AGCS can hold newly attained profitability through inflation wave: CFO
The Allianz group's global corporate and specialty insurance unit AGCS can hold profitability gains taken from a recent turnaround through a pending inflation onslaught without worry, Allianz group CFO Giulio Terzariol (pictured) has insisted.
“Considering we are still getting rate increases which are ahead of inflation, I would expect this company to be able to keep this level of performance moving forward,” he said, admitting that current inflation constitutes “a headwind that was not there a few quarters ago.”
AGCS managed to take 2.0 percentage points off of its Q2 combine ratio to 95.2% despite a 1.5 pps increase in the nat cat load. A management presentation cited “higher nat cat and weather-related losses overcompensated by improvement in underlying loss ratios."
The move in the combined ratio towards 95% stands as “confirmation that the company is on a good trajectory,” Terzariol said. “There is quality around the combined ratio.”
The improved underwriting helped push operating profits at the AGCS unit up 60% year on year to €156 million.
On the top lines, AGCS claimed adjusted revenue growth of 11.0% to €2.72 billion in the second quarter and has booked renewals in the first half at rates 10% above prior year levels, the presentation indicated. Total revenue growth, fuelled in large part by FX gains, came to a heady 22%.
Energy & construction and financial lines were called out for fuelling the underlying growth.
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
Already registered?
Login to your account
If you don't have a login or your access has expired, you will need to purchase a subscription to gain access to this article, including all our online content.
For more information on individual annual subscriptions for full paid access and corporate subscription options please contact us.
To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.
For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk
Editor's picks
Editor's picks
More articles
Copyright © intelligentinsurer.com 2024 | Headless Content Management with Blaze