The Allianz Group reported net income of €1.6bn for 2003, up from a loss of €1.2bn in the previous year.
It said the combined ratio for its property/casualty insurance operations improved from 105.7% in 2002 to 97% for the 12 months ending 31 December 2003.
Premium income for the property/casualty sector went up 4% to €43.4bn, adjusted for consolidation and exchange rate effects. Allianz said the improvement was the result of the introduction of a pricing policy more in line with the risk involved, particularly in Germany, France, Spain and the US.
At the same time the company said it had continued with its policy of streamlining the portfolio by eliminating unprofitable business.
Chairman of the board of management Michael Diekmann said some negative factors had an impact on the group's insurance earnings, despite “significant operating advances”.
Restructuring expenses at Dresdner Bank amounted to €840m and a tax charge on the group's German life and health insurers was €428m as a result of new tax legislation. Unscheduled goodwill amortisation for the group's South Korean subsidiary, Allianz Korean Life, totalled €224m.
Diekmann said: “We know that we still have some way to go in order to achieve projected profitability goals, particularly in banking business and in some insurance units. However, we have the strength and financial muscle to achieve this.”
