FRANKFURT, Feb 17 (Reuters) – Germany’s Allianz (ALVG.DE) on Friday swung to a fourth-quarter web revenue, rebounding after taking massive prices a yr earlier for a U.S. funds scandal and as the next funding margin boosted its life and medical insurance enterprise.
However its asset administration division – which incorporates bond large PIMCO – noticed decrease revenues and charges as whole property beneath administration dropped 18% in the course of the yr.
Its shares dropped 3.2% in morning commerce in Frankfurt, although analysts at DZ Financial institution, who fee the corporate a “purchase”, mentioned the outcomes have been total “good”.
The bounce-back in revenue marked a return to enterprise as standard for Allianz, which has been attempting to revive its status after certainly one of its funds models, Allianz International Buyers, was dogged with a fraud case in the US that resulted in $6 billion in settlements and fines in Might.
“Allianz has consolidated its place as one of many world’s largest, most resilient, and trusted international monetary establishments,” Chief Govt Officer Oliver Baete mentioned.
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Internet revenue attributable to shareholders of two.007 billion euros ($2.13 billion) within the three months by means of December compares with a lack of 292 million euros a yr earlier. Analysts had anticipated a web revenue of two.034 billion euros.
On prime of the $6 billion in fines and settlements introduced final yr, Allianz agreed to a responsible plea for its U.S. Allianz International Buyers (AGI) enterprise that oversaw the funds on the middle of the fraud. Allianz’s personal attorneys described the plea because the equal of a “dying penalty”, and AGI needed to shut its U.S. operations.
A world insurer, Allianz ranks as one of many world’s greatest cash managers, however its property beneath administration dropped 18% to 2.1 trillion euros in 2022 from 2021, figures on Friday confirmed.
Allianz mentioned the decline was primarily due to market developments, although outflows ensuing from the closure of its U.S. AGI enterprise additionally performed a task.
Asset administration was the one main division at Allianz that noticed a drop in 2022 working revenue from a yr earlier.
($1 = 0.9403 euros)
Reporting by Tom Sims and Alexander Huebner; modifying by Rachel Extra, Jacqueline Wong and Emelia Sithole-Matarise
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