Currencies

China capital curbs reflect buyer’s remorse over market reforms

Last year the reformist head of China’s central bank convinced his Communist party bosses to give market forces a bigger say in setting the renminbi’s daily “reference rate” against the US dollar. In return, Zhou Xiaochuan assured his more conservative party colleagues that the redback would finally secure coveted recognition as an official reserve currency […]

Continue Reading

Capital Markets

Mnuchin expected to be Trump’s Treasury secretary

Donald Trump has chosen Steven Mnuchin as his Treasury secretary, US media outlets reported on Tuesday, positioning the former Goldman Sachs banker to be the latest Wall Street veteran to receive a top administration post. Mr Mnuchin chairs both Dune Capital Management and Dune Entertainment Partners and has been a longtime business associate of Mr […]

Continue Reading

Banks

Financial system more vulnerable after Trump victory, says BoE

The US election outcome has “reinforced existing vulnerabilities” in the financial system, the Bank of England has warned, adding that the outlook for financial stability in the UK remains challenging. The BoE said on Wednesday that vulnerabilities that were already considered “elevated” have worsened since its last report on financial stability in July, in the […]

Continue Reading

Currencies

China stock market unfazed by falling renminbi

China’s renminbi slump has companies and individuals alike scrambling to move capital overseas, but it has not damped the enthusiasm of China’s equity investors. The Shanghai Composite, which tracks stocks on the mainland’s biggest exchange, has been gradually rising since May. That is the opposite of what happened in August 2015 after China’s surprise renminbi […]

Continue Reading

Financial

Hard-hit online lender CAN Capital makes executive changes

The biggest online lender to small businesses in the US has pulled down the shutters and put its top managers on a leave of absence, in the latest blow to an industry grappling with mounting fears over credit quality. Atlanta-based CAN Capital said on Tuesday that it had replaced a trio of senior executives, after […]

Continue Reading

Categorized | Insurance

Allianz reports first inflows at Pimco since 2013


Posted on November 11, 2016

Allianz said Pimco, its US bond fund management business, clocked its first quarterly inflows since 2013 in the third quarter, as clients added €4.7bn.

The positive performance at Pimco was revealed in Allianz’s third quarter results, which showed net profit at the German insurer rose 36.5 per cent year on year to €1.9bn although revenues edged up just 0.5 per cent to €27.7bn.

Europe’s largest insurer said its life and health insurance businesses drove the performance in the third quarter performance, although it also highlighted “robust” revenue growth of 3.1 per cent – adjusting for currency movements and other factors – at its property and casualty insurance unit.

Dieter Wemmer, chief financial officer of Allianz, said:

Efforts to develop our business in a very difficult environment are paying off. We’re seeing sustainable profitable growth in many businesses.

Improvements from our Renewal Agenda are bearing fruit and keeping us on track to reach our operating profit target for the full year of 10.5 billion euros, give or take 500 million euros.

On Pimco, Mr Wemmer added:

The 4.7 billion euros in positive net flows at Pimco confirm the attractiveness of Pimco products.

Pimco in the summer raided hedge fund Man Group to find a new chief executive, appointing Manny Roman to replace Douglas Hodge.

The third quarter performance is an improvement on the second quarter, when net profits halved as Allianz was hit by higher claims for natural disasters and a writedown linked to the sale of its South Korean business.