Euler Hermes net down;sees no recovery till autumn

PARIS, May 6 (Reuters) - Euler Hermes (ELER.PA: Quote, Profile, Research) posted a 65.6 percent drop in first-quarter net profit on Tuesday, citing the world economic slowdown, and said it did not expect the global economy to recover before the autumn.

The world's biggest credit insurer, a unit of German insurer Allianz (ALVG.DE: Quote, Profile, Research), said net profit fell to 38.4 million euros ($59.47 million) in the three months to March 31 from 111.5 million euros a year earlier.

"Euler Hermes remains vigilant in the face of the severity and duration of this economic slowdown, and at this moment it does not expect an improvement in the macroeconomic situation before the autumn of 2008," it said in a statement.

It said it believes it has taken the appropriate measures in terms of risk management in response to the tough environment. (Reporting by Astrid Wendlandt; editing by John Wallace)