Allianz profits plummet amid more Dresdner pain
GERMAN financial services group Allianz announced a 97 per cent net profit decline, as aftershocks from its disastrous ownership of Dresdner Bank continued to erode gains.
Chief financial officer at the firm Helmut Perlet said net income was just €29m (£26m) in the quarter, compared with €1.2bn (£1.07bn) in the same quarter a year ago, thanks in part to a €395m (£355m) charge resulting from the sale of battered Dresdner to Commerzbank.
Perlet said net income from continuing operations at the group – excluding Dresdner – was higher at €424m (£381m) and the group sees the “first signs of recovery” in the vital life and health insurance areas.
Dresdner will continue to weigh on the group’s profits since it owns a large stake in new owner Commerzbank.