Allianz Pessimistic on Reaching Financial Targets, Expects More Write-Downs
Europe's biggest insurer, Allianz, said on Thursday that the global financial market turmoil will make it financial targets for this year and in 2009 harder to reach.
Allianz's aim of increase operating profit by an average 10 percent in 2008 and 2009 had become more difficult and the company faced additional write-downs on its investments in complex structured financial products, it said in its annual report.
"In view of the continuing crisis in the financial markets and the difficulty of assessing its impact on the real economy, this has become much more challenging," Allianz Chief Executive Michael Diekmann said of its operating profit goal.
As a result I need to place a special caveat on our outlook for the banking sector. In view of the current uncertainties and potential further mark-downs it is not possible to give a reliable forecast of the banking segment's contributions to the overall results."
Allianz last month reported it made record net profit of nearly 8 billion euros ($12.58 billion) in 2007, but warned that the fallout from the crisis in the U.S. sub-prime mortgage market affect its businesses more than usual.
Published on March 20, 2008
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