Insurer Allianz Net Profit Declines By 2.3% Y/Y In 2005

Net profit of Allianz pojistovna, the third largest Czech insurance company, fell by 2.3% year-over-year to CZK635 million ($26.8 million) in 2005, spokesman Milan Kana announced. Allianz collected CZK9.24 billion in premiums in 2005, up 3.2% y/y, while the volume of billed premiums in life insurance rose by 12% y/y to CZK1.92 billion. We note that the whole Czech insurance market grew by 3.7% y/y in 2005, while life insurance market saw a 1.6% y/y increase.

Unit linked life insurance accounted for 70% of new life insurance contracts at Allianz and was the company's most successful product. Billed premiums in non-life insurance reached CZK7.32 billion, up 1.1% y/y. Allianz recorded the biggest increase in household and real estate insurance (17% y/y), and insurance of businesses (8.8% y/y). In contrast, the insurance industry declined slightly because several multinational companies transferred their premium payments abroad. Allianz is fully owned by Allianz AG, one of the world's largest insurers.