ALLIANZ expects Q1 net income to fall by around 30% and withdraws the year-end profit target

4 May 2020 — Andrei Victor
German insurance group ALLIANZ it has withdrawn its operating profit target for 2020 in light of uncertainty caused by the coronavirus pandemic, and said that it expects first-quarter net income to fall by around 30%.

Thus, according to the announcement released on April 30th, the German insurer expects shareholder's net income for the first three months of the year of EUR 1.4 billion down from EUR 2 billion in the year-earlier period. Quarterly operating profit is expected to be EUR 2.3 billion vs EUR 3.0 billion a year before.

"In light of the uncertainties for the macroeconomic development caused by the current pandemic and the now available updated financial plans of the operating entities of the Group, from today's perspective the Board of Management does not assume that ALLIANZ Group can achieve the target range for the operating profit for 2020 in the amount of EUR 12 billion euros +/- EUR 500 million."

Thus, a new profit target for 2020 will be announced by the Board of Management upon completion of the revised planning, the insutet said. The company plans to release its full results for the first quarter on May 12.

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