Allianz reports jump in earnings

Allianz SE noted that first quarter profits grew a hefty 80%, but results were enhanced from the sale of shareholdings in Germany. Net income crested at 3.2 billion euros ($4.35 billion) from 1.78 billion euros in the same period a year ago, reported Bloomberg. The results surpassed the 2.4 billion euros median estimate of the 16 analysts that Bloomberg surveyed. Allianz is the largest insurance company in Europe. After the sale of shares in Bayerische Motoren Werke AG and Munich Re, Allianz realized $2 billion euros in capital gains. That money has been earmarked to help pay for the 9.8 billion buyout of Assurances Generales de France, the largest acquisition that Allianz has undertaken during Chief Executive Officer Michael Diekman’s tenure, which dates back to 2003. “It’s hard to predict capital gains from investments as the book value of Allianz’s investments isn’t known,” said Thorsten Wenzel, analyst at DZ bank in Frankfurt.