Allianz confident for 2017 after hurricane-battered Q3

BERLIN: German insurer Allianz reported plunging profits for the third quarter as a series of natural disasters undermined its earnings, but said it was on track to hit its full-year targets.

The Munich-based group on Thursday reported a net profit down 17.3 percent year-on-year at 1.6 billion euros ($1.9 billion) between July and September.

Revenues increased 2.1 percent, to 28.3 billion euros, while operating, or underlying profit fell 17.3 percent, to 2.5 billion.

"Third quarter results were robust, given the massive natural catastrophe events that impacted our property and casualty segment" such as hurricanes Harvey, Irma and Maria, chief executive Oliver Baete said in a statement.

The group's property and casualty division was the worst hit by the disasters, with operating profit shrinking by 28 percent year-on-year in the third quarter, while the life and health insurance and asset management units both increased operating profits.

But "the group absorbed claims stemming from hurricanes, storms and earthquakes in the quarter and still increased operating earnings in the nine-month period" from January to September, Baete noted.

Over the first nine months, operating profit rose by 3.5 percent year-on-year, to 8.3 billion euros, while revenues climbed 2.2 percent to reach 94.5 billion.

Allianz remains confident it will achieve a group-wide operating profit of between 10.8 and 11.3 billion euros over the full year.

Allianz also looked to reassure investors by announcing a 2.0-billion-euro share buyback scheme set to launch in early 2018.