Allianz on Wednesday raised its outlook for the full year after posting a better-than-expected 2.3% rise in third-quarter net profit, as the German insurer emerges from business pressures caused by the coronavirus pandemic.
The company signaled that it expected operating profit in 2021 to be close to 13 billion euros ($15 billion), up from previous guidance of between 12 billion and 13 billion euros.
Last year, the insurer abandoned its profit target due to economic uncertainty resulting from the pandemic and posted its first decline in operating profit in nearly a decade.
Allianz, like other insurers, had faced clients making claims for business interruption and cancelled events from lockdowns, while demand for car and travel insurance fell.
Now Allianz is on course for a record operating profit.
Allianz said it expected operating profit in 2021 to be in the "higher end" of a targeted range of between 11 billion euros and 13 billion euros. That is an upgrade from previous guidance of the "upper half" of that range.
In the third quarter, net profit attributable to shareholders of 2.111 billion euros compares with 2.063 billion euros a year earlier. The figure beat a 2.044 billion euro consensus forecast.
Chief Executive Officer Oliver Baete said it was the company's strongest ever third quarter.
The "solid numbers" proved that Allianz can show a healthy financial performance despite extreme weather and macroeconomic developments, Baete said.
The company made no mention of a case that is under investigation by U.S. authorities regarding its Structured Alpha group of funds.