FRANKFURT, Germany (AP) — German insurer Allianz SE saw third quarter profits sag to €258 million ($350 million) from €1.27 billion ($1.73 billion) the year before because of investment losses and Greek bond writedowns from Europe's debt crisis.
The company's result was well short of the €766 million predicted by analysts surveyed by FactSet. Revenue fell 1.8 percent to €24.07 billion.
Munich-based Allianz said Friday it lost €122 million from writing down Greek bonds, and €817 million ($1.11 billion) from the fallen value of its holdings in other financial companies such as banks and insurers.
Greece is in the process of working out a debt reduction that includes bondholders taking 50 percent losses on the value of their investments. Fears that Greece's problems will infect larger countries such as Italy have led to sharp swings on stock and bond markets.
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