FRANKFURT, GERMANY – German insurer Allianz on Friday reported a big jump in first-quarter profits driven by higher prices for policies, and said it was on track to meet its 2023 targets.
The group booked a net profit of US$2.2 billion (two billion euros), it said, up from US$516 million (474 million euros) a year earlier when Allianz was hit by hefty charges to settle a US fund dispute.
Allianz last year agreed to pay out around US$6.5 billion (six billion euros) after investors filed a complaint in the United States over losses suffered during the pandemic at the fund unit.
The first-quarter result nevertheless came in below expectations, with analysts surveyed by FactSet forecasting a net profit of US$2.6 billion (2.4 billion euros).
The group’s underlying, or operating, profit rose by 24 percent year-on-year to US$4 billion (3.7 billion euros).
Allianz said earnings were powered by higher prices and volumes for policies at its flagship property and casualty division.
The unit’s strong performance helped offset lower revenues at its life and health division and its asset management arm.
Allianz confirmed that full-year operating profits remained stable at US$15.4 billion (14.2 billion euros), “plus or minus US$1.08 billion (one billion euros)”.
“We can be proud of our operating profit and bottom line, a reflection of our strength, our skills, and consistent execution of our strategy,” said CEO Oliver Baete.