EUR 4.2 billion in premiums for ALLIANZ CEE in 2009
ALLIANZ in Central and Eastern Europe (CEE) reported total gross written premiums of EUR 3.6 billion in 2009. Comparing to EUR 4.2 billion in 2008 and adjusted for the devaluation of Central and Eastern European currencies, this is a decrease by 2 percent. Operating profit for 2009 decreased by 12%, to EUR 306 million versus EUR 348 million in 2008.
GWP in the property and casualty insurance in 2009 decreased by 14%, to EUR 2.6 billion, compared to EUR 3.0 billion in the respective period in 2008.
However, adjusted for foreign currency effects, premiums still amount to EUR 3.0 billion. Year-on-year, operating profit in 2009 decreased by 23 percent to EUR 230 million, versus EUR 300 million in 2008.
The results were mainly driven by the decrease of new business in motor insurance along with a severe decline in new car registrations in the CEE region in 2009. Operating profit was impacted by increased claims pressure in the motor segment, due to unfavorable exchange rates resulting in significantly increased prices for foreign spare parts.
At the same time, life and health business in CEE declined in the full year 2009, including exchange rate effects, by 9 percent, to EUR 1.0 billion compared to EUR 1.1 billion in the same period of 2008. Adjusted for currency effects, statutory premiums in the life and health insurance business in 2009 grew by 2%, to EUR 1.2 billion. Annual operating profit even increased by 59 percent, to EUR 76 million, compared to EUR 48 million in 2008. With net inflows of EUR 100 million, ALLIANZ in CEE contributed positively to ALLIANZ Group's overall performance. The strong result in the life and health business was driven by a shift from unit-linked to traditional life products. With this evolution, ALLIANZ in CEE defended its strong position in the region.
Also, in CEE, ALLIANZ continued to strengthen its leading position in the pension fund and asset management business. Third-party assets under management grew by 28 percent, to EUR 6.5 billion, compared to EUR 5.1 billion at the end of 2008. Stable net cash inflows and recovery on the capital markets in the CEE region were the drivers for this positive development. "On the mid- to long term, we again expect growth rates of five percent or higher in Central and Eastern Europe. We have been in this region for more than 20 years now and we will continue to be a trusted partner for our customers in the future", said Werner ZEDELIUS, Member of the Management Board of ALLIANZ SE, responsible for growth markets.
