Allianz profits slump, hurt by virus, natural disasters

German insurer Allianz on Wednesday, August 5, reported a slump in profit for the 2nd quarter, hammered by higher claims over natural disasters and the coronavirus pandemic.

Net income fell to 1.53 billion euros during April to June – a drop of 28.6% compared with the same period last year.

Operating profit, at 2.57 billion euros, was down 18.8% year-on-year because of “COVID-19-related losses, as well as a lower operating investment result.”

The group said it was unable to give an operating profit outlook for 2020 due to “the continuing uncertainties.”

Higher claims from natural catastrophes also made a big dent in the underwriting result for the 1st half of 2020, the group said.

Total revenues decreased by 6.8% to 30.9 billion euros in April to June, mainly due to a sharp decline in premium income in the life and health insurance sector.

Nevertheless, Allianz said its “well-diversified business portfolio and robust balance sheet” had helped it navigate through the current crisis.

Oliver Baete, chief executive of Allianz, said the resilience demonstrated by the results so far “makes us confident that we will see a solid financial performance also in the 2nd half of 2020.” – Rappler.com