The Allianz Group reported on Friday that total revenues climbed to a new high of 125.2 billion euros in 2015, up 2.4% year-on-year from 2014’s 122.3 billion euros.
In the property and casualty insurance segment, both gross premiums written and operating profit increased, the latter “despite a higher impact from natural catastrophes and large claims compared to the previous year,” Allianz Group said in a statement. P&C gross premiums written increased by 6.8% to 51.6 billion euros in 2015, from 48.3 billion euros in 2014. P&C operating profit rose 4.1% to 5.6 billion euros, compared to 5.4 billion euros in 2014, with a full-year combined ratio of 94.6%, similar to 94.3% in 2014.
The statement noted that Allianz Global Corporate & Specialty (AGCS) was one of the main drivers of strong internal growth of 2.9% in the P&C segment. AGCS continued its growth in 2015, generating a premium income of 8.1 billion euros, exceeding the previous year by 2.7 billion euros. The development was largely driven by the integration of Fireman’s Fund Insurance Company (FFIC) and subsidiaries into AGCS, the company reported.
AGCS’ combined ratio of 102.9% – compared to 94.8% in 2014 – was impacted by the negative run-off effects from prior year underwriting, mainly related to reserve strengthening to parts of the legacy FFIC portfolio, despite solid performance from the active business. Operating profit for 2015 totalled 423 million euros, compared to 506 million euros in 2014, supported by increased investment income from the combined asset base of AGCS and FFIC, and reflecting one-off effects such as the sale of FFIC’s Personal Insurance business and restructuring costs.
For the fourth quarter of 2015, P&C total revenues for Allianz Group were 10.9 billion euros, compared 11 billion euros in Q4 2014, the statement said. Life/Health total revenues were 17 billion euros in the fourth quarter of last year, compared to 17.4 billion in Q4 2014; Asset Management was 1.7 billion euros in Q4 2015, compared to 1.6 billion euros in the fourth quarter of 2014; and Corporate and Other was 0.2 billion in Q4 2015 – the same as in Q4 2014.
The combined ratio for Allianz Group P&C in Q4 2015 was 96.2%, from 96.5% in Q4 2014.