Allianz posts worse than expected 8.7% drop in profit but sticks to 2026 target

FRANKFURT, Aug 7 (Reuters) - Germany's Allianz on Friday posted a worse-than-expected 8.7% fall in second-quarter net profit as it booked restructuring expenses on IT assets as it readies itself for increased usage of artificial intelligence.

But the insurer stuck to its full-year operating profit target.

Net profit attributable to shareholders of €2.595 billion ($2.99 billion) in the three months through June compares with profit of €2.841 billion a year earlier. The figure fell short of a €2.787 billion euro consensus forecast.

Allianz booked restructuring expenses in the quarter of €643 million, compared with €152 million a year earlier.

The company said in a presentation that the restructuring "includes an accelerated decommissioning of IT systems connected to our investments in AI enabled workflows and solutions".

($1 = 0.8678 euros)

(Reporting by Tom Sims and Alexander HuebnerEditing by Ludwig Burger)