German insurer Allianz on Friday declined to offer a forecast for 2020 given uncertainty across the COVID-19 pandemic, despite delivering an unexpected 6% rise in third-quarter net profit.
Allianz, like other insurers, has warned concerning the impact of clients making claims for business interruption and canceled events from lockdowns, while demand for automotive and travel insurance has fallen.
Chief Financial Officer Giulio Terzariol said on Friday volatility in financial markets could also increase attributable to the U.S. election consequence. He avoided offering guidance concerning the company’s full-year prospects.
“These should not normal times,” he told journalists.
Net profit attributable to shareholders of two.063 billion euros ($2.44 billion) within the three months through September compares with 1.947 billion euros a yr earlier. It was higher than a 1.626 billion euro consensus forecast.
The underside line was helped though by a rise in profit unrelated to Allianz’s core activities. Those included higher realized gains over the summer from sales in its portfolio and lower impairments, after a writedown for Argentinian bonds a yr ago.
The corporate also definitively canceled a share buyback that had been on hold “in light of the continuing economic uncertainties.”
The shares were up 1% in mid-morning trade, with analysts at Barclays calling the outcomes “overall a good beat.”
Earlier this yr, the insurer abandoned its 2020 profit goal of between 11.5 billion euros and 12.5 billion euros attributable to economic uncertainty resulting from the pandemic, and said it expected to post the primary annual decline in profit in nearly a decade.
“We remain confident to not only weather the COVID-19 crisis well, but to construct a fair stronger Allianz,” Chief Executive Oliver Baete said.
Allianz’s combined ratio, a measure of profitability for its property and casualty division, one in all its highest revenue earners, worsened barely to 94.5% within the third quarter, up from 94.3% a yr earlier. Readings below 100% indicate profitability.