Allianz 1Q Net Profit EUR29 Million; No Concrete 09 Earnings Goal

Allianz SE (AZ), Europe's largest primary insurer by market capitalization, Wednesday reported a substantial decline in first-quarter net profit, on crisis-triggered write-downs on financial investments, a charge related to the sale of Dresdner Bank and higher claims costs.

The company gave no concrete earnings target for 2009, saying the environment for financial services companies will remain "challenging." It said, however, that the group's "underlying fundamentals in our operations are healthy." It also said it accrued a EUR200 million dividend equivalent in the first quarter.

First-quarter net profit fell 98% to EUR29 million from EUR1.15 billion in the year-earlier quarter. Net profit from continuing operations, which excludes the negative contribution still associated with the sale of Dresdner Bank, fell 69% to EUR424 million from EUR1.38 billion.

Total revenue rose 2.8% to EUR27.7 billion from EUR27 billion a year earlier, in line with the preliminary figure of EUR27.7 billion provided by the company at the annual general meeting.

Allianz sold Dresdner Bank to Commerzbank last year for around EUR5.1 billion, with the closing in mid-January. Allianz has said the total burden related to the sale amounted to EUR6.8 billion of which EUR6.4 billion was booked in 2008, and the remaining EUR400 million in the first quarter.

Allianz shares closed down EUR0.32, or 4%, at EUR75.61 Tuesday, slightly underperforming the wider market, which ended down 0.3%. The share has lost 41% over the past 12 months, bringing the company's current market value to around EUR34 billion.

Company Web site: www.allianz.com

-By Ulrike Dauer, Dow Jones Newswires; [phone]; [e-mail]