Allianz records €2.4 billion loss as Dresdner proves a drag
German insurer Allianz has recorded a full-year loss of €2.4 billion ($4.7 billion) as discontinued banking operations punched a €6.4 billion ($12.6 billion) hole in the insurer’s balance sheet.
Allianz completed the sale of Dresdner Bank to Commerzbank in January and the transaction had a huge impact on net income.
Net profit from continued operations declined to €4 billion ($7.9 billion) from €7.3 billion ($14.4 billion) the previous year while operating profit was lower at €7.4 billion ($14.6 billion) against €10.3 billion ($20.3 billion) in the previous corresponding period.
Total revenue fell by 5.3% from €97.7 billion ($192.5 billion) to €92.5 billion ($182.3 billion).
Operating profit from property and casualty insurance lines was 10% lower at €5.6 billion ($11 billion), while the combined ratio declined from 93.6% to 95.1%.
Life and health insurance operating profit crashed 60% to €1.2 billion ($2.4 billion) while operating profit for the asset management division slumped 32% to €926 million ($1.82 billion).
CEO Michael Diekmann was frank in his assessment of current trading conditions.
“The difficult conditions in capital markets will continue throughout 2009,” he said. “We are in the midst of the toughest economic downturn for decades. Reliable profit forecasts for 2009 are not possible in this environment.”
Allianz completed the sale of Dresdner Bank to Commerzbank in January and the transaction had a huge impact on net income.
Net profit from continued operations declined to €4 billion ($7.9 billion) from €7.3 billion ($14.4 billion) the previous year while operating profit was lower at €7.4 billion ($14.6 billion) against €10.3 billion ($20.3 billion) in the previous corresponding period.
Total revenue fell by 5.3% from €97.7 billion ($192.5 billion) to €92.5 billion ($182.3 billion).
Operating profit from property and casualty insurance lines was 10% lower at €5.6 billion ($11 billion), while the combined ratio declined from 93.6% to 95.1%.
Life and health insurance operating profit crashed 60% to €1.2 billion ($2.4 billion) while operating profit for the asset management division slumped 32% to €926 million ($1.82 billion).
CEO Michael Diekmann was frank in his assessment of current trading conditions.
“The difficult conditions in capital markets will continue throughout 2009,” he said. “We are in the midst of the toughest economic downturn for decades. Reliable profit forecasts for 2009 are not possible in this environment.”