Allianz 1Q Net Profit Falls 98 Percent

GEORGE FREY

FRANKFURT (AP) — German insurance company Allianz SE said Wednesday net profit fell 98 percent in the first quarter, due mostly to charges on the sale of its Dresdner Bank unit and weaker business at its main insurance divisions.

The Munich-based company said net profit in the January-March period was euro29 million ($40 million) compared with a profit of euro1.15 billion in the first quarter of 2008. It booked a loss of euro395 million for the quarter on its the sale of Dresdner bank to Germany's Commerzbank in January.

Total revenues for the period fell 36 percent to euro1.4 billion from euro2.2 billion a year earlier.

Allianz's U.S. units include Bill Gross' Pimco, one of the world's largest bond managers; Fireman's Fund; Oppenheimer Capital; and fund managers Nicholas-Applegate and RCM Capital.

The company did not provide a detailed outlook for the current quarter or full year, but said it saw the first signs of recovery in its life and health insurance business during the first quarter.

"Allianz continues to cope successfully with the impact of the ongoing financial markets crisis on our business," said Helmut Perlet, the chief financial officer of Allianz in the company's report.