U.S. News

Allianz Profit Rises Above Expectations

Allianz said first-quarter net profit rose to 3.2 billion euros ($4.4 billion) from 1.8 billion euros ($2.4 billion) on a "very favourable development" on the capital markets.

In addition, Allianz made gains of around 2 billion euros from its capital investments which will be used to finance the complete takeover of its AGF unit, the company said. The insurer said operating profit increased to 2.9 billion euros from 2.7 billion euros as total revenues reached the previous year's level at 29.3 billion euros on a currency-adjusted basis.

Analysts' consensus had forecast net profit to increase to 2.358 billion euros and operating profit to decline slightly to 2.497 billion euros.

Allianz said operating profit in its property and casualty business declined 119 million euros ($161.8 million) year-on year due to 340 million euros ($462.4 million) in claims from damages caused by winter storm Kyrill.

It added that all other business segments improved their operating profit. Allianz will release its full quarterly report on May 8. The company is holding its annual general meeting today.