Friday 15 February 2019 8:40 am

German insurance giant Allianz unveils record €11.5bn profit

German insurer Allianz said today that its operating profit for 2018 was €11.5bn (£10.1bn), the highest in its history.

Allianz had targeted operating profit of €10.6bn to €11.6bn so its result was in the upper end of its targeted range.

Read more: Insurer Zurich boosts profit 20 per cent and hikes dividend

The company attributed operating profit growth to the performance of its property-casualty business segment, which reported a 13.3 per cent jump in operating profit.

It said this was due to an improved expense ratio, lower claims from natural disasters and premium growth.

“I am very proud of the global Allianz family for delivering such a great set of results. We reached the highest net income of the past ten years despite strong market volatility, especially in the fourth quarter,” its chief executive Oliver Bate said: “Our customers continue to rely on us, and it’s with them in mind that we are focusing on simplicity in the next iteration of our strategy.”

Read more: Profit halves at insurer Beazley on natural disaster losses

Allianz boosted its dividend 12.5 per cent to €9 per share on the strong results.

It said its operating profit target for 2019 is €11.5bn, plus or minus €500m, barring unforeseen events.

Operating profit in the fourth quarter rose 0.4 per cent to €2.8bn.

Yesterday the company announced a €1.5bn share buyback programme.