Allianz SE (ALV.XE) will restructure its German property insurance operations, involving job cuts and the launch of new products, to meet its long-term growth targets, the chief executive of Allianz Germany, Markus Riess, tells Handelsblatt in an interview published Wednesday.

"We are losing market share and profitability is neither where it used to be, nor where we want it to be," Riess is reported as saying, adding that the division must finally swing to profitable growth.

The company expects sales in the property insurance segment to increase to nearly EUR9.5 billion by 2014, in a stagnant market, Reiss adds.

Additionally, Reiss expects to reduce costs by two percentage points, but didn't provide specific numbers, since he also expects premiums to grow at the same time. However, one percentage point equals about EUR70 million to EUR90 million, he adds.

The company also plans to cut jobs in the property insurance segment. It expects to eliminate 400 jobs out of 2,200 positions in the business within the next three years, the report says.

Newspaper website: www.handelsblatt.com

-Frankfurt Bureau, Dow Jones Newswires; 49-69-29725-500