resolutions for existing contracts settled and prosperous asset management.
While the life insurance and asset management are growing strongly and in injury casualty business , premiums have increased , previously unprofitable areas like the credit or the U.S. life insurance business, the turnaround managed ruled Mazzuoli . The price of Allianz shares in Xetra trading climbed to 13.53 BST clock by 1.2 % to 91.20 EUR , while the DAX rose also by 0.3 %.
By lap – Rüdiger , Dow Jones Newswires ;
+49 (0)69 29725 117, ruediger.schoss @ dowjones.com,
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