FRANKFURT - Allianz AG, Europe's biggest insurer has announced an increase of 39 percent in the third-quarter pre-tax profits to €1.66 billion. This is in line with expectations even though the company was hard hit by the twin hurricanes in the United States Gulf Coast region, which cost it an estimated €753 million.
Net profits soared by 70 percent to €794 million in the three months ending September. However, this figure ended up short by about €60 million on what was expected. Pre-tax profits in Allianz' property and casualty insurance took a hit of 9 percent and fell to €866 million mainly because of the Hurricanes Katrina and Rita.
However these were compensated in a large measure by the increase in the profits in its banks especially its subsidiary Dresdner Bank where profits were up from €13 million to €223 million in the third quarter. Allianz Management board member Helmut Perlet was confident that the company would meet its full-year expectations and post a profit of 10 percent.
Analysts are also confident of Allianz' strong showing as far as the full-year results are concerned. "Overall, the positive life and health insurance and asset management performance is encouraging given that Allianz' strategy is focused on these segments now, but of course we are disappointed with Dresdner's performance and will be looking for some answers," said WestLB analyst Carsten Zielke.
Allianz has announced that it will be merging Dresdner Kleinwort Wasserstein. "Dresdner Bank, corporate banking and investment banking will be integrated into one corporate banking and investment banking department to make better use of our potential in the market," Helmut Perlet, the group's chief financial officer confirmed yesterday.
But these great results brought no cheer to Allianz workers who are facing the prospect of losing about 11,000 jobs as the Munich-based Company embarks on a cost-cutting venture.
Posted
on : Sun, 13 Nov 2005 06:45 GMT | Insurance News
By : Mike Lawson
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