Allianz SE of Munich announced Friday its financial results for the third quarter, reporting a 32.8% year-over-year increase in its operating profit, lower claims from natural catastrophes and a slight increase in property and casualty profits. The bottom line this year was nearly five times better than in 2011, when Allianz took a 931-million Euro hit on Greek government bonds and investments in the financial sector.
Operating profit for the third quarter of 2012 was 2.532 billion Euros, compared to 1.906 billion Euros during the same period in 2011. The Euro was worth $1.27 on Nov. 9.
Broken down by insurance type, Alliaz said its operating profit for p&c was 1.159 billion Euros during the third quarter of this year, up 4.3% from the third quarter of 2011.
"In the third quarter of 2012, gross written premiums grew by 5.2 percent to 11.4 billion euros from 10.8 billion euros for the same period in 2011," Allianz stated of its p&c results in a press release. "The combined ratio for the third quarter of this year improved 1.3 percentage points to 96.3 percent from 97.6 percent in the third quarter of 2011. Lower claims from natural catastrophes contributed to this development, impacting the loss ratio by 0.8 percentage points in the third quarter of this year compared to 4.0 percentage points for the same period in 2011."
Allianz's operations in Canada includes a Toronto office for its global corporate & specialty division, which Allianz says insures almost half of the top 100 companies in Canada. Through this division, Allianz offers p&c, aviation, energy and marine insurance.
Another Allianz firm, Newport Beach, Calif.-based Pimco, also has a Toronto office. Pimco manages pensions, retirement and other investments for government entities, unions, health and education, foundations, endowments and philanthropic organizations.
Montreal is where Allianz subsidiary Euler Hermes Canada is based, with offices in Toronto and Vancouver. Euler Hermes Canada provides accounts receivable insurance and credit analysis.
In Kitchener, Ont., Allianz operates the travel insurance firm formerly known as Mondial. The parent firm announced in February that Mondial is now known as Allianz Global Assist.
For the company as a whole, Allianz reported third-quarter revenue of 25.2 billion Euros, up 4.7% from 24.1 billion Euros in the third quarter of 2011.
Quarterly net income skyrocketed, from 258 million Euros in the third quarter of 2011 to 1.437 billion Euros this year.
"In the previous year, impairments on financial sector investments and Greek sovereign bonds had heavily impacted net income," Allianz stated. When it announced its Q3 2011 results a year ago, the firm stated at the time that non-operating impairments were 931 Euros, “in particular from investments in the financial sector and from Greek sovereign debt.”
In its press release Friday, Allianz said it predicts operating profit for 2012 will be more than nine billion Euros, "assuming no adverse developments during the remainder of the year."
For the first nine months of 2012, operating profit for p&C was 3.46 billion Euros, up 11.5% from 3.103 Euros in the same period in 2011.
Net income for p&c for the first nine months increased 21.5% year-over-year, from 2.022 billion Euors in 2011 to 2.457 billion Euros this year.
Allianz's total net income for the first nine months jumped 87.3% year-over-year, from 2.244 billion Euros last year to 4.202 billion Euros this year.