Allianz has reported its consolidated results for the first half of 2019, bannered by a 28% year-on-year increase in total operating profit.
In a statement, the Germany-based insurance powerhouse said that its total operating profit for the region grew by 28% to €260 million (US$290.5 million), while total revenues decreased 6% to €3.2 billion (US$3.6 billion).
The life & health insurance segment’s operating profit grew by 42% year-on-year to €205 million (US$229.1 million), with annualised new premiums (ANP) down 5% to €484 million (US$540.9 million). According to Allianz, this was driven by notable business growth and expense discipline in Taiwan, China, and Thailand. Meanwhile, there was an 18% increase in new business value (NBV) to €166 million. Indonesia contributed significantly to NBV, with improved volumes and margin in the agency channel.
For the property & casualty business, total revenues increased by 24% to €543 million (US$606.8 million), with China, Sri Lanka, and Thailand identified by Allianz as main areas of growth. Operating profit increased 3% to €40 million (US$44.7 million), with volume growth the primary driver. Due to growth in markets with higher expense ratios, the insurer’s combined ratio increased 1.4 percentage points to 97.8% compared to the first half of 2018.
“It has been a solid start to the year for our operations in the region,” said Solmaz Altin (pictured), Allianz Asia regional CEO. “Since taking on the chief executive role for Allianz Asia during this period I am delighted with the progress we continue to make in a competitive marketplace. Our healthy results are driven by continued performance across both business sectors and the ongoing support our teams have contributed to meet our shared strategy for the region.”
Altin mentioned two major general insurance partnerships in the region – the merger with Sri Ayudhya Capital PCL in Thailand, and AllianzJD in China, a joint venture with e-commerce firm JD. He added that Allianz is “well on track” and working towards establishing a wholly-owned holding company in China, the first for a foreign insurance business.
