Tuesday, February 9, 2010 Previous editions
Tuesday, November 10, 2009
THE Irish division of international insurance giant Allianz suffered a poor third quarter with gross written premiums down by around 7% – on a year-on-year basis – to €496 million and operating profit, for the period, being totally eroded.
Allianz Ireland made zero operating profit in the three months to the end of September, compared to a profit of €78m for the corresponding period last year. Gross written premium for the third quarter of 2008 had amounted to €531m.
The fall – particularly the profit erosion – was driven by a significant increase in the division’s combined operating ratio, which blends the loss/claims ratio and the expense ratio. The combined operating ratio for the Irish division went from 94.4% in the third quarter of 2008 to 109% for the same period this year.
Basically, any figure over the 100% mark means a business is losing money.
Separately, Allianz Ireland’s loss ratio went up from 68.4% to 82.3% on a year-on-year basis, in the third quarter, with the expense ratio remaining broadly flat at 26.6%.
A spokesperson for the Irish operation said that the market remains "very difficult" with the increasing cost of claims and the impact of very low premium levels.
On a group level, however, the quarter did hold better news for Allianz. Overall, the Munich-headquartered group saw a doubling in net profit to €1.3bn and a 23% year-on-year increase in operating profit to €1.9bn.
Group revenue was up – year-by-year – by 5.2% to €22bn, with the best performance coming from the life and health insurance and financial services divisions.
"Our very good third quarter result shows that Allianz has a sound platform for delivering solid earnings even in the ‘new normal’ of a challenging market environment with structurally lower returns," said group chief financial officer, Oliver Bate.
He added that the business remains well capitalised.
© Examiner Publications (Cork) Limited, City Quarter, Lapps Quay, Cork. Registered in Ireland: 73385.
