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Money Management

Allianz AUM increases 3.1% in quarter; PIMCO assets up 3.7%

Allianz SE's assets under management across all of its money management units grew 2.1% for the quarter and 4.8% for the year ended Dec. 31, to €1.96 trillion ($2.35 trillion), according to the company's full-year financial update.

The insurer's third-party AUM, run by Pacific Investment Management Co. and Allianz Global Investors, also grew, by 2.8% in the three months ended Dec. 31 and by 6.6% year-over-year, to €1.45 trillion.

Revenue across money management was €1.75 billion in the fourth quarter, vs. €1.55 billion for the third quarter, and €1.66 billion for the fourth quarter of 2016. Revenue for 2017 was €6.37 billion, vs. €6.02 billion in 2016.

Profit for the money management businesses in the quarter was €697 million, vs. €588 million for the previous quarter, and €642 million for the year-earlier quarter. Profit for 2017 was €2.44 billion, vs. €2.21 billion in 2016.

The higher profit was "mainly driven by increased average third-party assets under management at PIMCO and at Allianz Global Investors, which led to higher net fee and commission income," the financial update said.

Third-party net inflows totaled €44.5 billion for the fourth quarter, vs. €31.7 billion in the third quarter and €1.7 billion in the fourth quarter of 2016.

Full-year net inflows totaled €150.5 billion for 2017, vs. net outflows of €20.3 billion in 2016.

PIMCO's assets under management grew 3.7% over the quarter and 7.7% year-over-year to €1.12 trillion. Fourth-quarter net inflows for PIMCO were €43 billion, vs. €28.9 billion in net inflows for the third quarter; and €5.9 billion in net inflows in the fourth quarter of 2016. Net inflows in 2017 were €144.1 billion, vs. net outflows of €17.5 billion in 2016.

AllianzGI's AUM grew 1.2% in the three months ended Dec. 31, and 3.4% over the year, to €336 billion. Fourth-quarter net inflows for AllianzGI were €2 billion, vs. €2.7 billion in the third quarter, and net outflows of €4.2 billion for the fourth quarter of 2016. Net inflows totaled €6.3 billion in 2017, vs. net outflows of €2.8 billion in 2016.

"The year 2017 marked a milestone for the asset management segment," said Jacqueline Hunt, a member of Allianz's board of management, responsible for asset management and U.S. life insurance, in the update. "Third-party net inflows hit a record €150 billion for the year as customers were drawn to top-performing funds."