CORRECT: Allianz CEO: 2009 "Will Not Be An Easy Year"

German insurer Allianz SE (AZ) won't have an easy year in 2009, Chief Executive Michael Diekmann said Wednesday.

"2009 will not be an easy year," Diekmann told the annual shareholders' meeting, adding the insurer's capital base and solvency remain healthy and robust.

Diekmann said Allianz doesn't require capital increases or government aid.

"Any dilution of your shareholding by a capital increase as a result of regulatory conditions, or even intervention by the state, are therefore not on our agenda," Diekmann said.

He called the U.S. life insurance business "a particular challenge," reiterating that Allianz's business there will again require "tough cost-cutting measures" and "massive product changes this year."

Diekmann also repeated that the insurer's investment in Hartford Financial Services Group Inc. (HIG) is "a financial investment."

In October, Hartford closed on a $2.5 billion investment by Allianz, which ultimately would give Allianz a stake of just below 24% in Hartford when it converts hybrid debt into shares.

Currently, Allianz holds a 7.4% stake in Hartford and has hybrid debt worth $1.75 billion that includes the option of a conversion into Hartford shares within the next seven years.

Diekmann also said the insurer will focus on cost control in all areas and won't stage price wars for market share.

Company Web site: www.allianz.com

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