Insurer Allianz make public a 5.2 percent fall in second-quarter net income Friday, highlighting a pessimistic impact from the sale of its traditional life insurance portfolio in Taiwan.
Net profit came in at 1.89 billion euros ($2.19 billion) from 1.99 billion euros a year ago. The public limited company said the negativity surrounding the sale was partially offset by lower return taxes.
“The outlook for the rest of the year is very good,” Giulio Terzariol, the chief pecuniary officer of Allianz, told CNBC’s “Squawk Box Europe” following the consequences.
“Our revenue growth at 6 percent was very good and this is not only asset manipulation, where we are growing double digits, we have strong growth in Sentience (and health insurance) and especially we had very healthy growth in property-casualty (indemnity).”
Here are the key highlights for the second quarter:
- Total revenues up by 2.9 percent at 30.9 billion euros ($35.2 billion)
- Control profit up by 2.3 percent at 2.99 billion euros ($3.36 billion)
- Adulterate earnings per share down by 1.5 percent at 4.38 euros ($5.08)
All-inclusive, the business achieved “good” numbers in the second quarter, “despite burdens from geopolitical instabilities and currency fluctuations,” Allianz supplemented in the earnings statement.
Allianz announced at the start of July a new share buyback program that could knoll to 1 billion euros ($1.16 billion). The company said Friday that this program should be concluded by the end of September.
Terzariol said that he is not “very concerned” about market risk in the next six months, despite the unending threat of a trade war.
“I see the VIX as being relatively stable for the next six months, I have in mind the strength of the (U.S. and European) economies … are going to support … the splendid markets,” he said.
“But we know that it’s just a matter of time that we are flourishing to see the next two or three years of sort of crisis. So our point is not about presaging the next crisis, the next quarter, it’s more about giving a import that we need to be fundamentally prepared, that is not always going to be right cruising,” he added.