Allianz report 21 percent rise in profit

Source: Exec Digital UK

Date :09/11/2007 09:06:26

Allianz unveiled a much better-than-expected 21 percent rise in third-quarter net profit despite market turbulence that pushed its Dresdner Bank unit into a loss.

Europe's biggest insurer reported quarterly net profit of €1.921 billion ($2.8 billion), exceeding analysts’ average forecast of €1.470 billion.

Operating profit was also above analysts’ forecasts of a 13 percent decline, although it fell 2.1 percent to €2.604 billion.

Dresdner loss

However, operating profit fell nearly 80 percent to €52 million at Dresdner Bank weighed down by a €196 million trading loss and sub-prime related write-offs – compared to a gain of €278 million last year.

The group said the financial markets turbulence had a €575 million negative impact on the result.

The remaining €350 million are due to valuation adjustments in the trading book for asset-backed securities, according to Allianz.

Financial targets

Despite the loss, Allianz reaffirmed its targets for this year.

The group expects €8 billion in net profit and 11 billion in operating profit for the year.

It also reiterated its mid-term targets of average annual operating growth of ten percent, on average, in the years 20007 to 2009.

November 9 2007