Allianz New Europe: Growth maintained amidst deteriorating market environment

(PresseBox) (München, ) .
- Premiums increased by 11 percent in first nine months of 2008 and exceeded 3 billion euro mark
- Increase in operating profit by 3 percent
- Successful start of Direct business in Romania

Allianz continues to successfully implement its profitable growth strategy in New Europe1. For the period ending September 2008, Allianz surpassed the 3 billion euro mark in premiuvolume. In the first nine months of 2008, premiums increased by 11 percent to 3.2 billion euros. Operating profit for the period once again increased by more than 3 percent to 272 million euros, compared to 263 million euros in the same period of last year.

Premiums in the third quarter grew by 22 percent to 1.1 billion euros versus 0.9 billion euros in the same quarter of 2007. Operating profit grew by 33 percent from 86 million in the third quarter of 2007 euros to 114 million euros in the same period in 2008.

"Allianz continues to expand its leading position in New Europe and builds on its double-digit market share. We are experiencing, that especially in these difficult times, our customers value Allianz as a well-capitalized and stable long-term partner which delivers relevant financial solutions. We will continue to strengthen our efforts to remain the first choice partner for our customers in New Europe." said Werner Zedelius, Allianz board member responsible for growth markets.

Property and Casualty business
Gross premiums written in the Property and Casualty business continued to grow. In the first nine months of 2008 premiums increased by 14 percent to 2.4 billion euros, compared to 2.1 billion euros in the same period last year. Premiums in the third quarter of 2008 rose by 6 percent to 747 million euros, compared to 707 million euros in the same quarter of 2007. Operating profit for the third quarter in the Property and Casualty business exceeded plan, and grew by 29 percent to 97 million euros, compared to 75 million euros in the previous year. Allianz companies in Poland continued on their growth path. Premiums in the third quarter increased by 48 percent to 126 million euros, from 85 million euros in the same quarter of 2007. This positive development was mainly driven by continued growth in the motor insurance business. Strong Motor and Property business generated further growth for Allianz companies in the Czech Republic and Croatia. With growth rates of 14 percent in the Czech Republic and 22 percent in Croatia, Allianz business expanded strongly.

1. Allianz is present in Azerbaijan, Bulgaria, Croatia, Czech Republic, Hungary, Kazakhstan, Poland, Russia, Romania, Slovakia, Slovenia, Ukraine. Effective February 21, 2007, Allianz consolidated "ROSNO", effective May 21, 2007, "Progress-Garant" was consolidated for the first time.

Life and Health business
In the first nine months of 2008, statutory premiums in the Life and Health business, amounting to 813 million euros, remained at the same level on a year-on-year basis. In the third quarter Allianz companies in New Europe successfully increased statutory premiums by 55 percent to 334 million euros, from 216 million euros in the same quarter of 2007. In the same period operating profit increased by 55 percent to 17 million euros, compared to 11 million euros in the third quarter of last year. All Allianz companies in New Europe contributed to this positive development.

The main driver for growth in the Life and Health business was Poland. In the third quarter Allianz companies in Poland recorded premium growth of 192 percent to 155 million euros, compared to 53 million euros in the same quarter of 2007. This positive development was due to a successful life sales campaign in the country, which had been postponed from the first quarter to the third quarter of 2008. The sales of traditional life insurance products also saw an increase in the volatile capital market environment.

Allianz companies in Slovakia recorded an increase in premiums by 20 percent to 78 million euros, compared to 65 million euros versus third quarter 2007.

Ongoing customer focus
In the Direct business, Allianz is now successfully active in five markets in New Europe - Croatia, Czech Republic, Hungary, Poland and Romania. Given the very favourable response from customers to the products on offer through Allianz Direct in the different New Europe markets, in November Allianz launched Direct business activities in Romania. Allianz will continue to develop additional initiatives to deliver customer relevant products and solutions and to keep its position as market leader.

"With our profitability in New Europe, we are a front-runner in the industry. This directly supports our capital solvency position, which makes us very attractive for clients in times of insecurity. There is a clear flight to quality in New Europe," commented Klaus Junker, regional CEO for Allianz New Europe on the positive development of Allianz's business in the region.

Cautionary Note Regarding Forward-Looking Statements:
Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words 'may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, potential, or continue' and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) general economic conditions, including in particular economic conditions in the Allianz Group's core business and core markets, (ii) performance of financial markets, including emerging markets, (iii) the frequency and severity of insured loss events, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) the extent of credit defaults (vii) interest rate levels, (viii) currency exchange rates including the Euro-U.S. Dollar exchange rate, (ix) changing levels of competition, (x) changes in laws and regulations, including monetary convergence and the European Monetary Union, (xi) changes in the policies of central banks and/or foreign governments, (xii) the impact of acquisitions, including related integration issues, (xiii) reorganization measures and (xiv) general competitive factors, in each case on a local, regional, national and/or global basis. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their consequences. The matters discussed herein may also involve risks and uncertainties described from time to time in Allianz SE's filings with the U.S. Securities and Exchange Commission. The company assumes no obligation to update any forward-looking information contained herein.

No duty to update
The company assumes no obligation to update any information contained herein.

Allianz SE

Allianz SE is member of Transparency International and supports the Principles of the United Nations Global Compact and the OECD Guidelines for Multinationals through its Code of Conduct. Allianz SE is the leader of the insurance sector in the Dow Jones Sustainability Index World 2007/2008, listed in FTSE4GOOD and in the Climate Disclosure Leadership Index (Carbon Disclosure Project, CDP5). "Allianz maintains its leading position within the insurance sector on a global basis." (Dow Jones Sustainability Indexes, September 2007)

Press releases you might also be interested in

Subscribe for news

The subscribtion service of the PresseBox informs you about press information of a certain topic by your choice at a choosen time. Please enter your email address to receive the email with the press releases.

An error occurred!

Thank you! You will receive a confirmation email within a few minutes.


Ich möchte die kostenlose Pressemail abonnieren und habe die Bedingungen hierzu gelesen und akzeptiert.