Revenues increase to 2.1 billion euros, with growth across all business lines / Operating profit improves strongly to 144 million euros / Allianz obtains approval to begin the merger of its P/C business units in Russia
Allianz SE Manuel Bauer: "The overall positive development of Allianz in CEE shows that we are on the right track "
Allianz in Central and Eastern Europe reported solid results for the first six months of 2011. Total revenues amounted to 2,072 million euros compared to 2,0421 million euros in the first half of 2010. Operating profit increased by 54 percent to 144 million euros versus 941 million euros in the prior year period. Net income doubled to 120 million euros from 601 million euros in the year before.
"The overall positive development of Allianz in CEE not only in terms of total revenues but also the big increase in operating profit and net income shows that we are on the right track and have a robust business model. This in combination with a resilient and well balanced portfolio where markets that show a better development are making up for those whose development is weaker," commented Manuel Bauer, Member of the Board of Management of Allianz SE responsible for growth markets.
Property and Casualty Insurance
The Property and Casualty insurance business in Central and Eastern Europe recorded gross premiums written of 1,398 million euros, a slight increase over the first six months of 2011 compared to 1,390 million euros in the respective period in 2010. Internal growth amounted to 0.3 percent. Whilst Allianz operations in Hungary and Romania had lower revenue levels due to market shrinkage and price competition against a backdrop of worsening economic conditions, Allianz achieved significant revenue growth in other markets, most notably the Czech Republic, Poland and Russia. Half-year operating profit in the Property and Casualty business across the region amounted to 82 million euros, an increase of 46 percent after 56 million euros in the first six months of 2010. The main driver of profitability was the combined ratio, which improved to 96.6 percent in the first half of 2011 from 99.8 percent of last year.
The result in Slovakia stood out, with 44 million euros operating profit in the first six months of this year after 20 million euros in the first half of 2010. This improvement includes claims from summer floods that occurred at the end of the second quarter 2011, for which Allianz has already paid out 1.8 million euros to affected customers. "This is a very promising trend. We are delivering strong profitability, with accident year loss ratios improving across the whole region. To build on this positive trend in the second half of 2011 we will focus on activities driving profitable growth, in particular distribution and further reductions in expense levels" commented Bruce Bowers, regional CEO of Allianz in Central and Eastern Europe.
Bruce Bowers: "This is a very promising trend. We are delivering strong profitability." Life and Health Insurance Statutory premiums for Life and Health in Central and Eastern Europe in the first six months of 2011 amounted to 609 million euros compared to 608 million euros in the prior year period. Internal growth amounted to -1.0 percent. Allianz recorded strong growth in Russia, with statutory premiums increasing by 88 percent to 24 million euros, and the Czech Republic also performed strongly, growing revenues by 13 percent to 84 million euros. A challenging economic environment negatively affected Allianz' Life and Health business in Hungary, with revenues down 18 percent to 108 million euros despite a successful single premium campaign.
Operating profit declined on internal basis by 10 percent to 39 million euros, compared to 45 million euros in the first half of 2010, primarily due to the situation in Hungary.
Bruce Bowers: "Our Life and Health insurance portfolio in Central and Eastern Europe has a solid core with the majority of our units delivering results in line with expectations. Hungary suffered due to very challenging conditions, but increased revenues in the Czech Republic and Russia helped to offset this effect. Our customers realize the clear need to invest for retirement."
Pension Fund and Asset Management
In the first half of 2011, Allianz Pension Fund and Asset Management business in Central and Eastern Europe grew in every country of operation except Hungary, where a re-nationalization of mandatory private pension fund business just took place, resulting in 1.4 billion euros of pension assets being transferred to the state in the second quarter. Assets under management of other Allianz pension fund operations in the region grew by 10 percent in the first half.
Allianz asset management operations in Central and Eastern Europe recorded an increase of 20 percent in third party assets under management during the first six months of 2011 to 0.9 billion euros. Combined pension and third party assets under management reached 8.0 billion euros at the end of June 2011 compared to 8.6 billion euros as at the end of 2010. Excluding the development in Hungary, the Pension Fund and Asset Management business grew by 11 percent.
Development in Russia
An application for permission for accession of CJSC Allianz Russia and OJSC IC Progress Garant to OJSC IC ROSNO was filed with the supervisory bodies in Russia (the Federal Anti-Monopoly Service and Federal Service for Financial Markets), and approval has been received. The integration is a logical step towards implementation of Allianz Group's strategic plans in Russia.
The goal of the unification is to set up a highly profitable company supported by the capital of Allianz SE. In addition, this decision underlines the importance of Russia as one of the fastest growing markets for Allianz Group. Bruce Bowers: "By bringing together the strengths and best practices of the three companies, we enter a new development stage, giving Russian clients the opportunity to access the whole range of Allianz products from insurance to asset management".
1 Excluding the results of discontinued banking and pension fund operations in Hungary
Keywords: pmi medical insurance, medical insurance working abroad, company health insurance, world insurance health, health plans that, insurance for international, international health medical insurance, international health insurance cover, corporate medical insurance, insurance international health, health insurance for international, insurance health international, health insurance international, international insurance health, medical insurance for international, international medical insurance cover, health plans, international health insurance policy, international medical insurance cover
Allianz in Central and Eastern Europe Solid half-year results
Ground Ambulance Transport Companies come in different shapes and sizes and you must ensure you source a ground ambulance company with superior service and no hidden costs. Some Ground ambulance companies do have hidden fees and it is important to read the small print when sourcing a ground ambulance provider.