0932 GMT - Allianz's realization of fixed income losses is "proactive and prudent" and causes a small increase to outer year forecasts, Jefferies' Philip Kett and Derald Goh write. The German insurer is reinvesting gains from the sale of its stakes in Indian joint ventures back into "strategic growth and productivity initiatives" and into the realization of fixed income losses. "One secondary implication is that this smooths the group's earnings, neutralizing an unsustainable gain," Jefferies says. The change lifts Jefferies' forward forecasts by 1% a year, and Jefferies raises the target price to 440 euros from 420 euros. "In light of the ongoing bond market volatility, we would not be surprised if peers also proactively recognized fixed income losses," the analysts add. Shares are up 1.2% at 418.20 euros.