Allianz in Central and Eastern Europe (CEE) today reported its results for the first quarter of 2010. Total premiums in CEE grew by 8 percent and reached 1.1 billion euros. Compared to 1.0 billion euros in the first quarter of 2009 this reflects an increase of 1 percent, based on internal growth. Operating profit in the first quarter of 2010 amounted to 66 million euros, compared to 78 million euros in the same period of 2009.
First quarter 2010 total premiums exceed 1.0 billion euros
"The positive development of our business during the first quarter, based on organic growth, reflects that our customers value Allianz as their reliable partner. Their trust inspires us to continue to set the benchmark, not only with our products and solutions but also in customer satisfaction. We will continue to see growth in the region, but at lower levels than before the crisis. However, we are in a strong position to grow above the market average in future," said Werner Zedelius, Member of the Board of Management of Allianz SE responsible for growth markets.
Werner Zedelius: "The positive development of our business reflects that our customers value Allianz as their reliable partner"
Property and Casualty insurance
In the Property and Casualty insurance business in CEE, gross premiums written in the first quarter of 2010 increased by 7 percent to 782 million euros, compared to 728 million euros in the respective period of 2009. Adjusted for currency effects, premiums from Property and Casualty insurance increased by 1.1 percent.
The positive development in the Property and Casualty insurance was driven by an increase in volume due to recovering economic activity in the region. However, in the motor business continuing low levels of new car sales across the region still affected premium development.
Operating profit decreased by 27 percent in the first quarter to 45 million euros, versus 62 million euros in the same period of 2009. The result reflects pressure on profit margins caused by severe price competition and a higher loss ratio in the motor business.
Life and Health insurance
Premiums in the Life and Health business in CEE increased by 9 percent in the first three months of 2010 and reached 333 million euros, compared to 306 million euros in the respective period of 2009. Adjusted for currency effects premiums increased by 1 percent. Quarterly operating profit continued to grow and amounted to 21 million euros, compared to 16 million euros in the first quarter of 2009, the equivalent of 31 percent increase.
The ongoing positive development in the Life and Health business during the first quarter 2010 was driven by a shift in demand from single premium index-linked to recurrent premium unit-linked and traditional life products. However, first indications of a returning appetite for single premium investments have been noticed.
Manuel Bauer, regional CEO of Allianz in CEE: "Our Life/Health segment performed well in the first quarter of 2010. I am also confident we will see continued demand from customers in this business based on growing awareness of ageing societies. In addition, with annual average spending on Life insurance of around 120 euros per capita, Life insurance penetration in the region is still quite low."
Manuel Bauer: "Our position in the CEE markets remains strong"
Pension Fund and Asset Management
In the Pension Fund and Asset Management business, Allianz in CEE reaffirmed its leading position among the players in the pension business. At the end of the first quarter of 2010, third-party assets under management had grown by 9 percent to 7.2 billion euros, compared to 6.7 billion euros at the end of 2009. This positive development was based on both stable net inflows and a recovery on the capital markets in the region.
Continuous improvement remains priority
"Our position in the CEE markets remains strong. Despite our already good claims reputation across the region, going forward we will continue to further improve our customer service for example by enhancing our agent sales force. Furthermore, we are focusing on business efficiency by centralizing back-office functions and further standardizing core insurance processes," comments Manuel Bauer.
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