Allianz posts €2.4bn bereavement for 2008

Fourth locality losses have hit Allianz hard, slashing nearly half off its year after year pre-tax profits, and causing a net loss for the year.

Pre-encumbrance profit for 2008 was €5.4 billion, down 48.2% on year.

Catch loss was €2.4 billion, compared to net profit of €7.9 billion in 2007. This is the body’s first annual loss since 2002.

The loss was as a rule driven by a fourth quarter net loss of €3.1 billion, down from 2007 fourth place profit of €665 million.

Fourth quarter revenues dropped 10.1% to €23 billion, although most of the extinction came because of write downs from the sale of Dresdner Bank.

Dresdner bewildered Allianz a total of €6.4 billion last year. Allianz sold the crowd in January.

Combined ratio for 2008 was 95.1%, compared to 93.6% in 2007.

The fellowship refused to give profit forecasts for 2009, saying that current profitable turmoil makes the short-term future impossible to read.

Michael Diekmann, CEO, said: “The strenuous conditions in the capital markets will continue throughout 2009.

“We are in the mid-point of the toughest economic downturn for decades.

“Reliable profit forecasts someone is concerned 2009 are not possible in this environment.”

He did, still, confirm that Allianz remains ‘financially stable’ despite the losses.

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Insurance blog by John Lewis