As a result of natural disasters, but relatively unaffected by the Covid-19 pandemic, Allianz on Friday reported a sharp increase in its second-quarter net profit, and sharpened its guidance for the year.
Between April and June, the insurance giant earned a net profit group share of 2.2 billion euros, up 46% from a year ago. Operating profit (Ebit) rose by 29% to $3.32 billion, and it is expected to top the range of 11 to 13 billion euros projected for the year, according to a press release.
This forecast includes the impact of 400 million euros expected for the time being following the devastation caused by the devastating floods in Western Germany in July.
Natural disasters caused 607 million euros in claims in the past quarter, an increase from 119 million euros a year ago. In June, Germany was hit by the storms Volker and Xero.
Conversely, in terms of damage to property and casualty, the impact of the Covid-19 epidemic was “insignificant,” while in the spring, economic activity restored amid a significant decrease in infection rates and the continuation of vaccination campaigns.
As a result, this flagship branch of the insurer generated an operating profit of 1.4 billion euros in the second quarter, up 19% year over year.
Life and health, as well as asset management, have improved their performance by almost 30% year-over-year as a result of higher revenues and contributions.
Sales increased by 10.9% year-on-year to 34.3 billion euros.
Giulio Terzariol, Allianz’s chief financial officer, said that Allianz’s second quarter results reflect the company’s strong fundamental performance.
According to Bloomberg, it is too early to assess whether the U.S. lawsuits against its asset management subsidiary Allianz GI will affect the insurer financially. On Monday, Allianz GI said the lawsuits could have a “significant impact” in billions.