Significantly reduced claims expenses, reduced internal costs and a high investment result led to total earnings after tax of E1.79 billion at Allianz Sachgruppe Deutschland (Allianz's property and casualty business in Germany) for the fiscal year 2005. Total earnings in 2004 amounted to E1.25 billion.
Allianz Sachgruppe Deutschland incorporates all the property and casualty business in Germany. After transfer of E198 (previous year: E352) million to the claims equalization reserves, it achieved record earnings amounting to E785 million. The combined ratio improved from 88.5 to 85.3%.
We can be very satisfied with this result, affirmed Thomas Pleines, chairman of the board of management of Allianz Versicherung.
Gross premium income of Allianz Sachgruppe Deutschland at E10.0 billion remained virtually unchanged by comparison with the previous year. Premium income for motor insurance declined by 2.9% to E3.8 billion.
This fall was primarily due to the scoring tariff with an average lower premium level introduced in autumn 2004. The non-motor insurance business achieved the level of the previous year at E6.2 billion. The principal growth drivers were general liability insurance with an increase of 3.0% (E38 million) and dynamic property and casualty insurance with growth of 5.9% (E35 million).
In 2006, Allianz Versicherung anticipates an underwriting result at the high level of 2005, provided there are no major claims or substantial damage due to natural hazards, the company said in a statement.