Allianz Cuts German Unit's 2011 Profit Forecast
August 11 2011 - 7:32AM
Dow Jones News
Allianz SE (ALV.XE), Europe's largest insurer by gross premiums
and market capitalization, Thursday cut the full-year profit
guidance for its German operations--the largest within the
group.
"Due to the current situation in capital markets and claims
costs for further thunderstorms in July, the 2011 operating profit
of Allianz Germany will likely be on the level of the previous
year," Allianz Germany said in the earnings report for the first
six months. It declined to give any guidance on a net income level.
Allianz previously said in March it expected its German operations
to post higher net and operating profit in 2011 than 2010, despite
facing a number of challenges at home.
Allianz last week said its still on track to meet the group's
target of a 2011 operating profit in a EUR7.5 billion to EUR8.5
billion range.
For the first six months of this year, Allianz Germany reported
an operating profit of EUR822 million, down 10% from EUR916 million
in the year-earlier period.
In 2010, the German operations contributed an operating profit
of EUR1.76 billion, or 23%, to the group's operating profit of
EUR8.2 billion. The net profit contribution was EUR1.33
billion.
Allianz has life/health and property/casualty insurance
operations, an asset management business and a small banking
operation in Germany.
-By Ulrike Dauer, Dow Jones Newswires; +49 69 29725 500;
ulrike.dauer@dowjones.com