Allianz fourth-quarter net profit drops 2.2%, but beats expectation

FILE PHOTO: The logo of Allianz is seen on a building in Paris, France, April 30, 2020. REUTERS/Charles Platiau

FRANKFURT (Reuters) – German insurer Allianz on Friday posted a smaller-than-expected 2.2% fall in fourth-quarter net profit, amid pressure on business from the coronavirus pandemic.

The company posted net profit attributable to shareholders of 1.817 billion euros ($2.20 billion) in the three months through December, compared with 1.858 billion euros a year earlier. It was better than a 1.753 billion euro consensus forecast.

Throughout 2020, Allianz and other insurers warned about the impact of clients making claims for business interruption and cancelled events from lockdowns, while demand for car and travel insurance fell.

For the full year, Allianz posted a 14% decline in net profit and a 9.3% fall in operating profit.

(Graphic: Pandemic effect – First decline in annual operating profit since 2011, )

It is the first decline in annual operating profit since 2011, when the German insurer faced claims for major catastrophes like a tsunami in Japan and write-offs during the European debt crisis.

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