Allianz 4Q Operating Profit Could Be Up to EUR400 Million Lower -CFO

   By Ulrike Dauer 
 

Allianz SE's (ALV.XE) raised guidance for 2013 operating profit would have been even higher were it not for potential costs of up to 400 million euros ($539 million) in the final quarter, Chief Financial Officer Dieter Wemmer said Friday.

Earlier in the day, Europe's biggest insurer raised its full-year guidance for operating profit, saying its performance in the first nine months put it on track to achieve a figure slightly above EUR9.7 billion.

Mr. Wemmer said during a media call that fourth-quarter operating profit could be lower than the EUR2.2 billion achieved in the same quarter a year ago. He added that 2013 net profit would likely be above last year's figure of EUR5.23 billion.

Mr. Wemmer said costs for European storm Christian that caused damage in various European countries in late October, investments in information technology and a review of the group's product strategy in Korea could result in a quarterly cost of up to EUR400 million.

Allianz currently expects a bill of roughly EUR100 million for claims caused by the storm, though that figure could be revised, Mr. Wemmer said. The storm will cost insurers more than EUR1 billion, he added.

Risk modeling agency Air Worldwide Thursday issued a substantially higher estimate, saying the storm could cost the insurance industry up to EUR2.3 billion.

The storm caused widespread damage to property and continued disruption to travel and energy supplies as fallen trees brought both regional and national rail services to a halt. It also led to cancelled flights, airport closures and power outages. A previous estimate by reinsurance broker Willis Re had put the overall insured damage between EUR800 million and EUR1.3 billion.

Write to Ulrike Dauer at [e-mail]; Twitter: @UlrikeDauer_

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