Allianz withdraws profit targets as net income drops 30% amid COVID-19

German insurer Allianz has withdrawn its profit target for full-year 2020, citing "uncertainties for the macroeconomic development" caused by the ongoing COVID-19 pandemic.

Given the market condition, the board of management "does not assume that Allianz Group can achieve the target range for the operating profit for 2020 in the amount of €12 billion +/- €500 million," the company said in a statement.

Allianz said that a new profit target for 2020 will be announced by the board upon completion of the "revised planning".

As per the preliminary results for the first quarter 2020, Allianz Group expects a shareholder's net income for Q1 of €1.4 billion, down 30 percent from €2.0 billion in the prior year quarter.

The operating profit for Q1 is estimated around €2.3 billion, compared with €3.0 billion in Q1 2019.