Natural disasters affect the half-yearly results of Allianz
The difficult economic context marked by the continued low interest rates, the sale of its life operations in South Korea and the natural disasters in the first six months of 2016 will inevitably weigh on Allianz accounts.
The insurer has reported a decline in the half year results. Revenues fell by 4.7% to 64.8 billion EUR(71.8 billion USD), while net profit fell by 14.5% to 3.3 billion EUR (3.6 billion USD) compared to the same period last year.
The sale of South Korean operations of the German insurer has caused a financial burden of 325 million EUR (360 million USD).
In addition, Allianz has complained about the significant increase in claims including fires in Canada, floods in France and hailstorms in the United States.
These events are likely to cost it more than 500 million EUR (554 million USD) with a consequent deterioration in the combined ratio by 0.8 points to 94.9%.
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