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Allianz confident of meeting targets after strong Q1

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German insurance giant Allianz said Wednesday it was confident of meeting its full-year targets after posting strong results in the first three months.

[FRANKFURT] German insurance giant Allianz said Wednesday it was confident of meeting its full-year targets after posting strong results in the first three months.

"The first quarter represented a great start to the year," said chief financial officer Dieter Wemmer.

"We are well on our way towards achieving our operating profit target in the range of 10.5 billion euros (S$16.3 billion), plus or minus 500 million euros for the entire year," he said.

In the period from January to March, net profit rose by 20.5 per cent to 2.2 billion euros, Allianz said.

Growth was "driven in part by non-operating gains." At the same time, underlying or operating profit declined by 3.5 per cent to 2.8 billion euros and revenues were down by 6.4 per cent at 35.4 billion euros.

Like banks and insurers, Allianz is feeling the pinch from low interest rates, which make it difficult for the group to offer attractive returns on investments to clients.

In its property and casualty division, operating profit "showed a substantial improvement compared to the previous year, largely due to lower claims stemming from natural catastrophes," it said.

The life and health insurance segment recorded a decline of total revenues "as a result of changes to the product strategy."

AFP