Allianz 3Q Net Profit Falls on High Natural Catastrophe Claims
November 10 2017 - 1:18AM
Dow Jones News
By Pietro Lombardi
Allianz SE (ALV.XE) said on Friday that its third-quarter net
profit recorded a double-digit drop, hit by high natural
catastrophe claims.
The German insurer said net profit fell 17% to 1.57 billion
euros ($1.82 billion) compared with the same period last year.
Operating profit was EUR2.48 billion compared with EUR3 billion a
year earlier. Revenue slipped 2.1% to EUR28.3 billion.
Analysts had expected the company to post net profit of EUR1.53
billion.
The company said the decline in profit was mainly due to a
EUR529 million loss from natural catastrophes.
Claims from natural catastrophe weighed on the company's
property-and-casualty business's operating profit, which declined
28% to EUR1 billion.
Operating profit at Allianz's life-and-health segment declined
10.3% to EUR1.1 billion.
Allianz said its asset-management business posted third-party
net inflows of EUR32 billion euros, the fifth consecutive quarter
with such inflows. However the business's operating profit declined
2.7% to EUR588 million.
The company didn't provide a specific figure for its U.S. fund
manager Pacific Investment Management Co. Pimco went through a
difficult period after the departure of co-founder Bill Gross in
2014, which sparked an outflow of money, but has recorded
third-party net inflow in the previous four quarters.
Allianz said it expects its operating profit "in the upper half
of the target range of 10.8 billion euros, plus or minus 500
million euros."
"The group absorbed claims stemming from hurricanes, storms and
earthquakes in the quarter and still increased operating earnings
in the nine-month period," said Chief Executive Oliver Bate.
Separately, Allianz announced a share-buyback program of up to
EUR2 billion, expected to be executed in the first half of
2018.
Repurchased shares will be cancelled, Allianz said, adding that
"the implementation of the share buy-back program is subject to
maintaining a sustainable Solvency II ratio of Allianz Group above
160 percent."
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
November 10, 2017 02:03 ET (07:03 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Allianz Ag Muenchen Namen (PK) (USOTC:ALIZF)
Historical Stock Chart
From Jun 2024 to Jul 2024
Allianz Ag Muenchen Namen (PK) (USOTC:ALIZF)
Historical Stock Chart
From Jul 2023 to Jul 2024