GO
Loading...

UPDATE 1-Allianz says to beat own 2013 operating profit target

Friday, 8 Nov 2013 | 1:59 AM ET

* Low interest rates make environment more risky

* Q4 storm Christian claims, other factors up to 400 mln eur

* Property-casualty business improves

FRANKFURT, Nov 8 (Reuters) - Allianz said it expected operating profit of slightly more than 9.7 billion euros ($13 billion) in 2013, edging over the top of its own target range and in line with analysts' expectations.

Europe's biggest insurer on Friday posted third-quarter operating profit of 2.52 billion euros, in line with analysts' expectations, helped by an improvement in property-casualty insurance, while volatile markets hurt performance in life-health insurance and asset management.

"The global low interest rate environment and market volatility will continue to negatively impact Allianz's risk profile through our business development, asset values and the value of our liabilities," the company said.

Asset management saw net outflows from third party investors of 26.7 billion euros in the third quarter, compared with inflows of 31.5 billion euros in the same quarter a year earlier.

Allianz said damage claims from winter storm Christian, a review of product strategy in Korea, and investments in its consolidation of IT centres might crimp operating profit by 100 million to 400 million euros in the fourth quarter.

It also unveiled a slight rise in third-quarter net profit to 1.45 billion euros, compared with the 1.41 billion euro average of 10 forecasts in a Reuters poll of banks and brokerages.

  Price   Change %Change
ALV
---