Second quarter income at German insurance giant Allianz SE almost halved, as the group faced a combination of higher claims from natural disasters as well as charges from the sale of its South Korea unit.
According to the group, new income attributable to shareholders declined from €2.2bn to €1.1bn euros year on year, representing a 46% decline, partly driven by the €352m impact from the expected disposal of South Korea.
In the property and casualty segment, operating profit fell by 16.2% to €2.5bn compared to the first half of 2015, due to a lower underwriting result and lower investment income. Meanwhile, the Life and Health Insurance segement booked relatively stable profits of operating profi at €1.9bn in the first half of 2016.
The asset management unit continued to face challenges, partly due to persistent outflows at its subsidiary Pimco, which reported €18bn in outflows during the second quarter of 2016. Asset Management quarterly operating profit declined by 1.4% on the year to €498m but rose 8% compared to the first quarter of this year.
Oliver Bäte, group CEO commented on the results: “Allianz is transforming itself into an organization that is closer to its customers, is more capital efficient, enjoys higher profitability, and we’re doing this in a difficult environment. The second quarter in particular was shaped by markedly higher damages from heavy floods and storms in Europe this spring. We were happy to support our customers in those difficult times.”