(Reuters) – Allianz SE, which has already stopped accepting new deals in Russia, will probably leave the country completely, the German insurance company’s CFO said on Thursday.
The statement from Chief Financial Officer Giulio Terzariol goes further than the company’s announcement in March that it put a stop to new insurance policies in the country as well as new investments in Russia, following the invasion of Ukraine.
“I would define the probability as very high,” Chief Financial Officer Giulio Terzariol told reporters when asked about the possibility of closing his business there.
Allianz said in an analyst presentation that its final result could hit between 400 million euros (417.44 million dollars) and 500 million euros from a liquidation of its Russian insurance subsidiary.
Allianz, which is working to resolve US regulatory investigations into a multi-billion dollar trade debacle at its fund arm, also said on Thursday that net profit fell 78% in the first quarter but confirmed its outlook for 2022 operating profit.
Net profit was EUR 561 million during the quarter, down from EUR 2.57 billion a year ago.
The net profit figure published on Thursday is more accurate and lower than the 600 million euros it announced a day earlier, when it revealed that it would set aside another 1.9 billion euros to deal with its US legal issues.
Analysts, prior to the announcement of this provision, had initially expected a net profit of more than € 1.9 billion during the quarter.
Allianz reaffirmed its full-year outlook, expecting an operating profit of € 13.4 billion, give or take one billion.