Allianz Q2 profits plunge amid storm damages | Business| Economy and finance news from a German perspective | DW | 05.08.2016
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Business

Allianz Q2 profits plunge amid storm damages

Low interest rates are giving insurers across the board a hard time - and Allianz is no exception. The group's earnings nosedived, as it grappled with storm damages in Europe. Yet it has not changed its annual targets.

The German insurance giant's profits had nearly halved, it reported on Friday, while leaving its yearly targets untouched.

Net profits at Allianz were down 46 percent to 1.1 billion euros ($987 million) between April and June 2016, compared with the same time last year.

Revenues meanwhile dropped by 2.5 percent to 29 billion euros.

On track despite challenges

"The second quarter in particular was shaped by markedly higher damages from heavy floods and storms in Europe this spring," CEO Oliver Bäte said in a statement.

Earnings were also squeezed by a one-off charge of 352 million euros, as the group prepared to shed its South Korean business.

But Allianz maintained it was on track to meet its full-year target, despite operating in a - as Bäte put it - "difficult environment."

mrk/hg (AFP, Reuters, dpa)

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