Global financial markets are feeling the pain from the Covid-19 pandemic crisis with further warning that the results are likely to worsen in the coming months for the financial services industry. Even so, German insurer Allianz’s business has kicked in and achieved great results in the first quarter of 2020.
Their internal revenue growth added up to 3.7% that comes from the Health segment and others. Earlier this week, the operating profit fell 22% to €2.3 billion in the first quarter, yet the company that it could carry €1 billion in coronavirus-related losses as and when future claims are tallied. The decline in the Health/Life segment was due to market downturn, affecting investment margins and delaying acquisition costs.
The non-operating result also declined as realized gains from the sale of Allianz Popular offset by the market impacts due to coronavirus pandemic.
As per the media release on April 30th, the Board of Management would not assume the insurer can achieve the goal for operating profit for the year, which would roughly amount to €12 billion. Once the revised planning is done, the Board of Management will announce a new profit target for 2020.