German insurance giant Allianz on Wednesday reported third-quarter net profit that rose 16.7% to 2.46 billion euros, driven by the non-life arm, while specifying its objective annual profitability.
Operating profit (Ebit) was 3.48 billion euros, an increase of 7.4%, with a 32% jump in non-life insurance. It still aims for an annual Ebit of 13.4 billion euros with a margin up or down of one billion euros, but is now aiming for the top of the range, according to a press release.
From July to September, total year-on-year sales rose 1.3% to €34.8 billion, with a 14% jump in the non-life sector, contrasting with an 8% drop in the health sector, where customers have been reluctant to to sign contracts in Italy and Germany, details Allianz.
Despite Hurricane Ian, which caused large insured losses, the non-life insurance segment had an improved combined ratio over the year of 94% according to this key indicator, which relates the amount of premiums collected to reimbursements made. Lower than 100% means the branch is profitable. In asset management, rocked by a US dispute in 2021 and recently settled with almost $6 billion in fines to be paid, funds managed on behalf of third parties fell by 43 billion euros compared to the end of June to fall back to 1.726 billion euros.
One reason lies in part in the sale in July of a portfolio of assets within the Allianz GI subsidiary in the US to Voya Investment Management. The group’s solvency ratio at the end of September, a key indicator of financial soundness, fell 10 points over a year to 199%, while remaining well above regulatory minima. Allianz also announced on Wednesday a new share buyback program with a volume of 1 billion euros, which should start in mid-November 2022 and end no later than December 31, 2023.