Allianz profit down; PIMCO outflows lowest in 2 years

Reuters with CNBC.com

German insurer Allianz posted a larger than expected 15 percent decline in net profit in the third quarter, hit by outflows in asset management and declines in insurance. 

Quarterly net profit was 1.4 billion euros ($1.5 billion), which was below the lowest forecast of 1.44 billion in a Reuters poll of banks and brokerages.

The logo of German insurer Allianz stands on the company's office buildings at Treptowers in Berlin, Germany.
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Analysts on average had forecasted a decline to 1.5 billion euros, from 1.6 billion in the year-earlier quarter.

Allianz nevertheless said it expected to arrive at the upper end of its full-year target for operating profit of 10.0 to 10.8 billion euros. 

The third quarter saw third-party net outflows in the Asset Management segment amount to 14.8 billion euros, compared to net outflows of 47.4 billion euros in the previous year's third quarter. 

Net outflows at PIMCO amounted to 16.0 billion euros in the third quarter while Allianz Global Investors recorded net inflows of 1.3 billion euros.

"Net outflows at PIMCO nearly halved compared to the previous quarter and have reached the lowest quarterly level since the start of net outflows in the third quarter of 2013," Allianz's Chief Financial Officer Dieter Wemmer said in the earnings release. 

"At Allianz Global Investors, third party net inflows continued for the eleventh consecutive quarter."

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