Allianz boosts third quarter profit

14th November 2003, Comments 0 comments

14 November 2003, MUNICH - German insurance giant Allianz AG reported Friday that it posted a profit of EUR372 million in the third quarter of 2003, to boost nine-month earnings to EUR421 million.

14 November 2003

MUNICH - German insurance giant Allianz AG reported Friday that it posted a profit of EUR372 million in the third quarter of 2003, to boost nine-month earnings to EUR421 million.

The nine-month figure compares with a loss of EUR924 million in the same period of 2002, Allianz said, citing the benefits of the company's "3 plus 1" restructuring programme to cut costs and boost profitability.

Company chairman Helmet Perlet said the company was upbeat about the final quarter of the year.

"It is likely that we will also be able to report the proceeds arising from the sale of the stake in Beiersdorf already during the fourth quarter," he said, referring to the recent EUR4.4 billion deal in selling a 40 percent holding in Beiersdorf.

"We will continue to drive restructuring forward at full speed and force the pace of reducing risk weighted assets at Dresdner Bank," Perlet added. "We are gaining momentum and are back on track for profitability."

However, Dresdner Bank reported Friday that it remained in the red through 30 September but was making progress in cutting its losses.

The subsidiary of the insurance concern Allianz - which was reporting its nine-month results separately in Munich - put its pre-tax losses at EUR433 million through 30 September. Restructuring charges of EUR282 million were the main item in the nine-month figure.

The bank noted that the results were an improvement from the six- month mark, when Dresdner Bank's losses were EUR450 million.

The bank said that in its normal operations, the nine-month operating loss was just EUR70 million euros, compared with EUR1.67 billion in same period of 2002.

Dresdner Bank said its three strategic business units chalked up operating profits of EUR768 million after nine months.

Operating income after net loan loss provisions gained by 21 percent year-on-year to EUR4.42 billion, while net loan loss provisions were to EUR722 million, a substantial reduction of around one billion years from a year earlier, Dresdner said.

DPA

Subject: German news

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