Salem Radio Network News Friday, February 23, 2024

Business

Allianz retains full-year outlook despite 30% slump in Q3 profit

FRANKFURT (Reuters) – Germany’s Allianz on Friday posted a 30% fall in its third-quarter net profit, dragged down by claims from natural catastrophes, although the financial services company maintained its full-year profit outlook.

Net profit attributable to shareholders of 2.021 billion euros ($2.16 billion) in the three-month period ended September, compared with 2.866 billion euros a year earlier. The figure surpassed a 1.989-billion-euro consensus forecast.

Allianz, one of Europe’s largest financial services groups, described the level of claims as “exceptionally high”.

Still, the company stuck to its target of 2023 operating profit between 13.2 billion and 15.2 billion euros.

The drop in quarterly profit contrasts with gains over the past few quarters as the company recovered from losses related to the war in Ukraine, jittery markets and the lingering pandemic.

Continental Europe, including Germany, Italy and Austria, saw a spate of flooding and hail storms during the summer.

Allianz combined ratio – a measure of profitability for its property and casualty division, one of its highest revenue earners – worsened to 96.2% in the third quarter, from 92.5% from a year earlier. Readings below 100% indicate profitability.

($1 = 0.9374 euros)

(Reporting by Tom Sims and Christina Amann; Editing by Linda Pasquini, Miranda Murray and Sherry Jacob-Phillips)

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