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Allianz Confirms Profit Forecast Despite Hurricane Sandy Costs

Jan. 15, 2013

Europe's biggest insurer Allianz confirmed Tuesday its profit outlook for 2012 despite the high costs resulting from Hurricane Sandy, which devastated large parts of the northeast US coast in October.

The Munich-based group estimated the cost to its operations last year resulting from the massive storm at 590 million dollars.

But Allianz chief financial officer Dieter Wemmer said: "Despite the impact of Hurricane Sandy, we continue to expect our operating profit for 2012 to exceed 9 billion euros (12 billion dollars)."

The world's third biggest reinsurer, Hannover Re said Monday it still expects to post a net profit for 2012 of more than 800 million euros, despite the damage caused by Sandy.

Hannover Re expects its net losses from Sandy to total 261 million euros. Reinsurers cover the insurance sector's risks.

Analysts expect the damage caused by Sandy, which brought New York to a standstill, to cost the global insurance industry up to 25 billion dollars.

Allianz is scheduled to publish its full-year results, including the costs of natural catastrophes in 2012, on February 21.

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Source: Copyright 2013 dpa Deutsche Presse-Agentur GmbH

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