Allianz has said that it saw total revenues of €44bn in Q1 2022, which the insurer said reflected a rise of 6.2%.
However, it said it had seen a slight decline in operating profit of 2.9% due to the quadrupling of claims resulting from natural catastrophes. In releasing these results, the insurer said it was looking at an operating profit target of between €12.4bn and €14.4bn.
Oliver Bäte, chief executive officer of Allianz SE, said in a statement: “The results of this quarter demonstrate that our business can withstand significant geopolitical and economic pressures. This is matched by the strength of our people. Allianz has taken clear business decisions in response to the Russian invasion of Ukraine.
“Also, we worked hard to achieve fair settlements with investors in the Structured Alpha funds in the U.S. and move toward a final resolution.”
Allianz said that its property and casualty business segment benefited from higher prices and volumes while the asset management business recorded higher assets under management-driven revenues. Increased sales in the US and Germany contributed to revenue growth in the life and health business segment.
Bäte’s reference to the Structured Alpha fund follows recent news that the firm has booked an additional provision for its Structured Alpha Funds of €1.9bn in Q1 2022 before tax.
As Reinsurance News reported, the company said that the provision will ‘negatively impact’ the Q1 group net income by €1.6bn after tax. This will result, said Allianz, in a net income attributable to shareholders of €0.6bn. Group operating profit in Q1 amounts to €3.2bn.
The firm said it believed the provision booked is a fair estimate of its remaining financial exposure in relation to compensation payments to investments and payments under any resolution of the governmental proceedings. It also said that it was seeking a timely resolution to these proceedings in discussions with the US Department of Justice and the Securities and Exchange Commission.
Allianz had previously said that it was booking a €3.7bn charge related to the Structured Alpha Funds in February. This followed an announcement in 2020 that the SEC had launched an investigation into the Structured Alpha Funds after pension funds said Allianz had failed to safeguard their investments throughout the financial volatility caused by the pandemic.