MUNICH (dpa-AFX) - Shares of Allianz SE were gaining around 1 percent in German trade after the company reported Friday higher net profit in its third quarter, while operating profit declined with weak revenues.
Citing the ongoing economic uncertainties related to the Covid-19 pandemic, the German insurance and asset management company decided to discontinue its previously suspended share buyback program 2020, and to no longer execute the outstanding part of the program amounting to 750 million euros.
The company noted that after a short period of economic recovery, many governments are intensifying containment measures again due to the second wave of COVID-19.
Oliver Bäte, Chief Executive Officer of Allianz, said, 'We have delivered solid results in an environment that will remain challenging. ..we remain confident to not just weather the COVID-19 crisis well, but to build an even stronger Allianz for the benefit of all stakeholders.'
For the third quarter, net income attributable to shareholders grew 5.9 percent to 2.1 billion euros from last year's 1.9 billion euros. Earnings per share increased to 4.89 euros from 4.66 euros a year ago.
Operating profit, meanwhile, decreased 2.6 percent to 2.91 billion euros from last year's 3.0 billion euros.
Life/Health business segment operating profit increased, supported by an improved investment margin, while Property-Casualty business segment's operating profit fell slightly impacted by the COVID-19 pandemic and a lower run-off result. Asset Management business segment's operating profit decreased following declining operating revenues.
Total revenues decreased 6.1 percent to 31.4 billion euros from last year's 33.4 billion euros. Internal revenue growth, which is adjusted for currency and consolidation effects, declined 6 percent, mostly driven by Life/Health business segment.
Property-Casualty insurance revenues declined 1.8 percent to 12.9 billion euros. Life/Health insurance's present value of new business premiums also decreased from last year.
In the quarter, third-party assets under management grew by 13 billion euros from the preceding second quarter to 1.67 trillion euros.
In Germany, Allianz shares were trading at 168.16 euros, up 0.73 percent.
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