FRANKFURT, Germany - Germany's Allianz insurance group lost 520 million euros ($592 million) in the first quarter due to the fallen value of its investment holdings.
The Allianz loss reported Friday contrasted with a profit of 1.93 billion euros in the same quarter a year earlier and fell short of analysts' expectations. Analysts surveyed by Dow Jones Newswires expected a loss of 426 million euros ($486 million).
The company said its basic insurance businesses were improving, but it lost money on investments and at its Dresdner Bank subsidiary, which lost 424 million euros ($485 million).
It was another dismal result from Germany's financial sector, where big insurance and banking groups have been hammered by falling stock markets that force them to take big writeoffs on securities and on their long-term stakes in other companies.
Allianz said that it deducted 846 million euros ($964 million) from earnings to reflect the diminished value of its securities holdings.
Insurance companies essentially have two businesses: collecting premiums and paying claims, and earning investment returns on the premiums.
The basic insurance business at Allianz showed better results, with net income of 27 million euros ($31 million) and an increase in premium income of 9.8 percent.
© 2003 The Associated Press