Allianz P&C underwriting result improves 44.5%, Global Corporate and Specialty profit up

Allianz SE released Thursday its financial results for the quarter ending June 30, reporting a 44.5% increase in Allianz Group’s property and casualty underwriting result and an 18.6% increase in the operating profit of Allianz Global Corporate and Specialty (AGCS).

In the property and casualty operations for Allianz and its subsidiaries, the Munich, Germany-based insurer reported gross written premiums of 10.846 billion euros, up 0.9% from 10.75 billion euros in Q2 2013. On Aug. 7, the euro was trading at about $1.46.

For all of Allianz Group— including life, health, corporate and other — total revenues were 29.46 billion euros in the latest quarter, up 10% from 26.776 billion euros in Q2 2013. Nearly 58% of its Q2 2014 revenue (16.961 billion euros) was from statutory premiums in life and health.

For the first six months, Allianz Group reported revenues of 63.42 billion euros, up 7.8% from 58.82 billion euros in the first half of last year. The group’s net income was 1.858 billion euros in the latest quarter, up 10.9% from 1.68 billion euros in Q2 2013. Net income from P&C was 969 million euros in Q2 2014, down 3.2% from 1.001 billion euros in Q2 2013.

“The impact from natural catastrophes was lower compared to the high level of the second quarter of 2013 and the underwriting result improved,” Allianz stated in a press release of its results for the most recent quarter.

The group’s underwriting results in P&C jumped 44.5%, from 357 million euros in Q2 2013 to 516 million euros in the latest quarter.

“This was largely due to an improvement in our accident year loss ratio, which was supported by a lower impact from natural catastrophes,” Allianz reported. “This result was partially offset by higher large losses and by a less favourable run-off compared to the second quarter of 2013.”

In P&C, Allianz Group reported claims and insurance benefits incurred were 7.04 billion euros in Q2, up 0.7% from 6.984 billion euros in the same period in 2013. The combined ratio in P&C was 94.6% in Q2 2014, down 1.4 points from 96% in Q2 2013. For the first six months of the year, Allianz Group’s combined ratio from P&C improved by 1.5 points, from 95.1% in 2013 to 93.6% this year. The loss ratio in P&C for the three months ending June 30 in P&C was 66.2%, down from 67.3% in Q2 2013.

Allianz did not break out its results for Canada. Allianz Group provides travel insurance through the Kitchener, Ontario office of Paris-based Allianz Global Assistance SAS. Other Allianz subsidiaries in Canada include investment fund provider Pimco Canada Corp. of Toronto, the Montreal office of trade credit insurance company Euler Hermes and AGCS, which has offices in Toronto and Vancouver and covers risks such as property, casualty, financial lines, aviation, energy and marine.

Worldwide, Allianz reported AGCS had gross written premiums of 1.264 billion euros in Q2 2014, up 2.1% from 1.237 billion euros in Q2 2013. AGCS had an operating profit of 102 million euros in the latest quarter, up 18.6% from 86 million euros Q2 2013. AGCS’s combined ratio improved by 0.7 points, from 98.1% in Q2 2013 to 97.4% in the latest quarter. Its loss ratio deteriorated by 0.4 points, from 69.1% in Q2 2013 to 70.3% in the three months ending June 30.

Allianz Global Assistance reported gross written premiums of 530 million euros in Q2 2014, up 9.73% from 483 million euros in Q2 2013.

Allianz Group reported revenues in corporate and other of 132 million in Q2 2014, unchanged from Q2 2013. Its net loss in corporate and other was 248 million euros in Q2 2014, a 10.5% improvement from Q2 2013, when the net loss was 277 million euros. For the first six months, Allianz Group reported a net loss in corporate and other of 117 million euros, down 82.6% from a net loss of 674 million euros during the same period in 2013.