Allianz is on track to hit its 2018 profit targets, the German insurer said, after beating second-quarter net profit forecasts despite taking a hit on the sale of its Taiwanese life insurance portfolio.

Net profit fell 5 percent to 1.9 billion euros ($2.2 billion) but topped the 1.8 billion euros forecast by analysts in a Reuters poll.

It suffered a 224 million euro setback on the sale of its life insurance portfolio in Taiwan, Allianz said.

“We remain on track to meet our 2018 operating profit target,” Chief Executive Oliver Baete said.

Baete has said operating profit will be within 500 million euros of its 11.1 billion euro 2017 result.

It is likely to be in the upper end of that range if there are no major natural catastrophes later this year, Chief Financial Officer Giulio Terzariol told journalists on a call.

Allianz reported a second quarter combined ratio of 94.1 percent, up from 93.7 percent a year earlier, on higher claims from weather-related events. The ratio measures costs and claims against premium income and insurers make an underwriting profit below 100 percent.

The company is conducting a strategy review of its property and casualty business with results expected in November. Terzariol said the review would not result in a major shake-up.

The insurance sector, including Allianz, is expected to bounce back from major hurricanes, fires and earthquakes in North America in 2017, the industry’s costliest year ever.

Source: Reuters

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