German insurer Allianz records highest operating profit in 2019
Source: Busiunion | 2020-02-22
The operating profit of German insurance giant Allianz rose 3 percent year on year to a record high of 11.9 billion euros (12.9 billion U.S. dollars) in 2019, the company said Friday in a financial report.
Last year, Allianz's total revenues increased 7.6 percent to 142.4 billion euros. Net profit for 2019 hit 7.9 billion euros, up 6.1 percent from the previous year.
"2019 was another successful year with record results for the Allianz Group," said Allianz SE's CEO Oliver Baete.
"Allianz continued to make important strategic strides in 2019 like our acquisitions in Britain and Brazil and being awarded the first fully foreign-owned insurance holding in China," Baete said.
Allianz attributed operating profit growth to its life and health business segment "due to a higher investment margin, a positive one-off profit in the United States, and volume growth."
Net income attributable to shareholders grew by 6.1 percent to 7.9 billion euros "mostly due to the increased operating profit and improved non-operating result, as well as a lower tax rate," Allianz noted.
The strong performance prompted Allianz to lift its 2020 operating profit target to 12 billion euros, plus or minus 500 million euros, which is 4.3 percent higher from the previous target.
The German insurer also announced a new share buy-back program of up to 1.5 billion euros on late Thursday, which is to be completed by the end of the year. (1 euro = 1.08 U.S. dollars)