German insurer Allianz SE, an investor in Hartford Financial Services Group Inc., said Friday it expects its 2010 operating profit to be around last year’s level of $9.7 billion (euro7.2 billion) as the global economy comes out of a long downturn.
Allianz, one of the world’s biggest insurers and based in Munich, said it expects moderate economic growth and reduced income from investments because of low interest rates this year, but added it is in “excellent form.”
Allianz pumped $2.5 billion in capital into The Hartford in exchange for an equity stake in late 2008, when the Hartford life and property-casualty insurer was hobbled by the global financial crisis.
Allianz, which released preliminary earnings in February, confirmed Friday it earned euro4.3 billion in 2009 net income, compared with a loss of euro2.2 billion in 2008
Revenue for 2009 rose more than 5 percent to euro97 billion from euro93 billion in 2008.
“Despite the sputtering global economy, we believe in organic growth,” Michael Deikmann, Allianz’s chief executive, said in the note to shareholders, adding that results “in life insurance are good overall and results in asset management are excellent.”
Allianz also has a large financial advisory and management business.
The asset management business benefited from the early economic turnaround with net inflow of capital rising to euro84 billion from zero in 2008, as investors regained some trust in the markets.
Looking ahead, the insurer said it expects market participants to have a healthy dose of risk aversion coupled with more desire for security.
“We see opportunities for continued expansion, particularly in life insurance, asset management and in Asia,” Deikmann said though wasn’t more specific. He also said a more precise forecast wasn’t available given the current economic environment.
