Allianz 1Q profit down 66%

Allianz SE of Munich today reported that its first-quarter net income slid to $1.7 billion, down 66%, from $4.9 billion in the same period last year. The Munich-based insurer also forecast a $1.4 billion write-down. These markdowns, the result of the global credit crisis, were generated in insurance carrier’s Dresdner Bank AG unit of Frankfurt, Germany. Less-than-favorable market conditions have affected the company’s profits, Allianz said in a statement, and the road into 2009 promises to be a rocky one. “In this difficult market environment, an operating profit of almost two billion euros [$2.8 billion] underlines our sustainable underlying profitability,” Helmut Perlet, an Allianz board member, said in a statement. “Hence, we consider our medium-term targets for 2009 to be still feasible, even though this will become harder, the longer the financial crisis will last.” The company will publish the full details of its first quarter results on May 9.