Global insurer Allianz has reported a net income of €2.1 billion for the third quarter, up an impressive 5.9% from the prior year period.
This elevated net income was due to a higher non-operating investment result and was partly offset by higher restructuring and integration expenses.
Total revenues decreased 6.1% to €31.4 billion while operating profit was down 2.6% to €2.9 billion.
In Allianz’ life/health segment, operating profit increased 3.4% to €1.119 billion, supported by an improved investment margin.
In property-casualty, operating profit fell 2.4% to €1.315 billion due to further COVID-19 related losses and a lower contribution from run-off.
Allianz’s combined ratio worsened slightly to 94.5% in the third quarter, up from 94.3% a year earlier.
In the first nine months of 2020, total revenues declined 1.9% while operating profit fell 14.6% to €7.8 billion, mostly due to the adverse impacts of COVID-19 amounting to €1.3 billion.
P&C operating profit fell 16.6% as a result of both a lower underwriting result and operating investment result.
Additionally, due to ongoing economic uncertainties related to the COVID-19 pandemic, Allianz’ board has decided to discontinue the previously suspended share buyback program and to no longer execute the outstanding part of the program amounting to €750 million.
Commenting on his company’s performance, Chief Executive Officer Oliver Bäte said, “We have delivered solid results in an environment that will remain challenging.
“Not just our financial performance has been resilient, but we have also enjoyed strong support from our fantastic staff around the world.
“Therefore we remain confident to not just weather the COVID-19 crisis well, but to build an even stronger Allianz for the benefit of all stakeholders.”