Allianz revenues, profits slip in first quarter

May 12, 2011, 7:40 GMT

Munich - German insurance concern Allianz Group reported Thursday a drop in earnings and revenues in the first quarter of 2011, citing the impact of natural catastrophes.

Munich-based Allianz said operating profit was 1.66 billion euros (2.35 billion dollars), off slightly from 1.73 billion in the first quarter last year.

The net income was 915 million euros, down sharply from 1.6 billion euros a year ago, with Europe's largest insurer citing the impact of natural catastrophes along with a deliberate reduction of capital gains and higher taxes.

'For Allianz, the past quarter took one of the hardest hits from natural catastrophes of any quarter in the last two decades,' Chief Financial Officer Oliver Baete commented.

'However, this effect was partly offset by operating improvements in several core markets, positive price effects on renewals and stable investment income,' he added.

Revenues, at 29.9 billion euros, were the second-highest in company history, down slightly from the record 30.6 billion euros in the first quarter of 2010, Allianz said.

Among its various segments, the Life and Health insurance division chalked up premiums of 14.3 billion euros, down about 7 per cent from 15.4 billion euros in the first quarter of 2010.

But Asset Management was a bright spot, showing strong growth with net fee and commission incoming gaining 14.5 per cent year-on-year to 1.26 billion euros. Operating profit in the division gained 13.3 per cent to 528 million euros.

Meanwhile third-party assets under management grew to 1.138 trillion euros as of March 31, up from 1.023 trillion euros a year earlier.

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