Allianz SE (ALV.XE), Europe's largest insurer by gross premiums and market capitalization, Thursday cut the full-year profit guidance for its German operations--the largest within the group.

"Due to the current situation in capital markets and claims costs for further thunderstorms in July, the 2011 operating profit of Allianz Germany will likely be on the level of the previous year," Allianz Germany said in the earnings report for the first six months. It declined to give any guidance on a net income level. Allianz previously said in March it expected its German operations to post higher net and operating profit in 2011 than 2010, despite facing a number of challenges at home.

Allianz last week said its still on track to meet the group's target of a 2011 operating profit in a EUR7.5 billion to EUR8.5 billion range.

For the first six months of this year, Allianz Germany reported an operating profit of EUR822 million, down 10% from EUR916 million in the year-earlier period.

In 2010, the German operations contributed an operating profit of EUR1.76 billion, or 23%, to the group's operating profit of EUR8.2 billion. The net profit contribution was EUR1.33 billion.

Allianz has life/health and property/casualty insurance operations, an asset management business and a small banking operation in Germany.

-By Ulrike Dauer, Dow Jones Newswires; +49 69 29725 500; ulrike.dauer@dowjones.com