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Allianz touts PIMCO performance as Q2 profit surges 83.4% YOY

Allianz Group said unit Pacific Investment Management Co. LLC was once again a "performance engine" for the German firm as it posted a year-over-year surge in second-quarter profit.

Allianz reported net income attributable to shareholders of €1.99 billion for the second quarter, up 83.4% from €1.09 billion in the same period in 2016. EPS for the period stood at €4.45, compared with €2.34 a year earlier.

The company noted that prior-year figures have been adjusted to reflect the impact resulting from an accounting policy change to measure the guaranteed minimum income benefit liability at fair value for its life business.

Operating profit increased on a yearly basis to €2.93 billion from €2.38 billion. Operating profit at the property and casualty division rose to €1.45 billion from €1.13 billion, while profit at the life and health division amounted to €1.13 billion, compared with €1.01 billion in the second quarter of 2016.

Net earned premiums came in at €17.32 billion during the second quarter, compared with €17.17 billion in the year-ago period. Net claims and insurance benefits incurred dropped year over year to €12.37 billion from €12.80 billion.

The P&C combined ratio stood at 93.7%, compared with 96.4% in the second quarter of 2016.

In the asset management segment, second-quarter operating profit rose year over year to €584 million from €500 million. The group's third-party AUM totaled €1.406 trillion at the end of June, up 3.3% from €1.361 trillion at Dec. 31, 2016.

Allianz said record quarterly third-party net inflows of €55 billion, primarily at PIMCO, as well as positive market effects, were largely offset by negative foreign-currency impacts, mostly driven by the depreciation of the U.S. dollar against the euro.

"PIMCO saw €33 billion in net inflows across a broad customer base plus a single €19 billion mandate. This brought PIMCO's total third-party net inflows to a record €52 billion for the quarter," CFO Dieter Wemmer said.

For the first half, the group's attributable net income rose 17.9% year over year to €3.81 billion from €3.23 billion. Return on equity rose to 13.4% from 12.3%.

The group's Solvency II capitalization ratio stood at 219% as of June 30, compared with 212% as of March 31 and 218% at the end of June 2016.