(Reuters) – The German insurance company Allianz on Friday refused to provide a forecast for 2020 due to uncertainty about the COVID-19 pandemic, despite delivering an unexpected 6% increase in net profit in the third quarter.
Allianz, as well as other insurance companies. , has warned of the effects of customers claiming business interruptions and interrupted events from lockdown, while demand for car and travel insurance has declined.
CFO Giulio Terzariol said on Friday that financial market volatility could also increase due to the US election results. He refrained from providing guidance on the company's full-year prospects.
"These are not normal times," he told reporters.
Net profit to shareholders of EUR 2.063 billion ($ 2.44 billion) for the three months to September. compared to EUR 1
However, this as a whole helped with a profit increase that was not related to Allianz's core business. The company saw higher realized gains during the summer from sales in the portfolio and lower write-downs, following a write-down of Argentine bonds a year ago.
The company also definitively canceled a repurchase of shares that had been pending "in light of the ongoing economic uncertainty. "
Allianz's shares rose 1% in the middle of the morning, and analysts at Barclays called the result" overall a decent pace. "
Earlier this year, the insurer abandoned its 2020 profit target of between € 11.5 billion and € 12.5 billion due to economic uncertainty due to the pandemic, saying it expected the first annual profit reduction of almost one decade would arise.
"We are still convinced that we will not only cope with the COVID-19 crisis, yes, but to build an even stronger Alliance," said CEO Oliver Baete.
Allianz's overall ratio, a measure of profitability for its real estate / accident division, one of its highest revenue generators, deteriorated slightly to 94.5% during the third quarter artery, from 94.3% a year earlier. Readings below 100% indicate profitability.
More news about insurance and risk management about the coronavirus crisis here. Catalog