In the first half of 2009, Allianz in New Europe is still well on course despite the challenging economic environment. On internal basis premiums increased by 5 percent. After exchange rate effects, gross written premiums in New Europe recorded 1.9 billion euros, reflecting the devaluation of central and eastern European currencies. Compared to 2.1 billion euros in the first half of 2008, premiums decreased by 9 percent.
Successfully withstands the economic downturn
In local currencies operating profit increased by 11 percent. After currency effects, operating profit still grew by 1 percent to 159 million euros, compared to 158 million euros in the same period.
"Both, our premium and operating profit growth are testimony to our customers' trust. In this specific and challenging environment Allianz in New Europe proves its strength and stability. Although gdp in the region is about to decrease this year by 4 percent, we increased premiums on a local currency basis by 5 percent and grew in the Pension Fund and Asset Management business by even 7 percent. Growth markets like the New Europe region will become even more important for the world economy. Being successfully active in New Europe for 20 years we are in pole position to furthermore participate in this development," said Werner Zedelius, Member of the Board of Allianz SE responsible for growth markets.
Werner Zedelius: "Both, our premium and operating profit growth are testimony to our customers' trust"
Property and Casualty insurance
Gross premiums written in the Property and Casualty insurance in New Europe remained at a high level of 1.6 billion euros on internal basis in the first six months of 2009. Adjusted for currency effects premiums decreased by 13 percent. Uncertainty in the region caused by the financial crisis led to a decrease in car sales, which in turn affected insurance sales through car dealers in the region.
Especially in Slovakia and Poland, Allianz companies continued to grow. In Slovakia Allianz companies increased gross premiums written in the first half of 2009 by 8 percent to 204 million euros, from 189 million euros in the same period. The companies achieved significant growth in the corporate segment.
Allianz companies in Poland grew in the first six months of 2009 by 1.5 percent, adjusted for exchange rate effects. This development was due to the increase in the property business. After exchange rate effects premiums recorded 180 million euros. Compared to the same period of 2008 premiums decreased by 21 percent.
Operating profit in the Property and Casualty business for the first half year 2009 increased on internal basis by 1 percent. Due to devaluation of currencies premiums declined by 8 percent to 132 million euros, from 143 million euros in the first six months of 2008. The operating profit was impacted by flood claims in the Czech Republic, as well as increased claims pressure in the Motor segment due to exchange rates increasing prices for foreign spare car parts.
Life and Health insurance
The Life and Health business in New Europe continued to grow by 24 percent on basis of internal growth. After exchange rate effects statutory premiums grew by more than 7 percent to 514 million euros compared to 479 million euros in the same period of 2008.
In line with this development, operating profit in the Life and Health business grew by 41 adjusted for foreign currency effects. After exchange rate effects premiums increased by 31 percent and amounted to 38 million euros, compared to 29 million euros in the same period of last year.
The main contributors to this positive development were Allianz companies in Poland, the Czech Republic and Russia. Allianz in Poland continued its successful sales campaign for deposit and traditional products, including Allianz Bank Polska, and recorded an increase in premiums by 134 percent on basis of internal growth. After exchange rate effect premiums grew by 83 percent to 221 million euros, compared to 121 million euros in the first six months of 2008.
Due to the refocusing of sales activities, Allianz companies in the Czech Republic recorded an increase of premiums by 43 percent on basis of internal growth. After exchange rate effects premiums increased by 31 percent to 64 million euros, compared to 49 million euros on a year-on-year basis.
Pension Fund and Asset Management business
In the Pension Fund and Asset Management business Allianz in New Europe reaffirmed its leading position among the important players in the pension business. In the first six months of this year, third-party assets under management grew by 8 percent to 5.5 billion euros, compared to 5.1 billion euros at the end of 2008. The positive development in assets under management was based on both stable net cash inflows and a recovery on the capital markets in the New Europe region.
Klaus Junker, regional CEO of Allianz New Europe: "Against the economic trend Allianz in New Europe remains a strong performer. Especially in times of crisis the unique strength of Allianz pays off what makes us very attractive for clients as they are looking for a reliable long-term partner. Everywhere, at the local level, the overall business remains stable and strong. We will continue to focus on initiatives such as the development of our direct business in the region and to expand our market presence by profitable growth."
20 years anniversary of entering the New Europe region
In summer 1989, Allianz became the first foreign insurer to launch its activities in the New Europe region by acquiring a 49 percent stake of the Hungarian state owned insurer "Hungária Biztosító". This acquisition was the starting point for Allianz’ activities in New Europe. Today the company is active in 11 countries and ranks among the top 3 players in the 6 largest of these markets.
"Within two decades we have become the leading international insurer in the region, with a market share of 8 percent. We are proud of our achievements and are convinced that our success story, which first began in Hungary, and quickly expanded across the New Europe region, will continue," said Zedelius.
As with all content published on this site, these statements are subject to our Forward Looking Statement disclaimer.
Link to the disclaimer