By Ulrike Dauer
FRANKFURT-- Allianz SE on Friday reported higher second-quarter
profit despite continued weakness at its bond-fund manager Pacific
Investment Management Co., as its insurance business was lifted by
low claims payouts and a one-time disposal gain.
Europe's largest insurer by market value said it was on track to
reach the upper end of its full-year target range of operating
profit of between EUR10 billion ($10.9 billion) and EUR10.8
billion. After the first six months, it reached EUR5.70 billion of
that.
Quarterly net profit rose 15% to EUR2.02 billion from EUR1.76
billion in the same quarter a year ago. That was a clear beat of
the forecast EUR1.83 billion in a Dow Jones Newswires analyst
poll.
Operating profit--Allianz's main yardstick--rose 2.6% to EUR2.84
billion, falling short of the forecast rise to EUR2.92 billion as
the improvements in property and casualty insurance weren't enough
to offset the weaker contribution from its asset management and
life and health insurance operations.
Allianz had already said in May that it would book a EUR300
million gain in the second quarter on the sale of the retail
business of its U.S. insurer Fireman's Fund to ACE Ltd. (ACE). The
sale was closed in April.
Allianz's asset-management business includes the world's biggest
bond fund manager Pimco and smaller peer Allianz Global Investors.
Developments are being watched closely following last year's
turbulent management reshuffle at Pimco that culminated in the exit
of co-founder and chief investment officer Bill Gross in September.
Pimco's net asset outflows continue to drag on quarterly results,
though they have eased since the beginning of the year.
Write to Ulrike Dauer at ulrike.dauer@wsj.com
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