Europe's biggest insurer Allianz expects its operating profit to be at the top of its target range this year, despite investor outflows at asset manager Pimco. Kirsty Basset reports.
Europe's largest insurer, Allianz, says it will hit its 2015 targets. It expects its operating profit to be at the top of the range - 10.8 billion euros, give or take 400 million, helped by low damage claims and asset sales. But its asset management business continues to suffer, as investors pull money from Pimco, which makes up more than a fifth of the company's profits. CIBC's Jeremy Stretch. (SOUNDBITE)(ENGLISH) HEAD OF FX STRATEGY AT CIBC, JEREMY STRETCH, SAYING: "PIMCO has been a little bit of a headache for Allianz over the course of the last year or two because of course we've seen substantial net outflows from the key managed funds." Third party investors pulled 29.3 billion euros in funds from Pimco in the second quarter. Last year the company saw record outflows, and the shock departure of its leader Bill Gross, known as the 'Bond King.' But CEO Oliver Baete says the situation is better than results suggest - and expects to see improvements soon. (SOUNDBITE)(ENGLISH) HEAD OF FX STRATEGY AT CIBC, JEREMY STRETCH, SAYING: "The company are clearly mindful that that outflow is starting to be stemmed, and there is some sign perhaps that the bottom has been reached." The firm is also focussing on stabilising its management team and improving investment performance. Quarterly net profit was just over 2 billion euros, above an average estimate of 1.79 billion.