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Allianz abandons profit goal as Dresdner slumps

FRANKFURT
Wed Aug 6, 2008 5:39pm EDT
Chairman of the Management Board of German insurer Allianz Michael Diekmann gestures before the start of the company's annual shareholders meeting in Munich, May 21, 2008. REUTERS/Alexandra Beier

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FRANKFURT (Reuters) - Allianz (ALVG.DE) beat expectations with a 29 percent fall in net profit to 1.524 billion euros ($2.36 billion) in the second quarter, despite losses at Dresdner Bank, but said it was abandoning its 2009 profit goal in face of difficult markets.

The average of 15 forecasts in a Reuters poll of analysts was for quarterly net profit after minority interests to fall to 1.311 billion euros from 2.140 billion euros a year earlier.

Allianz is looking to sell Dresdner and has been talking with the country's No. 2 lender, Commerzbank (CBKG.DE), about a possible merger.

Dresdner posted an operating loss of 566 million euros in the second quarter, compared with a 427 million euro profit in the prior-year quarter, hurt by its investment banking business and 286 million euros in writedowns on investments hit by the credit market crisis.

(Reporting by Jonathan Gould)


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