Allianz Re targets growth despite ‘difficult’ year
Allianz Re has confessed that it will be “difficult” to perform as strongly this year as in 2008, but continues to target an average growth of 10% by 2011.
The reinsurance unit of Germany-based Allianz said European windstorms at the start of 2009 will squeeze operating profits.
“There will be difficulties to reach the result seen in 2008,” said chief executive Clemens von Weichs.
In 2008, the unit reported an operating profit of €495 million on gross premiums of €3.8 billion.
Von Weichs expects gross premiums to grow by €100m-€200m this year, and said the group is targeting growth of 10% in gross premiums and operating profit by 2011, compared to the average between 2006 and 2008.
Despite it plans for growth, von Weichs said the company “won’t swamp the market with capacity and doesn’t plan to create a new reinsurance giant.”
“Our priority is to support the Allianz group rather than grow at any price,” he added.
Von Weichs believes the firm’s catastrophe cover is sufficient for now, but will be reconsidered in 2010.
“Our catastrophe cover is sufficient for the moment. We will look again at the situation next year,” he said.
Allianz Re is the world’s eight largest reinsurer by premiums; it gets 80% of its business providing reinsurance to Allianz, its parent company.
Category: Allianz News, Financials, Insurance News
Visited 1689 times, 1 so far today
Comments (0)
Trackback URL | Comments RSS Feed
There are no comments yet. Why not be the first to speak your mind.