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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.