Allianz Upbeat Despite Rare Drop In Annual Profit

German insurance giant Allianz on Friday reported a drop in annual net profit for the first time since 2011, with natural disasters and the coronavirus pandemic taking their toll

Berlin, (APP - UrduPoint / Pakistan Point News - 19th Feb, 2021 ) :German insurance giant Allianz on Friday reported a drop in annual net profit for the first time since 2011, with natural disasters and the coronavirus pandemic taking their toll.

Net profit came in at 6.8 billion Euros in 2020, down 14 percent, the group said in a statement.

Operating profit was 10.8 billion euros, down 9.0 percent, weighed down partly by 1.3 billion euros in pandemic-related costs.

The fourth quarter showed a more solid performance, with total revenues stable and operating profit up 8.2 percent.

Costs linked to Covid-19 included payouts for cancelled events and suspended activities, with the group also feeling the pinch of lower premiums.

Allianz paid out 880 million euros for natural disasters, compared to 771 million euros the year before.

Total revenues at the Munich-based group decreased by 1.

3 percent to 140 billion euros across the whole of 2020.

In property-casualty insurance, total revenues rose slightly by 0.4 percent to 59.4 billion euros, despite declines recorded at Allianz Partners (travel insurance) and Euler Hermes (credit insurance).

"I am grateful for the trust and confidence that our stakeholders placed in Allianz during the challenging year 2020," Oliver Baete, the group's chief executive, said in a statement.

The group is "in a good position to deliver on our 2021 ambition", Baete added.

Allianz expects an operating profit of 12 billion euros in 2021, plus or minus 1.0 billion euros -- a wider buffer than usual due to volatility in the financial markets.

Allianz shares were up 1.45 percent on Germany's blue-chip DAX 30 index on Friday morning.