7 Aug 2010

Allianz profit down after rise in disaster payments

7:03 am on 7 August 2010

Allianz has reported a 46% drop in second-quarter net profit, after an increase in costs related to natural disasters.

The German insurance group said claims from natural catastrophes reached 255 million euros ($US335 million) in the April-June quarter.

Net profit fell to 1.16 billion euros from 1.87 billion euros last year, when results were boosted by asset sales.

However, the BBC reports operating profit jumped 23% to 2.2 billion euros and the company maintained its outlook for the full year.

Allianz, which is Europe's biggest insurer, said it was confident it could achieve its full-year operating profit target of about 7.2 billion euros.