First half year 2010 premiums remain stable for ALLIANZ in CEE
German group ALLIANZ have wrote premiums of EUR 2 billion in Central and Eastern Europe (CEE), an increase by 5% compared to 1h/2009. When adjusted for currency effects, premiums dropped by 1 percent. Operating profit in the first half year amounted to EUR 100 million, corresponding to a 37% decrease compared to the first six months of 2009. On an adjusted basis, operating profit dropped by 39 percent.
While the life and health business continued to grow, property and casualty insurance was impacted by weather-related losses during the second quarter, especially in Bulgaria, the Czech Republic, Hungary, Poland, Romania and Slovakia.
In the property and casualty business, gross premiums written in CEE increased by 1% to EUR 1.39 billion in the first half of 2010, compared to EUR 1.38 billion in the respective period of 2009. Operating profit decreased by 54% to EUR 56 million.
Besides weather-related losses in the region, the continuing decline of new car sales across the region, resulting in a further shrinking new business volume in motor, further impacts the results. Furthermore an increase of VAT in Romania from 19% 24% lead to an additional revaluation of claims reserves.
In the countries affected by floods, storm and rain, ALLIANZ recorded more than 91,000 claims in Q2 alone. Premiums in the life and health business in the region increased by 18 percent in the first six months of 2010 to EUR 607 million, compared to EUR 514 million in the same period of 2009. Half-yearly operating profit grew to EUR 45 million, compared to EUR 38 million in the first half of 2009.
The Life and Health business saw some more remarkable positive developments. Allianz in Croatia achieved the market leader position based on revenues. Owing to successful sales channels diversification and significant corporate sales growth ALLIANZ ROSNO Life recorded, on basis of adjusted currency effects, premium growth of 51 percent and aims for the top five positions in the Russian market.
