Allianz on Friday confirmed its full-year profit target after reporting a third quarter performance that was in line with analyst expectations and benefited from lower natural catastrophe claims.
The Munich-based insurance group generated €30.5bn in revenues between July and September, 7.9 percent more than a year ago. At €3bn, operating profit in the quarter was up 20.6 year-on-year, while net income rose 15 percent to €1.9bn.
“We are very confident to reach our targets also for this year,” chief executive Oliver Bäte said in a statement. Allianz’ goal for 2018 is to earn an operating profit between €10.6bn and €11.6bn. Over the first nine months of the year, it has already achieved 80 percent of the target’s midpoint.
Shares in Allianz lost 3.4 per cent this year, outperforming the wider German stock market, which is down a tenth.
Mr Bäte on Friday told investors that the group’s restructuring efforts were starting to pay off, pointing out that over the first nine months, “substantial productivity gains” contributed to the rising profits. In mid-2017, Allianz announced that 700 jobs in Germany would be cut over three years as it was digitalizing its internal processes.
In the third quarter, all three main divisions of Allianz — property casualty, life and health and asset management — reported rising revenue.
The group’s Solvency II capitalization ratio, an important yardstick for the balance sheet strength of insurers, was unchanged at 229 percent at the end of September.