FRANKFURT (Reuters) - German insurance giant Allianz (ALVG.DE) reported on Thursday a preliminary 30% drop in first quarter net profit and abandoned its profit target for the full year, blaming economic uncertainty amid the coronavirus outbreak.
Allianz joins a raft of European insurers warning about their prospects as they face claims for business disruptions, cancelled events and a lack of demand for car and travel insurance.
The company said that it could no longer assume achieving an operating profit of between 11.5 billion euros and 12.5 billion euros ($12.6 bln-$13.7 bln) in 2020, after making 11.9 billion euros in 2019.
If operating profit falls in 2020, it would be the first decline since 2011.
Allianz said it expects an operating profit of 2.3 billion euros in the first quarter, down from 3 billion euros in the year-earlier period, and net income of 1.4 billion euros, down from 2 billion euros in the year-earlier quarter.
The preliminary figures were in line with analysts’ expectations.
Allianz expects to announce more complete details of its quarterly earnings on May 12.
Reporting by Edward Taylor, Tom Sims and Alexander Huebner; Editing by Tom Sims and Susan Fenton