Allianz division’s profits eroded

THE Irish division of international insurance giant Allianz suffered a poor third quarter with gross written premiums down by around 7% – on a year-on-year basis – to €496 million and operating profit, for the period, being totally eroded.

Allianz Ireland made zero operating profit in the three months to the end of September, compared to a profit of €78m for the corresponding period last year. Gross written premium for the third quarter of 2008 had amounted to €531m.

The fall – particularly the profit erosion – was driven by a significant increase in the division’s combined operating ratio, which blends the loss/claims ratio and the expense ratio. The combined operating ratio for the Irish division went from 94.4% in the third quarter of 2008 to 109% for the same period this year.