Allianz sees a better year in 2021 after the worst year in nearly a decade

German insurer Allianz on Friday reported its first decline in annual operating profit in a decade after mounting claims for compensation from businesses hit by lockdowns and reduced demand for auto and travel insurances.

Operating profit fell 9.3% to €10.75 billion ($13.01 billion), marking the first decline in profits since 2011, when it suffered from rising claims for damages from the tsunami in Japan and the concurrent European debt crisis that year.

The company’s net profit attributable to shareholders decreased by about 14% to 6.8 billion euros, but this decline narrowed to a less than expected rate of only 2.2% in the fourth quarter of last year, noting that the net profit for the fourth quarter, which was estimated at 1.817 billion euros, exceeded analysts’ expectations, which was equal to only 1.753 billion.

Currently, the company aims to achieve operating profits in 2021 of up to 12 billion euros, with the possibility of increasing or decreasing those profits by 1 billion euros, and CEO of the company “Oliver Baete” stated that the company is in a strong position to achieve its goals for 2021.

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