FRANKFURT, April 29, 2008 (AFP) – German insurer Allianz said Tuesday that its first quarter net profit will slump to a third of what it was in the year-earlier period due the ongoing financial crisis and weak stock markets. The Munich-based group said it was writing off 900 million euros (1.4 billion dollars) worth of “structured financial products” at its Dresdner Bank unit.
As a result, and because of falling stock prices hitting its investments, net profit in the first quarter would fall to around 1.1 billion euros from 3.2 billion euros in the same period a year earlier.
Operating profit would drop to 1.8 billion euros from 2.9 billion euros.
The company said in a statement that it was sticking to its targets for 2009 for now but added that “this will become harder, the longer the financial crisis will last.”
Full first quarter results are due on May 9. .