Pimco helps Europe's largest insurer beat forecasts

Europe's largest insurer Allianz posted a strong second-quarter performance on Friday helped by the performance of Pimco, which saw 40 percent profit growth from the first quarter despite a hefty hit for its flagship fund in June.

Allianz, which has a controlling stake in the asset manager, reported a 27 percent rise in net profit to 1.6 billion euros ($2.12 billion) in the second quarter. The company was expected to report a quarterly net profit of 1.29 billion euros, according to a Reuters poll. Operating profit rose by 5.2 percent to 2.4 billion euros.

Investors pulled a record $9.6 billion from Bill Gross's Pimco Total Return Fund, the world's largest mutual fund, in June, Reuters reported, citing Morningstar data. The outflows came after investors became nervous over the prospects the Federal Reserve might start tapering its bond buying.

(Read more: Pimco flagship fund loses big on bond shock)

The group said its asset management business remained remained very strong despite high bond market volatility and a sudden uptick in key interest rates. The unit recorded net inflows and double-digit increases in operating profit for the quarter. Allianz Asset Management includes two separate investment management companies: Allianz Global Investors and Pimco.

(Read More: Bond fund outflows hit record on tapering fears)

"Our AUM (assets under management), despite all the debate about it, are holding up very well," Allianz CFO Dieter Wemmer told CNBC Europe's "Squawk Box".

"The net inflows in the second quarter were still 5 billion euros so it's still in total a positive net inflow number. I think most people are focusing too much on this top fund that Bill (Gross) is managing. Pimco is more than one fund," Wemmer said.

He said the group would benefit from rising interest rates

"When interest rates go up it will make our earnings in the life segment… mid-term better and easier. However, in this quarter, in the transition period, we had also some losses on our hedges because we as a risk manager are hedging more against falling interest rates than against rising interest rates," he said.

The group confirmed the top end of its full-year its goal of reaching operating profit of 9.2 billion euros this year.

"We are still in a volatile business...The second week in July started with another 200 million (euros) loss out of hail and storm in Germany so therefore we are prudent and careful insurers," Wemmer said.