BERLIN – German insurance giant Allianz yesterday reported a drop in annual net profit for the first time since 2011, with natural disasters and the coronavirus pandemic taking their toll.
Net profit came in at €6.8 billion (RM33.28) in 2020, down 14%, the group said in a statement.
Operating profit was €10.8 billion, down 9.0%, weighed down partly by €1.3 billion in pandemic-related costs.
The fourth quarter showed a more solid performance, with total revenues stable and operating profit up 8.2%.
Costs linked to Covid-19 included payouts for cancelled events and suspended activities, with the group also feeling the pinch of lower premiums.
Allianz paid out €880 million for natural disasters, compared to €771 million the year before.
Total revenues at the Munich-based group decreased by 1.3% to €140 billion across the whole of 2020.
In property-casualty insurance, total revenues rose slightly by 0.4% to €59.4 billion, despite declines recorded at Allianz Partners (travel insurance) and Euler Hermes (credit insurance).
“I am grateful for the trust and confidence that our stakeholders placed in Allianz during the challenging year 2020,” Oliver Baete, the group's chief executive, said in a statement.
The group is “in a good position to deliver on our 2021 ambition”, Baete added.
Allianz expects an operating profit of €12 billion in 2021, plus or minus €1.0 billion – a wider buffer than usual due to volatility in the financial markets.
Allianz shares were up 1.45% on Germany’s blue-chip DAX 30 index yesterday morning. – AFP, February 20, 2021
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