Allianz group ‘on track’ to hit full year target despite catastrophe hit

German insurance group Allianz says it is “on track” to hit its full year operating profit target despite its third quarter results taking a €529m (£468m) hit from the string of natural catastrophes.

Third quarter 2017 operating profit fell 17.3% to €2.5bn (Q3 2016: €3bn) and profit after tax attributable to shareholders also fell 17.3% to €1.6bn (Q3 2016: €1.9bn).

Despite this, the results for the first nine months of 2017 improved. Operating profit was up 3.5% to €8.3bn (nine months 2016: €8.1bn) and profit attributable to shareholders was up 4.9% to €5.4bn (nine months 2016: €5.1bn).

Despite the catastrophe hit Allianz group chief executive Oliver Bäte said the company was on track to deliver full-year 2017 operating profit “in the upper half” of its target range of between €10bn and €10.8bn, plus or minus €500m.

Bäte said: “Third quarter results were robust, given the massive natural catastrophe events that impacted our property and casualty segment. It was also very good to see how our experts were able to actively support our customers in these difficult circumstances.”

He added: “The group absorbed claims stemming from hurricanes, storms and earthquakes in the quarter and still increased operating earnings in the nine-month period. Our capitalization also strengthened further, as the rising solvency ratio shows.”