Allianz Posts $3.21 Billion 2008 Loss

Insurance Journal
Source: Allianz
March 18, 2009


Germany's Allianz SE has released its full year figures for 2008, which show a net income loss of €2.444 billion ($3.21 billion), compared to 2007's record net income of €7.966 billion ($10.46 billion). Total revenues declined by 5.3 percent to €92.5 billion ($121.5 billion)

Net income from continued business amounted to €4 billion ($5.25 billion following €7.3 billion ($9.58 billion) in the previous year. Allianz noted that "discontinued operations, comprising the results of Dresdner Bank, and its sale to Commerzbank, impacted Allianz Group's net income in fiscal 2008 by €6.4 billion [$8.4 billion]," which is the main source of the 2008 net loss.

Allianz also said the current financial crisis affected its core business. "While Property and Casualty insurance proved to be largely unaffected, the Life Insurance and Asset Management business saw hits on revenues and profits."

Michael Diekmann, CEO of Allianz SE commented: "Allianz remains solid, a financially stable partner for customers, shareholders and employees. Our result of €7.4 billion [$9.71 billion - the figure for Allianz operating profit] deserves recognition considering the challenging environment. Our efforts in 2009 will continue to focus on operating efficiency and offering our customers products that provide security over the long term - that is our core business."

Allianz profits have been weighed down by losses at Dresdner Bank in recent years. On Jan. 12 it closed the sale of the bank to Commerzbank - more than half a year earlier than originally intended. As previously indicated the negative charge of €6.4 billion in Allianz results for fiscal year 2008 "consists of operating losses of €2.1 billion[$2.758 billion] sustained by Dresdner Bank in the first nine months, an impairment of €1.4 billion [$1.839 billion] on the fair value of Dresdner bank as at September 30, 2008, together with charges of €2.7 billion [$3.546 billion] due to changes in the structure of the transaction and the decrease in value of our share in Commerzbank."

Commenting on the outlook for 2009, Diekmann stated: "The difficult conditions in the capital markets will continue throughout 2009. We are in the midst of the toughest economic downturn for decades. Reliable profit forecasts for 2009 are not possible in this environment."

The complete report and additional comments may be obtained on the group's web site at: www.allianz.com.

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