Reuters-Frankfurt : On Friday, German insurer Allianz (ETR: ALVG) reported a 23% drop in second-quarter net profit, hurt by volatile markets and restructuring costs.However, the company reiterated its full-year forecast.
Despite a reduction in profit, Allianz resumed normal operations. The insurer settled a $6 billion fraud complaint with U.S. regulators in May.
The case has put a shadow over Allianz, one of Germany’s most valuable firms, and while most of the expenditures are behind it, the issue nonetheless left its mark in the second quarter as Allianz reported restructuring expenses of more than 100 million euros to wind down its U.S. funds unit AGI.
A net profit of 1.706 billion euros ($1.75 billion) in the fiscal quarter ended June 30 fell short of the consensus estimate of 1.846 billion and was down from 2.225 billion the previous year.
The insurer’s 2022 operating profit forecast of 12.4 to 14.4 billion euros remains unchanged.
CEO Oliver Baete: “We’re well-positioned to manage strong inflation and economic difficulties in Europe.”
Because of volatile markets, Allianz had to absorb a 282 million euro impairment charge and a 12% drop in life and health operating profit.
Allianz analysts, who rate Allianz a “buy,” said non-operating losses and corporate costs “were significantly greater than projected” and dubbed the results a “mixed beat.”
$1=0.9774 euros
