Oct. 29 (Bloomberg) -- Allianz SE, Europe’s biggest insurer, said third-quarter net income rose and operating profit exceeded its expectations, fueled by improvements at the asset-management business.
Net income rose to 1.4 billion euros ($1.8 billion), the company said in an e-mailed release today. That compares with an 84 percent drop in net income a year earlier to 196 million euros. Operating profit climbed to 2.5 billion euros from 1.91 billion euros a year earlier. All results are preliminary, the Munich-based company said.
“Following the strong operating performance, Allianz expects the 2012 full-year operating profit to exceed 9 billion euros, assuming a normal business development during the remainder of the year,” Allianz said in the statement. The forecast compares with analysts’ estimates for 8.57 billion euros in full-year operating profit.
Asset management’s contribution to Allianz’s operating profit almost tripled to 27 percent over the past five years and was 635 million euros in the second quarter. The insurer has said it plans to expand the asset management unit’s operating profit, excluding currency movements, by 5 percent to 10 percent “over a full cycle.”
Full-year net income will be “comparatively lower because of further balance sheet strengthening including investment de-risking and restructuring activities,” as already seen in the first nine months of 2012, the insurer said.
To contact the reporter on this story: Rainer Buergin in Berlin at firstname.lastname@example.org
To contact the editor responsible for this story: James Hertling at email@example.com