Allianz said second-quarter net profit fell but operating profit rose as its asset management business struggled amid market turmoil.
The German insurer said net profit for the quarter at the end of June was 1.71 billion euros, down from 2.23 billion euros a year ago.
Operating profit rose 5.3 percent to 3.50 billion euros, mainly due to improved underwriting and investment results in the real estate sector, Allianz said.
Estimates were for a net profit of 1.83 billion euros and an operating profit of 3.29 billion euros.
Growth was hit by the asset management unit, as “adverse market movements and cautious investor sentiment” led to a 6.6% drop in operating profit at the unit.
Assets under management by third parties decreased by 109 billion dollars to 2.319 trillion. euros, due to unfavorable markets characterized by uncertainties about inflation and turmoil in capital markets, with net outflows from operations reaching 33.8 billion euros.
Group revenue rose 8.2% to €37.1bn, while Allianz also confirmed full-year operating profit estimates of €13.4bn, plus/minus €1bn.
Source: Capital
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