Allianz, the German insurer, remains on track to meet its 2023 financial target despite a decrease in third-quarter profit due to claims related to natural catastrophes.
In the third quarter, Allianz reported a net income of €2.02 billion ($2.16 billion), compared to €2.87 billion in the same period last year. The total revenue for the quarter stood at €36.5 billion, reflecting a 4.5% increase, while operating profit declined by 15% to €3.47 billion.
Property-Casualty Business Boosts Revenue
Allianz attributed its revenue growth to its property-casualty business, which benefited from higher prices and increased volumes. With a 6.1% growth in revenue, this segment contributed to the overall positive performance of the company.
Impact of Natural Catastrophe Claims
However, the property-casualty business also experienced an unusually high level of claims resulting from natural catastrophes during this period. Consequently, this impacted the operating insurance service result and overall operating profit, leading to a decline of 25% in operating profit for this specific unit.
Confirmed Operating Profit Target
Despite these challenges, Allianz remains confident in achieving its operating profit target of €14.2 billion for the year, with a margin of plus or minus €1 billion.