German insurance giant Allianz on Friday reported a slight rise in third-quarter profit, though revenues declined and it did not update its full-year outlook, as the company weathered the challenge of the pandemic.

The Munich-based insurer made a net profit to the end of September of €2.1 billion, up 5.9 per cent year-on-year.

Operating profit declined 2.6 per cent and revenues by 6.1 per cent to €31.4 billion.

The results were “solid in an environment that will remain challenging,” chief executive Oliver Baete said in a statement.

Allianz has not published a new profit forecast for the full year. In April, it withdrew its initial forecast of operating profit of between €11.5 and €12.5 billion. 

Operating profit in its property-casualty unit fell by 2.4 per cent as the negative effects of the pandemic were offset by lower reimbursements on natural disasters.

Operating profit in its property-casualty unit fell by 2.4% as the negative effects of the pandemic were offset by lower reimbursements on natural disasters

The insurer’s life/health division saw sales fall by nine per cent year-on-year due to lower premium volumes on retirement savings products, especially in the United States and Germany.

In the nine months to September, Allianz said the “adverse impacts” from the pandemic amounted to €1.3 billion, causing operating profit to fall 14.6 per cent in the year to date compared with the same point in 2019.

Shareholders will feel the effects of COVID-19 in the immediate future. Due to the “ongoing economic uncertainties” linked to the pandemic, Allianz discontinued its previously suspended share buyback programme for 2020 and will no longer distribute the remaining 750 million.