Sept. 9 (Bloomberg) -- German stocks fell, paced by insurers Allianz AG and Munich Re, after Hannover Re said it expects earnings in 2004 to be at the lower end of its forecast because of costs related to hurricanes in the U.S.

The DAX Index shed 28.98, or 0.8 percent, to 3855.18 as of 2:29 p.m. in Frankfurt. The HDAX Index of the country's 110 biggest companies lost 0.7 percent to 1972.17. The DAX September futures fell 0.7 percent to 3857.

Hannover Re Chief Executive Officer Wilhelm Zeller yesterday told Reuters he expects earnings in 2004 to be at the lower end of the company's forecast range due to higher costs caused by hurricanes Charley and Frances in the U.S. The world's fifth- biggest reinsurer has predicted 2004 profit to be between 390 million euros ($476 million) and 430 million euros.

Insurance stocks were one of the worst performers among the 18 industry groups on Germany's Prime All Share Performance Index, which tracks 377 companies listed on Deutsche Boerse AG's main Prime Standard market. The index fell 1.6 percent, outpacing a 1.1 percent advance on the broader measure.

Allianz, Europe's largest insurer, fell 1.17 euros, or 1.4 percent, to 82.74 euros.

Munich Re, the world's largest reinsurer, fell 79 cents, or 1 percent, to 79.23 euros. The company said damages related to hurricanes Charley and Frances won't jeopardize the company's goal to post net income of 2 billion euros this year.

Indonesian Blast

Travel-related stocks, such as Deutsche Lufthansa AG and TUI AG, slipped after a car bomb outside the Australian embassy in the Indonesian capital Jakarta killed at least eight people, stoking fears terrorism might keep people at home.

``Every time there is a terrorist attack it will have a negative impact on the stock market because the risk premium of owning equities goes up,'' said Gerard Piasko, chief investment officer at Bank Julius Baer Holding AG.

Deutsche Lufthansa AG, Europe's third-largest airline, fell 23 cents, or 2.3 percent, to 9.69 euros. TUI AG, Europe's largest travel company, fell 14 cents, or 1 percent, to 14.76 euros.

The following stocks are making gains or losses today. Stock symbols are in parentheses after the company names.

DAX stocks:

DaimlerChrysler AG (DCX GY), the world's fifth-largest carmaker, fell 31 cents to 34.86 euros. German new car sales fell 3.1 percent last month as rising oil prices and a decline in consumer confidence deterred buyers, the government said.

Sales fell to 220,862 units in August, the motor vehicle agency, known as KBA, said in an e-mailed statement. Eight-month sales declined 2.3 percent to 2.14 million vehicles.

Bayerische Motoren Werke AG (BMW GY), the world's second- largest luxury-car maker, fell 37 cents, or 1.1 percent, to 34.59 euros.

Schering AG (SCH GY), Germany's third-biggest drugmaker, rose 1.14 euros, or 2.4 percent, to 48.27 euros after the company said its Bonefos treatment to prevent breast cancer from spreading to bones will get a priority review from the U.S. Food and Drug Administration.

The FDA will make a decision on the authorization of the drug within six months, Berlin-based Schering said in an e-mailed release. Bonefos is approved in 79 countries, Schering said.

To contact the reporter on this story: Chris Fournier in Frankfurt at Cfournier3@bloomberg.net

Last Updated: September 9, 2004 08:58 EDT