Insurer Allianz expects 1st-quarter write-downs of euro 900 mn
German insurer Allianz SE said that it expects to report write-downs of nearly euro900 million ($1.4 billion) in the first quarter of this year, giving markets a heads-up to its exposure.
By Agencies |
BERLIN: German insurer Allianz SE said on Tuesday that it expects to report write-downs of nearly euro900 million ($1.4 billion) in the first quarter of this year, giving markets a heads-up to its exposure.
The Munich-based company, Europe's biggest insurer by gross premiums and the owner of Dresdner Bank AG, said the write-downs would ``have to be accrued in the area of structured financial products of Dresdner Bank due to the ongoing financial market crisis.''
Allianz's US units include Bill Gross' Pimco, one of the world's largest bond managers; Fireman's Fund; Oppenheimer Capital; and fund managers Nicholas-Applegate and RCM Capital.
In a statement, Allianz said it predicted its operating profit for the January-March period would be euro1.8 billion ($2.8 billion) compared with euro2.9 billion a year earlier, and said it expects net profit to reach euro1.1 billion (US$1.7 billion) in the first three months of the year compared with euro3.2 billion a year ago.
The company will publish its complete first-quarter results on May 9.
``In this difficult market environment, an operating profit of almost euro2 billion (US$3.1 billion) underlines our sustainable underlying profitability. Hence, we consider our medium term targets for 2009 to be still feasible, even though this will become harder, the longer the financial crisis will last,'' said Allianz board member Helmut Perlet.
The Munich-based company, Europe's biggest insurer by gross premiums and the owner of Dresdner Bank AG, said the write-downs would ``have to be accrued in the area of structured financial products of Dresdner Bank due to the ongoing financial market crisis.''
Allianz's US units include Bill Gross' Pimco, one of the world's largest bond managers; Fireman's Fund; Oppenheimer Capital; and fund managers Nicholas-Applegate and RCM Capital.
In a statement, Allianz said it predicted its operating profit for the January-March period would be euro1.8 billion ($2.8 billion) compared with euro2.9 billion a year earlier, and said it expects net profit to reach euro1.1 billion (US$1.7 billion) in the first three months of the year compared with euro3.2 billion a year ago.
The company will publish its complete first-quarter results on May 9.
``In this difficult market environment, an operating profit of almost euro2 billion (US$3.1 billion) underlines our sustainable underlying profitability. Hence, we consider our medium term targets for 2009 to be still feasible, even though this will become harder, the longer the financial crisis will last,'' said Allianz board member Helmut Perlet.
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