German insurer Allianz warns on profits after weak second quarter (AFP)

FRANKFURT, (AFP) - German insurance group Allianz warned late Wednesday that it would not reach its operating profit target going into 2009 following a difficult second quarter. It said in a statement that it expected the financial crisis to persist. In 2006, the group had set a goal of increasing its operating profit by an average of 10 percent by next year. But in light of "contrary winds in the market," Allianz said it now expected to miss that target. Net profit plunged by 28 percent in the second quarter to 1.5 billion euros (2.3 billion dollars) and operating profit shed 36 percent to 3.3 billion, the statement said. Turbulence on international financial markets had seriously cut into its life insurance activities, the group explained. Its banking unit Dresdner Bank was also hit by the turmoil, posting an operating loss... [read full story]