ALLIANZ REMAINS ON COURSE FOR €10.5BN PROFIT TARGET

Allianz saw its operating profit fall 3.5% to €2.8bn during the first quarter, with total revenues down 6.4% to €35.4bn. Non-operating realised gains helped drive a 20% increase in net income, which rose to €2.2bn from €1.8bn in last year’s first quarter. Property/casualty business saw a 1.3 percentage point improvement in its combined ratio, which stood at 93.3% for the first quarter. Allianz said the improvement was largely due to fewer claims from natural catastrophes during the three month period. Oliver Bäte, chief executive of Allianz, said the company continued to expect to reach its target for 2016 despite the challenges facing the sector. “Despite the market volatility and low interest rates, we continue to expect an operating profit for the full year of €10.5bn, plus or minus €500m.” Allianz is planning to publish further details on business developments during the quarter on May 11.