Allianz AG Holding reported €1.2 billion (US$1.29 billion) in net income in the first quarter, up almost 33% from the previous quarter, helped by strong growth in its pension and asset management business, according to the company's quarterly earnings report.
Allianz Global Investors, the German insurer's asset management division, reported €1.13 billion in assets under management as of March 31, up 5.9% over the quarter ended Dec. 31. About 55% of total assets under management are run for external clients; as of March 31, external client assets totaled €624 million, up 6.7% from €585 million on Dec. 31. About three-quarters (76%) of third-party assets globally were managed in fixed income, and nearly half (49%) of total assets were managed in fixed income for institutional investors, according to the company. Of the remaining third-party assets, 22% were managed in equities, and about 11% of total assets were managed in equities for institutional investors. The asset management division had net inflows of €17 billion during the quarter, "driven by PIMCO," a unit of Allianz Global, according to materials presented to analysts and shareholders today in the company's Munich headquarters. Neither Oliver Schmidt, a spokesman for Allianz, nor Mark Porterfield, a PIMCO spokesman, returned phone calls seeking more information about PIMCO's contribution.
Derek Chambers, Standard & Poor's London-based equity analyst who covers Allianz, put a "hold" rating on Allianz in his May 7 report. He said Allianz reduced risk by improving its capital position but is likely to have "very modest top-line growth, particularly in its insurance business." However, Mr. Chambers said he sees "increased profit contributions with lower costs ratios from both asset management and banking after these operations became profitable in 2004."
Allianz Global Investors' quarterly net income was e28 million, compared with a net loss of e107 million during first quarter 2004, according to data from Allianz contained in materials presented to analysts today.