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German industry continues to recover from the fall of the crown | Free Press

Munich (dpa) – Insurer Allianz increased its profits in the summer despite the Corona crisis. The end result was a surplus of almost 2.1 billion euros in the third quarter, about six percent more than the previous year, as announced by the Dax group in Munich.

However, the management of the head of Allianz, Oliver Bäte, did not present a new profit forecast for the current year. The board of directors even decided to suspend the already suspended share buyback due to continuing uncertainties caused by the pandemic.

In the third quarter, Allianz performed better than analysts expected in all business areas. Operating profit fell just under three percent to 2.9 billion euros. This was also because the Crown crisis only loaded the result with around 100 million euros. In the first nine months, however, the consequences of the pandemic hit Allianz with a total of 1.3 billion euros.

Despite the surprisingly good performance, Allianz’s management did not issue a new earnings forecast. CEO Bäte had withdrawn his original plan to achieve an operating profit of 11.5 to 12.5 billion euros this year at the end of April. Analysts recently expected a good 10 billion euros. This fits in with the fact that Allianz achieved an operating result of almost 7.8 billion euros in the first nine months, almost 15 percent less than a year earlier.

In the third quarter, Allianz suffered a six percent drop in sales. The group was able to sell fewer pension products, especially in Germany and the United States, due to restrictions stemming from the crisis. However, the life and health insurance sector was the only one that was able to increase its operating profit year after year, that is, by around three percent to a good 1.1 billion euros.

In the largest division, the property and casualty business, operating profit fell a good two percent to 1.3 billion euros. However, in the first half of the year, Allianz posted a significantly stronger decline. Insurance claims as a result of the pandemic also had a negative impact on the division during the summer. However, lower losses from natural disasters would have cushioned these effects, he said.

The mutual funds of the US subsidiary Pimco raised a good 27 billion euros in fresh money from investors in the third quarter. However, in the case of the subsidiary of the second fund Allianz Global Investors (AGI), investors withdrew € 1.5 billion net. Despite the high overall fund inflow, the operating profit of Allianz’s entire fund business fell nearly four percent to € 677 million. Allianz explained this, among other things, with lower performance-related fees.

In light of the latest results, Bäte said he was “confident that the Covid-19 crisis could be handled well” and that the alliance would grow even stronger. However, due to the economic uncertainties surrounding the pandemic, the board of directors wants to keep the Group’s money together and is halting the already suspended buyback of its own shares. In fact, the alliance had wanted to return 750 million euros to shareholders in this way.