Allianz Stock Climbs On Q3 Profit Growth, Confirms FY16 Profit View

(RTTNews) - Shares of Allianz SE (AZSEY.PK) were gaining around 4 percent in the early morning trading in Germany after the insurance giant reported Friday higher profit in its third quarter. Further, the company confirmed operating profit outlook for 2016 at 10.5 billion euros, plus or minus 500 million euros.

Dieter Wemmer, chief financial officer, said, "We're seeing sustainable profitable growth in many businesses. Improvements from our Renewal Agenda are bearing fruit and keeping us on track to reach our operating profit target for the full year..."

For the third quarter, net income attributable to shareholders climbed 36.5 percent to 1.86 billion euros from last year's 1.36 billion euros. Earnings per share improved to 4.08 euros from 2.98 euros last year.

Allianz said it improved its performance in the quarter despite punishingly low interest rates and the currency costs from Brexit.

Operating profit for the quarter grew 18.2 percent to 2.9 billion euros, largely due to a higher investment margin in the Life and Health segment.

Operating profit in Life/Health surged 53 percent. The Property and Casualty segment delivered a 4.3 percent rise in operating profit due to stronger underwriting and investment results, while Asset Management operating profit rose 0.5 percent.

Quarterly total revenues edged up 0.5 percent to 27.7 billion euros from 27.5 billion euros last year. Internal revenue growth was 1.7 percent, adjusted for currencies and consolidation.

Revenue improved in Life and Health segment, but was almost offset by a decline in revenues from the Asset Management segment.

Property and Casualty insurance's internal revenue growth was 3.1 percent mostly due to positive developments in Turkey, Allianz Worldwide Partners and Australia. Property and Casualty insurance's gross premiums written held steady at 11.5 billion euros..

Life and Health insurance's statutory premiums increased 1.6 percent to 14.5 billion euros, driven by higher sales of capital-efficient products in Germany and the United States.

Solvency II capitalization ratio remained robust at 186 percent at the end of the third quarter, demonstrating the resilience of the group despite the current low interest rate environment.

In Germany, Allianz shares were trading at 154.75 euros, up 4.03 percent.