German insurance giant Allianz announced a higher-than-expected first-quarter net loss today of €520 million ($593 million) on the back of €2.3 billion in writedowns.
This compared to a profit of €1.931 billion in the same period a year earlier.
Allianz's banking division, comprising mainly Dresdner Bank, was to blame for much of the net loss, contributing €424 million to the figure, although it still posed a first-quarter operating profit of €69 million.
The group's €2.3 billion of writedowns exerted a negative effect of €0.8 billion on earnings, Allianz said.
It warned it was "anticipating further substantial writedowns on securities if there is further sideways movement in the capital markets," while earnings in the banking division would be "heavily dependent on developments in capital markets and the economy".
On the plus side, Allianz said that it expects "dynamic" growth in life and health insurance this year.
Premium income was up 9.8 per cent to €25 billion and its combined ratio in property and casualty insurance was 97.7 per cent, down from 103.4 per cent in the same period last year.
AFP