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Daily Insurance Industry News
Tuesday 24th of April 2018
February 27, 2009

Allianz posts €2.4bn loss for 2008

by David Masters

Story link: Allianz posts €2.4bn loss for 2008

Allianz posts €2.4bn loss for 2008

Fourth quarter losses have hit Allianz hard, slashing nearly half off its yearly pre-tax profits, and causing a net loss for the year.

Pre-tax profit for 2008 was €5.4 billion, down 48.2% on year.

Net loss was €2.4 billion, compared to net profit of €7.9 billion in 2007. This is the company’s first annual loss since 2002.

The loss was largely driven by a fourth quarter net loss of €3.1 billion, down from 2007 fourth quarter profit of €665 million.

Fourth quarter revenues dropped 10.1% to €23 billion, although most of the loss came because of write downs from the sale of Dresdner Bank.

Dresdner lost Allianz a total of €6.4 billion last year. Allianz sold the company in January.

Combined ratio for 2008 was 95.1%, compared to 93.6% in 2007.

The company refused to give profit forecasts for 2009, saying that current economic turmoil makes the short-term future impossible to read.

Michael Diekmann, CEO, said: “The difficult conditions in the capital markets will continue throughout 2009.

“We are in the midst of the toughest economic downturn for decades.

“Reliable profit forecasts for 2009 are not possible in this environment.”

He did, however, confirm that Allianz remains ‘financially stable’ despite the losses.

 

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