2nd UPDATE:Allianz's Booth:No Need For Buys To Meet '11 Goals
January 20 2009 - 10:55AM
Dow Jones News
German insurance giant Allianz SE (AZ) sees no need for
acquisitions to meet its 2011 targets, management board member
Clement Booth said Tuesday.
When asked about the 2011 targets, Booth said Allianz aims to
become "the world's leading property and casualty insurer and a
very significant life player." Booth was speaking at a reporters
roundtable in London. He said the company also wants to grow its
market capitalization, but added that market capitalization
"probably wouldn't be a good measurement on its own right now until
things stabilize."
Booth said Allianz used to be among the top 10 financial
services groups in the world in term of market capitalization.
"After 2002, we've dropped quite far down the ranking ladders and
we've been coming up again."
"I believe that to keep to our 2011 targets, we don't need to
buy anything (other companies)...we want to grow organically,"
Booth said. "I don't even know what 'cheap' is now in today's kind
of market. We'll focus on organic growth and customer service," he
added.
Booth is the board member responsible for Allianz's Anglo broker
markets, NAFTA markets and global lines.
Booth also said that buying assets from American International
Group Inc. (AIG) "is not mission critical."
AIG is selling off assets, including the third-party management
business, in order to repay a loan of as much as $60 billion from
the U.S. federal government. The company was bailed out by the
government last year as it faced a possible bankruptcy filing.
Booth said Allianz is well capitalized and doesn't need to boost
its capital.
"We're one of the best capitalized insurers in Europe. We don't
see a need to raise extra capital," Booth said. He added that
Allianz keeps a strong 150% solvency margin.
Company Web site: www.allianz.com
-By Vladimir Guevarra, Dow Jones Newswires; +49 69 29725 500;
vladimir.guevarra@dowjones.com
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