Allianz is the latest global insurer and reinsurer to withdraw its operating profit target for 2020 as the COVID-19 coronavirus pandemic continues to drive widespread uncertainty and financial market volatility.
As a result of the uncertain macroeconomic outlook being caused by the virus outbreak and the now available updated financial plans of its operating entities, the Board of Management at Allianz does not expect that the Group can achieve the target range operating profit for 2020 of €12bn +/- €500 mn.
Additionally, the re/insurer has advised that for the first-quarter of 2020, it expects Group operating profit to fall by 23% year-on-year to €2.3 billion, while net income for the quarter is expected to fall by 30% to €1.4 billion.
“A new profit target for 2020 will be announced by the Board of Management upon completion of the revised planning,” explains Allianz.
Amid the uncertainty and challenges, an increasing number of global re/insurers have decided to withdraw profit targets for 2020.
So far, the impact from COVID-19 on Q1 2020 results has been varied, although generally, investment results have been hit harder than underwriting performance.