Underlying solid results in the first nine months

Allianz in Central and Eastern Europe (CEE) reported its results for the first nine months of 2010. Total premiums in CEE1  increased by 3 percent to 2.8 billion euros, from 2.7 billion euros in the same period of 2009. Adjusted for currency effects, premiums decreased by 2 percent.

Operating profit in the first three quarters amounted to 66 million euros, which corresponds to a 70 percent decrease compared to the first nine months of 2009. Beside one-off effects especially in the third quarter, a newly introduced crisis tax for financial institutions in Hungary affected operating profit amounting to minus 24 million euros.

"We were able to build on the growth of the first half-year and to continue on this path. Overall, we are on track in CEE. In the first nine months, the impact from extreme weather-related events in CEE affected the region significantly, where we used 60 million euros to pay the claims of our customers. Once more, we proved ourselves as trusted partner and stood by our clients in their hour of need," said Werner Zedelius, Member of the Board of Management of Allianz SE responsible for growth markets.

Werner Zedelius: "Once more, we proved ourselves as trusted partner and stood by our clients in their hour of need"

In the Property and Casualty business, gross premiums written in the first nine months of 2010 in CEE once again exceeded the 2 billion euro mark, and remained on previous year’s level. Adjusted for currency effects, premiums from Property and Casualty insurance decreased by 5 percent.
Operating profit in CEE decreased by 87 percent in the first three quarters of this year to 21 million euros.

The business in the region was affected by various factors. Operating profit was lower due to floods and rain in several countries in CEE. Also, the low level of new car sales across the region, the introduction of the crisis tax for financial institutions in Hungary, and a write-off of reinsurance receivables for 2009 on a large claim in Russia, affected the result.

Manuel Bauer, regional CEO of Allianz in CEE: "In the first three quarters, weather-related events in CEE were a challenge for us. Still, the floods in the region have shown that many people who suffered property losses were not insured. In some CEE countries, only 40 percent of the households have property insurance. To be well-covered for such future events, property insurance is crucial."

Allianz in the Slovak Republic was re-elected as Insurance Company of the year 2010 by the economic weekly magazine "TREND". Criteria of the magazine were development in market share as well as the financial stability of each insurance company. Also, in Poland, Allianz was named Best Insurance Company in Property and Casualty in 2010 by the respected financial services magazine "Gazeta Bankowa". In the ranking, insurance companies were chosen according to data concerning customer service provided by the Commission for Financial Supervision and the Insurance Ombudsman.

The solidity and expertise of Allianz continued to attract a growing number of clients in CEE, who were looking for a reliable partner for their retirement provisions. In the first three quarters of 2010 premiums reached a record high. Premiums increased by 13 percent to 831 million euros, compared to 735 million euros in the same period of 2009. Adjusted for currency effects, premiums increased by 7 percent.

Drivers of the continuous positive development throughout the first three quarters of 2010 were the stable demand for traditional life products as well as successful sales campaigns for single premium products, for example, in Hungary and the Czech Republic. Also to support its business, Allianz in CEE intensified existing co-operations with banks. In addition further new sales co-operations with bank partners throughout CEE were established, for example, in Poland and in Russia.

Operating profit for the first three quarters amounted to 45 million euros, compared to 58 million euros in the respective period of 2009. This translates to a 22 percent decrease. Despite a strong underlying operating performance the newly introduced crisis tax for financial institutions in Hungary as well as an adjustment of the deferred acquisition cost in Slovakia caused the decline.

"Our Life/Health segment continues to perform well. We will continue to consciously pursue conservative and steady growth. This is reflected in both our track record of nine consecutive quarters of growth, and our offerings for customers where we saw high demand for products with capital guarantees," commented Manuel Bauer.

Manuel Bauer: "We will continue to consciously pursue conservative and steady growth"

Allianz continues its success in the Pension Fund and Asset Management business in CEE. By the end of September 2010, third-party assets under management had grown by 19.4 percent to 8.0 billion euros, compared to 6.7 billion euros at the end of 2009. This development was based on stable capital markets and continuous net inflows reflecting the trust in Allianz’ high quality investment expertise.

1 Allianz is active in: Bulgaria, Croatia, Czech Republic, Hungary, Kazakhstan, Poland, Russia, Romania, Slovakia, Ukraine.

 
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