Munich, May 06: Allianz AG Holding (AZ) said that it expects its Korean operations to swing to a net profit this year, after a loss in 2003.
Allianz didn't specify how much its life insurance unit Allianz Life Korea lost last year, but it made extraordinary goodwill writedowns amounting to EUR224 million for the unit in 2003 and said in March that the unit has become a new restructuring case. Allianz's Asian-Pacific business had a net loss of EUR5 million last year.
Allianz also said it aims to reduce its risk capital further.
Chief Executive Michael Diekmann told the company's annual general meeting that Allianz aims to reduce its risk capital to EUR6 billion from EUR8.2 billion.
"We will continue to reduce the risk capital quickly," Diekmann said, without giving a time frame. Allianz's risk capital currently amounts to EUR8.2 billion. Of this, about EUR4.6 billion is risk capital bound in operational divisions, the remaining EUR3.6 billion is bound in Dresdner Bank's internal restructuring unit and in equity holdings, Diekmann said.
Diekmann also repeated that Allianz aims to reduce its equity holdings further. Allianz said in March it will generally cut equity holdings to around 5%, but also said it was happy with its stake in Beiersdorf of above 7%.
Chief Financial Officer Paul Achleitner said realized gains from the risen market value of its equity holdings will become smaller in the medium term than in the past. He didn't elaborate but also said that market conditions for fixed-income investment have become more difficult. Allianz's portfolio consists of 75% in bonds.
Bureau Report
