The FINANCIAL — Allianz again delivered good results in Latin America in 2013 even though economic growth in the region remained below expectations, according to Allianz.
Total revenues in Latin America1 for the full year 2013 amounted to 2.68 billion euros. In the Property-Casualty business, Allianz recorded gross written premiums of 2.35 billion euros compared to 2.39 billion euros in the previous year, up 11.0 percent on an internal basis. Statutory premiums in the Life insurance business were up 31.0 percent to 329 million euros, compared to 255 million euros in 2012. This growth was mainly driven by Mexico, according to Allianz.
Operating profit was at 141 million euros compared to 136 million euros in 2012, an increase of 4.2 percent, despite adverse foreign currency exchange effects. Excluding these effects, growth reached 15.2 percent.
Allianz offers Property and Casualty insurance products in Argentina, where gross written premiums climbed to 298 million euros, up 11 percent from 270 million euros in 2012. The strong result in this market was mainly driven by the motor insurance business. Operating profit was up at 16.5 million euros in 2013 from 15 million a year earlier, an increase of 10.0 percent year-on-year. Excluding foreign currency exchange effects, operating profit grew by 39.5 percent, according to Allianz.
In 2013, Allianz Argentina gained an award being recognized the best insurance company by brokers. Allianz was able to improve its position in the highly fragmented insurance market and moved forward from number 13 to number 11. The combined ratio reached 97.9 percent. It deteriorated slightly from 96.3 percent due to adverse weather conditions that affected the agribusiness sector. Still, it is 3 percentage points lower than the overall market combined ratio.
Revenues in the Property and Casualty and Health insurance business were at 1.45 billion euros, compared to 1.46 billion euros in 2012. Excluding foreign currency exchange effects, revenues grew by 12.7 percent. Operating profit increased by 2 percent and was at 67 million euros up from 66 million euros in the previous year. On an internal basis, operating profit was up 14.0 percent, according to Allianz.
As of the beginning of 2014, Allianz has implemented its new IberoLatAm business platform, which will further support the retail orientation through simplified processes and standardized products. Following an initial stabilization phase, efficiency gains achieved through the platform should start taking off in the second half of 2014.
Gross written premiums for the Property and Casualty business decreased by 10.0 percent to 355 million euros in 2013 from 394 million euros the year before. Excluding foreign currency exchange effects, gross written premiums decreased by 2.8 percent. Operating profit in this segment grew by 14 percent to 28 million euros in 2013 from 25 million euros in 2012. Adjusted for currency effects, operating profit surged by almost 23 percent, according to Allianz.
The combined ratio further improved year-on-year by 1.4 percentage points to 95.7 percent from 97.1 percent. Allianz introduced a new motor product in 2012 and made progress focusing on the retail business: The retail motor business, for example, now represents 53 percent of the total motor portfolio, up from 42 percent a year earlier. Allianz continuously follows its course of profitable growth in the Property and Casualty business.
Statutory premiums in the Life insurance business decreased by 26 percent and amounted to 76 million euros for the full year 2013 as several large contracts were not renewed. In 2012 premium income amounted to 103 million euros. Operating profit fell by 85 percent to 1 million euros from 6 million euros the year before due to a repositioning of the company in this line of business.
Total revenues in Mexico were at 504 million euros in 2013. This marks an increase of 21 percent over the previous year’s 418 million euros. Over the same period, operating profit climbed by 15 percent to 28 million euros from 25 million euros, according to Allianz.
The business in Mexico was strongly driven by Life insurance activities. In 2013 Allianz Mexico particularly focused on implementing a new strategy to offer comprehensive product solutions to small and medium-sized companies. Statutory premiums reached 253 million euros, an increase of 67 percent compared to the previous year‘s figure of 152 million euros. Operating profit was up to 8 million euros from 5 million euros, representing a strong growth of 57 percent.
Gross written premiums for the Property and Casualty business decreased by 6 percent and reached 251 million euros in 2013 compared to 266 million euros in 2012. Operating profit in this segment rose by 4.4 percent to 21 million euros from 20 million euros. The combined ratio of 90.0 percent was one of the best within the Allianz Group and represented an improvement of 0.5 percentage points from 90.5 percent in 2012, according to Allianz.
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