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.
- 1 Hair loss explained: How and why men go bald
- 2 Game of Thrones season 6: Jon Snow theorists believe the Stark may have a twin sister
- 3 Artist takes LSD, draws herself over different stages of the 9-hour trip to show its effects
- 4 A pint of water every day is the key to losing weight, scientists say
- 5 Russia 'accidentally reveals' number of its soldiers killed in eastern Ukraine
Most expensive city to live in for expatriates: Luanda, Angola takes number one spot with Hong Kong and Zurich in top three
Video of Irish 'professional boxer' fighting Istanbul neighbourhood goes viral in Turkey
Irish tourist filmed fighting with shopkeepers in Turkey says they 'messed with the wrong man'
House of Lords: Outcry as donors, fixers and MPs caught up in expenses scandal get peerages
Moody neurotics are more likely to be creative geniuses, study says
Dresden riots: Protesters in Germany attack refugee buses shouting 'foreigners out'
France train shooting: US soldiers speak of the moment they stopped gunman and 'beat him until he was unconscious'
Labour leadership: Jeremy Corbyn accused of 'deluding' young supporters with 'claptrap'
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Iain Duncan Smith calls for urgent ESA overhaul as part of drive to cut down welfare costs
iJobs Money & Business
£20000 - £25000 per annum + competitive + incentives + uncapped comms: SThree:...
£13000 - £25000 per annum: Recruitment Genius: Would you like to be part of a ...
£20000 - £25000 per annum + competitive: SThree: Are you passionate about sale...
£25000 per annum + benefits: Ashdown Group: A large financial services company...