German Insurer Allianz 1Q Net Profit Seen Down 43.8%, To EUR900M

05.04.2011 By Gavrila Oana

The net profit of German insurance group Allianz is expected to have dropped 43.8% in the first quarter of the year, to EUR900 million, and revenues likely declined nearly 2%, according to the group’s preliminary earnings report.

Net income in the first quarter of 2011 is expected slightly above EUR900 million, compared to 1.6 billion euros in the first quarter of 2010. In addition to natural catastrophes costs, lower realized gains against the background of volatile capital markets contributed to this development, the insurer said in the report.

Based on preliminary figures, Allianz Group achieved total revenues of nearly EUR30 billion in the first quarter of 2011, compared to EUR30.6 billion in the first quarter of 2010, and operating profit is expected to reach nearly EUR1.7 billion, close to last year's first quarter profit level, the insurer said.

Allianz also expects expenses from natural catastrophes in the first quarter of 2011 will amount to roughly EUR750 million, of which some EUR320 million were reserved for claims related to the earthquake and tsunami in Japan.

"Although we spent almost EUR200 million more on natural catastrophes than in the same quarter of the previous year, we were able to keep our operating profit close to the previous year's level. This is testimony to the broad-based nature of our business portfolio. We are on track to achieve our operating profit target for 2011," said Allianz CEO Michael Diekmann.

Allianz will publish full details for the first quarter on May 12, 2011.

Allianz, through Allianz-Tiriac, is present on the Romanian insurance and private pension market.