Allianz First-Quarter Profit Advances 24% to 1.7 Billion Euros
Net income increased to “around” 1.7 billion euros ($2.2 billion) from 1.37 billion euros a year earlier, the Munich- based insurer said in a statement on its website. Operating profit rose to 2.8 billion euros from 2.33 billion euros, beating the 2.4 billion-euro average estimate of five analysts surveyed by Bloomberg.
Allianz said in March that it expects “many challenges” from 2012, including low interest rates and an uncertain economic outlook, to persist this year. The company said today it’s on course to meet a full-year goal for operating profit of 8.7 billion euros to 9.7 billion euros compared with the 9.5 billion euros reported in 2012.
“The improvements in our results come from all business segments,” Chief Executive Officer Michael Diekmann said in the statement. “We are well on our way toward achieving our operating profit outlook for the entire year.”
Allianz advanced 1.8 percent to 118.50 euros at 9:03 a.m. in Frankfurt trading, bringing the gain this year to 13 percent and valuing the company at 54 billion euros.
The company is proposing a dividend of 4.50 euros a share from last year’s profit, which almost doubled to 5.49 billion euros. Allianz is holding its annual shareholders’ meeting in Munich today.
Global insurance rates rose slightly on average in the first quarter, with the U.S. seeing the biggest increase of 2 percent to 4 percent, insurance broker Marsh & McLennan Cos. (MMC) wrote in a report published last month.
To contact the reporter on this story: Annette Weisbach in Frankfurt at email@example.com
To contact the editor responsible for this story: Frank Connelly at firstname.lastname@example.org