Allianz Net Profit Falls 46%; Confirms Operating Profit Goal
August 06 2010 - 2:27AM
Dow Jones News
Allianz SE (ALV.XE), Europe's largest insurer by gross premiums
and market capitalization, Friday reported a 46% slump in net
profit for the second quarter on lower income from own investments
and higher costs related to earthquakes and other natural
disasters.
It also said it is on track for an operating profit of about
EUR7.2 billion for 2010, give or take EUR500 million.
It reported improvements in property/casualty insurance and
asset management.
"Based on this very good result, we are confident that we can
achieve out outlook for operating profit for the entire year of
around EUR7.2 billion, with a fluctuation range of plus or minus
EUR500 million," Chief Executive Officer Michael Diekmann said.
Second-quarter net profit attributable to shareholders was
EUR1.02 billion, down from EUR1.87 billion in the same period a
year ago. The figure was below a forecast EUR1.15 billion in a Dow
Jones Newswires poll of 15 analysts.
Operating profit, which many investors consider to better
reflect a company's true performance from normal operations, rose
23% to EUR2.19 billion from EUR1.79 billion, substantially
outpacing the forecast EUR1.84 billion.
Allianz shares closed down EUR1.04, or 1.14%, at EUR90.16
Thursday. The shares have gained 25% over the past year,
underperforming the Stoxx 600 insurance index, but putting the
company's market capitalization at EUR41 billion.
-By Ulrike Dauer, Dow Jones Newswires; +49 69 29725 500;
ulrike.dauer@dowjones.com