Allianz continues its growth in New Europe*. By the end of the first half of 2008, premium volume rose by 10.5 percent to 2.1 billion euros. Compared to the second quarter of the previous year, companies in the region grew their premium income by 14.3 percent to more that one billion euros. These growth rates enabled Allianz to maintain its strong market position in this important growth region, despite a challenging economic environment.
"Although we faced a difficult market, we were able to grow premiums in the first half of 2008. This is a clear sign of trust from our customers and reflects the efforts of our multi-channel sales approach in the region. We continue to perfect our services with a customer focused approach" said Werner Zedelius, Allianz Board member responsible for growth markets.
First half year 2008
Allianz grows in New Europe despite tough market environment
Premiums up ten percent in first half year 2008 / Market entry in Slovenia / ROSNO representative office in Azerbaijan
Werner Zedelius: "Clear sign of trust from our customers"
Life and health business
The life and health business recorded statutory premiums of 479 million euros. On a year on year basis, premiums declined by 21 percent, mainly influenced by the reduced sales volume of our banking partner PEKAO in Poland. Excluding this effect, premium income in the region increased by 12.2 percent. Compared to the same quarter in the previous year, Allianz companies in New Europe increased statutory premiums by 3.7** percent to 234 million euros. In line with the decrease in premiums, operating profit in the life and health business declined by 22 percent to 28 million euros as compared to the first half of 2007.
Of particular note, Allianz in Hungary continued its course of strong growth in the first half year 2008 and increased its premium income by 69.6 percent to 95 million euros. Also noteworthy was the development of the life insurance business of Allianz in Slovakia, where premiums increased by 15 percent to 145 million euros. This growth resulted primarily from the sales of investment-linked products.
Of particular note, Allianz in Hungary continued its course of strong growth in the first half year 2008 and increased its premium income by 69.6 percent to 95 million euros. Also noteworthy was the development of the life insurance business of Allianz in Slovakia, where premiums increased by 15 percent to 145 million euros. This growth resulted primarily from the sales of investment-linked products.
Property and casualty business
Gross premiums written in the property and casualty business increased in the first six months of 2008 by more than 21 percent to 1.6 billion euros. Premiums in the second quarter 2008 rose by twelve percent to 781 million euros, compared to the same quarter in 2007. Operating profit in the Property and Casualty business was above plan, but declined by 9.8 percent to 129 million euros, driven mainly by an increase in claims events that affected the entire market.
The main drivers for growth in the first six months of 2008 were Russia and Poland. Allianz companies in Russia recorded the highest growth with more than 81 percent and premium income amounting to 486 million euros. Allianz Poland grew its premium volume by more than 25 percent to 227 million euros. The main factor for this positive development was the motor insurance business.
The main drivers for growth in the first six months of 2008 were Russia and Poland. Allianz companies in Russia recorded the highest growth with more than 81 percent and premium income amounting to 486 million euros. Allianz Poland grew its premium volume by more than 25 percent to 227 million euros. The main factor for this positive development was the motor insurance business.
Expanding footprint
Allianz is focusing on a number of additional initiatives in the region to continue to profitably grow its business and expand its market presence. The majority of these are based on the changing needs of customers, who increasingly are looking for one strong partner for their financial planning needs.
"As part of our Customer Focus Initiative we are continually looking for ways to become easier to do business with and offer as complete a product portfolio as possible through a broad distribution network. As such, we have increased our presence in the direct business with which we are now live in four countries in New Europe," commented Klaus Junker, regional CEO for Allianz New Europe on the positive development of the direct business in the region.
In May 2008, Allianz entered the Slovenian market with the opening of a branch office in Ljubljana. The company plans to play an active part in the future development of this important market. Allianz is also looking to expand into Azerbaijan with ROSNO opening a representative office in Baku in April.
*Allianz is active in Azerbaijan, Bulgaria, Croatia, Czech Republic, Hungary, Kazakhstan, Poland, Russia, Romania, Slovakia, Slovenia, Ukraine. Effective February 21, 2007, Allianz consolidated "ROSNO", effective May 21, 2007, "Progress-Garant" was consolidated for the first time.
**Internal growth (adjusted for F/X and consolidation effects).
As with all content published on this site, these statements are subject to our Forward Looking Statement disclaimer, provided on the right.
"As part of our Customer Focus Initiative we are continually looking for ways to become easier to do business with and offer as complete a product portfolio as possible through a broad distribution network. As such, we have increased our presence in the direct business with which we are now live in four countries in New Europe," commented Klaus Junker, regional CEO for Allianz New Europe on the positive development of the direct business in the region.
In May 2008, Allianz entered the Slovenian market with the opening of a branch office in Ljubljana. The company plans to play an active part in the future development of this important market. Allianz is also looking to expand into Azerbaijan with ROSNO opening a representative office in Baku in April.
*Allianz is active in Azerbaijan, Bulgaria, Croatia, Czech Republic, Hungary, Kazakhstan, Poland, Russia, Romania, Slovakia, Slovenia, Ukraine. Effective February 21, 2007, Allianz consolidated "ROSNO", effective May 21, 2007, "Progress-Garant" was consolidated for the first time.
**Internal growth (adjusted for F/X and consolidation effects).
As with all content published on this site, these statements are subject to our Forward Looking Statement disclaimer, provided on the right.
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