Allianz said Wednesday that first-quarter net profit fell 4% as
a weaker contribution to earnings from its asset management
business outweighed falling claims costs and revenue gains.
Net profit fell to EUR1.64 billion ($2.25 billion) from EUR1.71
billion a year earlier. Revenue was up 6% at EUR34 billion from
EUR32 billion in the first quarter of 2013.
Overall operating profit was down 2.6% at EUR2.72 billion from
EUR2.80 billion. The decline was due mainly to its asset management
business, where operating profit dropped 28% to EUR646 million from
EUR900 million as a result of lower revenue, forex losses and the
absence of one-off performance fees following a fund closure a year
ago.
Allianz Chief Executive Michael Diekmann last week guided for
lower quarterly operating profit, saying high performance fees
related to the closure of a Pimco private fund that boosted the
asset management business in the first quarter of 2013 wouldn't be
repeated this year. In the first quarter of 2013, Allianz had
booked EUR276 million in performance fees in asset management. The
figure was only EUR19 million in the first quarter of this
year.
In addition, Allianz transferred some entities from asset
management to other areas. This contributed to lower revenue and
operating profit while adding EUR26 million to first-quarter
operating profit in its life and health insurance business. The
falling value of the U.S. dollar against the euro also weighed on
the asset management results, Allianz said.
The figures are exactly in line with the small set of
first-quarter earnings that Europe's biggest primary insurer by
market value released a week ago, ahead of its annual shareholder
meeting. Allianz also said first-quarter results put it on track
for its full-year operating profit target.
Write to Ulrike Dauer at ulrike.dauer@wsj.com
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