Allianz sees better 2021 after worst year in nearly a decade

German insurer Allianz posted its first fall in annual operating profit in nearly a decade on Friday on higher claims from businesses hit by lockdowns and lower demand for car and travel insurance.

Operating profit fell 9.3% to 10.75 billion euros ($13.01 billion) in its first decline since 2011 when it was hit with claims from a tsunami in Japan and write-offs during the European debt crisis.

The company aims to achieve a 2021 operating profit of 12 billion euros, plus or minus 1 billion euros.

“We are hence in a good position to deliver on our 2021 ambition,” CEO Oliver Baete said.

Net profit attributable to shareholders fell 14% to 6.8 billion euros but the slide shrank to a smaller-than-expected 2.2% in the final quarter.

Fourth-quarter net profit of 1.817 billion euros topped the 1.753 billion expected by analysts.

“In our view, Allianz’s release reads surprisingly positively,” Jefferies wrote in a note to clients.

Lucy Harlow

Lucy Harlow is a senior Correspondent who has been reporting about Equities, Commodities, Currencies, Bonds etc across the globe for last 10 years. She reports from New York and tracks daily movement of various indices across the Globe