In the first quarter of 2009, Allianz in New Europe1 once again achieved revenues exceeding one billion euros. With total premiums of 1.03 billion euros in the first three months of 2009, the company maintained nearly the same premium level of 1.1 billion euros achieved in the previous year's first quarter. Adjusted for exchange rate developments, the premium volume of Allianz in the region grew by 7 percent compared to the first quarter of 2008.
First quarter revenues top one billion euros
Quarterly operating profit decreased by 9 percent to 81 million euros, compared to 89 million euros in the same period of last year. Due to the ongoing financial crisis, nearly all results in the region were impacted by exchange rate volatility.
"Our results are stable, which is a major achievement in these uncertain times. Although we see the region clearly affected by the ongoing financial crisis, our strong business fundamentals and deep customer trust in our brand highlight Allianz's position in New Europe. With a solvency ratio of nearly 160 percent for the Allianz Group, our customers and partners value Allianz as well-capitalized and strong long-term partner," stated Werner Zedelius, Member of the Board of Allianz SE responsible for growth markets.
Werner Zedelius: "Our results are stable, which is a major achievement in these uncertain times"
Property and Casualty insurance
Gross premiums written in Property and Casualty insurance declined by 14 percent to 728 million euros, from 850 million euros in the previous year's first quarter. This top-line result was mainly driven by exchange rate effects. Adjusted for these effects, the premium declined by 4 percent compared to the first quarter of 2008 and reflects lower new business in the motor segment impacted by drop in car sales. Operating profit in the first quarter in the Property and Casualty business declined by 7 percent to 62 million euros, from 67 million euros in the first three months of 2008.
Contrary to this general development, Allianz companies in Slovakia continued their growth path. Premiums in the first quarter increased by 11 percent to 122 million euros, from 111 million euros in the same quarter of 2008. This positive development was mainly driven by new business in the corporate segment.
Life and Health insurance
In the first quarter of 2009, statutory premiums in Life and Health insurance recovered strongly and grew by 25 percent to more than 306 million euros, compared to 245 million euros for the same period of 2008. Operating profit for the first three months of 2009 declined by 22 percent to 16 million euros, compared to 22 million euros in first quarter 2008. This development was significantly influenced by exchange rate movements.
Main contributors to the positive growth development in the Life and Health business were Allianz companies in the Czech Republic and Poland. Allianz in Poland recorded an increase in premiums by 138 percent to 149 million euros, compared to 63 million euros in first quarter 2008. A successful sales campaign through various bank partners including Allianz Bank Polska resulted in strong premium growth also supported by sales of traditional products.
In the Czech Republic, Allianz recorded premium growth of 48 percent to 40 million euros the first quarter, compared to 27 million euros in the previous year's first quarter. This resulted from a successful sales campaign of an index-linked product.
Pension Fund and Asset Management business
In New Europe, Allianz also reaffirmed its pole position among the important players in the pension business. Third-party assets under management of 4.8 billion euros remained on the same high level as in first quarter 2008.
"Fully-funded pensions are of great importance, both for pension fund customers as well as for state finances. In view of the demographic development, the fully-funded pension model is the only way to ensure adequate old age provision for individuals and to achieve a long-term reduction of the burden on public budgets," commented Klaus Junker, regional CEO of Allianz New Europe.
Recognized for Customer Focus
In April 2009 "Euromoney", a leading journal of the international financial markets, announced the results of its annual Insurance Survey. Allianz received Euromoney's award as "Best Insurer in Central & Eastern Europe" for 2009. Furthermore, Allianz was awarded
- Best for Price, Central & Eastern Europe
- Best Insurer for Innovation, Central & Eastern Europe
- Best Insurer for Claims Resolution, Central & Eastern Europe
- Best Product Range, Central & Eastern Europe
For the survey, CFOs, Risk Managers and other direct buyers of insurance at large corporations were asked to give their opinion of the company from which they purchased their insurance, and to name their reasons. They were then asked to name first and second choices for insurance companies in the categories of price, product range, claims resolution and product innovation.
1 Allianz is active in Bulgaria, Croatia, Czech Republic, Hungary, Kazakhstan, Poland, Russia, Romania, Slovakia, Slovenia, Ukraine.
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