Allianz 3Q Profit More Than Doubles
biz.yahoo.com
Friday November 3, 5:59 am ET
Allianz 3Q Net Profit More Than Doubles, Beating Analysts' Forecasts; Company Raises Outlook
BERLIN (AP) -- Allianz SE said its third-quarter net profit more than doubled, helped by an improvement in banking operations and low claims for large disasters. The results beat analysts' forecasts, and the insurer lifted its full-year profit targets.
The Munich-based company, Europe's largest insurer by premium income, said late Thursday that net earnings in the July-September period rose to euro1.59 billion ($2.03 billion) from euro794 million a year earlier.
That beat the euro1.32 billion ($1.68 billion) forecast of analysts surveyed by Dow Jones Newswires, and Allianz shares gained 1 percent at euro146.41 ($186.85) in Frankfurt trading on Friday.
Total revenues fell 5 percent to euro22.6 billion ($28.8 billion) from euro23.8 billion, dropping more steeply than expected by analysts.
Operating profit rose to euro2.66 billion ($3.39 billion) from euro1.86 billion.
The net profit included a one-time gain of around euro300 million ($383 million) from the sale of British nursing home operator Four Seasons Healthcare.
Banking operations posted a quarterly net profit of euro283 million ($361 million), up from euro123 million in the year-ago period, and well above analyst expectations.
Dresdner Bank, which accounts for most of Allianz's banking operations, booked a quarterly net profit of euro230 million ($294 million), up from euro113 million.
Allianz bought Dresdner Bank in 2001, and the bank has since undergone major restructuring.
Over the first nine months of this year, Dresdner Bank booked an operating profit of euro1.09 billion ($1.39 billion) and "almost achieved the operating profit target of nearly euro1.2 billion for the full year," Chief Financial Officer Helmut Perlet said.
Allianz also benefited from the virtual absence of large disasters in the quarter, which lowered the property and casualty segment's combined ratio to 90.2 percent from 98.6 percent.
The combined ratio is a key measure of profitability. A lower ratio means a business is doing better.
Allianz said it now expects full-year net profit of above euro6 billion ($7.7 billion). That compares with previous guidance of net profit between euro5.5 billion and euro6.0 billion ($7 billion and US$7.7 billion).
Net profit for the January-September period rose to euro5.65 billion ($7.2 billion) from euro3.5 billion in the first nine months of 2005. Revenues increased to euro76.3 billion ($97.4 billion) from euro75.8 billion, while operating profit rose to euro8.1 billion ($10.3 billion) from euro6.1 billion. |
