Allianz profits slump to £220m
Friday 11 November 2011
German insurer Allianz said today that its third-quarter profits slumped to €258 million (£219.8 million) from €1.27 billion (£1.08 billion) in the same period last year because of investment losses and Greek bond writedowns from Europe's debt crisis.
The company's result was well short of the €766 million (£652.6 million) predicted by analysts surveyed by FactSet. Revenue fell 1.8% to €24.07 billion (£20.5 billion).
Munich-based Allianz said today that it lost €122 million (£104 million) from writing down Greek bonds, and €817 million (£696 million) from the fall in value of its holdings in other financial companies such as banks and insurers.
Greece is in the process of working out a debt reduction which includes bondholders taking 50% losses on the value of their investments. Fears that Greece's problems will infect larger countries such as Italy have led to sharp swings on stock and bond markets.
Allianz said it would stay with its profit estimate for the full year of operating earnings of €8.0 billion (£6.8 billion), plus or minus €0.5 billion (£0.4 billion).
"All market participants are confronted at this time with the uncertainty and large swings on capital markets," said Oliver Baete, head of controlling, reporting and risk.
The company's basic property and casualty insurance business showed a slight decline of 1% in operating earnings to €1.11 billion (£945.6 million), and its combined ratio slipped to 97.6% from 97.1% in the same quarter a year ago. The ratio measure costs and claims against premiums, ratios under 100 therefore show the gain from basic underwriting.
The company said it suffered higher losses from natural catastrophes but was able to make up some of that with higher prices.
Apple has been hit by complaints about the 1.1GB download
Liam Neeson's Downton dreams
Thriller is set in the secret world of British espionage
Bomber jacket worn by Mary Berry sells out within an hour
Matt Smith is set to join cast of the Jane Austen classic - with a twist
Much-loved cartoon character returns - without Sir David Jason
Actress to appear in second series of the hugely popular crime drama
- 1 Thailand beach murders: Thai PM suggests 'attractive' female tourists cannot expect to be safe wearing bikinis
- 2 Scottish independence: Five reasons Salmond is secretly hoping for a 'No' vote
- 3 Isis plan to 'behead random member of the public' in Sydney thwarted by Australian police
- 4 Scottish independence: Andy Murray backs Yes campaign in eleventh hour decision
- 5 Have you heard about the film Singapore has banned its people from watching? Well, you have now
Thailand beach murders: Thai PM suggests 'attractive' female tourists cannot expect to be safe wearing bikinis
Scottish independence referendum live: Latest news as Scotland decides Yes or No
Scottish independence: Final opinion polls show undecided voters could swing result either way
Scottish independence: Almost half of No voters have felt 'personally threatened' by the Yes campaign
Isis plan to 'behead random member of the public' in Sydney thwarted by Australian police
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Portuguese academic says British are 'filthy, violent and drunk'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
iJobs Money & Business
£70-90,000: Saxton Leigh: Our client a London Market Insurer are seeking a Pro...
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...