The severe storms in Slovenia, Austria and Italy cost Allianz dearly in the summer. The consequences of natural disasters cost the insurer almost 1.3 billion euros in the third quarter, almost four times as much as a year earlier, as the DAX group announced on Friday in Munich. As a result, operating profit fell by 15 percent to 3.5 billion euros. CEO Oliver Bäte sees Allianz on track to generate an operating profit of between 13.2 and 15.2 billion euros this year as planned. After the first nine months it is almost 11 billion euros. In Germany, the summer storms with hail and heavy rain in particular caused a lot of damage, as CFO Giulio Terzariol explained in a telephone conference with journalists. A spokesman put the burden in this country at almost 600 million euros. In addition, there were storms in Italy with around 400 million euros and the devastating floods in Austria, Slovenia and Croatia. Allianz had already raised the premiums for its customers in the property and casualty business in order to compensate for the costs of damage, which had become more expensive due to inflation. Overall, the division increased its business volume in the third quarter by 10.8 percent after adjusting for currency effects and on a comparable basis. Operating profit in property and casualty business fell by a quarter to just over 1.4 billion euros. Damage from natural disasters amounting to almost 1.3 billion euros consumed 7.3 percent of the division’s income – more than in a decade. Even after the severe flood disaster in Germany in July 2021, this rate was 4.9 percent. The bottom line is that Allianz shareholders received a surplus of over two billion euros in the third quarter, almost 30 percent less than in the same period last year.
Storms reduce Allianz profits – economy
