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Insurer Allianz also exposed to Greek bonds worry
Feb 25, 2010, 11:48 GMT
Munich - Allianz disclosed Thursday 900 million euros (1.2 billion euros) in net exposure to Greek government bonds as the German insurance giant company was unveiling its latest profit figures.
Alarm has been growing among investors that the Greek state may default if Athens cannot boost its lagging tax revenue and slash the cost of a bloated bureaucracy and public works. The worries have put the euro currency in a crisis.
The Allianz exposure is dwarfed by that of Commerzbank, the German bank which took over former Allianz banking unit Dresdner in 2008. Commerzbank said Tuesday that its Greek government portfolio was priced at 3.1 billion euros.
Getting rid of Dresdner restored health to Allianz, Europe's biggest insurer. Its 2009 post-tax surplus was 4.3 billion euros, a sharp change from the loss at Allianz of 2.4 billion euros last year.
At a news conference in Munich, the company chiefs said the economic uncertainty ahead prevented any forecast for this year.
'We must prepare for economic growth to be tepid,' said chief executive Michael Diekmann.
On the Frankfurt Stock Exchange, Allianz stock rose 0.7 per cent to 82.66 euros on news of the profit.
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