Allianz Group and AGCS released its financial results for the first quarter of 2020 ('3M 2020').
- In Q1, AGCS gross premium written increased by €143 million to €3.011 billion (3M 2019: €2.869 billion). This growth is driven by all Lines of Business and regions and generally supported by strong effective rate increases of 16% on average across AGCS. Primary increases are seen in Property and Aviation but the long-tail Lines of Business also observed significant rate improvements.
- The combined ratio for 3M 2020 stands at 117.5% (3M 2019: 99.7%) which is 17.8%-p worse than prior year, largely attributed to losses resulting from the COVID-19 pandemic. The overall impact from COVID-19 on AGCS’ Underwriting Result was €233 million. Excluding this COVID-19 effect, the combined ratio for 3M 2020 would be 99.8% and on level with prior year. Several natural catastrophe claims in Q1 2020 are mitigated by an improved Expense Ratio compared to 2019 benefitting from top-line development and continued focus on costs.
- AGCS’ 3M operating loss of €141 million (3M 2019: profit of €106 million) is €247 million below prior year driven by lower Underwriting Result and Investment Income (the latter suffering mainly from negative foreign exchange effects largely attributed to the Covid-19 outbreak). Excluding the impact from the Coronavirus outbreak, operating profit is mostly on level with prior year.
