Annual operating profits of German insurance giant Allianz increased by 3.7 percent to an all-time high of 11.5 billion euros (13 billion U.S. dollars) and was thus "in the upper end" of the company's 2018 target range, according to preliminary business figures published by the insurer on Friday.
The growth of operating profits was mainly attributable to Allianz's property-casualty business segment, which reported a strong rise in operating profits of 13.3 percent due to "an improved expense ratio, lower claims from natural catastrophes, and premium growth", the company announced.
Allianz's asset management segment saw an increase in operating profit as well in 2018, which was mainly attributable to a rise in "assets under management driven revenues", according to the company.
However, the life and health segment of Allianz reported a decreased operating result due to a lower margin from investments in an "environment of increased financial market volatility".
Net profits of the company grew by 9.7 percent to 7.5 billion euros while total revenues amounted to 130.6 billion euros, marking an increase of 3.5 percent.
"We reached the highest net income of the past ten years despite strong market volatility, especially in the fourth quarter," commented Oliver Baete, CEO of Allianz.
Allianz is also intending to buy back shares worth up to 1.5 billion euros between March 1 and Dec. 31, it announced on Thursday. In the past two years, the German insurance company had already bought back shares worth about 6 billion euros.
"A strong financial performance" is expected for the year 2019, Allianz CFO Giulio Terzariol reaffirmed on Friday. "The Group looks to generate an operating profit of 11.5 billion euros in 2019, plus or minus 500 million euros, barring unforeseen events."
The growth of operating profits was mainly attributable to Allianz's property-casualty business segment, which reported a strong rise in operating profits of 13.3 percent due to "an improved expense ratio, lower claims from natural catastrophes, and premium growth", the company announced.
Allianz's asset management segment saw an increase in operating profit as well in 2018, which was mainly attributable to a rise in "assets under management driven revenues", according to the company.
However, the life and health segment of Allianz reported a decreased operating result due to a lower margin from investments in an "environment of increased financial market volatility".
Net profits of the company grew by 9.7 percent to 7.5 billion euros while total revenues amounted to 130.6 billion euros, marking an increase of 3.5 percent.
"We reached the highest net income of the past ten years despite strong market volatility, especially in the fourth quarter," commented Oliver Baete, CEO of Allianz.
Allianz is also intending to buy back shares worth up to 1.5 billion euros between March 1 and Dec. 31, it announced on Thursday. In the past two years, the German insurance company had already bought back shares worth about 6 billion euros.
"A strong financial performance" is expected for the year 2019, Allianz CFO Giulio Terzariol reaffirmed on Friday. "The Group looks to generate an operating profit of 11.5 billion euros in 2019, plus or minus 500 million euros, barring unforeseen events."
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