German insurer Allianz posted a first-half net profit today to soundly beat market forecasts of a loss and announced a new cost-cutting drive at its Dresdner Bank unit.
The Munich-based group said net profit in the first six months of 2003 was €102 million, down from a profit of €1.57 billion a year earlier but well above the average loss of €269 million forecast by analysts.
Allianz shares were trading below peers in Europe's insurance sector in early trading, however, sliding 2.6 per cent to €86.39 this morning.
A London trader noted the results were skewed by an accounting change that offset realised gains and tax credits.
But he said the headline figures still looked good. Europe's second-biggest insurer by market value said net premium income - revenue from selling insurance policies - was €27.5 billion in the first half, in line with forecasts and up from €26.9 billion in the first half of 2002.
Allianz also said it would further intensify cost-cutting at its Dresdner Bank division. Banking sources said that Dresdner would cut 4,700 more jobs by 2005 to reduce costs and boost profits.