CORRECT: Allianz CEO: 2009 "Will Not Be An Easy Year"
April 29 2009 - 10:06AM
Dow Jones News
German insurer Allianz SE (AZ) won't have an easy year in 2009,
Chief Executive Michael Diekmann said Wednesday.
"2009 will not be an easy year," Diekmann told the annual
shareholders' meeting, adding the insurer's capital base and
solvency remain healthy and robust.
Diekmann said Allianz doesn't require capital increases or
government aid.
"Any dilution of your shareholding by a capital increase as a
result of regulatory conditions, or even intervention by the state,
are therefore not on our agenda," Diekmann said.
He called the U.S. life insurance business "a particular
challenge," reiterating that Allianz's business there will again
require "tough cost-cutting measures" and "massive product changes
this year."
Diekmann also repeated that the insurer's investment in Hartford
Financial Services Group Inc. (HIG) is "a financial
investment."
In October, Hartford closed on a $2.5 billion investment by
Allianz, which ultimately would give Allianz a stake of just below
24% in Hartford when it converts hybrid debt into shares.
Currently, Allianz holds a 7.4% stake in Hartford and has hybrid
debt worth $1.75 billion that includes the option of a conversion
into Hartford shares within the next seven years.
Diekmann also said the insurer will focus on cost control in all
areas and won't stage price wars for market share.
Company Web site: www.allianz.com
-By Ulrike Dauer, Dow Jones Newswires; +49 69 29725 500;
ulrike.dauer@dowjones.com