Home Uncategorized Insurer Allianz sees ops profit of 8 bln euros this year

Insurer Allianz sees ops profit of 8 bln euros this year

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German insurance giant Allianz said  Thursday that it foresees an operating profit of eight billion euros ($11  billion) this year, give or take half a billion.    Allianz chief executive Michael Diekmann told a press conference in Munich,  southern Germany, that uncertainty caused by new capital requirements for  European insurers made it hard to give a more precise outlook.

“For the 2011 exercise, we foresee an operationg profit of eight billion  euros, give or take 500 million owing to uncertainties,” Diekmann said.    Shares in the biggest European insurer were then hammered in midday trading  on the Frankfurt stock exchange.

The Allianz boss underscored optimism for the full-year but warned that a  new set of EU capital requirements known as Solvency II needed to be clarified  because they might entail risks for some of Allianz’s activities.    “Owing to uncertainties over Solvency II we cannot make any large  acquisitions,” Diekmann noted.

The new regime is to take effect in 2013, but some details must still be  finalised and an insurer might have to raise its capital significantly, which  would undermine earnings and make some activities unattractive, he explained.    Allianz finance director Paul Achleitner said the uncertainty could also  affect Allianz’s investments in financial markets.    For 2010, the group reported a 17 percent jump in operating profit to 8.2  billion euros, exceeding its own target and analyst forecasts thanks in part  to 500 million euros in exceptional items, including positive effects from  foreign exchange rates.    Allianz’s net profit leapt by 20.1 percent to 5.05 billion euros.    “All our divisions contributed to the result,” Diekmann commented.

Revenues gained 9.3 percent to a record high of 106.5 billion euros, and     Allianz directors will propose a dividend of 4.50 euros per share, up from  4.10 euros in 2009.    Investors apparently had hoped for more and the group’s share price plunged  in midday Frankfurt trading, showing a loss of 3.01 percent to 101.45 euros  while the DAX index of German blue-chips was 1.13 percent lower overall.

Frankfurt, Feb 24, 2011 (AFP)