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Corrections & Amplifications
This headline was corrected at 0543 GMT because the second quarter net profit was misstated as EUR1.81B.
By Ed Frankl
Allianz SE on Friday said second-quarter net profit tumbled but operating profit rose, as its asset-management business struggled amid turbulent markets.
The German insurer said net income in the three months to the end of June was 1.71 billion euros ($1.75 billion), down from EUR2.23 billion a year earlier.
Operating profit was up 5.3% to EUR3.50 billion, driven by improved underwriting and investment results in the property-and-casualty segment, Allianz said.
That compares with expectations of net profit of EUR1.83 billion and operating profit at EUR3.29 billion, according to analysts’ consensus provided by the company
Growth was hit by the asset-management division, after “adverse market movements and cautionary investor sentiment” led to operating profit there falling 6.6%, the company said.
Third-party assets under management dropped EUR109 billion to EUR2.319 trillion, Allianz said, blaming unfavorable markets characterized by inflation-related uncertainties and capital-market turbulence, with net outflows at the business reaching EUR33.8 billion.
Revenue at the group, however, rose 8.2% to EUR37.1 billion, driven by the P&C business, which had volume growth and higher pricing, the company said.
Allianz also confirmed its full-year outlook of operating profit of EUR13.4 billion, plus or minus EUR1 billion.
Write to Ed Frankl at edward.frankl@dowjones.com
