Third quarter profits at German insurer Allianz continue to be affected by outflows through its daughter Pimco, nevertheless, the group says it continues to stick with its full year target of €10bn operating profits, Allianz SE CFO Dieter Wemmer said.
Total quarterly revenues were at €27.5bn, compared to €28.8bn yoy, representing a 4.3% decrease, while operating profits for the third quarter were at €2.45bn, a 7.5% decline compared to the previous year.
While both the Property and Casualty Insurance and the Life and Health Insurance reported profits, the business continues to face challenges in its asset management division, Allianz Asset Management.
While Allianz GI benefited from a combination of high level performance fees and a strong dollar, resulting in operating profits increasing by 1.1% to €1.64bn, operating profits declined by 13.5% to €600m. However, the firm highlighted that compared to the previous quarter, outflows had slowed down.
“Net outflows at PIMCO nearly halved compared to the previous quarter and have reached the lowest quarterly level since the start of net outflows in the third quarter of 2013,” said Dieter Wemmer. “At Allianz Global Investors, third party net inflows continued for the eleventh consecutive quarter.”
As of September 30, 2015, total assets under management were €1,746bn compared to €1,801bn at the end of 2014. Third-party assets under management amounted to €1,259bn, down from €1,313bn at the end of 2014.