Capital gains helped Europe's biggest insurer Allianz boost net profit by nearly 80 percent in the first quarter, beating analysts' forecasts and offsetting flat revenue growth.
Allianz on Wednesday posted net profit of 3.2 billion euros ($4.4 billion) as it took advantage of buoyant financial markets to sell assets, matching the highest forecast in a Reuters poll of analysts and a third above the average forecast. Overall revenues were about the same as a year earlier at 29.3 billion euros, hurt by dollar weakness, Allianz said.
Top-line growth in Allianz's main business of insurance was flat in property-casualty and declined in life-health, although group revenues grew in banking and asset management. Allianz targets annual operating profit growth of 10 percent, bringing it to 13.3 billion euros in 2009, and would return to shareholders cash it did not need to cover risks, Diekmann said.
"The challenges on the growth side are familiar and are being addressed," Chief Executive Michael Diekmann told more than 4,000 shareholders gathered for Allianz's annual meeting.