Allianz SE, Europe's biggest insurer, said that its fourth-quarter profit fell 52 percent on subprime-related writedowns and trading losses at its banking division.
Net income declined to 665 million euros (US$979.6 million), or 1.48 euros a share, from 1.37 billion euros, or 3.21 euros a share, a year earlier, the Munich-based insurer said today in a statement.
That missed the 729 million-euro median estimate of 12 analysts surveyed by Bloomberg.
Chief executive officer Michael Diekmann plans to increase Allianz's earnings from insurance and expand operating profit by an average of 10 percent a year even as more than 1.3 billion euros in writedowns weigh on its Dresdner banking division's profits.
Banks worldwide have booked more than US$146 billion of writedowns and credit losses during the US subprime mortgage market collapse.
"Dresdner remains the problem child, which is disappointing because it looked like they managed the turnaround just before the subprime crisis hit," said Ernst Konrad, who helps oversee about 24 billion euros as head of equities at BayernInvest in Munich, including Allianz stock.
Allianz's dividend "has finally reached the payout level of peers such as ING or Fortis," he said.
Diekmann said yesterday that the company was "well-positioned" for this year and expected to meet medium-term profit targets. "However, financial markets and their future development will have a stronger impact on our business results than usual," he said.
Allianz has fallen 21 percent in Frankfurt trading this year, valuing the insurer at 53 billion euros, compared with a 14 percent decline in the 28-member Bloomberg Europe 500 Insurance Index.
Dresdner had a fourth-quarter loss of 589 million euros compared with a loss of 194 million euros a year ago.
The bank's ratio of costs to income for all of last year worsened to 89 percent from 79.7 percent a year earlier, Allianz said.
Frankfurt-based Dresdner said in a separate statement that it plans to provide "support" to its K2 structured investment vehicle. K2's volume has been cut to US$18.8 billion from US$31.2 billion since July, it said.
Allianz's banking division had an operating profit of 730 million euros last year, down from 1.4 billion euros in 2006, after writedowns on structured products led to an operating loss in the fourth quarter.
Dresdner wrote down the value of asset-backed securities by 350 million euros in the third quarter and by 66 million euros in the second.
The company plans to increase its dividend to 5.50 euros a share from 3.80 euros distributed to shareholders for 2006.
That beat the median estimate of 5.05 euros.
Allianz has repeatedly said it plans to raise the portion of profit it pays in dividends.
ROLLER-COASTER RIDE: More than five earthquakes ranging from magnitude 4.4 to 5.5 on the Richter scale shook eastern Taiwan in rapid succession yesterday afternoon Back-to-back weather fronts are forecast to hit Taiwan this week, resulting in rain across the nation in the coming days, the Central Weather Administration said yesterday, as it also warned residents in mountainous regions to be wary of landslides and rockfalls. As the first front approached, sporadic rainfall began in central and northern parts of Taiwan yesterday, the agency said, adding that rain is forecast to intensify in those regions today, while brief showers would also affect other parts of the nation. A second weather system is forecast to arrive on Thursday, bringing additional rain to the whole nation until Sunday, it
LANDSLIDES POSSIBLE: The agency advised the public to avoid visiting mountainous regions due to more expected aftershocks and rainfall from a series of weather fronts A series of earthquakes over the past few days were likely aftershocks of the April 3 earthquake in Hualien County, with further aftershocks to be expected for up to a year, the Central Weather Administration (CWA) said yesterday. Based on the nation’s experience after the quake on Sept. 21, 1999, more aftershocks are possible over the next six months to a year, the agency said. A total of 103 earthquakes of magnitude 4 on the local magnitude scale or higher hit Hualien County from 5:08pm on Monday to 10:27am yesterday, with 27 of them exceeding magnitude 5. They included two, of magnitude
CONDITIONAL: The PRC imposes secret requirements that the funding it provides cannot be spent in states with diplomatic relations with Taiwan, Emma Reilly said China has been bribing UN officials to obtain “special benefits” and to block funding from countries that have diplomatic ties with Taiwan, a former UN employee told the British House of Commons on Tuesday. At a House of Commons Foreign Affairs Committee hearing into “international relations within the multilateral system,” former Office of the UN High Commissioner for Human Rights (OHCHR) employee Emma Reilly said in a written statement that “Beijing paid bribes to the two successive Presidents of the [UN] General Assembly” during the two-year negotiation of the Sustainable Development Goals. Another way China exercises influence within the UN Secretariat is
Taiwan’s first drag queen to compete on the internationally acclaimed RuPaul’s Drag Race, Nymphia Wind (妮妃雅), was on Friday crowned the “Next Drag Superstar.” Dressed in a sparkling banana dress, Nymphia Wind swept onto the stage for the final, and stole the show. “Taiwan this is for you,” she said right after show host RuPaul announced her as the winner. “To those who feel like they don’t belong, just remember to live fearlessly and to live their truth,” she said on stage. One of the frontrunners for the past 15 episodes, the 28-year-old breezed through to the final after weeks of showcasing her unique