Allianz solvency ratio may drop below target amid pandemic
By Thomson Reuters
(Reuters) — German insurer Allianz said Tuesday that a key measure of capital may fall below the company’s target floor level as it faces claims for disruption caused by the coronavirus crisis.
Allianz, which earlier reported a nearly 30% slump in first-quarter profit, is one of many European insurers warning about the outlook as clients claim for business interruption and canceled events, while demand for auto and travel insurance has fallen.
Its so-called solvency ratio dropped to 190% in the first quarter, down from 212% at the end of last year, and Chief Financial Officer Giulio Terzariol said it may fall below the insurer’s 180% limit although this would not be a “big concern.”