Total revenues for Allianz Group up 3.5% to 95.5 billion euros in first nine months of 2015

Total revenues for Allianz Group rose 3.5% to 95.5 billion euros in the first nine months of the year, while net income increased 3.9% to 5.20 billion euros, the Munich, Germany-based international insurer said on Friday.

Allianz said that operating profit remained stable at 8.15 billion euros for the first nine months of the year ending Sept. 30. In the third quarter of 2015, total quarterly revenues were 27.5 billion euros, from 28.8 billion euros – a decrease of 4.3% – in the third quarter of 2014. Operating profit was 2.45 billion euros, down 7.5% from 2.65 billion euros in the third quarter a year earlier. Net income amounted to 1.36 billion euros, a decrease of 15.4%, in part due to one-off tax benefits in the year-earlier quarter, Allianz said in a statement. [click image below to enlarge]

For the Property and Casualty insurance segment, operating profit was down 5% to 1.35 billion euros in the third quarter of 2015, from 1.42 billion euros. “This decline was mainly driven by a lower investment result and further impacted by a weaker underwriting result,” the report said, adding that the impact from natural catastrophes was 137 million euros higher than in the previous year and totalled 144 million euros. The P&C combined ratio also deteriorated by 0.6 percentage points to 94.1 %. Gross premiums written in P&C insurance increased 2.4% to 11.52 billion euros in the third quarter.

“Our Property and Casualty business continued with a strong underwriting margin despite an increase in weather related claims compared to the year before, as well as several large claims,” said Dieter Wemmer, chief financial officer of Allianz SE, in the statement. “The overall development of the segment is on track.” [click image below to enlarge]

In the third quarter, operating revenues of the segment Asset Management reached 1.64 billion euros, an increase of 1.1% from 1.62 billion euros in Q3 2014. This increase was driven by a high level of performance fees and the significantly strengthened United States dollar, which more than compensated for the impact of lower average third-party assets under management, Allianz said in the statement.

Operating profit for the Asset Management segment declined 13.5% to 600, from 694, million euros in the quarter. On Sept. 30, 2015, total assets under management were 1,746 billion euros, compared to 1,801 billion euros at the end of 2014. Third-party assets under management amounted to 1,259 billion euros, down from 1,313 billion euros at the end of 2014.

“In a volatile financial market environment, Allianz’s fundamentals remained at a solid level in all business segments in the third quarter,” Wemmer (pictured above) concluded. “We expect the full year operating profit to grow and arrive in the upper end of our target range of 10.0 to 10.8 billion euros.”