German financial services major Allianz SE reported Friday weak profit in its third quarter, despite higher revenues. The company further confirmed its fiscal 2023 outlook. Shares of Allianz were gaining more than 2 percent in the morning trading in Germany.<\/p>\n
Oliver Baete, Chief Executive Officer, said, “In the first nine months of this year, we have seen robust growth in our business<\/span> volume, operating profit as well as core net income. We have also further strengthened our solvency position at 212 percent. Our focus on execution and operational efficiency is enabling our profitable growth with healthy margins, and this places Allianz on an excellent trajectory to achieve our targets.”<\/p>\n For fiscal 2023, the company still expects operating profit to be 14.2 billion euros, plus or minus 1 billion euros.<\/p>\n Allianz added that its share buy-back of up to 1.5 billion euros is close to completion.<\/p>\n For the third quarter, net income attributable to shareholders dropped 29.5 percent to 2.02 billion euros from 2.87 billion euros in the same quarter last year.<\/p>\n Core earnings per share was 5.22 euros, down from 7.23 euros in the previous year.<\/p>\n Operating profit for the third quarter was 3.47 billion euros, down 14.6 percent from the prior year, due to a lower operating insurance service result in the Property-Casualty business segment driven by an exceptional high level of claims from natural catastrophes.<\/p>\n Property-Casualty business segment was affected by a 7.3 percentage point impact by natural catastrophes on the combined ratio, the highest in a decade.<\/p>\n Shareholders’ core net income declined 29.3 percent to 2.06 billion from the prior year’s 2.91 billion euros due to a lower operating profit and non-operating result. The prior year non-operating result benefitted from the Voya transaction.<\/p>\n Total revenues or business volume for the third quarter rose 4.5 percent year-over-year to 36.5 billion euros.<\/p>\n The results were driven by the Property-Casualty business segment which benefitted from higher prices and volumes. Meanwhile, the growth of the Life\/Health business segment was primarily linked to strong single-premium volumes in the United States. This growth was partially offset by softer AuM-driven revenues in Asset Management business segment.<\/p>\n Internal growth, which adjusts for foreign currency translation and consolidation effects, was 9.3 percent, driven by the Property-Casualty and Life\/Health business segments.<\/p>\n Third-party assets under management were 1.670 trillion euros as of September 30, 2023, up by 8 billion euros from the end of the second quarter 2023.<\/p>\n In Germany, Allianz shares were trading at 226.75 euros, up 2.00 percent.<\/p>\n For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com. <\/p>\n