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UPDATE 1-Talanx sees no further writedowns in German life
August 12, 2015 / 7:28 AM / 2 years ago

UPDATE 1-Talanx sees no further writedowns in German life

* Talanx free from further writedowns for decade

* Talanx took 155 mln eur goodwill hit in Q2

* Q2 net profit 60 mln eur vs poll avg 79 mln

* Share 0.04 pct higher vs 1.75 pct drop in MDAX (Adds CEO quote, detail, shares)

FRANKFURT, Aug 12 (Reuters) - German insurer Talanx said it expects no more writedowns in its German life insurance business in the coming years after a goodwill impairment hit net profit harder than expected in the second quarter.

“We are free from further extraordinary writedowns in the German life business for at least the next decade,” Talanx Chief Executive Herbert Haas told a conference call with journalists on Wednesday.

Talanx shares were slightly positive at 0715 GMT, outpacing a 1.7 percent decline in the MDAX index of German mid-cap companies.

Quarterly net profit fell by more than expected to 60 million euros ($66 million) in the second quarter, as a rise in premiums and investment income failed to offset the impact of a 155 million euro goodwill writedown announced last month.

Analysts on average had expected quarterly net profit of 78.7 million euros, down from 165 million in the year-earlier quarter, a Reuters poll of banks and brokerages showed.

The goodwill impairment on its life insurance business prompted Talanx to cut its group net profit target for 2015 on July 28, saying it expected to earn between 600 million and 650 million euros compared with a previous goal of at least 700 million.

$1 = 0.9033 euros Reporting by Jonathan Gould; Editing by Andreas Cremer and Maria Sheahan

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