(RTTNews) - Europe's biggest insurer Allianz SE (AZSEY.PK: News ) reported Monday a profit for the third quarter compared to last year's loss, as the prior year recorded a hefty loss from discontinued operations. Revenues for the quarter increased 4.3%. The company also said environment for financial services providers remains challenging.

The Munich, Germany-based company's net income for the third quarter was EUR 1.32 billion or EUR 2.94 per share, compared to a net loss of EUR 2.02 billion or EUR 4.48 per share in the previous year.

Prior-year quarter recorded a net loss from discontinued operations of EUR 2.57 billion as a result of the sale of unprofitable Dresdner Bank.

Total revenues for the quarter increased 4.3% to EUR 22.02 billion from EUR 21.1 billion in the same quarter last year. On an internal basis, growth was 5.2%. Net premiums earned slightly increased EUR 14.87 billion from EUR 14.80 billion in the prior year.

Segment-wise, Property-Casualty Insurance recorded a decline in net premiums earned to EUR 9.75 billion from EUR 9.91 billion in the previous year. Revenues, on a nominal basis, declined 5.4 % to EUR 10.23 billion from EUR 10.82 billion in the year-ago quarter.

In its Life/Health Insurance Operations, net premiums earned were down at EUR 5.12 billion compared to EUR 4.89 billion in the prior year. Revenues grew by 13.5% on an internal basis to EUR 10.79 billion from EUR 9.41 billion in the preceding year, due to continued strong demand for products with minimum guarantees and participating components, the company noted.

In the Financial Services segment, operating revenues were EUR 1.06 billion, compared to EUR 864 million in the preceding year. Higher fee and commission income from the Asset Management business increased the segment's quarterly revenues by 14% on an internal basis. Net fee and commission income increased to EUR 954 million from EUR 811 million in the year earlier. Corporate Activities segment fee and commission income grew to EUR 50 million from EUR 4 million in the prior year.

Operating profit was EUR 1.93 billion, up from EUR 1.56 billion in the preceding year.
Loan loss provisions increased to EUR 18 million from EUR 4 million a year ago. Impairment of investments significantly dropped to EUR 282 million from EUR 2.6 billion last year.

For the nine-month period, the company's net income surged to EUR 3.22 billion or EUR 7.12 per share from EUR 667 million or EUR 1.41 per share in the comparable period a year ago. Total revenues for the period grew 3.3% to EUR 71.92 billion from EUR 69.59 billion in the earlier year. Adjusted for foreign currency and consolidation effects, growth was 2.5 %.

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