By Ulrike Dauer
Allianz SE's (ALV.XE) raised guidance for 2013 operating profit
would have been even higher were it not for potential costs of up
to 400 million euros ($539 million) in the final quarter, Chief
Financial Officer Dieter Wemmer said Friday.
Earlier in the day, Europe's biggest insurer raised its
full-year guidance for operating profit, saying its performance in
the first nine months put it on track to achieve a figure slightly
above EUR9.7 billion.
Mr. Wemmer said during a media call that fourth-quarter
operating profit could be lower than the EUR2.2 billion achieved in
the same quarter a year ago. He added that 2013 net profit would
likely be above last year's figure of EUR5.23 billion.
Mr. Wemmer said costs for European storm Christian that caused
damage in various European countries in late October, investments
in information technology and a review of the group's product
strategy in Korea could result in a quarterly cost of up to EUR400
million.
Allianz currently expects a bill of roughly EUR100 million for
claims caused by the storm, though that figure could be revised,
Mr. Wemmer said. The storm will cost insurers more than EUR1
billion, he added.
Risk modeling agency Air Worldwide Thursday issued a
substantially higher estimate, saying the storm could cost the
insurance industry up to EUR2.3 billion.
The storm caused widespread damage to property and continued
disruption to travel and energy supplies as fallen trees brought
both regional and national rail services to a halt. It also led to
cancelled flights, airport closures and power outages. A previous
estimate by reinsurance broker Willis Re had put the overall
insured damage between EUR800 million and EUR1.3 billion.
Write to Ulrike Dauer at ulrike.dauer@wsj.com; Twitter:
@UlrikeDauer_
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