Allianz profits slump to €256m
German insurer Allianz said today that its third-quarter profits slumped to €258m from €1.2 bn in the same period last year because of investment losses and Greek bond writedowns from Europe's debt crisis.
The company's result was well short of the €760m predicted by analysts surveyed by FactSet. Revenue fell 1.8%.
Munich-based Allianz said today that it lost €122m from writing down Greek bonds, and €817m from the fall in value of its holdings in other financial companies such as banks and insurers.
Greece is in the process of working out a debt reduction which includes bondholders taking 50pc losses on the value of their investments. Fears that Greece's problems will infect larger countries such as Italy have led to sharp swings on stock and bond markets.
Allianz said it would stay with its profit estimate for the full year of operating earnings of €8bn euros, plus or minus €0.5bn euros..
"All market participants are confronted at this time with the uncertainty and large swings on capital markets," said Oliver Baete, head of controlling, reporting and risk..
The company said it suffered higher losses from natural catastrophes but was able to make up some of that with higher prices.