Insurance giant Allianz posts 5% fall in profits but confirms outlook for the year
- Net profit came in at 1.89 billion euros ($2.19 billion) from 1.99 billion euros a year ago.
- Allianz aims to conclude a new share buy-back program that could go up to 1 billion euros by the end of September.
Insurer Allianz reported a 5.2 percent fall in second-quarter net income Friday, highlighting a negative impact from the sale of its traditional life insurance portfolio in Taiwan.
Net profit came in at 1.89 billion euros ($2.19 billion) from 1.99 billion euros a year ago. The company said the negativity surrounding the sale was partially offset by lower income taxes.
"The outlook for the rest of the year is very good," Giulio Terzariol, the chief financial officer of Allianz, told CNBC's "Squawk Box Europe" following the results.
"Our revenue growth at 6 percent was very good and this is not only asset management, where we are growing double digits, we have strong growth in Life (and health insurance) and especially we had very healthy growth in property-casualty (insurance)."
Here are the key highlights for the second quarter:
- Total revenues up by 2.9 percent at 30.9 billion euros ($35.2 billion)
- Operating profit up by 2.3 percent at 2.99 billion euros ($3.36 billion)
- Diluted earnings per share down by 1.5 percent at 4.38 euros ($5.08)
Overall, the business achieved "good" numbers in the second quarter, "despite burdens from geopolitical instabilities and currency fluctuations," Allianz added in the earnings statement.
Share buyback program
Allianz announced at the start of July a new share buyback program that could rise to 1 billion euros ($1.16 billion). The company said Friday that this program should be concluded by the end of September.
Terzariol said that he is not "overly concerned" about market risk in the next six months, despite the ongoing threat of a trade war.
"I see the VIX as being relatively stable for the next six months, I think the strength of the (U.S. and European) economies ... are going to support ... the capital markets," he said.
"But we know that it's just a matter of time that we are going to see the next two or three years of sort of crisis. So our point is not about predicting the next crisis, the next quarter, it's more about giving a message that we need to be fundamentally prepared, that is not always going to be safe cruising," he added.