Allianz says its operating profit for the third quarter fell to £2.63 billion.
The German company is halting its share buyback program for 2020.
Allianz’s property and casualty business was hit hardest by the COVID 19 crisis.
Allianz SE (ETR: ALV) said on Friday that its operating business was down slightly in the third quarter compared to the previous year. In an announcement last week, Allianz announced that it had entered into a strategic partnership with Jubilee Holdings.
The company’s shares rose 1.5% in Friday’s pre-market trading. The price per Allianz SE share is now £151.77 per share compared to a much lower price of £107.47 per share in March due to the COVID 19 disruption. At the beginning of the year, the German company, which is mainly active in insurance and asset management, was trading at a much higher £200 per share.
Operating profit for the first nine months was £7.03 billion.
Allianz achieved an operating profit of 2.63 billion pounds in the third quarter, compared with an increased profit of 2.69 billion pounds in the same quarter last year. For the first three quarters combined, the German multinational achieved an operating profit of £7.03 billion, compared with £8.22 billion in the same period last year.
The company attributed its weak performance to the coronavirus pandemic, which has so far infected more than 600,000 people in Germany and killed over 11,000 people. In a separate news release from Germany earlier this week, luxury car maker BMW said its third-quarter profits were up 10% year-on-year.
In the first nine months of the current fiscal year, the COVID 19 crisis had the greatest impact on its property and casualty business, according to Allianz, and led to a 17% decline in operating profit in this segment on an annualized basis.
Allianz discontinues share buyback program for 2020
In terms of revenue, the financial services company had a turnover of £28.36 billion in the last quarter. This compares with a higher turnover of £30.16 billion in the third quarter of last year. The insurer also emphasized on Friday that it closed the third quarter with a Solvency II ratio of 192%.
The Munich-based company had suspended its share buyback program at the beginning of this year to cushion the economic blow of the ongoing COVID 19 crisis. On Friday it announced that it had suspended its share buyback program for this year. The outstanding part of the program, amounting to 677.31 million pounds sterling, Allianz added, will also not be executed. Learn more about share buybacks.
At the time of writing, Allianz has a value of 63.68 billion pounds sterling and a price-earnings ratio of 10.54.