German insurance titan Allianz has raised the specter of beating its full year earnings expectations having delivered an impressive 64% increase in net profit for its second quarter.

Munich-headquartered Allianz has stated, based on preliminary calculations, that its net profit for the April to June period was E2.3 billion, a 64% increase on Q2 2005 net profit of E1.4 billion.

Revenues improved from E23.7 billion to E24.1 billion, while operating profit rose 19% to E2.8 billion.

As a result Allianz now predicts its full year net earning will come in around E0.6 billion ahead of earlier estimates at E5.5 billion. Operating profit is expected to reach E9 billion.

The news was predictably met with a positive response from the market as Allianz shares improved by 3% on the Frankfurt exchange. However the strong financial performance comes as the German insurer is implementing a plan to shed 7,500 jobs worldwide.

Meanwhile, on a negative note, Allianz saw net profit at its Dresdner Bank arm decline by 36%, due, it is speculated, by the distorting effect of one-off gains in Q2 of 2005.