Allianz promises €1bn in Dresdner synergies

German insurer Allianz has estimated the synergies of its merger with Dresdner Bank at €1bn (US$851.6mn) a year from 2006. What impressed analysts was that this figure was obtained by adding estimates made by operating units rather than calculated by top management. Analysts also noted the merger plans were based on a “genuine business project”, namely that the deal would put Allianz in a much stronger position to benefit from the proposed reform of the pension system in Germany. All this helped boost Allianz’s share price. At the same time, the fact that Allianz published quarterly figures for the first time in its history was overlooked.