Allianz has confirmed its full-year operating profit target following rising business volumes in the first nine months, but an “exceptionally high” level of property and casualty division natural catastrophe claims affected the third quarter. 

CEO Oliver Bate says the group confirms “with confidence” the target of €14.2 billion ($23.8 billion), “plus or minus” €1 billion ($1.7 billion).  

“In the first nine months of this year, we have seen robust growth in our business volume, operating profit as well as core net income,” he said. “We have also further strengthened our solvency position at 212%.” 

Nine-month operating profit increased 3.6% to €11 billion ($18.5 billion), while net income attributable to shareholders was €6.4 billion ($10.7 billion) compared to €5.3 billion ($8.9 billion) a year earlier. 

Third quarter operating profit softened 14.6% to €3.5 billion ($5.9 billion) as the property-casualty business was affected by a 7.3 percentage point natural catastrophes impact on the combined operating ratio, the highest in a decade. Shareholders’ core net income fell 29.3% to €2.1 billion euros ($3.5 billion). 

Property and casualty operating profit for the quarter softened 25% to €1.4 billion ($2.4 billion), with the claims from catastrophes mainly relating to a series of events in Central Europe and Italy. 

Australia property and casualty reported a third quarter operating profit of €148 million ($249 million), down 0.8% on a year earlier. The combined operating ratio was 90.5%. 

Allianz says Australia achieved a “strong performance in commercial business partly offset by continued pressure in retail mainly due to inflation”. 

Business volume in Australia was €1.074 billion ($1.8 billion), reflecting “internal growth” of 11.2%. Retail and commercial were supported by higher volume and rate increases, while “total growth” was negatively impacted by foreign exchange effects.