Allianz’s Pimco posts first inflows since 2013

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Operating profit, the German insurer’s main yardstick, rose 18% to €2.90 billion ($ 3.16 billion), well above analysts’ forecast of €2.57 billion. This was driven by a 53% boost in the life and health insurance business, which Allianz mainly attributed to higher business margins in the US and France.

Allianz shares opened 4.1% higher Friday. One trader called the figures “brilliant” as they substantially beat forecasts and, most importantly, because of the trend reversal at Pimco.

Investors will cheer improvements at Pimco as it attempts to recover after the management shake-up that culminated in the departure of co-founder and chief investment officer Bill Gross in September 2014. Pimco’s funds, including the flagship Total Return fund, have suffered substantial net asset outflows, and investors have been waiting for convincing signs that the outflows haven’t only stopped but have also been reversed.

In the third quarter, Pimco saw its first third-party net inflows since the second quarter of 2013, Allianz said. Pimco’s net asset inflows amounted to €4.7 billion between July and September, compared with €16 billion in net outflows a year earlier.

Overall, Allianz’s asset management business, which also includes the smaller Allianz Global Investors unit, contributed €604 million to quarterly operating profit, a small rise from €600 million, and beating analysts’ forecast of a decline to €566 million.

Allianz’s net profit in the quarter ended Sept. 30 rose to €1.86 billion from €1.36 billion a year earlier. Analysts, according to a poll by The Wall Street Journal, had expected a profit of €1.56 billion, on average. Revenue rose 0.5% to €27.7 billion.

Europe’s biggest insurer by market value maintained its full-year operating profit guidance. It still expects operating profit of €10 billion to €11 billion for the full year.

Write to Ulrike Dauer at ulrike.dauer@wsj.com

This article was first published by The Wall Street Journal

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