German bank boosts Allianz group profits

German insurer Allianz posted better-than-expected second-quarter profit at its troubled banking arm as it detailed a strong …

German insurer Allianz posted better-than-expected second-quarter profit at its troubled banking arm as it detailed a strong group performance and profit upswing.

Germany's biggest insurer said its banking arm - almost entirely Dresdner Bank - made a net profit of €249 million in the second quarter, nearly double the same period last year.

The group's other divisions - including life and health insurance, property and casualty insurance, and fund management - also performed strongly, contributing to a 65 per cent rise in overall earnings revealed earlier in the week.

Allianz said it was on track to beat its divisional goals for the year.

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Allianz's stock price rose sharply earlier this week when it said second-quarter net profit rose by two-thirds to €1.39 billion, without giving details. The result was higher than analysts forecast.

Allianz was once a powerhouse of financial stability with a share price more than four times than today's.

But it has been dragged down in recent years by the €24 billion Dresdner takeover.