Allianz Switzerland increased its premium income in the first half of the year, thanks to life insurance performance, but posted a lower profit due to the severe weather that impacted the country.
In the first half of the year, the Allianz Switzerland insurer collected more premiums due to a rise in life insurance, but had a lower profit due to the bad weather.
The subsidiary of the German insurance giant Allianz remains optimistic despite difficulties.
The Switzerland-based insurer reported Monday that the total volume of premiums has increased by 1.3% over the past year to 2.69 billion francs.
In the first half of the year, the company’s life insurance segment saw a 2,4% increase to 1,20 billion francs, marking half-year growth. However, result fell by 3.5% to 46.7 million.
Non-life insurance posted a slight increase in premiums (+0.5%) to 1.49 billion francs, for a result of 96.5 million, down by 12.1%. The use of reinsurance has limited the impact of bad weather on the profitability of this business.
“Already at the end of June, we have reported some 25,000 claims throughout Switzerland and we expect claims expenses to exceed 90 million francs for this period,” says CEO Severin Moser, quoted in the release.
Record year for claims
The combined ratio of premiums collected to reimbursements decreased by 2.7 percentage points to 93.6%.
Allianz Suisse has seen its net profit drop by 9.4% to 143.2 million francs as a result of weather-related losses.
Despite this, the Zurich-based insurer claims to be “well armed” and able to “absorb the shock”. M. Moser warns the bad weather that hit Switzerland again in July is already causing compensation to reach “absolute record levels.”
In addition, Allianz Suisse is suffering from negative interest rates and the Covid-19 pandemic, the statement reads.