Allianz Net Profit Falls 46%; Confirms Operating Profit Goal

Allianz SE (ALV.XE), Europe's largest insurer by gross premiums and market capitalization, Friday reported a 46% slump in net profit for the second quarter on lower income from own investments and higher costs related to earthquakes and other natural disasters.

It also said it is on track for an operating profit of about EUR7.2 billion for 2010, give or take EUR500 million.

It reported improvements in property/casualty insurance and asset management.

"Based on this very good result, we are confident that we can achieve out outlook for operating profit for the entire year of around EUR7.2 billion, with a fluctuation range of plus or minus EUR500 million," Chief Executive Officer Michael Diekmann said.

Second-quarter net profit attributable to shareholders was EUR1.02 billion, down from EUR1.87 billion in the same period a year ago. The figure was below a forecast EUR1.15 billion in a Dow Jones Newswires poll of 15 analysts.

Operating profit, which many investors consider to better reflect a company's true performance from normal operations, rose 23% to EUR2.19 billion from EUR1.79 billion, substantially outpacing the forecast EUR1.84 billion.

Allianz shares closed down EUR1.04, or 1.14%, at EUR90.16 Thursday. The shares have gained 25% over the past year, underperforming the Stoxx 600 insurance index, but putting the company's market capitalization at EUR41 billion.

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