(Reuters) – The German insurance company Allianz on Wednesday recorded a net profit of 29% in the second quarter compared to a year earlier and refrained from updating its profit trend for the whole year when the coronavirus pandemic slows down business and dull the outlook.
Allianz is one of many European insurance companies that warns of the prospect of clients demanding business interruptions and interrupted events, while the demand for car and travel insurance has decreased.
Net profit attributable to shareholders of $ 1.53 billion ($ 1.81 billion) for the three months to June, compared to € 2.14 billion a year earlier. This was higher than a consensus forecast of EUR 1
"Due to the continuing uncertainties, we do not currently provide an updated outlook for operating profit for 2020," the company said.
Earlier this year, the German insurer abandoned its 2020 profit target of between € 11.5 billion and € 12.5 billion, blaming economic uncertainty following the pandemic, and said it expects to publish the first annual decline in profits. in almost a decade.
CEO Oliver Baete nevertheless said he was confident of "solid economic development" during the second half of the year.
Allianz combined ratio, a measure of profitability for its real estate and claims division, one of the highest revenues, deteriorated to 95.5% during the second quarter, up from 94.3% the year before. Readings below 100% indicate profitability.
At the same time, Allianz said on Wednesday that it issued a request for information from the US Securities and Exchange Commission over a series of funds that suffered heavy losses in the middle of the coronavirus-led market meltdown earlier this year. and is the subject of an investment search.
The funds in question are Allianz & # 39 ;s Structured Alpha hedge funds managed by Allianz Global Investors. Allianz revealed in its profit report.
In July, the Arkansas Teacher Retirement System filed a lawsuit in a Manhattan court to recover losses of at least $ 774 million during the first quarter of 2020 for the funds.
Allianz said the case was "legal and in fact deficient", but that it expects other investors' suits to show up.
Allianz said it cooperated fully with the SEC's request for information on the Structured Alpha Funds.
More insurance and risk management news about the coronavirus crisis here. Catalog