Frankfurt: Europe’s biggest insurer Allianz unveiled writedowns from the global financial crisis of €900 million ($1.4 billion) in the first quarter and said the crisis could endanger its medium-term goals.
The markdowns, which stem from the insurer’s embattled Dresdner Bank, are more than double those announced by Allianz finance chief Helmut Perlet at the beginning of the year.
In January, he had estimated markdowns of up to €400 million.
Allianz said its medium-term targets, while still “feasible”, would become harder to reach the longer the financial crisis lasts.
The Munich-based group said its net profit in the first three months of the year came to about €1.1 billion euros, and its operating profit to €1.8 billion.
Allianz is now planning to break up Dresdner Bank in a move that would pave the way for a sale of investment banking laggard Dresdner Kleinwort, which is partly at the root of the problems that resulted in the writedowns.