Allianz said on Thursday its earnings climbed and profitability surged in Asia in the first six months. What was behind the improvement?
The German insurer and asset manager said its profits in Asia rose 12 percent to 150 million euros ($176 million), amid a sharp rise in premiums from writing life and health insurance policies.
There, Allianz said new partnerships such as with PNB in the Phillipines, E-Sun Bank in Taiwan, and Indonesia's Maybank are beginning to bear fruit, though the bulk of its insurance policies are still written by agents.
Property, Casualty Drop
In Allianz's property and casualty insurance arm, like that of rival Zurich Insurance, profitability dropped because of writedowns and the effects of consolidating. The unit said it has brought on board 14 digital partners in the last six months.
Allianz's overall revenue in Asia was 40 percent higher at 2.9 billion euros, its return on equity – a measure of profitability – improved to 13.3 percent, from 11.4 percent in the last full year.
The results come two weeks after the Munich-based parent reported a big jump in overall second-quarter profit, kickstarted by its U.S. bond manager subsidiary Pimco and other asset management activities.
Bancassurance Deal
Unlike elsewhere, where bancassurance is a thing of the past, Allianz said it has high hopes for a 15-year, five-country deal it has struck with Standard Chartered. The two began selling together in Hong Kong, Singapore and Malaysia this month.
«This strategic alliance deepens our presence and capabilities in the region, allowing Allianz to provide best-in-class products that respond to the diverse protection needs of Standard Chartered's customers,» Allianz Asia head George Sartorel said in a statement.
