Allianz Q3 results show turnaround at Pimco
German insurance giant Allianz SE has reported a significant improvement of profit figures compared to a challenging second quarter, marked by recovery in all business segments, including its subsidiary Pimco.
According to the insurer, year-on -year net income attributable to shareholders increased by 36.5% and total revenues by 0.5 % throughout the third quarter.
Allianz has faced a difficult second quarter, with net profits declining by 46% due to higher claims from natural disasters as well as charges from the sales of its North Korea unit.
However, throughout the third quarter, the Allianz asset management division faced third-party net outflows and negative effects from currency markets, which were offset by a growth in returns and the beneficial effect of its acquisition of Rogge Capital Partners, which led to a 4% increase in third party assets under management.
At the same time, operating profit decreased by 5.8 percent to €1.6bn in the first nine months of 2016, mainly as a result of lower margins and lower average third-party AuM.
Having faced three years of more or less persistent outflows, the fate of fixed-income investor Pimco appeared to have reversed, reporting third-party net inflows of €4.7bn throughout the third quarter.