Allianz, the German financial services and insurance group, has revealed that operating profit at its asset management arm fell 26 per cent, driven largely by net outflows of €21.7 billion from its PIMCO subsidiary.

Allianz, the German financial services and insurance group, has revealed that operating profit at its asset management arm fell 26 per cent, driven largely by net outflows of €21.7 billion ($29.7 billion) from its PIMCO subsidiary.

Operating profit in asset management reached €646 million in the first quarter, down from €877 million in the first three months of 2013, after the transfer of entities to other business segments, Allianz said in a statement.

Meanwhile Allianz Global Investors saw net inflows over the same period of €1.9 billion.

Total assets under management rose 1.6 percent to €1.765 trillion at the end of the first quarter of 2014 from €1.738 trillion at the start of 2014. Over the same period, third-party assets under management grew 1.0 per cent to €1.342 trillion.

The development in assets under management was supported by market value increases, which outweighed third-party net outflows of €19.8 billion in the first quarter.

Allianz said that it achieved highest total quarterly revenues in the company’s history of €33.96 billion, while overall group operating profit reached €2.72 billion, 2.6 percent below the previous year’s record figure of €2.8 billion. 

“As expected, the results in asset management came in lower, but the business is in line with our target for the year. Given its solid performance and the outperformance of both of our insurance segments, we remain on track to achieve our operating profit outlook for the full year of €10 billion, plus/minus €500 million,” said chief financial officer Dieter Wemmer.