Insurer Allianz Posts 2Q Profit Rise
Friday August 4, 7:46 am ET
biz.yahoo.com
Insurer Allianz Posts 2Q Profit Rise, Raises Outlook for the Full Year
BERLIN (AP) -- Allianz AG, Europe's biggest insurer, reported a 64 percent increase in second-quarter profit and raised its outlook for the full year.
Net earnings in the April-June quarter were about 2.3 billion euros ($2.9 billion), according to preliminary figures released Thursday night. That compared with a profit of 1.4 billion euros a year earlier.
Operating profit, which many investors feel better reflects a company's performance, increased by 19 percent -- rising to nearly 2.8 billion euros ($3.6 billion) from just under 2.5 billion euros.
"All operational segments contributed to this improvement," said Munich-based Allianz, which also owns Dresdner Bank AG.
Revenues rose to 24.1 billion euros ($30.8 billion) from 23.7 billion euros a year ago. Allianz is Europe's largest insurer as measured by gross premiums.
The company said it now expects a 2006 net profit of between 5.5 billion euros and 6 billion euros ($7 billion and $7.7 billion) compared with a previous forecast of 4.92 billion euros and last year's figure of 4.38 billion euros.
It forecast full-year operating profit of more than 9 billion euros ($11.5 billion), up from a previous forecast of 8.73 billion euros.
Allianz is scheduled to report full second-quarter earnings on Aug. 11.
The company said the quarterly net profit figure "already includes the restructuring charges of the German insurance business."
In June, Allianz said it would cut 7,480 jobs, or about 4 percent of its worldwide work force, at its domestic insurance and banking units as part of a restructuring drive it began last year.
The company said then that the move was aimed at laying "the foundation for our companies' future profitable growth in Germany." It has prompted regular protests since by employees. |
