Higher claims from firms shrunk Allianz's profits

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Higher claims from businesses hit by lockdowns and lower demand for car and travel insurance reduced German insurer Allianz profit. This is the first fall in annual operating profit in nearly a decade for Allianz, Reuters reported.

Operating profit fell 9.3% to 10.75 billion euros in its first decline since 2011 when it was hit with claims from a tsunami in Japan and write-offs during the European debt crisis. The company aims to achieve a 2021 operating profit of 12 billion euros, plus or minus 1 billion euros.

“We are hence in a good position to deliver on our 2021 ambition,” CEO Oliver Baete said.

Net profit attributable to shareholders fell 14% to 6.8 billion euros but the slide shrank to a smaller-than-expected 2.2% in the final quarter.

Fourth-quarter net profit of 1.817 billion euros topped the 1.753 billion expected by analysts.

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