Perlet: We have made good progress in our operative business and are right on schedule. We are currently growing, and in fact that growth is profitable. In Property and Casualty, we have again succeeded in reducing the combined ratio – that is the ratio of losses and expenses to premiums earned – to below 100 percent. The loss ratio improved in comparison to the same period of the previous year by 7.6 percentage points to 71.7 percent.
In Life and Health, we continued to grow strongly. And we substantially reduced expenditure on loan loss provisions in banking, from 1,836 million euros to 715 million euros. This means that we increased efficiency in all segments.
Perlet: "We are growing, and that growth is profitable"
Helmut Perlet, Allianz board member responsible for controlling, is looking back on Allianz Group's achievements and results in the first three quarters. Perlet sees Allianz on track, but also lists some uncertainties.
Helmut Perlet: "We increased efficiency in all segments"
AllianzGroup.com News: Dr. Perlet, how do you judge the business performance of the Allianz Group in the third quarter of 2003?
? Will the Allianz Group finish the fiscal year 2003 on a positive note?
Perlet: We look set to achieve a clearly positive result. Naturally enough, this is also dependent on factors that I am unable to predict from my current standpoint. For example, this year we haven’t yet had any major natural catastrophes. An additional factor is that new statutory regulations for life and health insurance will probably mean that new tax provisions will be required.
A further accelerated reduction in risk weighted assets from the non-strategic portfolio at Dresdner Bank by the Institutional Restructuring Unit (IRU) could also entail additional charges and lead to a negative operating result at the bank for the year overall. However, this will not be the case for the ongoing business segments of the Bank, which are expected to end the year profitably thanks to considerable cost savings.
And last but not least, developments in the capital markets could still put a damper on our earnings.
A further accelerated reduction in risk weighted assets from the non-strategic portfolio at Dresdner Bank by the Institutional Restructuring Unit (IRU) could also entail additional charges and lead to a negative operating result at the bank for the year overall. However, this will not be the case for the ongoing business segments of the Bank, which are expected to end the year profitably thanks to considerable cost savings.
And last but not least, developments in the capital markets could still put a damper on our earnings.
? How much will the sales of your shareholding in Beiersdorf contribute to the result?
Perlet: The sale is not yet relevant to earnings in the third quarter. However, it is likely that we will be able to report the proceeds from the sale of our Beiersdorf shareholding as early as the fourth quarter. This will allow us to drive forward restructuring measures at full pace and to accelerate the reduction of risk weighted assets at Dresdner Bank.
? The return to the profit zone and sale of the Beiersdorf shareholding gives you significantly more room for maneuver. What are your strategic goals?
Perlet: We’re gaining momentum and are back on track for profitability, but we still have a lot of hard work ahead of us. Most important to us is that we achieve improvements in profitability in our operative business because over the long term we want to be able to act as independently as possible from volatility in the capital markets.
Allianz has parted with 16 peripheral activities during the past nine months. This has released almost one billion euros in risk capital.
Turnaround management is still active at Dresdner Bank, Fireman’s Fund, Allianz Global Risks and AGF in France. Two of these companies, Allianz Global Risks and Fireman’s Fund, are writing figures in the black again. We have come a long way, but yet we have to pass a number of milestones.
Allianz has parted with 16 peripheral activities during the past nine months. This has released almost one billion euros in risk capital.
Turnaround management is still active at Dresdner Bank, Fireman’s Fund, Allianz Global Risks and AGF in France. Two of these companies, Allianz Global Risks and Fireman’s Fund, are writing figures in the black again. We have come a long way, but yet we have to pass a number of milestones.
? How will matters proceed at Dresdner Bank?
Perlet: The priority here is a return to profitability. We are satisfied with the progress that has been achieved at the IRU. Only in March we announced that we wanted to reduce the IRU portfolio by 10 billion euros by the end of 2004. Today, this goal has already been achieved.
The ambitious goals of reducing the risk weighted assets (RWA) and the risk capital for 2003 have also been exceeded significantly. Dresdner Bank is continuing to work on a drastic reduction in its cost base and is focusing on its expertise as a retail bank.
The ambitious goals of reducing the risk weighted assets (RWA) and the risk capital for 2003 have also been exceeded significantly. Dresdner Bank is continuing to work on a drastic reduction in its cost base and is focusing on its expertise as a retail bank.
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