Overall, growth came in at over three percent as compared to 2007. This moderate growth level was achieved despite strong pressure on prices in the property and casualty business and a decline in the life premiums. Operating profit was maintained at the level of 95 million euros as in the same period of the previous year.
New Europe: Quarterly revenues exceed one billion euros
"In a tough market environment we were able to maintain our market leadership in New Europe. The figures reflect the success of Allianz New Europe's ongoing efforts to invest into improving customer focus and operational capabilities. We are focusing on our strategy to offer our customers more value and to provide them with the best possible solutions they need," said Werner Zedelius, Allianz Board Member responsible for growth markets.
Werner Zedelius: "Allianz New Europe's ongoing efforts to invest into improving customer focus and operational capabilities are a success"
Life and Health business
The life and health business recorded statutory premiums of more than 245 million euros. Compared to the same quarter of the previous year, there was a decline of 147 million euros influenced mainly by the volatile trading conditions that affected the sales of investment-oriented life insurance products. This was especially the case in Poland where, due to the unstable situation at the capital markets, Allianz and its main banking partner Bank Pekao agreed to postpone the annual sales campaign for unit-linked life insurance products.
Despite this development, the growth in this business segment was in line with expectations due to the performance in other markets. The life portfolios in Hungary and Slovakia achieved increase in premiums of 48 percent and 27 percent respectively. The growth in both markets was mainly driven by strong new business linked to launch of new products.
Property and Casualty business
With the full consolidation of ROSNO and Progress-Garant in Russia, and ATF-Polis (now renamed as Allianz) in Kazakhstan gross premiums written in the property and casualty business surged by 27 percent to reach 850 million euros from 667 million euros in the same quarter of the previous year and thus contributed the highest absolute amount to revenue growth to the group's results.
Motor continued to contribute strongly to the growth of the business in Poland. However, due to unattractive pricing levels in some markets especially in the Motor Third Party Liability business, Allianz consciously did not participate in acquiring loss-making portfolios.
Pension Fund and Asset Management business
The current wave of pension reforms in New Europe countries continue and Allianz is an active player in the asset management business in the region. The total pension assets under management increased by nearly 20 percent to 4.4 billion euros in the first quarter of 2008. In the recently concluded campaign in Romania, Allianz Tiriac Private Pension has gained nearly 1.1 million customers who have chosen Allianz as their provider of old age provision. With a market share of just over 25 percent Allianz is one of the leading pension funds in this business in Romania.
"We are committed to reaching our goals for the full year. We're well positioned in all the important markets and benefit from the close relationship and trust that we enjoy with our customers," commented Klaus Junker, regional CEO for Allianz New Europe.
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