Allianz SE is scheduled to report results for the third quarter on Thursday. Here's what you need to know:
NET INCOME: The German insurer is expected to report net income of EUR2.30 billion in the three months to the end of September, according to consensus estimates provided by the company, up from EUR2.11 billion in the same period last year.
P&C COMBINED RATIO: The Munich-based company is expected to report a combined ratio in its property & casualty business of 93.8%, according to the consensus, improved from 94.7% in the third quarter of 2021.
WHAT TO WATCH:
--BUYBACKS: Allianz has bought back EUR1 billion this year already, and could be in place to commit to a new repurchase program. Should the insurer commit to a buyback, it should provide a useful catalyst to reinstill confidence in the shares, Deutsche Bank analyst Hadley Cohen said in a research note. A buyback is in the cards because of Allianz's strong solvency ratio, a good cash position as it hasn't made large acquisitions this year, and its diversified offering meaning it is well protected against market volatility, Berenberg analysts say in a note.
--P&C AND HURRICANE IAN: Consensus estimates show that analysts expect a strong increase in operating profit at its property & casualty insurance division, rising to EUR1.64 billion from EUR1.29 billion in the third quarter of 2021. That is despite a loss-filled three months, driven by Hurricane Ian, which devastated parts of Florida and neighboring states. Results may heavily depend on losses from Ian.
--STRUCTURED ALPHA: Allianz considers the matter of its losses from Structured Alpha in the U.S. to be settled, while investors don't think it is, Berenberg analysts said in a note. One of Allianz's U.S. investing divisions in May pleaded guilty to securities fraud and agreed to pay around $6 billion in penalties and restitution to investors hit by losses when hedge funds tanked at the March 2020 selloff. But although the losses were compensated in provisions, Allianz could show it has recognized the full impact of the event and demonstrate what it is changing to prevent a repeat, Berenberg analysts said.
www.marketwatch.com/story/...3q-earnings-preview-271667926989
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