Allianz Sees Rise in Operating Profit for Q2 2010

Posted on Aug 12, 2010 by Sergio Ulloa (G+)

Allianz Group has announced that its total operating profit for the second quarter of 2010 grew by more than a fifth, based on strong sales across different business lines. Allianz's quarterly revenue for the second quarter was EUR 25.4 billion (USD 32.7 billion) growing 14.5 percent over the 22.2 billion euros (USD 28.6 billion) in revenue from the same quarter in 2009. Allianz's three main business lines; property-casualty insurance, asset management and life-health insurance all showed robust sales, pushing quarterly operating profits up 22.7 percent to EUR 2.2 billion (USD 2.8 billion), from EUR 1.8 billion (USD 2.3 billion) in the same period in 2009. Property and casualty insurance received EUR 10 billion (USD 12.9 billion) in gross business premiums in Q2 2010, helping to push quarterly operating profit for the business line up 28.2 percent to EUR 1.1 billion (USD 1.4 billion). While Allianz life insurance and health insurance businesses saw a 20 percent increase in quarterly revenue, amounting to EUR 14.1 billion (USD 18.2 billion), the company saw quarterly operating profits fall 28 percent from EUR 990 million (USD 1.3 billion) in 2009 to EUR 713 million (USD 921 million) in 2010. The Allianz CFO Oliver Bäte said "Our Life/Health segment saw considerable top-line growth in the second quarter based on increasing demand for both traditional and unit-linked products, especially in Germany, Italy, France, the US and our growth markets in Asia and Central and Eastern Europe. In addition, operating profit is clearly on track." All three of the main business lines contributed towards Allianz Group's quarterly net income of EUR 1.1 billion (USD 1.4 billion), although this was down from the net income of the second quarter in 2009 which was EUR 1.9 billion (USD 2.5 billion). The insurer put the difference down to last year's asset sales, which included Allianz selling off their shares in the Chinese Bank ICBC. In summation, Michael Diekmann, the CEO of Allianz SE said "We delivered an operating profit of 3.9 billion euros for the first half of 2010. Based on this very good result, we are confident that we can achieve our outlook for operating profit for the entire year of around 7.2 billion euros, with a fluctuation range of plus or minus 500 million euros." Insurance Company Mentioned: Allianz Allianz Group is one of the leading global services providers in insurance and asset management. With approximately 153,000 employees worldwide, the Allianz Group serves approximately 75 million customers in about 70 countries. On the insurance side, Allianz is the market leader in the German market and has a strong international presence.