As­set man­age­ment re­vival pow­ers Al­lianz prof­its

Muscat Daily - - BUSINESS -

Frank­furt, Ger­many - Ger­man in­surer Al­lianz re­ported a big jump in net profit in the sec­ond quar­ter, as re­vi­talised as­set-man­age­ment ac­tiv­i­ties boosted its re­sult.

US as­set man­age­ment sub­sidiary Pimco was a ma­jor con­trib­u­tor to a € 55bn in­crease in funds man­aged by the firm be­tween April and June.

In a sign of re­cov­ery from a slump fol­low­ing the de­par­ture of found­ing chief ex­ec­u­tive Bill Gross in 2014, Pimco ac­counted for some € 33bn of net new funds in the firm’s cof­fers, € 19bn of them from a sin­gle client.

“Pimco has be­come a per­for­mance en­gine again,” fi­nance direc­tor Di­eter Wem­mer said in a state­ment.

In to­tal, third-party funds un­der man­age­ment at Al­lianz reached € 1.4tn.

That fig­ure was just € 3bn higher than in the first quar­ter, as the weaker dol­lar shrank the value of the port­fo­lio in euro terms.

Op­er­at­ing, or un­der­ly­ing profit from as­set man­age­ment alone gained 16.8 per cent to reach € 584mn across the whole group.

Al­lianz had an­nounced last week that net prof­its grew 83.4 per cent be­tween April and June, to € 2bn.

Op­er­at­ing profit added 23 per cent to reach € 2.9bn, on the back of rev­enues up two per cent at € 30bn.

Both the prop­erty and ca­su­alty in­sur­ance and the life and health in­sur­ance arms boosted their un­der­ly­ing prof­its, with lower claims help­ing prop­erty and ca­su­alty to 28 per cent growth.

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